What's keeping most local stores from going online ? and if they do what are the challenges ?

Discussion in 'Ecommerce Forum' started by EveryView, Jun 25, 2019.

  1. EveryView

    EveryView UKBF Newcomer Full Member

    4 0
    Hi,

    What’s keeping most local stores from going online? And if they do, what are the challenges?

    I'm working on an innovative solution for B&M shops and it would be great to get some feedback. We will offer special discounts for pre-ordering.

    EV
     
    Posted: Jun 25, 2019 By: EveryView Member since: Jun 25, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    14,924 1,630
    Most local stores I know of are online in one way or another.
    Not all do ecommerce. Time and effort when busy with store already may make this not cost effective.
     
    Posted: Jun 25, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,887 419
    Why would a local store be online and what are the benefits?
     
    Posted: Jun 25, 2019 By: NickGrogan Member since: Nov 15, 2012
    #3
  4. EveryView

    EveryView UKBF Newcomer Full Member

    4 0
    Thanks for answering, and that's the question :) why don't they do eCommerce, I think I know as I had a store once myself, and asked some, but need feedback from more people, will explain more
     
    Posted: Jun 25, 2019 By: EveryView Member since: Jun 25, 2019
    #4
  5. EveryView

    EveryView UKBF Newcomer Full Member

    4 0
    Thank you Nick, simply to be able to offer their merchandise on the web and allow people to buy remotely, being local they can offer very quick delivery, and even allow people to come over to buy now that they see what they need is available,
     
    Posted: Jun 25, 2019 By: EveryView Member since: Jun 25, 2019
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    14,924 1,630
    If they are set up for delivery.

    Not all shops have the spare staff capacity, the spare room or the delivery vehicle. And not cost effective for them to do more than have a website.

    If you want to sell them your solution, make it something that increases their profit for minimal cost or something to reduce time spent doing something.
     
    Posted: Jun 25, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,887 419
    On the web, where they will be competing with millions of other suppliers, including Amazon?

    Buying remotely means shipping costs and returns, higher payment processing charges, exchange rates and different levels of VAT.

    Very quick delivery means more staff, cars/bikes, etc.

    Collection means not selling to someone in the store, because someone else wants to buy and collect. What happens when the online buyer doesn't turn up? Which means more advanced stock management.

    All of which lowers profits and increases costs.

    So back to my questions, why would a local store want to be online and what are the benefits?

    You're starting from the assumption that it's a good thing, but nothing to back that up.
     
    Posted: Jun 25, 2019 By: NickGrogan Member since: Nov 15, 2012
    #7
  8. EveryView

    EveryView UKBF Newcomer Full Member

    4 0
    This is good stuff, and objective feedback,
    Delivery: while serving local's delivery should be easy like with uber eats (we will fill in this serves if it will lack in some area, profitable on it's own)
    the locality allows easy return
    competition: stores use their relative strength of being here and now.
    and they customization to the local area. (Amazon bought a B&M store chain for 13B to cover for local presence)
    Benefits: as mentioned increase sales assuming above conditions met, from a survey I made 75% of asked people want at look in inside the shop before visiting...the shop can leverage that

    The solution we are working on, requires minimal attention from the shop owner,
    You get a 6 ft tall robot for few hundreds of pounds, and it will sweep the store every day like an irobot sweeps the floor...and the store is online. we'll need also some minimal maintenance fees.

    Our need now is to hear from more actual shop owners themsleves
     
    Posted: Jun 25, 2019 By: EveryView Member since: Jun 25, 2019
    #8
  9. atmosbob

    atmosbob UKBF Ace Free Member

    3,787 848
    What's keeping most local stores from going online ?

    they've been bitten by yell.com and don't want to repeat the experience.
     
    Posted: Jun 25, 2019 By: atmosbob Member since: Oct 26, 2009
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

    14,924 1,630
    My parents had a shop. Did local deliveries to a few commercial customers - not worth it for retail customers, not spending enough.

    No idea what a 6 foot tall robot sweeping the store every day would have done to make a difference to the bottom line.
    Oh and of course you want money. OK you have provided the negatives - now what are the positives for a shop owner?

    Look inside the shop before visiting? Really?
    What do people do when it comes to buying?
     
    Posted: Jun 25, 2019 By: Mr D Member since: Feb 12, 2017
    #10
  11. finleydesign

    finleydesign UKBF Enthusiast Full Member - Verified Business

    601 126
    You first have to consider, that the likes of B&M aren't staring out of the window confused about the whole ecommerce and retail arena!

    Your not going to invent anything they haven't already considered, but the number one reason is qty, so the likes of Primark etc wouldn't even consider starting ecommerce when customers already frequent their stores and once in the store they don't just pick up 1 t-shirt

    For the pile it high sell it cheap it's all about footflow, take ikea for example, why not ecommerce all their products? because you won't then travel to a store and you won't then buy into the complete room concept, can you honestly say that you have gone to ikea to buy 1 item? so with your boot full the retail concept has worked, people tend to buy one offs and for quick next day convenience, not something the likes of the pile it high sell it cheap places need to get involved in

    Can you then consider the returns and logistics of having to set such a thing up?
     
    Posted: Jun 25, 2019 By: finleydesign Member since: Mar 15, 2012
    #11
  12. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,887 419
    Profitable for who? I'm a customer I expect free or very cheap delivery and I want it now.

    UberEats is not especially profitable and relies on Uber's infrastructure which you don't have.

    There are a few delivery companies on here, I'm sure that they can tell you how profitable a local, low value delivery will be.
     
    Posted: Jun 25, 2019 By: NickGrogan Member since: Nov 15, 2012
    #12
  13. NickGrogan

    NickGrogan UKBF Ace Free Member

    1,887 419
    A cleaner?
     
    Posted: Jun 25, 2019 By: NickGrogan Member since: Nov 15, 2012
    #13
  14. fisicx

    fisicx It's Major Clanger! Staff Member

    30,368 8,923
    @EveryView - you are confusing 'being online' with 'ecommerce'. They aren't the same thing.

    My local butcher has a website and facebook. He delivers locally and is forever posting about deals and discounts and what he has in stock.

    He is online and very successful. Ecommerce would be pointless.
     
    Posted: Jun 25, 2019 By: fisicx Member since: Sep 12, 2006
    #14
  15. UKSBD

    UKSBD Not a real duck Staff Member

    9,180 1,720
    Different markets.

    Our towns little electrical shop sells a kettle for £20

    You can buy the same kettle Online for £15 and have it delivered free of charge next day.

    If he steers the customers who pop in to his shop to go Online instead, he's either got to drop his prices or risk losing sales
     
    Last edited: Jun 25, 2019
    Posted: Jun 25, 2019 By: UKSBD Member since: Dec 30, 2005
    #15
  16. deniser

    deniser UKBF Legend Free Member

    8,104 1,702
    One of the main drawbacks for us was packaging and display.

    If you sell in a shop you have to take the thing (in our case clothing) out of the packaging, steam it, put it onto a better hanger and tag it.

    If you want to sell online you want it to stay in its packaging as flat packed as possible both for its own protection and to make it as cost effective to ship as possible.

    These things conflict with each other.
     
    Posted: Jun 25, 2019 By: deniser Member since: Jun 3, 2008
    #16
  17. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,235 853
    Going online is not just having a website and the marketing involved.

    It requires more finance, additional costs and expenses, more staff, more stock (probably), good organisation, packaging materials, legal knowledge, returns to sort . . . . . .and the list goes on.

    In effect, it's running another business.

    Most B&M shops who are not online and who are struggling to survive, adding an online business is not the solution.

    They should start afresh with a new image and solely concentrate on online and eccommerce.

    They are probably too set in their ways, much like M&S, who seem to have missed the boat, due to their ego . . . . probably.

    I'm not referring to the butcher, baker and candlestick maker . . . . .
     
    Posted: Jun 25, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    14,924 1,630
    Wot he said, according to him
     
    Last edited: Jun 25, 2019
    Posted: Jun 25, 2019 By: Mr D Member since: Feb 12, 2017
    #18
  19. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,235 853
    Haven't you just echoed the first 3 lines of my post?
     
    Posted: Jun 25, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #19
  20. The Byre

    The Byre UKBF Ace Free Member

    8,635 3,353
    We have two local hardware stores that both do about £45m TO p.a. Both have websites and neither does online sales. TO for both is increasing by about 5-6% p.a.

    Compared to Tool-Station and Screwfix, they are minnows.

    Both have gone to web designers consultants for online shopping and asked what it would cost to have a website similar to those two giants. When they heard the price-tag, they swallowed hard and said "Well, so much for that then!"

    So they continue as they are. Both provide the kind of tools the professional uses. For example, one is the exclusive area Stihl dealership and the other does the same for Husquvana. Both have DeWalt and both have Paslode tools. Both are always very busy.

    As I stated, these two shops have about 250 employees each and a few locations across the area and do about £45m turnover - so they consider themselves to be too small to start a full-on online sales operation.

    Nowadays, online retail (outside of having a platform on Amazon or eBay) is a big boys' game!
     
    Posted: Jun 25, 2019 By: The Byre Member since: Aug 13, 2013
    #20