Adapting to the ‘new normal’ - eCommerce 101

No longer can any business afford to not have a digital selling component or customer interaction to their business. The hardware industry has seen an update in the eCommerce space in the last few years, with a growing number of eCommerce platforms appearing from various franchise groups and suppliers/wholesalers. There has never been a better time to get onboard with eCommerce. DIY Trade News spoke with retailers and suppliers in the industry to hear their questions on eCommerce. Alichia Mentz, marketing and eCommerce manager at Agrinet, and Kevin Clark, managing director at Vaimo, answer them. eCommerce all over the world has been sighted as one of the fastest growing sectors, and in South Africa, this is also the case. With the dawn of a new Covid-19 world, with social distancing and working from home realities, eCommerce’s growth has seen a monumental shift.

Agrinet launched its first B2B eCommerce store back in 1995 but reinvented its offering after moving across to a world-class platform in 2018. The new platform, developed in partnership with Vaimo, won the Marketing Achievement Award for B2B Brand Excellence in 2019 which is awarded based on effectiveness, strategy and impact on the overall business.

Vaimo is one of the world’s most respected experts in digital commerce on the Magento and Adobe Commerce Cloud platform globally. Locally this team has been an integral part in some of the largest eCommerce stores and also industry related stores for Agrinet, Leroy Merlin, BUCO and Chamberlains.

What is e-commerce?

eCommerce has quickly evolved over the past few years to be much more than a single online channel or online store. At Vaimo the preferred term is Digital Commerce over e-commerce. Similar to modern commerce solutions, digital commerce is not bound to a strict single channel environment but encompasses and brings together multiple channels of customer interaction.

Think about your daily life and how digital interactions, or what is also referred to as touchpoints, are now interwoven seamlessly into your routine at home and at work, bringing instant satisfaction and never-before-seen convenience. Digital commerce seeks to reach the consumer at as many of these touchpoints as possible (think social media, email, browsers etc) guide the consumer through a great customer journey, which will ultimately convert into sales. eCommerce seeks to own the user journey and create the best possible customer experience from discovery to delivery. Behind this buying process sits the real muscle of eCommerce – the evolution of day-to-day business processes, automation, integrations, logistics and the pursuit of data quality (customer, product and order data).

Why does my brick and mortar business need to move online when it has been doing well up to now?

In short, futureproofing. Consumer’s behaviours are changing and many have already changed. In South Africa consumers are becoming more and more comfortable with buying online, but we also know that many consumers use eCommerce primarily to do online research, compare products and prices from the convenience of their own homes. This type of considered buying behaviour will be even more prevalent in the current pandemic reality, where cash-strapped and uncertain consumers will be hyper cautious about how they spend their hard-earned money. In the US it is estimated that 12 000 retail stores will close in 2020 due to consumer behaviour shifting to an eCommerce buying preference. Having an online presence and information readily available also boosts confidence in your brand.

The competitor field is changing, not only are direct competitors moving online, indirect competitors are growing and eating market share such as gigantic platforms such as Takealot, online-only retailers or niche online stores. Geographical boundaries are also no longer as strong a safeguard for your market as it once was. This leads to the next point, expansion. With digital expansion and reach into new markets is quicker and not limited to the neighbourhood of your brick and mortar store or factory. Scaling online happens faster, which helps with product launches, promotions etc.

What are the advantages of e-commerce over my brick and mortar store?

E-commerce allows for a shopping channel available to your consumers 24 hours a day, 365 days of the year. Your online store does not take vacations, call in sick or take family responsibility leave. It is a sales channel that is always on, which if managed by Vaimo, is constantly on and attracting more customers and by extension ROI. Your eCommerce store is not limited to floor or shelf space, which allows you to sell comprehensive ranges, even if they are not in stock. This creates value to end-users and is also a reason why mega platform like Takealot do so well. Scalability is much easier to do online. One platform, with the same number of support staff, can exponentially increase your turnover, unlike a brick and mortar store, which needs to expand in terms of floor space, staff compliments, etc. Agrinet eCommerce has helped them showcase their large range in a more user-friendly way for buyers. It is easier to find, compare and select product ranges with the powerful buying tools online.

How secure are online payments and how do I guarantee safe payment for my customer?

Online payments have come a long way in the past few years. Payment gateways are now safer, easier to use and smarter than before. There are many payment gateways to choose from locally, and this has become a more mature space with more competitors and options to e-tailers. eCommerce has been sighted as a growth segment for the banking and card industries, which means that safe payments online has enjoyed billions in investment the last few years.

It is also apt to note that consumers are also now savvier and more educated on safe online shopping, and they understand to look out for SSL certificates, spoofing etc. This said, there is always a risk but it has never been safer to order online.

How do I manage orders, deliveries and returns when dealing with online customers?

First step is to map out a process that is either integrated into your existing SOP, or a newly developed process. It is highly recommended to have at least one person that is dedicated to online, as speed of delivery is a key customer experience factor.

Below are a few pointers to keep in mind:

• Ensure your delivery, returns policies and procedures are clear, accessible and easy to follow online • Deliveries: Decide whether you would like to handle your own deliveries vs couriers vs combination of these options • Partner with a reputable third party logistics provider • Delivery times should be communicated up-front as much as possible • Communicate order status to customers at all times through tracking and automated systemdriven messaging for instant updates. Here automation and integration is important • In terms of Returns: Develop an online RMA to make it easier for customer returns management authorisation. Best practice is to develop an automated online experience that make it easy • Decide on the type of returns you would like to implement. This includes return product, replace product or offer a credit note/voucher etc.

What else should I know about e-commerce?

• eCommerce is not a quick and easy solution, and will require upfront planning, investment and restructuring to work. This said, once the systems, suppliers, platforms and eco-system has been put in place, the focus will need to shift to digital marketing and driving traffic to the store • Building an online store without planning to promote the store with marketing or advertising, is like building a brick and mortar store in the middle of the desert • Get familiar with terms such as social media, AdWords, SEO, inbound and content marketing • The big drive now with eCommerce as well is mobile first. All eCommerce stores, especially enduser facing ones, need to work the same if not better on mobile devices as they do on desktops. Okay, so I need an online store. How do I move forward and get it set up? So, we’ve convinced you online is the way to go.

Below are a few steps to get you started with setting up your online store:

• Establish your capital investment and operational cost budget • Find a suitable platform / tool / technology that meets your budget ie Magento • Take your time to qualify and partner with the right solution partner. Evaluate partners based on your budget, track record, maturity and culture fit • Pioneer operational processes and systems architecture. Determine how do you want to handle this operationally inside your business. Build from there.

To be continued in the next issue…