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.
Multi-location retailers have more issues managing multiple stores because no one can be at more than one place at a time. In order to run a multi-location business, even when you are not always there, you should look at processes that have an impact on productivity and customer satisfaction. We have put together a list of things to help retailers manage their multi-location retail businesses, so that their business can run smoothly no matter where they are.
Multi-location means that you will have different people working in stores that may not interact with each other on a day-to-day basis. Managing each store effectively means standardizing and automating processes so that they all run with the same efficiency. These processes can range from onboarding new employees, delivering product knowledge, processing returns, to updating inventory.
While it’s not easy finding the resources and time to document processes, having something written down will significant speed up future training and make it much easier for staff to understand your policies and procedures. The most successful retailers are those who can a provide consistent experience to customers across all locations. After all, the experience a customer has in a store is a significant part of the brand image of a retailer.
2. Use cloud technology to centralize and streamline your business processes
Cloud technology helps sync up and organize inventory, customer history, employee performance, sales, and cashflow. This means that you can manage your entire business from a single system. Having a centralized location for all business data allows retailers to get accurate, real-time feedback into how their business is running and identify any gaps in their workflows.
One of the best parts about using cloud technology is that it gives you mobile accessibility. You’re no longer tied to a single computer and can have access to your business data on-the-go to see changes in your store as they happen. While some solutions will give you access to your sales data from anywhere, a lot of the modern, new cloud retail management systems will let you access and manage all of your business data so that you can run your store from anywhere.
Another benefit to using cloud technology is that it automatically helps you backup your business data in the cloud. Unlike older store systems which require manual backups or expose you to hardware failure, even if you lose power during a storm, all of your business information will be safely stored in the cloud. And as long as you have smartphones, you can continue to sell using mobile devices.
3. Improve retail business inventory control
It is crucial to have accurate inventory and stock data at all times. One of the major problems with running a multi-location business is that it is much harder to keep your product information in sync. This has only gotten worse since the pandemic started since more retailers are also selling online. The best retail companies are those that use technology that gives them visibility into their inventory and stock levels at every point of storage. Having products available exactly when customers want to buy them is best in an ideal world but helping customers (e.g. shipping to their home or directing them to another location) even when a product is not in stock is key to customer service and closing every sale.
Other ways to control your inventory include keeping an eye on your re-stocking schedule (which requires knowledge of lead times and seasonal availability) as well as your minimum stock levels. This is so that stores are able to re-fill stock before selling out.
4. Use a single commerce system
To make sure that store data and reports are all in-sync, retailers need a single, smart commerce system that can handle both store sales and online orders. Combining your POS and e-commerce processes into a single system helps you determine what products should be carried, which items are bestsellers across different locations or online sales channels, and which products need to be discounted or discontinued across your entire business. Using a single system also helps employees deliver the same experience to customers wherever they shop.
5. Secure your data
In order to comply with local and national privacy laws, retailers need to do their best to protect the privacy of both customers and employees. Finding the right software and hardware to manage sensitive information is key to building customer trust and keeping retail businesses healthy.
TAKU Retail stores customers data on separate databases to minimize the risk of privacy breaches. Read more about our security features here.
Want to know more about our multi-location capabilities? Read more.
The bottom line is, you want to make a profit with your business. This means selling products and services that customers want and are willing to pay for at the price you are selling. Finding that point can be confusing to many business owners: balancing margins and finding out the going market price are things to consider before releasing a new product. The wrong strategy could lead to large financial losses; we have created a pricing guide to help retailers get to the other side and find the right pricing strategy for your business.
This is the most straightforward way to determine sell prices. This method is not related to market pricing and sets prices based only on actual costs. In this case, retailers estimate all fixed (e.g. purchase cost) and a share of variable costs (e.g. overhead costs that you have to pay even without any sales such as rent, payroll or utilities) to determine the sell price of a product. This method is most commonly used in product categories that are highly competitive where market prices are relatively known. Staple products or commodities are common examples.
Instead of adding the actual overhead cost of the business, cost-plus pricing is a lot easier to calculate as it assumes a specific fixed markup percentage to a product’s purchase cost. For example, some merchants will simply multiply the cost to buy a product by a factor of 2x to 3x. This is called the price markup. While this method is much easier to use, it is important for retailers to make sure that the markup percentage is enough to meet your target rate of return (profit) and to periodically review the markup to make sure that it is still suitable.
Value or market-based pricing
This is the most common method in industries where the perceived value of a product is highly driven by emotion or lack of availability such as fashion, art, luxury cars or concessions at sporting events. Essentially, this method sets prices mainly based on the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices. This is commonly used by retailers with deep understanding of brand building, market pricing, managing exclusivity and valuing the benefit to a customer versus how much she or he is willing to pay.
While market-based pricing is constantly changing, and therefore more sophisticated to manage, with newer technology, it is increasingly possible for retailers to incorporate value-based pricing into their pricing strategy to avoid “leaving money on the table.” It’s also worth pointing out that the increasing number of merchants going online has also made pricing in some categories more transparent which increases price competition and can drive pricing lower. It’s why many premium brands enforce MSRP on their online retailers (e.g. Apple) and more merchants are selling their own branded products online today as these categories are the most likely to be successful since supply can be more easily controlled and substitutes are less available.
Introducing new products into the market by lowering price is a strategy that some retailers use to introduce their products into a saturated market. This is a good chance to build brand loyalty and to get new customers to try your products.
Although it may seem intuitive to jump into the market with this strategy to gather as many customers as possible, this strategy does have some drawbacks. Raising prices (after the initial release) often leads to some reluctance from customers, so proceed with caution.
Sensitivity to price changes
All of the pricing methods above should not be applied without considering whether a product is price elastic or inelastic. Price elasticity refers to how sensitive price changes will have on the demand for a product. For some products, demand will change significantly if prices are changed and vice versa. A classic example is grocery store bread. Unless brand loyalty is strong or there is a special product feature, bread pricing tends to be elastic: as price increases, the demand will decline.
Price elasticity is useful as it gives you a sense of how much you can adjust pricing without significantly affecting the demand for your product. It’s important to remember that many products have category thresholds. This means that even if you sell an product that is price inelastic or not sensitive to price changes (e.g. luxury purses), the market will have a perception of the maximum a buyer is willing to pay.
Similarly, it is important to remember that demand sensitivity is also impacted by the availability of substitutes or competitors. So if you sell in a category that has a lot of competitors with similar alternative products, the demand for your products will most likely be more sensitive to price changes since it’s easier for your buyers to find replacements.
Want to read more on how to manage inventory effectively?
Inventory control helps retailers determine what products are selling well versus the ones that are not. Having stock control helps retailers make the most profit with their inventory. This gives retailers an indication on how much more or less stock they need. This, in turn, helps reduce operational and storage expenses.
This is especially important for brick-and-mortar retailers because controlling the amount of stock they have on hand is directly related to customer satisfaction and how much profit they make on their inventory. Understanding how to manage this is vital to a retailer’s success since inventory is the largest resource and use of cashflow for every merchant.
TAKU Retail client, Kam Wai Dim Sum, raves about TAKU’s reporting functions. Thanks to TAKU, they are now able to use their POS system to track their daily sales and know which are their best performing items. Read more here.
Maintaining a minimum stock level means stores have to keep a minimum number of products in stock to make sure they are always able to replenish their shelves easily. This is especially so with retailers during busy and uncertain seasons: this could mean extended delivery delays or stockouts. Instead of guessing or approximating, retailers need to calculate the ratio of delivery times to stock levels so that they are optimizing their inventory and lowering their operational costs.
Keeping tabs of stock levels and maintaining a healthy and lean stock level means that retailers are able allocate resources to new products to satisfy new customer wants and needs. Having a higher turnover is a positive sign for retailers because it means that they are able to sell more and make more sales.
Tips for Better Retail Inventory Control:
Using real-time retail POS software that tracks inventory movement across all channels based on actual stock levels
Using a barcode scanner to accurately track products as they are sold or received
Running inventory counts to make sure that stock levels in the POS match the quantities actually on the shelves
Tracking the sale of inventory items to know which products are bestsellers and which items don’t need to be re-stocked
By always having some stock on hand and determining your ideal reorder days, retailers do not ever have to worry about running out of certain items and long lead times. Knowing what stores have in-stock may seem straightforward with a single store location. But it is a lot more difficult for multi-location retailers to track inventory across different locations and manage returns and exchanges easily. This is especially true as retailers today often sell the products both in-store and online. TAKU Retail’s inventory management capabilities mean that retailers are able to automatically see real-time inventory levels at all times, regardless of how many locations or online sales channels they are selling in.
Learn more about TAKU Retail’s inventory management capabilities.
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.
The next step to building your digital storefront is to showcase your products online.
With the flexibility and accessibility of online tools, even if your brick and mortar store is closed, you’ll still be able to serve your customers. The best part is, these tools are easily accessible to retailers who are not selling online through an e-commerce website. Let’s take a look at some of the ways you can list your products online.
1. Upload your products to Google
People have become more efficient shoppers in this digital world, especially when it comes to physical retail. As a result, they are now checking in-store stock availability before visiting.
To make things easier for your customers, it’s a good idea to make real-time inventory data available on Google. This can be done manually or you can do so easily by using an integrated retail software such as TAKU Retail.
TAKU’s integration with Google also allows merchants to display their products through Google “See What’s In-Store” (SWIS). With SWIS, product catalogs appear under a merchant’s Google My Business listing. This feature helps retailers attract nearby shoppers by showcasing in-store products with real-time stock updates. The best part is – there is no data entry required when uploading products to Google with an integrated solution since your existing POS data is simply re-used.
2. Free and paid Google Products Listings
Once you’ve uploaded your products to Google and are showcasing your products through SWIS, you also have the option of using Google Product listings to further increase your online visibility to local shoppers.
What are Google Product Listings?
Google Product Listings, otherwise known as Google Shopping campaigns, help retailers put their products in front of shoppers who are looking for what they sell. Retailers can use Google Product Listings to promote their in-store products and boost traffic to their brick and mortar stores.
Below is an example of a Google Product Listing:
These listings showcase your products and store information to nearby shoppers who are searching on Google. Since they appear based on what local shoppers are searching for, Google Product listings attract high value shoppers. In other words, they showcase the right products to the right people in the moments that matter the most.
When shoppers click on a listing, they will land on a Google-hosted page for your store which displays your in-store inventory, store hours, directions, and more.
Google recently announced the launch of free product listings, making it easier for merchants to display their products online. Note: While free listings are only accessible to US merchants, an international rollout is expected by the end of the year. Now, search results in the Google Shopping tab will consist mostly of free listings, helping merchants connect with more shoppers, regardless of whether they advertise on Google.
Which means that even if you are not selling online, you can still showcase your in-stock products to potential customers.
TAKU Retail POS has partnered with Google to make it easier for merchants to get started with Google Product listings. By using TAKU, product feeds are automatically optimized and submitted through your POS. To learn more, click here.
3. Adding your products to social media
Facebook is one of the most popular social media platforms with more than 2.45 billion monthly active users. Now, merchants can give customers an easy way to browse and purchase products with Facebook Shop.
Facebook Shop has expanded a great deal in the last few years and is used in 70 countries by 800 million people monthly, making it the perfect opportunity for retailers to showcase their products to millions of potential customers.
Again, you can upload products manually or with an integrated retail platform such as TAKU eCommerce that will automatically sync your in-store products to Facebook Shop. With an integrated system, your product catalog will sync every 12 hours once you have uploaded your products onto your Facebook page. This will ensure that your product information and stock levels are updated on a regular basis.
Depending on the type of products you sell, Instagram may be another essential platform for retail businesses. With more than 1 billion monthly users, your customers are already on Instagram. So make it easier for them to discover and browse your products with Instagram shopping. Essentially, Instagram Shopping allows merchants to transform their profiles into digital storefronts.
We hope Part 2 was helpful to you. To learn more about the last 3 steps to getting your physical store online, keep an eye out for the rest of our blog and video series.
To learn more about the next steps to getting your physical store online, keep an eye out for the rest of our blog and video series.