Sector Focus: Software | 75
LEFT BEHIND DON’T BE
Chris Fisher, vice-president of operations (EMEA), LBMH division at ECI Software Solutions, explains the importance of ecommerce
In an era defined by technological advancements and shifting consumer behaviours, timber, home, and building supply retailers must embrace ecommerce to thrive in the competitive retail landscape. In fact, a 2019 report from Business
Insider predicted that 90% of retailers will adopt click-and-collect by 2024. When you make online ordering available to your customers you reap a variety of benefits, including expanded customer reach, improved operational efficiency, and increased revenue opportunities.
The UK has witnessed a substantial growth in online retail sales in recent years. According to LEK Consulting, 40%-60% of building products orders are placed online, and 80% of contractors and tradespeople regularly use their smartphones for product research. By embracing ecommerce, timber, home, and building supply retailers can tap into this booming online market and capitalise on the growing preference for digital shopping.
Implementing ecommerce platforms enables retailers to transcend physical boundaries and reach customers nationwide. With an effective ecommerce solution, timber, home, and building supply retailers can showcase their products, offer detailed descriptions, and
engage customers through compelling visuals. This increased visibility and accessibility drive engagement – attracting new customers and fostering brand loyalty.
CONVENIENCE FOR CUSTOMERS The convenience factor plays a significant role in shaping consumer buying decisions. Ecommerce platforms empower customers to browse and purchase supplies at any time, from any location. According to a survey conducted by PwC, about 43% of customers would pay more for greater convenience. By implementing ecommerce, retailers cater to the evolving demands of their customers, providing a seamless shopping experience that translates into increased sales. Offering click-and-collect as part of your ecommerce strategy not only greatly improves customer convenience, but also increases foot traffic in your store. Think about it – if a contractor places an order for collection at your store and realises they need a few additional rolls of tape, they’re already headed to your store and likely to purchase from you. A recent Risk & Reward report from Signifyd revealed that 37.6% of respondents say the biggest boost from click-and-collect is the additional purchases consumers make when they arrive to pick up their orders.
CROSS-SELLING AND UPSELLING: Ecommerce platforms offer intelligent features that enable retailers to implement effective cross-selling and upselling strategies. By analysing customer browsing and purchase history, retailers can recommend complementary products or suggest higher- end alternatives, increasing the average order value. According to McKinsey, personalisation and recommendations can generate up to a 40% total revenue increase for retailers who offer products online. Implementing ecommerce equips timber, home, and building supply retailers with the tools to capitalise on such revenue-boosting techniques.
STREAMLINED INVENTORY MANAGEMENT
Managing inventory efficiently is crucial for any retail business. Ecommerce platforms provide automated inventory management systems, enabling retailers to track stock levels in real-time, optimise product availability, and avoid stockouts. This level of visibility and control minimises the risk of overstocking or understocking, resulting in improved inventory turnover rates and reduced carrying costs. Moreover, accurate inventory management enhances order fulfilment speed, ensuring timely delivery and customer satisfaction.
When assessing options for a potential ecommerce solution, it is important to know how that solution will (or will not) sync information with your core business management software. Choosing an ecommerce solution that fully integrates with your existing software is crucial – inventory tracking is one of the most important digital functions for any timber, home, and building supply retailer, so you’ll want to be sure every sale is tracked and synced instantly, whether it is made in-store or online.
Above: Digital shopping is on the increase
Ecommerce platforms generate valuable data and insights that can fuel business growth. Retailers can analyse customer behaviour, purchase patterns, and market trends to inform marketing strategies and future product assortment decisions. ■
www.ttjonline.com | July/August 2023 | TTJ
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