Successful small brick and mortar retailers use online sales to leverage their expertise and expand their customer base
While Amazon’s metastasis
A study recently published by the Data Catalyst Institute found that small and medium-sized retailers have been able to harness technology and the Internet to their advantage. A survey of 2,000 small and medium-sized retailers asked, among other things, how they reach their customers.
He found that most of them, including existing retailers, easily use the internet to find and retain customers, and with significant success, which has helped small retailers continue to compete in a crowded market. The brick-and-mortar retailer’s obituary needs to be shelved a little longer.
Almost 80 percent of survey respondents reported having a brick and mortar retail establishment; almost identical amount also said they also do a minimum of wholesale. In an age when consumers are learning the importance of supply chains and that they may not be as strong as we’ve always assumed, the fact that traditional retail and wholesale services continue to grow. playing an important role is revealing.
But these are far from the only methods by which small retailers reach customers. Almost 70% of those surveyed said they had their own online store and 70% also said they had participated in a third-party online marketplace to get sales, like Amazon Marketplace, etsy or Ebay. It is telling that Target Plus and Walmart Marketplace have also seen their market usage skyrocket during the pandemic.
Of course, none of these sites are mutually exclusive, and the typical retailer interviewed uses all of these methods, plus one or two others, such as social media. Retailers surveyed indicated that these four methods also accounted for the majority of revenue: brick-and-mortar store revenue is just under a quarter of the average business’s revenue, while online marketplaces and online stores account for 35 % of all income.
The survey also found that 72 percent of these small and medium-sized retailers make almost half of their income online. In other words, one way to look at it is that the internet is effectively empowering small physical retailers by allowing them to reach more customers with their existing infrastructure.
The survey results go against the conventional wisdom that bigger is better, or that small businesses are increasingly disadvantaged in the changing retail environment: so that Amazon can increase sales quickly, small entrepreneurial businesses have been able to harness some of the same tools. that Amazon uses (sometimes the same tool, Amazon’s marketplace) to increase sales as well, and we might want to wait before writing the epitaph for the small US retailer.
What’s particularly interesting is that even small and medium-sized retailers who use the Amazon Marketplace seem to be savvy enough not to put all of their eggs in one basket with the company: the average respondent who uses the Marketplace. Amazon uses five or more selling methods. to reach customers.
The incisive book of William Lewis in 2004 The power of productivity have shown that the retail sector of the economy serves as a primary catalyst for a country’s productivity growth, which ultimately determines its standard of living. Many countries have taken extreme measures to protect their small retailers from competition, in recognition of their collective political power, or simply to protect what they see as a fundamental part of their country’s heritage.
The Data Catalyst Institute survey reveals that small and medium-sized retailers have shown the ability to compete and thrive in today’s retail environment, even post-pandemic, and that the internet and Online markets are not a threat but an essential tool for their continued growth.