Cloud POS is expected to grow 22.7% annually from 2018 to 2023
But what are the benefits of having cloud technology in your retail space?
3 Key Benefits of Cloud POS for Retailers
1) The ability to sell and operate from anywhere
Web-based POS solutions store data in the cloud which makes them available around the clock for authorized users to pull reports or manage inventory right from the comfort of home or while on a business trip. In comparison, traditional, installed software requires managers to be on-site in order to gain access to important business information such as sales and inventory reports.
With a well-designed cloud POS system, retailers also have the advantage of running their POS software on any hardware from iPads to Windows computers. This flexibility means that retailers are not tied to a specific operating platform. Retailers using traditional POS software and are looking to make the switch to cloud, can do so easily with their existing hardware.
2) Reduced Ongoing Costs
In the long-term, cloud POS software is more cost-efficient than traditional software. This is due to the elimination of many hidden ongoing maintenance costs associated with installed software. In comparison, cloud-based POS solutions requires minimal upfront investment, have little to no downtime during updates, and reduce the amount of in-house technical support and post-sales support required.
3) Access to Real-Time Business Information
Cloud POS software also comes with the benefit of easier access to real-time information. In other words, inventory and sales data is updated as products are received or sold rather than every few hours or daily. If used well, more timely data can help to eliminate significant inventory costs by minimizing stock-outs or overstocking slow sellers. This is particularly important for retail businesses that have multiple locations where consolidated sales and inventory data is critical to purchasing decisions. At the same time, a well-designed cloud POS software will have real-time marketing integrations that help drive more local traffic to your retail store.
Every so often, retailers are affected by things out of their control such as recession, inflation, seasonal natural disasters and pandemics (just to name a few). One of our customers had a huge setback when a large truck crashed into their storefront because of black ice. Bottom line is, you always have to be ready for surprises. Without the right precautions in place, this could put a huge strain on your businesses and could lead to closure. In an uncertain world, we want to make sure you have the right tools to manage your store so we have put together a few tips below to help you stay resilient through any unforeseeable events.
Conduct a physical inventory count to verify inventory amounts. Record any losses of inventory that are damaged, or expired, or spoiled. You’ll want to make sure that the inventory you have counted matches stock levels in your POS or inventory management system.
Review your inventory to decide what needs to be discounted and promoted immediately to bring in cash flow and to minimize the losses from your most outdated stock.
Contact your suppliers and vendors to get an update on order lead times and ensure accurate delivery schedules. You don’t want to sell what you can’t fulfill.
Use new hiring tactics. Write engaging job descriptions, promise of more hours, and offer a rewards-based incentive program so that your staff can stay invested with the success of your store.
Review loss prevention and security policies with employees. Don’t forget to review your POS access rights to make sure the staff permissions are still accurate.
Retail Store Exterior and Interior
Regularly make sure that the storefront is clean by washing windows and doors, and cleaning high-traffic areas thoroughly.
Have the store’s new merchandising plan and products tags ready for staff. Ensure that all of your staff are informed of any new changes and are scheduled to help display stock before you open.
Place promotional signage around the store.
Retail Operations Management
Organize back office tasks: Review your fulfillment processes as cashiers need to have easy access to product or curbside orders at the front of the store to minimize their walking around the store.
Review receipt management procedures and train staff to put receipts directly into shopping bags instead of handing them to customers or ask customers if they want an email receipt instead. Remember that privacy regulations require that you get positive customer consent to save their emails for future use so an email marketing tool to capture consent that will allow customers to unsubscribe themselves.
Enable staggered pickup times. Requiring customers to make an appointment to pick up their purchases to avoid huge lineups outside of your store. E-commerce providers such as TAKU eCommerce allow customers to choose a pickup time and date at checkout. Alternatively, you can use apps such as Eventbrite, Calendly or Acuity Scheduling, many of which are free for a single store account.
Security, Technology, and Utilities
Ensure that your utilities are working properly:This includesheating, ventilation, and air-conditioning (HVAC), phone, internet, electricity, and plumbing etc. If any of your utilities were disconnected while you were closed, it’s a good idea to call the utility companies to make sure they are working before you re-open.
Check all surveillance and security cameras to make sure they are working properly.
Ensure alarm systems are working and consider updating alarm codes if needed.
Verify that your retail POS system, credit card terminals, and scannersare ready to process sales. Before opening, ring in a test sale to make sure your POS is good to go.
Make sure that your payment terminal (PIN pad) is capable of accepting contactless payments. Know what your contactless limits are and increase them if you are comfortable with the higher risk (contactless “tap” payments are subject to chargebacks).
Health and Safety Measures
Appoint a health & safety representative in your team. It is important to implement rules and regulations that comply with local laws and to ensure that employees and customers feel comfortable and safe in your retail store.
Make hand-sanitizer available to customers.
Adjust your store hours:Shorten your opening hours to help staff keep up with the extra cleaning required and to give them adequate time to replenish stock.
Let people know that you take orders online – TAKU helps retailers showcase their products 24/7 online and accepts payments easily and quickly (read more here). Fulfill orders in-store and allow customers to schedule a pickup time so that customers can pop in to pick up their items without the stress of long wait times or lineups.
Update Google My Business. Update your Google My Business listing and let customers know you are open for curbside pickup or delivery. Remember to adjust your hours of operation on your listing if you decide to shorten your store hours!
Get added to local directories. Add your business to local directory listings (Bing, Yahoo etc.) to make it easier for shoppers to find you online. Support Retail is one of our favorite directories and was created during the COVID-19 pandemic as a free tool to help connect local businesses to shoppers in the area. Being featured on local directories with links to your website improves SEO which also means that you are able to have your website appear ahead of your competitors on search engines such as Google.
In light of the COVID-19 pandemic, we wanted to add a few relevant tips for retailers that have reopened or planning to reopen soon. We understand that it might be a little overwhelming, but completing this list can help your employees and staff feel safer, and create more trust.
🚨 COVID-19 Retail Best Practices
Purchase protective equipment for employees (ex. face masks & gloves) especially if you serve a high-risk population. Sanitize doors knobs, handles, countertops, PIN pads, etc. Any areas of high touch by employees or customers will need to be sanitized repeatedly throughout the day. Consider wrapping your PIN pad with plastic wrap so that you can wipe it down with sanitizer between every customer but still protect the device. Review your fitting room policy if you are a clothing or apparel store. Many stores will no longer allowing fittings and instead relying on better descriptions or even fitting technology. Encourage “Contactless” Payments (e.g. tap or Apple Pay) and discourage the use of cash to protect your staff and customers wherever possible. Increase your “contactless” limit with your merchant processor but remember that you are liable for any potential chargebacks on “contactless” payments. Implement proper hygiene and social distances practices. Communicate health and safety procedures to staff. Ensure proper hand washing, sanitizing, and overall cleanliness. Place signs in the store to remind employees to wash their hands, sanitize, and keep at a safe distance from one another. Hang health & safety signage around the store so that customers can easily read and understand procedures. Modify your return and exchange policy: You may want to put a hold on return and exchanges for the time being given the hygiene concerns.
Want to learn more about how to be seen as the top result on Google (or other search engines)?
It’s no secret that retail is no longer a one-step shopping experience. Customers want the flexibility of taking their in-store experience online and vice versa. In 2020, Walmart responded to the global pandemic by improving their omnichannel experience and adding more square footage to their stores for online order fulfillment. This helped them achieve a 97% spike in e-commerce sales.
A study by First Insight showed that customers in many categories still prefer in-store shopping versus buying online. In particular, the study showed that over 70% of shoppers are more likely to make impulse purchases or buy more in store, because of the merchandising and customer experience.
It’s just that the pandemic has made it more likely that the customer journey starts online, even if the actual purchase happens in a physical store. As such, for traditional merchants, it’s not about whether customers are shopping more online or in-store. It’s about needing to serve customers across multiple channels, often at the same time. This is why the entire omnichannel shopping experience is increasingly important.
But if you’re a traditional retailer just starting out in this brave, new world, where do you start? Changing store processes to serve omnichannel shoppers isn’t something that can happen overnight. This is where “clicks-to-bricks” strategies come in.
Clicks-to-bricks simply refers to strategies that focus on using “digital storefronts” or “pre-shopping discovery” online to drive foot traffic into stores instead of encouraging customers to mainly shop online. Even if you offer delivery, there are a lot of benefits to focusing on store-driven online shopping.
Top 5 Advantages of a Clicks-to-Bricks Strategy
It maximizes local awareness of your business online. During the pandemic, a lot of businesses focused on selling online and neglected the fact that store shoppers also start their buying journey online. Whether it’s checking store hours or stock availability, being found online is key to offering a smooth customer experience. The easier it is for shoppers to find you online, the more likely they are to purchase from you as compared to some of your competitors who may not be as easy to find.
It increases sales per shopper. Shoppers buy more when shopping in store. Retailers want customers to buy in store because they are more likely to make additional impulse buys with higher margins. If store products are linked to online search with tools such as Google’s See What’s In Store (SWIS) or Local Inventory Ads (LIA), you’ll get store shoppers that walk in “ready to buy” as they already know what you carry and have on your shelves. In fact, helping customers “pre-shop” or “discover” products online can drive more traffic to both physical and online stores. This will increase overall sales per shopper as you’re able to serve shoppers in multiple channels.
It maximizes profitability. Besides bigger basket sizes, using online awareness to drive higher quality foot traffic to your store means that you’ll be spending less in marketing for higher sales. If you use omnichannel tools that link your store data with online research, you can even save on the cost of having employees or agencies manage your product information online.
It gives you useful customer insights. Connecting with customers on multiple channels means more opportunities to gather information about your customers. Whether it is an email address or a physical address, having more data increases retailers’ insights into their customers and their buying habits, making marketing easier and cheaper over time.
It gives you useful inventory insights. Knowing what sells well on which channel allows retailers to sell and target specific segments when releasing new products or product lines.
👇👇👇 Scroll to Download our COVID-19 Survival Tips for Retailers!!
There’s no denying that we now live in a physically and digitally connected world. The benefits of being globally interconnected are visible in the growth and stability of the world economy over the past decade since the 2008 global financial crisis. But history and economies are cyclical. We were already looking at a potential downturn before the recent coronavirus global pandemic started but retailers are now looking at the most unpredictable global business environment in decades. This is where retail crisis management helps to give businesses options to manage the unknown.
For businesses that were launched in good times, owners will now need to quickly adapt to the challenges of managing uncertainty and risk. Like any other business, owning a retail store comes with its fair share of risks. Even at the best of times, store owners must deal with operational risks that impact cash flow. After all, the US economy was strong for the majority of 2019, yet U.S. retailers still lost 50.6 billion due to inventory shrinkage alone.
With the help of new technology, there are ever more ways to tackle theft and organized retail crime, but they are not the only challenges facing retailers today. Whether it’s a natural disaster in the form of a fire or flood, supply chain disruptions, or an employee ranting about the company on social media, unexpected retail risks can have a huge impact on your bottom line.
Fortunately, there are some things you can do to help minimize the risk of unexpected emergencies, plan for interruptions to your retail business, and do your best to protect your employees, assets, and reputation.
I’m not by any means a risk management expert. I am, however, a repeat small business owner. So I know what it’s like to face the terror of a sudden downturn AND not be prepared to deal with negative cash flow. If any of the tips below help others minimize their stress or better prepare for the next crisis, that’s good enough.
Environmental disasters are external crises that are generally out of the control of any one private business. These include forest fires, hurricanes and, of course, global health pandemics. Because these are environmental and often cannot be predicted, these are often the most costly. They usually impact the economies of entire countries, can cost billions of dollars in damage to affected businesses and homes, and require a long recovery time. Besides the $1 billion in lost sales experienced by retailers during hurricanes Katrina and Harvey, these disasters resulted in $125 billion in property damage.
Business Insurance for Major Disasters
Nobody really likes to purchase business insurance but it’s often critical to the survival of a company in the face of a business-interrupting disaster. Even if you don’t live in an area that is prone to serious storms or other seasonal events, you need to make sure you have enough insurance to cover fire/water damage for your inventory, assets or property. Not only is this type of coverage mandatory on some leaseholds, it’s the only way to protect yourself against legal claims if there is 3rd party damage during an incident, which is also a key part of retail crisis management.
It’s important to remember that environmental disasters can be considered “acts of God” or “force majeure” and can nullify some insurance depending on your carrier and the type of plan you have. While some companies will step up at times of crises, you shouldn’t count on the possibility of coverage in the middle of a disaster if your plan has such exemptions. This is exactly why you should always read your insurance policy to understand what type of financial coverage you are actually buying. If the language in the fine print is too much, write to your insurance broker to make sure they give you a clear written response on what coverage you get with your insurance premiums
Technology, Flexibility and Adaptability
Adaptability for a business today is often tied to flexibility and technology. How flexible your processes are will determine how quickly you can adapt to different market environments. For retailers, this means using technology and tools that will allow you to immediately change how you are selling or taking payment with customers. The latest cloud systems not only automatically back-up your data, they work on any device and allow you to sell wherever your customer is. So when your store suddenly loses power, you can switch from your till to your mobile phone to keep selling.
For retailers dealing with the impact of COVID-19, for example, shutting down may not be an immediate option. Small businesses who cannot afford to shutdown or are looking for better ways to manage the impact are encouraged to:Download our free checklist
Add or Expand Digital Sales Channels including e-commerce for shipment or pick-up in store.
Offer Contactless “Leave At My Door” Delivery with prepaid orders online, by phone, fax or email.
Encourage Visible Hygiene Management in store by having all staff use gloves or wear masks. Have hand sanitizers readily available at the checkout area, near doors with handles, etc.
Encourage Social Distance In Store by increasing the space in the checkout area between cashiers and where shoppers are waiting to pay. Stop offering samples unless they are pre-packaged.
Encourage “Contactless” Payments (e.g. tap or Apple Pay) and discourage the use of cash to protect your staff wherever possible. You may want to increase your “contactless” limit with your merchant processor but remember that you are liable for any potential chargebacks on “contactless” payments.
Minimize Any Processes that Require Touch such as loyalty programs that require a tablet. Print out a QR code or signage for your web site and encourage users to sign up on their own phones.
Sell In Store Gift Cards with an Incentive (e.g. extra $15 for every $100 gift card) to encourage shoppers to come back to the store when things are back to normal.
Offer Free Pens to shoppers who don’t have their own. It’s a cost-effective gift that discourages the use of public pens and helps customers remember you. Remember to minimize touch when offering them.
Communicate Proper Treatment Procedures when staff are sick. Make sure all managers and staff know what to do when they are sick. There is a lot of information out there – be sure to refer to the most credible medical sources in your country. In Canada, that will mean the public health authorities for your province or territory. In the US, the CDC is a reliable authority for guidance. For further details, you can also review the steps to prepare worksplaces for COVID-19 published by the WHO.
Limit Stock Quantities for any essential household and medical products to avoid stock outs.
Not all emergencies are external. There are a number of internal risks within a company, many of which aren’t any less significant to the survival of a business than, for example, a natural disaster. You’ll want to work with workplace safety experts if your workplace involves food, hazardous materials or any type of production but for most of us in retail, cash flow, reputation and operations crises are usually top-of-mind for small business owners.
Cash Flow is the Lifeblood of a Business
I’m not the first business owner to say that timing is everything when running a business. During good times, this can refer to being in the right place when unusual opportunities present themselves. During bad times, this refers to whether you are financially in a position to survive when there is an interruption to the business. And more often than not, retail crisis management refers to your cash flow position because you need to have access to liquidity or credit to be able to get through an unusually slow period – you can’t sell hard assets quickly or for a good price in the middle of a crisis. So yes, while a natural disaster is completely unexpected and is out of anybody’s control, what you can control is the position you are in when disaster strikes.
I’m certainly not trying to preach about the virtues of keeping unused cash in the bank (assuming there is even any) instead of reinvesting in the business, etc. But if you haven’t already, you may want to get approved for a line of credit only for emergencies when the business is booming or you have the opportunity to. The key is to get credit when you don’t need it and to not use these emergency resources for any daily operations. Yes, hindsight is 50-50, and this won’t help you if you’re already dealing with an emergency but history does repeat itself so can better prepare yourself for the future.
Operations Resilience Planning
Operations covers many different parts of a business. It’s not possible to list every area a business owner or manager can review but, by and large, most retailers should always have some sort of plan in place for:
Succession or delegation if management is incapacitated
Data loss or privacy breaches
Supply chain breakdown
1) Management Incapacitation
Nobody ever wants to think about a scenario in which they aren’t around. But the fact is, if you are a small business owner, you are likely an employer and others depend on you for their livelihood. You can plan for every possible risk but if you cannot issue payroll, approve payments or make important decisions when they need to be made, you’re exposing your business to extra risk. Make sure you have a contingency plan in place for your own responsibilities including who is authorized to access company bank accounts during an emergency. Speak to your accountant or lawyer to learn more about the options.
2) Data Loss or Privacy Breaches
Just as many people rely on smartphones to remember all of their contacts, the data you use to run and track your business is irreplaceable. In a retail business, this usually refers to your POS data. Not only is the information stored in your POS system critical to your business decisions (e.g. how much product to order based on sales, etc.), it’s also a legal requirement in most countries to both collect sales taxes and report profitability.
Not only do natural disasters damage physical structures like storefronts and warehouses, they can also lead to a loss of important company files and data. Environmental disasters aside, as a business, you are also exposed to ransomware or database hacks on a daily basis. Luckily data security is definitely something you can more affordably control now in the age of cloud computing. It doesn’t matter what type of technology you use in your business operations. Don’t take a chance with unexpected damages or hardware failure with your business data. Store it in the cloud, or better yet, use a cloud POS system so that you can run your business from anywhere. After all, even if your data is secure, you need access to your POS system and other retail management tools to be able to continue operating.
With GDPR in Europe and ever more privacy regulations everywhere around the world, it’s important for small businesses to start on the process of developing and implementing a privacy strategy to protect their reputation with customers. There’s no point stressing out over the fact that you may have missed certain regulatory deadlines. Regulators and customers everywhere would rather see that a company has a plan and is working on improving rather than giving up or saying “it doesn’t apply to me.” For some basic steps you can take to get started on how to better manage privacy in your small business, you can refer to this blog post.
3) Supply Chain Breakdown
If just one link in a retailer’s supply chain is broken, it can have a significant impact on business operations and profit. Which is why retailers need to be able to react quickly to unexpected supply chain events – whether it is a natural disaster, supplier failure, political or labour strife.
While there is no way to prevent these events from taking place, there are measures you can take internally to minimize the impact of such disruptions and be better prepared including:
Retail Crisis Management is Risk Management
Having total supply chain visibility involves looking at possible environmental, social, and political risks. Identify possible “what-if” scenarios – what happens if a supplier is facing a weather disruption and loses power? Do you have an alternative source? What if there are transportation delays? What if political events drive up prices of raw materials? These “what-if” scenarios are numerous and may seem unlikely to occur in the first place. But it’s important to know what that list looks like first so that you can start to develop contingency plans to have more options when an unexpected crisis does take place.
Look at manufacturing and distribution coverage
Depending on the size of your business, broaden your connections by reaching out to suppliers in different networks and regions. Seeking out alternate suppliers in different locations will help you re-route orders if one of your suppliers is negatively impacted by an external event.
Unexpected issues and events can arise when inventory is being transported to and from distribution centers. For instance, merchandise can be stolen, delays can occur, and weather disruptions can cause damage to roads and transport routes. To prepare for these risks, it’s important to have transport flexibility. In other words, if one avenue of delivery is disrupted, ensure that you have the capability to switch and depend on another logistics channel. If instead, you opt to go for a third-party logistic provider, it’s a good idea to ensure that they can also provide the same kind of flexibility.
Remember that changes in lead times with suppliers during a major disaster will likely change the speed and cost of transport you will need. Do a cost analysis of what your business can afford to spend to get products to you and make sure you have the credit or cash flow necessary to fund the upgrades. During an emergency, you may need to consider foregoing profits or even taking a loss simply to keep enough revenue flowing through the business to cover fixed overhead costs.
Brand reputation and reputation management are critical to a retailer’s success. In fact, a report done by Total Retail shows that 90% of shoppers have chosen not to purchase from a company because of its bad reputation. Which is why consumers are increasingly relying on reviews to determine the quality of a business.
But, certain circumstances can arise that can quickly impact the viability and perception of your brand – e.g. a distraught employee publicly telling off a customer, poor management of health risks, etc. – creating distrust amongst consumers, and so on.
Help your retail business build a reputable brand and better prepare for compromising situations:
1) Be transparent about company policies and preventative procedures
In the case of an external crisis, consumers start distrusting businesses. Under these circumstances, it’s best to get ahead of the situation by reassuring employees, suppliers, partners and shoppers that you are taking preventative action or being as proactive as you can. During the recent coronavirus pandemic, StichFix made sure that members were aware of the rigorous cleaning process their clothing goes through between rentals to minimize any fears customers had about the cleanliness of renting clothes.
2) Manage negative reviews promptly
Gathering customer reviews is one of the best ways to make a good impression on a potential shopper. And even if you receive negative feedback, remember that it’s normal (and more realistic) for companies to receive a few bad reviews, just as long as you respond promptly and clearly show to customers that you are taking action. To learn more about customer review management and how to respond to reviews, click here.
3) Clearly communicate staff expectations
Setting clear company expectations with every new employee will pay off in the future when you’re trying to contain a potential public relations emergency. You may not be comfortable with the unconventional employee handbook Telsa gives its employees but the point is that you can’t expect employees to know what you expect without giving them some guidelines. Depending on the size of your business, it shouldn’t be an extensive document but it’s worth those late nights or legal fees to get one prepared since you will be sharing it repeatedly in your company. And, of course, communication doesn’t stop with orientation or handbooks. Part of retail crisis management is clearly communicating with employees and setting a good example during and after any crisis. There’s no better way for senior management to walk the talk.
Once you have successfully built your digital storefront and your physical store and products can be found online, the next step will be taking payment for orders online. This is when you will want to focus your efforts on setting up your e-commerce site.
In this blog post, we’ll go over how you can quickly set up your online product catalog for customers to see on your website and to order from.
The importance of selling online post-COVID-19
Brick and mortar retailers who are looking to sell online usually face the same set of challenges including missing product descriptions and images, incorrectly setup products or a lack of funds, resources, or skills to manage an e-commerce store.
While these challenges often prevent traditional retailers from setting up an online store, the opportunities you miss by only selling in-store and not investing in an e-commerce site are far greater. As an increasing number of consumers shop online post-COVID-19, failing to provide an online checkout experience means you are missing out on potential customers and sales
The good news is, modern day e-commerce providers have made it easy to set up an online store as they simply re-use your existing POS products. In fact, retail platforms such as TAKU eCommerce are even able to enhance product data to make your product details more e-commerce ready and more searchable on Google. By re-using existing product details, merchants using TAKU, for example, have the ability to showcase their products and take payments online in just a few steps.
To show you what this looks like, we’ll take you through the step-by-step process of re-using your existing product catalog with TAKU eCommerce so you can quickly start taking payments online.
How to Start Selling Online with TAKU eCommerce
Many traditional retailers become discouraged at the thought of setting up an online store. However, depending on the platform, it is actually quite simple to get started.
Let’s see an example of how this works with TAKU eCommerce:
1. Decide where to add your shopping cart
As long as you are using TAKU, you have two options to quickly start selling online:
Automatically create an instant store which is a clean, easy-to-use, single page webstore that works in every screen size. This option is usually best for retailers who don’t have an existing website, need to replace an older looking site or want to just add a new Shop option linked to their store products.
Or alternatively, if you already have a WordPress informational website, you can add the TAKU eCommerce shopping cart as a WordPress plugin. This option is super fast and preferred for retailers that want their online store to automatically match the style of their existing WordPress site.
2. Add your products
Adding your products to your online store in TAKU is as easy as enabling them with a few clicks. But even if your product details are not complete (e.g. your products are very unique or require custom product descriptions or images) traditional brick and mortar retailers should not be held back from launching their online store. In fact, retailers should expect to launch an e-commerce site without their full product catalog in the beginning. As long as a retailer has, for example, 100 products with images and descriptions, she or he can still launch and add new products overtime, eventually building their full online product catalog. In comparison to a physical store, it’s perfectly reasonable to launch with several hundred products and add new ones every day. In fact, highlighting that “NEW items are being added daily” on your homepage is a great way to keep customers coming back.
3. Add Business Information
In general settings, make sure that your business information such as your store name, store address, phone number, work email address, currency, and language are all correct. With TAKU, some of this information is automatically available but you may want to customize it for your online store. For example, you may want to use your trade name vs. your legal business name.
4. Legal Information
5. Customize the look of your store
You can use any of the existing themes as they are or easily personalize your online store using the built-in options. Remember that TAKU eCommerce web stores are built to be completely mobile responsive so you don’t need to worry about how things will look on different screens – they will always look good on any screen size.
6. Check your web address
Every TAKU eCommerce store comes with a free web address in the form of “yourstore12345.company.site”. You can either use this free URL address, buy a new domain from a third party provider, or connect an existing domain that you already own.
7. Enable payments
TAKU eCommerce supports a variety of payment providers meaning that merchants can choose or setup the payment methods that best suit their business needs. This also gives merchants more freedom to negotiate with providers and lower payment processing fees/costs. While we always encourage retailers to take payment online to minimize the risk of losing the sale or shoppers not picking up products, with TAKU eCommerce, you can even include an option for Pay in Store. If this is your preference, you can complete the payment with TAKU when shoppers arrive in the store.
Once the steps above are complete, you’re ready to start selling online!
We hope you are now comfortable with the general steps involved when setting up an online store. In the next two blog posts and videos, we will discuss how you can add fulfillment methods such as contactless curbside pickup and local delivery.
Whether you sell online or in-store, returns are an inevitable cost in the retail industry. And they can be tricky – they can increase rapidly, aggressively cut into profit margins and cause logistics issues.
According to a recent study, the overall value of returned merchandise in the US during the past year was $309 billion, with online purchases accounting for $41 billion of that total. Now, the COVID-19 pandemic has complicated the issue of returns even more.
While it is an increasing problem, how retailers deal with returns can help differentiate them from competitors, reduce return costs, and even make them more profitable.
Along with higher return rates, the pandemic has exacerbated certain return challenges and created new ones altogether, for example:
Given the challenges associated with returning products to stores, retailers are having to offer extended return windows.
Increased health and safety policies require stores to set aside returned merchandise for 24 hours to reduce COVID-19 transmission. For some retailers, thorough steam cleaning has become a popular sanitation measure.
Retailers must find additional retail space and assign labour costs to their sanitation processes.
Retailers face higher consumer expectations when it comes to the efficiency of the return process and free online returns. However, the pandemic has caused reduced staffing across warehouses, delaying return processes for many stores.
Understaffed stores must find additional resources to restock returned merchandise back on the sales floor.
The overhead associated with receiving and repacking merchandise for resale along with the disposal of unsaleable merchandise is increasingly cutting into profit margins.
The good news is that retailers can take a number of steps to both reduce return rates and make the overall process more efficient and less costly.
How to Reduce the Cost of Returns
1. Clearly communicate your pre-purchasereturn policy
Establishing standard operating procedures for handling returns will make the process more efficient and less costly for your business.
Aclearly communicated return policy will enable you to treat each return the same so you can avoid treating requests on a case by case basis. Processing every return manually can be expensive and overwhelm your staff, ultimately preventing you from scaling your business.
While policies are going to vary depending on the industry and the type of retailer, every policy should include certain elements. To find out more about writing a return policy and the basics you should cover, click here.
Once you have written up your policy, you need to make sure that customers see it before they buy. This means including links to your policy in hard to miss places on your website or e-commerce site, and near checkout tills in your physical stores. Clearly outlining your return policy will help set the right expectations before purchase, reducing hours spent on customer service.
2. Accurate online product information
If you’re selling online, one way to reduce the likelihood of returns is by providing your customers with accurate product information. Depending on the type of merchandise that you sell, this could mean in-depth size guides, diagrams, or photos that clearly showcase the appearance of your products. Doing so will give your customers a better idea of what they are purchasing and they’ll end up more satisfied with their decision.
Make sure that the information you provide on a certain page pertains to that particular product, category, and brand. For example, you don’t want to provide clothing size guides on a footwear product page.
If you sell internationally, it’s suggested that you include links to international conversion charts or images of such charts on product pages as well as both metric and imperial measurements.
Retailers with physical stores may also want to provide the same product information in-store, especially if COVID-19 has impacted a customer’s ability to interact with products (e.g. if changing rooms are closed).
3. Customer reviews
Featuring customer reviews and ratings on your website can play an important role in reducing returns. In fact, online reviews carry a lot of weight during a consumer’s path to purchase. According to Google, 88% of shoppers say they trust online reviews as much as personal recommendations.
Giving shoppers access to helpful, relevant reviews can give them a better understanding of the products they are considering and can help set expectations about functionality, quality, and usability. And by learning about others’ experiences with the product, shoppers can easily discern if it is right for them.
Customer reviews are a way for merchants to have a finger on the pulse of their business as they provide valuable shopper feedback that can be used to proactively reduce returns. For instance, reviews provide important insight about customer preferences (e.g. what type of shopper buys certain products and how they use them) as well as product flaws. Store owners should constantly be analyzing and reading customer feedback to identify ways that they can improve product quality and services.
Some retailers even use reviews to make important purchasing decisions – e.g. the number of inventory items that should be bought, whether or not to continue selling certain products etc. If specific products have an overwhelming amount of negative reviews, it is time to review the products or work with the supplier.
4. Use technology to optimize the handling of returned items
Many traditional retailers aren’t using systems designed to handle online returns which have increased a lot due to the recent boost in online shopping.
For many, the issue is managing returns once they reach a retail store or shipping facility. Most traditional stores are still new to handling online returns which can include everything from where to put inventory back into stock to processing refunds for online sales in-store. And returns can get even more complicated with multi-location retailers selling on different online channels.
For example, processing returns manually will require a lot more staff hours than returns handled by a system that properly restocks returned products based on the order status. This is a flaw with many retail sales systems as the focus is often on selling as many items as possible, and less thought is put into how to handle costly back office processes such as returns which can really cut into profit margins when not managed effectively.
While some systems will utilize 3rd party apps to manage returns, a complete retail platform will include built-in return features such as:
Return Control Settings such as requiring receipts for returns, requiring return reasons that are tracked by users or a separate return screen to minimize the potential for employee theft.
User Access Controls for Returns such as restricting access to return functions.
In-Store Refunds for Online Sales at the physical location where returned products are actually inspected prior to refunds.
Omnichannel Stock Control that puts returned products back into available stock in all online sales channels and at the location where they are returned immediately once the return order is finalized.
Besides making the process smoother for shoppers, directing returns to physical stores helps retailers save on:
1) The cost of packing materials and staff time to pack orders securely.
2) The shipping fees of returns which are commonly expected by shoppers today with online returns yet doubles the shipping costs for merchants.
3) The cost of damages or lost packages during transit. Even if a merchant has insurance, there are administrative costs to making constant claims.
4) The cost of compensating unhappy customers with additional or future discounts when shipments or refunds are delayed.
5) The higher payment fees charged by processors for online refunds vs. PCI compliant in-person refunds with EMV PIN pads.
But more importantly, returns in-store are more likely to increase the chance of converting a potential refund into an exchange, or even better, a larger sale if the shopper buys more than the original order.
In this way, even though returns can be costly, they can also be a way for a retailer to really differentiate and highlight their customer service. After all, according to Metapack:
92% of customers who receive a good return experience make repeat purchases
So optimizing how you handle returns can be a chance to interact with customers, provide them with a great shopping experience, and capture their loyalty for the long-term.
6. Offer buy online, pickup in-store (BOPIS)
While there have been innovative strides taken in the retail industry to bridge the online and brick & mortar experience, even the best technology cannot replicate the in-store environment where customers can see and interact with products in person.
Oftentimes, returns are a result of customers not liking the product or the product not fitting properly. This can be reduced by providing a way for customers to touch or see the product in person before an order is complete. The ideal way to do this is with BOPIS which is also known as Click & Collect in some industries. For shoppers, it provides a convenient way for them to buy as well as return their purchases.
By offering a Buy Online Pickup In-store option, retailers provide their shoppers the convenience of online shopping with the interactive experience of purchasing in-store. And, of course, during the pandemic, this is a safer way for shoppers to buy yet still check their orders before taking them home.
Since the pandemic started this year, BOPIS orders are 275 percent higher than pre-COVID-19, even after stores reopened from lockdowns. Now that shoppers have been using store pickup for an extended period of time, studies show that consumers are unlikely to stop using BOPIS, even after the pandemic. This means that retailers need to find cost-effective ways to offer the service permanently with an omnichannel store system that can handle both sales and returns effectively based on the way people shop today.
Dealing with product returns is never fun, especially now with the complications brought on by COVID-19. However, when properly dealt with, retailers have the opportunity to minimize and even capitalize on returns. We hope our article outlined some of the ways to do so.
What are you doing to minimize returns in-store? Let us know in the comment section below.