CBN Insights released a report of 68 major retail bankruptcies and why they failed. Common factors are inefficient operation, drop in sales, struggling offline stores, among other issues.
The three factors may share similar root cause: digital disruption, or to be precise, the inability to adapt quickly enough to digital changes.
This inability is caused by various problems, from lack of adequate resources to ensure the brand is properly represented in multiple channels to skill discrepancies due to the highly demanding digital landscape, and results in losses.
Losing Potential Revenues
Not having a flagship store on marketplace, is an example of how brands missing out on potential revenues by failing to be available in every platform that matters.
Share of PurchasesPicture by Smart Insights
If the lack of official store is because you do not have enough people or budget to properly manage your stores on each marketplace, you may want to start building a team, or outsource e-commerce enabler, because even if you are not on the marketplace, unofficial resellers could sell your products there.
How to Stop Losing Potential Revenues
Decreasing spending by reducing your team – and your brand presence as the consequence – may make your numbers look less bleak in short-term at a glance, but if you consider the opportunity cost, you may wish you’ve chosen the other option: outsourcing e-commerce enabler to capture as much potential revenues as possible with as low spending as possible.
Hiring e-commerce enabler is more cost-efficient than hiring your own in-house team. Think about how many experts you will need to hire to effectively manage your official store in one marketplace: you need someone to answer customer inquiries, manage the orders, manage the warehouse, ensure the products are delivered to the customers, regularly check and update products availability, analyze and present the sales report, create engaging promotions, and monitor the competition.
You can get specialized experts for all the roles you need through e-commerce enabler. With their experience in enabling brands enter and succeed in e-commerce market, and their relationships with various marketplace, you can expect better results while exercising less effort.
Working with e-commerce enabler also means you don’t have to spend extra money on creating and managing your online store’s warehouse and logistics by yourself. The cost and management of warehouse and logistics for e-commerce, after all, are different from the offline ones.
In supply chain for offline retail, you only need to manage the one batch fulfillment to retail stores. Afterwards, the stores will provide the products to end customers.
However, for e-commerce, the warehouse and logistics team need to individually pick and pack the orders to each end consumer. This process needs more manpower, which causes an increase in delivery cost. Most distributors who help brands manage the supply chain for their offline stores don’t have the capability to do individual pick and pack, which is why hiring e-commerce enabler will be your best solution.
Not to mention e-commerce enabler offers more than managing your e-commerce supply chain and your official store in any major marketplace of your choice. From setting up your online ads to creating strategic omni-channel digital marketing plan exclusively for your brand, you can entrust your digital effort to an experienced high end e-commerce enabler.
SCI eCommerce is an experienced high end e-commerce enabler and e-distributor company, with Singapore-based HQ and offices in Southeast Asia.
Adopting high-performance marketing concept and best management practices, SCI has helped brands including Unilever, Abbott, Midea, Oppo, Nestle, Vinda, and Danone successfully penetrate through Southeast Asia and CBEC e-commerce market.
Discover more about SCI eCommerce and their services here.