Mastering E-Commerce for Brick-and-Mortar Stores

E-commerce has revolutionized the way businesses operate, and brick-and-mortar stores are no exception. With the rise of online shopping, it's crucial for traditional retailers to embrace e-commerce and omnichannel strategies to stay competitive in today's market. 

In the latest episode of Unpacking E-Commerce Logistics series, we sat down with Kartik Bhatt, Group Head of ECommerce & Omnichannel Transition at Sharaf Retail, to discuss the topic of mastering e-commerce for brick-and-mortar stores. With over 20 years of retail leadership across fashion, lifestyle, and duty-free businesses, he shared with us insights into the world of e-commerce and the tools retailers need to succeed.

Biggest Challenges Brick-and-Mortar Stores Face When Transitioning to E-Commerce (17:53 - 22:15)

One of the initial hurdles is the ingrained nature of retailers' established business methods, particularly when they have been operating for 20-25 years. The challenge lies in their ability to adapt and view their storefront or technology as a facilitator while recognizing that the success of the company relies on last-mile deliveries, digital assets, and products.

The second difficulty arises from the expected returns. Brick-and-mortar stores that have been in operation for 15-20 years typically aim for a healthy profitability of up to 10%. However, when transitioning to e-commerce, continuous investment in omnichannel growth becomes necessary. Many businesses have ambitious plans and make significant investments, yet still struggle to succeed. To overcome this challenge, it is vital to possess strong analytical capabilities, thoroughly understand the customer base, and define customer journeys, user experience, and user interface on the website. Implementing interventions to track metrics such as rebound rate, conversion, click-through rate (CTR), cost of acquisition, and cost of retention is also crucial.

The third challenge revolves around inventory. Contrary to the misconception that having an appealing website and running effective Google AdWords campaigns are sufficient, the core of e-commerce lies in managing inventory. Without proper inventory management, orders are accepted for products that are not actually available, resulting in the cancellation of a significant percentage of payments received. This leads to inventory inaccuracies, disrupted deliveries, and a disconnected customer service experience.

Sharaf Retail’s Strategies to Enhance the Post-purchase Experience and Improve Customer Retention (13:22 – 17:43)

Retailers face the challenge of meeting the ever-changing expectations of customers who have a plethora of options available to them. To succeed, retailers must prioritize several crucial elements such as product quality, overall customer experience, social engagement, community involvement, efficient last-mile delivery, and a seamless digital funnel. The post-purchase experience plays a pivotal role in achieving these goals.

To begin, retailers must establish a reliable channel for customers to address any issues related to their purchases. This often involves setting up an accessible call center and providing effective solutions. However, the post-purchase experience goes beyond simple customer support. It transitions into the realm of advocacy, where retailers must create a sense of value for their customers. Retailers need to create a sense of value for their customers by continually improving the shopping experience. This includes personalizing future purchases based on individual preferences and encouraging customers to engage with like-minded individuals from their local community.

For example, if a customer purchases a bike from Adventure HQ, a representative will follow up after three months to remind them to service their bike. Adventure HQ goes even further by organizing biking expeditions and inviting customers to participate. They also send a mechanic to their customers' doorsteps to fix any gear shaft issues, ensuring a smooth biking experience. Additionally, customers receive personalized discounts when new helmets become available. Through these initiatives, Adventure HQ ensures that customers feel supported throughout their entire consumption journey. They act as a nearby expert, offering guidance, advice, and opportunities to upgrade their product.

By implementing such strategies, Sharaf Retail aims to foster long-term relationships with customers, providing ongoing support and personalized experiences that go beyond the initial purchase.

Emerging Trends in E-Commerce (25:48 – 28:05)

Web 3.0 has emerged as the new standard, reshaping the focus of e-commerce from mere product sales to considering the entire customer purchasing journey. Nowadays, customers have the flexibility to conduct online research and make offline purchases, or conduct offline research and make online purchases.

Kartik also brought up several other trends throughout the discussion. This includes voice commerce, personalization, mobile commerce, and recommendations. These trends are replacing traditional methods like Adwords and landing pages, as the emphasis shifts towards leveraging powerful search capabilities. Additionally, gamification plays a crucial role, in transforming how businesses engage with customers during the checkout process, post-purchase programs, and loyalty initiatives.

Next, the conventional approach of visiting a website solely for making a purchase is no longer the prevailing norm. Customers now prefer making purchases within platforms and ecosystems where they feel comfortable. This has led to the rapid growth of social commerce. Regardless of the metaverse's viability, it is imperative for merchants to adapt and participate in social media commerce, as this trend continues to expand.

For the full discussion, check out the recording here. You wouldn’t want to miss it!

About Kartik Bhatt

Kartik Bhatt brings with him over 20 years of retail leadership across fashion, lifestyle, duty-free businesses including 2 entrepreneurial stints in VC funded e-commerce startups across Asia, Latin America, Europe and Far East Asia. In his current role, Kartik is spearheading omnichannel business for brands including Forever 21, Cotton: On, Adventure HQ and Typo. Lastly, he is also a mentor, advisor and digital transformation coach to multiple mid and large-size retail businesses in GCC & South Asia.

About Unpacking E-Commerce Logistics Series

Unpacking E-Commerce Logistics brings together some of the best experts in the e-commerce logistics and supply chain space to unpack key concepts from a variety of trending topics, ranging the use of Artificial Intelligence in the industry to embracing hyperlocal delivery in the e-commerce world. An integral part of this series are our 30-minute long Fireside Chats where we ask our thought leaders questions about not just the topic at hand, but also their career paths, challenges they have faced, and even their future plans.

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