E-commerce versus traditional shopping
You can’t ignore Amazon’s 95,000,000 monthly visitors. And you can’t ignore the fact that 95% of Americans shop or will shop at Walmart. E-commerce is expected to grow 200% over the next five years. It’s grown 38% in the last three months in the US alone, compared to Walmart’s online rate of just 11%. Macys, Sears and Walmart are closing stores, citing competition from Amazon as a major factor in declining sales. However, Nordstrom has risen to the challenge, 25% of their business is online, and they have set the benchmark for other traditional retailers to follow. E-commerce is an opportunity, not a threat, it is not a passing trend and it is here to stay. The number of people venturing into stores to touch and feel is shrinking. Transportation costs and parking fees continue to rise and access becomes slower. Antisocial behavior in and around cities and shopping malls continues to worsen, all of these factors are driving more and more customers online.
Amazon has taken another gigantic step by buying a chain of traditional supermarkets for an estimated value of 34,000 million. The only reason for this decision is to improve the online grocery service by guaranteeing delivery within two hours. Groceries will be delivered to the closest store based on zip code. In addition to this brave move, they are testing a checkout supermarket in Seattle, after the technology has been tested and perfected, Amazon will roll it out to all stores. Rather than take on well-established competition, they have used innovation to push them beyond any competition. Another example is Elon Musk; His fearless approach to the future through technology has opened new doors for consumers. Your electronic cars will have a dramatic effect on traditional gasoline vehicles. We need to break the shackles of the “if it ain’t broke, don’t fix it” mentality.
When it comes to e-commerce, Australia is over a decade back and it will take them another decade to catch up. Many local brands have come into management in the last two years, Herringbone, Marcs, David Lawrence, Rhodes and Becket, Oroton. British retailers Giant, Top Shop and Top Man failed and after two years of poor operations closed their doors. The two and only department stores are battling competition online. Shares in Myer have fallen from $ 4.00 to 53 cents in four years and David Jones shares have dropped 45% in three years. Myer’s online business is less than 1% and David Jones is currently at 2.6%. Both online stores are clunky, uncomfortable to navigate, and out of date and the delivery times are longer than the delivery times of stores in the US and UK. The general rule of thumb is that at least 10% of your retail business should be online. Both are focused on the competition and imitate each other. There are no signs of innovation, just one sale after another; They have become a bargain basement style. Recently, Textile Traders announced that it will close all stores and trade exclusively online, similarly, Airflex will close all stores except flagship stores and focus more attention online. And finally, let’s be honest, service standards in Australian department stores are way below average. Lack of staff, poorly trained, poorly paid, and managed under an archaic hierarchy mindset. You can also put a large sign in the window that says buy online
A customer in Australia can purchase $ 1,000 worth of items from Nordstrom in the US and have them delivered to the door within 5 days; You pay no duty or tax, and you get a lot more for a lot less. Shop online at Amazon and the options are endless and the service is just amazing. The psychology behind online shopping is that there are no human barriers to dealing with you, just choose, click and pay and wait for the surprise.
So what are your options? drive to the local mall, find thirty minutes for a parking spot that will probably cost you around $ 25.00, argue with your wife, be served by a pushy salesman and commissioned with no knowledge of the product. More than half the day has passed and it has been a waste of time. We have all had this kind of unpleasant experience. Now you can save a lot of time and money by shopping online and use the time and money you have saved to take your family out for a nice lunch and some quality time together.