The threat which might be the opportunity that traditional commerce in Aruba needs.
Business in Aruba is facing many challenges. That has always been a characteristic of running a business. It is visible that the Main Street has lost its spirit. Aruba has developed into a social media environment and the trend shows that everything takes place online. Businesses cannot ignore this and need to tag along in order to succeed or stay alive. Managing an online business in Aruba, however, faces limitations due to inadequate payment methods. The local consumer on the other hand does not stress about this obstacle and will not hesitate to browse the internet for better and cheaper items online. A visit to the store is becoming a thing from the past. Businesses have to move with the time or they will stay behind and cease to exist. Innovation is key.
Stimulate e-commerce to help cover all the bases
Consumers of today and traditional commerce are becoming more alienated from each other. As in traditional commerce the face-to-face contact is a way for the salesperson to measure loyalty. Retaining the consumer has become a difficult task, since consumers like to have as little commitment requirements as possible. More and more businesses worldwide now rely on e-commerce to scale their companies, decrease costs, and increase convenience for their customers. Through e-commerce you can reach a broader spectrum of potential clients and you can be accessible at a time which is at their convenience. Your business becomes more accessible with e-commerce and this by a touch of a finger on a mobile device.
Move forward with the digital times
A closer look to the e-commerce sales of US retailers shows that Amazon Inc. dominates the list of the top fifty companies followed by Apple Inc., Wal-Mart Stores Inc., and Macy’s Inc. Macy’s has been closing down several stores since this was announced in August 2016. The decision made was to stop the hemorrhage of negative returns in sales since Q1 of 2015. Macy’s finally recorded a turnaround towards a sales growth during Q4 of 2017. The largest US retail store has finally redeemed itself after having to close about 100 stores during 2017 due to underperformance of certain stores at malls where the shopper reach out has not been as desired.
“Participating in e-commerce does have its requirements. The Internet for example is an integral part for the success of e-commerce.”
The described situations give a clear example of how traditional commerce is steered into implementing e-commerce. For Aruba this would not be any different. Businesses must embrace the paradigm shift in consumer behavior. This characteristic correlates with the behavior of the Millennials. For the Millennials it is important to obtain their particular request through the internet and with minimal effort. Businesses must include the possibility to complement their business model as such: interaction at the storefront and allowing the customer to have the option to shop conveniently at home.
All the benefits at the reach of your fingertips
The main benefits of e-commerce include labor cost effectiveness, growth through online business, and new channels.
Labor cost effective
Expanding to e-commerce does not imply that your staff needs to expand too. You need more equipment and someone to manage your new technology, but most of the improvements to your business come through automated developments.
Growth through online business
Your business is not limited to the given square meters of your retail store but through a website you can say you can display so much more. Customers can learn from your company and products with ease.
New channels
Through e-commerce you can build other distribution channels for existing items. You give the customer the option to purchase an item from home. This means your market can even cross borders and you can take your business to the worldwide market. With the social media in your arsenal, the possibilities are infinite. A research conducted in the US showed that Facebook has been an important tool for online purchases.
Seller beware!
Participating in e-commerce does have its requirements. The internet for example is an integral part of the success of e-commerce. The framework needs to be there in order to maintain the traffic flowing to your digital storefront. Another known risk to e-commerce is that the customer does not see the product until after it has been delivered. A clear and good transaction agreement for the online shopper is important. The reputation of your business is closely linked to your level of service and delivery. The security of your customers’ information is also important and cannot be taken for granted.