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Future of Online Retail

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What's in store for the future of online retail? …

What's in store for the future of online retail?

In a world starved for growth, online retail is a bright spot: the industry is projected to grow 62% overall in the next couple of years. At the same time, no growth spurt comes without growing pains, and the smartest retailers know that the playing field will continue to change.

WisePricer has identified five key concepts that the best e-­‐retailers already know and practice.

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  • 1. The  New  Rules   What  the  Winners  of  Online  Retail   Already  Know  
  • 2. #FutureOf  Online  Retail     In  a  world  starved  for  growth,  online  retail  is  a  bright  spot:  the  industry  is  projected  to   grow  13%  in  2013  alone,  and  to  grow  62%  overall  in  the  next  couple  of  years.  At  the   same  Hme,  no  growth  spurt  comes  without  growing  pains,  and  the  smartest  retailers   know  that  the  playing  field  will  conHnue  to  change.       We  have  idenHfied  five  key  concepts  that  the  best  e-­‐retailers  already  know  and  pracHce.        1.  Finding  a  Niche      2.  CompeHtor  Monitoring      3.  Data  IntegraHon      4.  Pricing  Strategy      5.  Dynamic  Pricing  
  • 3. Online  shopping  has  become  a  ubiquitous  part  of   many  consumers’  lives  and  in  many  ways,  online   retail  has  become  a  subs;tute  for  brick-­‐and-­‐mortar   retail,  rather  than  just  a  supplement.    
  • 4. More  marketplaces,  richer  websites  and  more   selling  channels  have  made  it  more  compe;;ve   than  ever  before.       Pricing  has  become  the  last  line  of  defense  for   many  e-­‐retailers,  but  with  a  more  complicated   and  saturated  marketplace,  it  has  become  nearly   impossible  for  e-­‐retailers  to  manually  monitor   product  prices  and  compe;tors  across  channels.       The  barriers  to  entry  in  e-­‐retail  have  never  been   lower.  Fundamentally,  the  rules  of  the   eCommerce  game  have  changed.      
  • 5. Specialize  and  stand  out.       It’s  no  longer  “special”  to  sell  products  online.   eCommerce  is  a  textbook  example  of  perfectly   compe;;ve  markets.  The  industry  has  low   barriers  to  entry  and  many  small  players  selling   uniform,  standardized  products.       Consumers  are  in  the  driver’s  seat  and  pricing   follows  their  preferences.  In  order  to  survive  in   such  a  market,  you  need  to  carve  out  your   niche  and  create  your  own  “submarket”.  By   specializing,  you  insulate  yourself  from  price   compe;;on.      
  • 6. You  must  constantly  track  compe;tors  in   order  to  have  an  accurate  idea  of  what   the  compe;;on  looks  like,  and  to   effec;vely  respond.         Today,  price  fluctua;ons  change  every   day.  Retailers  have  started  to  demand   beOer  data  analysis  and  capture  tools.   Automated  repricing  tools  allow  retailers   to  respond  immediately  to  pricing   changes  in  the  market,  making  the   manual  approach  to  tracking  dynamic   markets  a  thing  of  the  past.         Consequently,  it’s  no  longer  possible  to   compete  in  eCommerce  without  on-­‐ demand,  dynamic  pricing  data.  So  arm   yourself  with  the  weapon  of  pricing   knowledge  and  invest  in  a  pricing   intelligence  solu;on  that  is  right  for  you.    
  • 7. As  an  e-­‐retailer,  you  have  the  advantage  of  having  all  your  data  in  digital  form  already.   The  next  step  is  to  look  at  it  holis;cally—integrate  it  into  a  complete,  objec;ve  view  of   your  business—and  use  it  to  analyze  what  can  be  improved  upon.       Track  and  u;lize  data  for:     ²  Consumer  Insights   ²  Tracking  Opera;onal  Efficiency   ²  Inventory  Management   ²  Sales  Forecas;ng   ²  Improving  Promo;onal  Targe;ng   ²  Develop  Channel-­‐specific  Strategies   ²  Compe;;ve  Pricing  Intelligence   ²  And  more     Leverage  the  integrated  data  to  capture  a  greater  overall  market  share.      
  • 8. Keep  a  cool  head.     Pick  a  price  strategy  that  works   with  the  kind  of  product  you  are   selling.  The  prices  you  set  for   your  products  should  be   informed  by:       ²  Market  prices   ²  Consumers’  price  tolerance   ²  Supply  chain  capacity     Use  an  overarching  strategy  to   guide  your  compe;;ve  plan  and   layer  addi;onal  strategies  for   maximum  compe;;ve  flexibility.      
  • 9. Major  retailers  with  an  online  presence  already  u;lize  dynamic  pricing  strategies  to   capture  more  market  share.  Un;l  recently,  dynamic  pricing  remained  the  domain  of  big   retailers  like  Amazon,  who  had  the  budgets  to  create  pricing  tools  in-­‐house.  Moreover,  a   lack  of  good,  quality  data  and  pricing  exper;se  barred  most  retailers  from  using  dynamic   pricing  tools.         But  that  was  five  years  ago.  Now,  dynamic  pricing  solu;ons  at  mul;ple  price  points  exist,   opening  up  opportuni;es  for  smaller  retailers  to  start  integra;ng  dynamic  pricing  into   their  overall  pricing  strategy.         Dynamic  pricing  can  be  performance  or  compeDDon-­‐based.  You  will  know  when  to   lower  or  raise  your  prices  if  you  carefully  watch  your  internal  performance  and  your   compe;tors’  movements.  This  is  where  proac;ve  price  monitoring  is  important—it   allows  you  to  respond  to  compe;;on  in  real-­‐;me.        
  • 10. About  WisePricer       WisePricer  is  a  dynamic  pricing  &  merchandising  engine  that  monitors,  analyzes   and  reprices  products  in  real-­‐Hme.  With  features  like  automated  repricing,   customizable  rules  and  seamless  syncing,  WisePricer  makes  it  easier  for  retailers   to  beat  their  compeHHon  and  increase  sales  and  profits.       Download  the  complete  whitepaper  at  wisepricer.com/successkit     Check  out  our  blog  for  more  ;ps,  trends,  and  strategies  on  all  things  ecommerce   blog.wisepricer.com    

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