How to compete online

[Lucky8]

What strategies have those of you experienced in creating a "shop" online used to be the destination of buyers, instead of a) all the rest online b) your manufacturer's own shops and c) amazon?

We're planning a shop, bringing together products usually sold separately, with lots of advice too. How can we convert those browsing and benefitting from our advice to purchasers, without resorting to a constant battle to the lowest price (which we'll lose).

How have you done it, or seen it done well?

 

[Annoying Donkey]

Why should people buy from you rather than the vendor with the lowest price...?

 

[Mister B]

More to the point, is how are they going to find you? That's the biggest issue, especially if you have a tight budget.

Mister B

 

[Lucky8]

Why should people buy from you rather than the vendor with the lowest price...?

Well that's the question I asked in my original post. We have strong differentiators in terms of coming to the site, and we have strategies for being found, but how to convert the visitor to a purchaser is the question, and keep them coming back to us.

 

[Mr D]

Be cheaper
Be better
Offer more
Have a better site
Make it easy
Make a connection

Take your pick. Depends which customer you are chasing.

 

[justinaldridge]

You need to offer something extra so that people don't buy direct.

For example, experience days are big business. Why would you buy from a site like Virgin or Into the Blue instead of going direct to the experience provider itself? The price is the same.

The reason people don't go direct is that they are buying a gift and the likes of Virgin offer a "Swap for another experience" option should the person receiving the gift not like it. It gives people options they wouldn't have if they went direct.

You need to sell the benefits of buying through you and not the product itself. It's a different focus in the messaging, packaging and overall sales focus for the site.

 

[Nochexman]

If you are selling a product that is identical to the manufacturer's, but your selling point is that they are buying it through you because of the support you supply, why don't you rename your product something original so that buyers cannot find it cheaper elsewhere?

 

[Lucky8]

OK, so let's say we have done all that - the site is attractive and inviting, easy to use, advice and products are easy to find, it's easy to purchase, informative, navigation is good etc. We have collected a fantastic collection of products which can't be found elsewhere all in one place and lots of them. We "make a connection" using advice and other methods...

What else can we do to stop someone saying "ta very much for all that" and go to amazon? Looking for more ideas like the "swap for another experience" tip.

 

[Mr D]

OK, so let's say we have done all that - the site is attractive and inviting, easy to use, advice and products are easy to find, it's easy to purchase, informative, navigation is good etc. We have collected a fantastic collection of products which can't be found elsewhere all in one place and lots of them. We "make a connection" using advice and other methods...

What else can we do to stop someone saying "ta very much for all that" and go to amazon? Looking for more ideas like the "swap for another experience" tip.

If they want to go to amazon then they will go to amazon regardless of what you do. Why chase that group? You aren't going to get them as customers.

 

[Lucky8]

why don't you rename your product something original so that buyers cannot find it cheaper elsewhere?

Nice idea. One day we'd like to white label/commission the mfg of our own products. In the meantime the products are all manufactured by others, I suppose we could call them something slightly different in the product description, but at the end of the day, they are what it says on the packaging that arrives at the customer and we can't 'hide' that. Also the quality of the manufacturer is important (and hence our selection), so I'd expect visitors to check the quality of the product on reviews etc elsewhere and see their descriptions anyway.

 

[Lucky8]

If they want to go to amazon then they will go to amazon regardless of what you do. Why chase that group? You aren't going to get them as customers.

Isn't that everyone? Do you mean just accept the ones who stay and buy from us will, the ones who go to amazon won't. I'm hoping we can find a less fatalistic approach to this.

 

[Mr D]

If they want to go to amazon then they will go to amazon regardless of what you do. Why chase that group? You aren't going to get them as customers.

Isn't that everyone? Do you mean just accept the ones who stay and buy from us will, the ones who go to amazon won't. I'm hoping we can find a less fatalistic approach to this.

I wouldn't know - I buy from amazon and I buy from dozens of other sites too.
The ones who will always go to amazon to buy are not worth bothering with. Unless you are also selling on amazon at the same price.

 

[Mister B]

It would help if you can personalise the company. Instead of being a large, faceless entity, (like Amazon,) turn size into a positive. How your small size allows you to offer a personal experience etc etc. What about the green angle? Have an ethical green statement. May not bring many people in but it's another tick in your box.

Mister B

 

[Lucky8]

Interesting ideas. Can anyone think of a recent start up who did something similar and have created a real go-to, popular, profitable niche online store?

 

[Maxwell83]

Some people visit websites like yours, take the free advice, then purchase from the cheapest easiest place - Amazon (especially if they already have Prime). You will NEVER win all of those customers. All you can do is win some of them. There is no singular killer strategy - its about all of the incremental little things you do that will lead to conversions. Most of those have been suggested here.

If you're competing with Amazon, customer service has to mean more than 'no quibble returns' - you get that on Amazon possibly better than anywhere else; I get the refund the minute I drop the package at the post office. It has to mean some sort of ongoing advice and support for how to use/fit/install the product - you don't get that on Amazon.

Bundling the items together is good - I have purchased bundles at slightly higher prices because it was easier than shopping for those things separately on Amazon, but you get ppl who relish the challenge of creating their own bundle at the cheapest possible price. Again, those people are not your target market because you will never win the 'bargain hunter/always buys the cheapest/happy to spend 20 minutes searching to save 10%' type.

Not everyone prioritises cost - focus on those who prioritise their time over the price, the level of support they receive, the matching of items that work best together (including all the little ancillaries that most people forget), a telephone number where they can speak to a person. You have to go for a different target market to Amazon. You won't beat them in a battle for their own customers.

 

[Mr D]

Some people visit websites like yours, take the free advice, then purchase from the cheapest easiest place - Amazon (especially if they already have Prime). You will NEVER win all of those customers. All you can do is win some of them. There is no singular killer strategy - its about all of the incremental little things you do that will lead to conversions. Most of those have been suggested here.

If you're competing with Amazon, customer service has to mean more than 'no quibble returns' - you get that on Amazon possibly better than anywhere else; I get the refund the minute I drop the package at the post office. It has to mean some sort of ongoing advice and support for how to use/fit/install the product - you don't get that on Amazon.

Bundling the items together is good - I have purchased bundles at slightly higher prices because it was easier than shopping for those things separately on Amazon, but you get ppl who relish the challenge of creating their own bundle at the cheapest possible price. Again, those people are not your target market because you will never win the 'bargain hunter/always buys the cheapest/happy to spend 20 minutes searching to save 10%' type.

Not everyone prioritises cost - focus on those who prioritise their time over the price, the level of support they receive, the matching of items that work best together (including all the little ancillaries that most people forget), a telephone number where they can speak to a person. You have to go for a different target market to Amazon. You won't beat them in a battle for their own customers.

If bundling, have a theme or link between the items.
Toothbrush and toothpaste go together. Toothbrush and extension cord not quite so much.

Those who include postage within item price, items being bundled can appear cheaper while giving same or better profit than individual sales.

And a good rule of thumb can be examine your competitors, see what they are not doing (or doing badly) and see if you can do it in such a way as to generate custom or make money.

 

[Lucky8]

Maxwell83 and MrD - super tips there, many thanks. The point I suppose I need to remember in this venture is, as you say, some will do the Amazon route, some will relish the time spent breaking down any bundles into the component parts to save money... but some won't. Slight challenge with this is that the semi-techie-type stuff we'd be selling attracts purchasers who probably enjoy that, but as you say, not all.

Having that confidence to go after that section of the market and service it well in imaginative ways is the way forward.

 

[HFE Signs]

You have to think of your online shop in the same way you would a high street shop:

Design & appearance
Easy to find what you want
Good prices & special offers
Getting people in the door
Incentives for people to return
Recommendations & Reviews
Customer service

Not in the above order, hope this helps

 

[Lucky8]

It's the incentives for people to return bit... it's the "don't take all our lovely design & appearance, our easy to find what you wantness, our good prices and special offers, our lovely doors for you to come through, our recommendations and reviews" and think, ta, I'm off to Amazon where I don't care about your customer service.

But as was mentioned above and what I need to remember, no matter what we do, we've lost that kind of customer anyway. My optimism/desire for this market world domination would just like to find a way to not lose them at all.

What amazing return incentives have you all seen online?

 

[fisicx]

What amazing return incentives have you all seen online?

I haven't. I just buy from whoever sells the things I need at a price I want to pay. Usually Amazon or eBay.

Wife buys pet food from various online stores (because you cant' the bulk orders from Amazon). I brought some stuff from Screwfix yesterday. And some trousers from Cotton Traders because they sent me some vouchers. But this doesn't buy loyalty.

If your shop is next to places I frequent I might consider click and collect but unless I want the things you are selling. If not I'll just Google when I want a widget.

 

[Mr D]

I haven't. I just buy from whoever sells the things I need at a price I want to pay. Usually Amazon or eBay.

Wife buys pet food from various online stores (because you cant' the bulk orders from Amazon). I brought some stuff from Screwfix yesterday. And some trousers from Cotton Traders because they sent me some vouchers. But this doesn't buy loyalty.

If your shop is next to places I frequent I might consider click and collect but unless I want the things you are selling. If not I'll just Google when I want a widget.

Agreed.
Certain companies I am loyal to because I trust them - they may or may not be cheapest, they are however the best for providing what I want and dealing with problems.
I'll use vouchers, discounts, look at sales etc when I know they are happening and I want the stuff anyway. But not when I don't want stuff.

Much of the time I'll simply look on amazon, ebay or google for a seller of the item I want and buy. Not bothering to find the cheapest seller who can deliver in 3 weeks.

 

[Maxwell83]

What amazing return incentives have you all seen online?

I'm a sucker for an email offering X% off for a few days. Not from random companies, only ones I have bought from before and would buy from again anyway. Their email makes me buy now instead of thinking "i'll order from them again at some point in the future".

So I probably would have bought off them again without the discount, but not at that time and maybe not for a while...

 

[Nochexman]

Nice idea. ... but at the end of the day, they are what it says on the packaging that arrives at the customer and we can't 'hide' that. Also the quality of the manufacturer is important (and hence our selection), so I'd expect visitors to check the quality of the product on reviews etc elsewhere and see their descriptions anyway.

But, if the objective of the exercise is to stop people shopping around elsewhere for cheaper, make it as difficult as possible for them to do that. Bring the reviews on to your website. Get everything on your site. Look at where traffic is draining off your site and put the stuff they are looking for on to your site.