Is your contract business ready for E- commerce? - Part 103 Oct 2019
Every tech company seems to be creating an ecosystem that wants every second of your waking thoughts.
- Netflix’s Reed Hastings owns up to its biggest competitor - the human need for sleep!
- Uber’s Dara Khosrowshahi - “We want Uber to be the operating system for your everyday life,”
- Amazon - Aims at getting you everything Cheaper & Faster
It isn’t hard to feel like your missing out if your business hasn’t got a slice of the action! So what needs to happen?
The businesses above tend to have a B2C model (Business to Consumer) model hence Scale (volume of business), margins (usually wafer-thin), credit cards & quick deliveries tend to be the variables of this formula. The consumer buying it understands what the product does and has usually searched for it.
Contract business, however, operates on a B2B (Business to Business) model; considering you are dealing with products that have to fit the interior design of a space, there’s an element of Design Assessment and consultation; As a result the product has a complexity that requires it to be shown in situ along with agreeing to Payment Terms & Corporate policies of the buyer that usually have you operating as a bank.
Report on Ecommerce Spend in the region relative to other regions:
Largest growth sectors for E-commerce and the generation that’s likely to spend: Kpmg Case Study
While we can’t solve all the above in one fell swoop you can definitely look at preparing your business for the shift.
Step 1: Identify Products that are simple in complexity
- Coffee Table
Step 2: Simplify Products that have a slightly higher complexity into single packaged items
- Table + Privacy Screen (Electrics Optional)
- Storage cabinet (list the quantity of box files can be stored in it)
- Subscription / Lease Service?
Step 3: Become an aggregator
- Build partnerships with complementary companies
- Create a revenue-sharing model to add partner product
Step 4: Understand your customer
- Is your product targeted at the younger generation
- Is your product aimed at a certain gender
- What is the regional spend capacity per customer in your region (Click Here for Report)
- Do your products fall below the average per transaction spend?
- Build a blog explaining the latest trends, terms and case studies in your industry
Step 5: Do you have a dedicated resource to manage this?
- Photography for the product configurations to be uniform through the site
- Adding promotions on product packages and monitoring feedback
- Logistics to deliver, install and relay feedback.
The steps above are only a guide to better understand the resources and product mixes needed to enter the e-commerce space.