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Is your contract business ready for E- commerce? - Part 1

03 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

  • Rug
  • Sofa
  • Coffee Table
  • Art
  • Chair
  • Accessories

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.