James Blog

E Retailing can't always fill the basket

You know, there has been a lot of talk lately about online shopping, the impact it is having on bricks and mortar retailers and the number of consumers shopping all over the world from the comfort of their lounge rooms.

This may well be the truth, and in fact I know quite a few people that shop online for a variety of items ranging from shoes and clothing to gifts and food. Amongst the people I know, they mostly shop online for clothing where there appears to be significant savings for the consumer. But I must say, I find it amusing when a pair of shoes have been ordered and the purchaser discovers they don't fit. Most of the time they don't bother returning them. They simply pass them onto a friend.

Electronics is another item that we often see advertised on line and even Gerry Harvey from Harvey Norman has joined the ranks of Online Merchants. He seems to have given up the fight against them and decided better to join them. Good retailers need an online presence more than ever now. Even if it is a FaceBook page to start with so you can communicate with your customers about specials and local events. Making an effort now to start an online presence may seem like a hassle, but it will pay off down the road as you learn to combine good physical and online retailing to meet the growing and changing demands of tomorrows consumer.

From my observations there are certainly some bargains to be had by shopping or comparing items online, but when it comes to technology products the perceived savings are just that... precieved !

Yes, you can find a product for about 10% to 20% cheaper on an online shop, but once you factor in freight and handling costs, credit card charges, and worst still, the wait for your brand new purchase to arrive on your door step (or at the post office for collection) then suddenly that online bargain isn't all it was cracked up to be.

All too often the product may arrive and prove to be not quite what was expected. Or items end up being out of stock and take weeks to arrive.

Don't get me wrong. Online Merchants will continue to grow, and some will service and prosper and others will disappear as quickly as they arrived. Just like good and bad retailers today in shopping centres or on strip shops. The good retailers prosper while the bad ones complain.

I still believe that the bricks and mortar retailer has a strong place in our society, offering consumers instant cratification, competitive pricing, expert advice and a personal touch that cannot be enjoyed while shopping online.

The trick is retailers need to continue to improve their level of service and range of products. It's the personal touch and service that will win shoppers. Everyone likes to feel good about themselves and the decisions they make;  and a good retailer ensures that feeling takes place inside their bricks and mortar business.

If you have some thoughts about online versus bricks and mortar, I would love to hear from you.