Nate Burke | August 24, 2021
The past 18 months has presented unimaginable challenges for many businesses seeking to stay afloat in times of crisis. But as with any challenge, shifting needs, perceptions and practices develop opportunity, opening doors for product and service differentiation.
Notably, in this time, sustainability has moved its way to the forefront of many minds. Not only has the pandemic forced businesses to re-evaluate commercial models for future resistance, but the constant reminder of issues regarding the climate crisis and ethical practices has magnified the need to think sustainably, too. But in this sense, sustainability is no longer a differentiator between businesses, and instead, an expected value any commercial enterprise must keep at its core.
The solution therefore, lies in the way in which sustainability is injected into every business practice - from manufacture to fulfilment. In this article, Nate Burke, CEO of technology, digital marketing and ecommerce solutions firm Diginius, discusses the latter end of a product's journey, and how sustainability can help businesses gain an edge on the competition.
As it stands, fast and free shipping is proving an attractive offering, often outperforming other cost-saving strategies. Understandably, these deals grab the attention of deal-savvy consumers who want their items delivered quickly and without extra charges on top of their original basket cost.
In fact, how many of us have paused, hesitated or even abandoned an order for the opposite reason? Well, you’re not alone - 64% of all online consumers expect their orders to be shipped for free and within five working days. What’s more, 68% of us will check a returns policy before making purchase. Present major obstacles here, and retailers will be providing an instant turn off in an ultra-competitive sales sphere.
Ultimately, an attractive delivery option can make all the difference in a customer choosing your products over a competitor’s. Unless they have developed long standing brand love, the chances of a customer remaining loyal to an offering which they can get for less and in quicker time elsewhere, are low.
This isn’t to undermine the importance of sustainability and environmental responsibility, though. While fast and free shipping is expected, it may not necessarily be the most ethical business model, particularly if it will mean greater emissions for more frequent deliveries, and cost-cutting measures in other areas of the business in order to make up for lost shipping fees.
Global reports state that consumers would be more likely to purchase from companies with an established reputation for sustainability too. This suggests it is just as important for online businesses to focus their efforts on acting ethically, as it is for them to fulfil orders efficiently.
But with the rise of online shopping, which has been propelled by the pandemic with a 48% increase in online spending coming as a result of lockdown restrictions, businesses may be finding themselves weighing up the two. Clearly, there is misalignment between consumer expectations and commercial values here, and choosing between the two will require more than a look at a business’s bottom line.
Sustainability and credibility
It should be noted that today’s consumers are incredibly switched on when it comes to buying from sustainable brands. They can see through the smoke and mirrors or false claims to make informed decisions about the products and services they choose. And more often than not, these decisions are based on a brand’s credibility.
Any business can say they are doing certain things to protect the planet and their people, however, not all can provide sufficient evidence. And as competition increases, these are the businesses that are finding themselves falling behind.
We only need to look to recent examples such as Boohoo for proof. In 2020, the fast fashion giant found itself in hot water when it was revealed it was not following sustainable or ethical business practices. Poor warehouse conditions, less than minimum wage pay and inadequate health and safety standards were just a few of the concerns.
As a result, the company experienced huge losses, with its share price falling by more than a third during the first two days of the scandal coming to light. There is an undeniable perception on sustainability and ethical working practices, and people do not want to support brands that don’t support their economy and their people.
Interestingly however, as a fast fashion retailer, Boohoo is renowned for its speedy shipping and low prices, even offering unlimited next day delivery for a small, one-off yearly cost. Therefore, in this case, it is clear that efficient fulfilment alone is not enough to sustain commercial success. Its ethical responsibility had a larger part to play.
And while the company has attempted to correct its wrongdoings internally and then communicate these through marketing strategies, its tainted reputation is proving difficult to rebuild, suggesting just how important credibility is for a sustainable business.
But that’s not all. When it comes to free and fast shipping, credibility continues to play a significant role in shaping consumers’ perceptions of the service they are going to receive. For larger brands with established reputations, this is less of an issue, but for smaller companies who may be starting their ecommerce journey, it is vital that you appear a reliable, trustworthy and credible enterprise that is going to follow through with its promise of a fast and free delivery.
This may be through clear contact details for consumers to get in touch with queries, customer reviews, business information and responsive and helpful customer service via email, live chat, direct messaging or phone calls, for example.
A balancing act
Of course, building credibility will not solve every issue for a business, but it is a place to start. It is also a common denominator for sustainability and fulfilment and can help businesses differentiate themselves from the competition.
However, the misalignment between attractive cost saving deals and sustainable business practices can cause confusion. Often, lower delivery fees and fast shipping incentives, particularly for items that are already low in price, can set off alarm bells and leave customers questioning the ethical impact of their purchase. Alternatively, high fees and long delays can send customers looking elsewhere - both are bad for business.
Instead, businesses need to find a balance. Find the point at which free and fast shipping can be offered without impacting profit margins, and therefore, the sustained success of the business. For example, ASOS offers free delivery for orders over £35. While the majority of its customers are likely to spend this amount anyway, those that are not are enticed to do so, generating greater income for the business and an attractive deal for the customer. And in the minds of customers, the reasonable threshold amount helps justify the cost saving as a sustainable offer, rather than something that will put the business out of pocket and force them to act unethically elsewhere to make back lost earnings.
The threshold will be different for every business, but through the use of data and analytics tools, the amount that is best for your business can quite easily be found. These tools can also help centralise activity, from sourcing and manufacture to product marketing and post purchase service. With this in place, processes can become much more streamlined, which can in turn, increase the efficiency of order fulfilment. If things are delayed, for instance in the case of pandemic disruption, email updates can be automated, ensuring you are also providing high quality customer service.
With all this in place, not only will a business be sustainable and efficient, but its credibility will only go from strength to strength, too.
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NATE BURKE | July 08, 2021
For over a year now, the mere thought of sharing items and handling used goods has been enough to set alarm bells ringing. However, despite concerns, the second hand market, particularly in fashion, has experienced considerable growth and success, with an increasing number of shoppers becoming more open to making pre-loved purchases for clothing and accessories.
In fact, data from eBay has revealed a 404% year on year increase in pre-loved sales since 2018. And in 2020 alone, over 12 million people in the UK purchased a pre-loved item of clothing, dismissing any virus spreading concerns and instead, showing clear evidence for a shift in attitudes.
According to Nate Burke, CEO of Diginus, it’s patterns like these which businesses need to adapt to in order to survive the volatile commercial landscape that has been carved by pandemic uncertainty, digital transformation, and now, increasing environmental concern. Having worked closely with many retail businesses in recent months, overcoming disruption and creating more adaptable marketing models, the CEO of the proprietary software solution company, offers advice on how retailers can capture the eco-focused customer without jeopardising caution during this unpredictable period.
Across all sectors, sustainability and environmental concern are at the forefront of business leaders’ minds. For most, concern is being driven by governmental pressures, and rightly so as the climate crisis edges closer to irreversible damage. However, increasingly, consumers are forcing greater action from businesses too by collectively exercising their buying power and choosing those doing more than simply ‘their bit’ for the planet.
For example, in fashion, this is evident in the rising demand of the resale market. Consumers are beginning to condemn wasteful practices, such as fast fashion, and instead, opt for more sustainable alternatives by either investing in higher quality items designed to last, or buying second hand in order to extend the life of clothing and prevent landfill pile up.
For businesses, adapting should be seen as more than just a temporary adjustment to a passing trend, and rather, a permanent solution to a growing and urgent concern. Again, in fashion, we have seen both large and start-up organisations respond to the resale shift by investing in the development of new business models in order to capture and retain the growing segment of eco-focused customers. For example, the likes of Vestiaire Collective, The Real Real and ThredUP have all been set up specifically for the reselling of luxury second hand clothing and accessories. Similarly, established retailers, such as Selfridges, have added pre-loved services to their offerings.
Although these businesses may have had the capital to make such significant investments, there is also opportunity for those with smaller budgets to engage the increasing number of eco-conscious consumers by restrategising marketing and communications’ practices.
The biggest opportunity is through use of a marketplace selling strategy, whereby third party providers, such as eBay, Amazon and Depop, can be used for the reselling of goods that may be out of season, or have been returned because of small faults, or via a new buy-back initiative. These platforms are already in frequent use by consumers buying directly from other consumers, allowing businesses to target users in safe and familiar spaces, with the additional benefit of a trusted brand name.
But of course, with these marketplaces already saturated with items from a variety of sellers and sources, marketing efforts, such as PPC, can be used to help increase visibility of your products. Much like any advertising strategy, promotions for pre-loved items need to be well-targeted for the best return on investment.
A targeted approach also creates a strong case for focus on alternative shopping channels, such as social commerce platforms like Instagram and Facebook Marketplace. This is because of an alignment of demographics, with those more likely to buy second hand (gen Z), also making up a large segment of users of the social media platform.
Again, PPC tactics can be implemented on social media to ensure products are being seen by the right users. As well as this, a social commerce strategy can also be supported by brand partnerships and influencer campaigns with individuals who have established followings within the niche, such as Depop influencers.
These ads or partnerships can help create a seamless journey from discovery to conversion, and even lead to repeat purchases and advocacy through a follow and share, without a user even having to leave the app. In doing this, brands are also able to raise awareness of their eco-commitments, while encouraging engagement and conversation that in turn, can help spread word even further.
But implementing strategies like this across platforms and alongside traditional ads and marketing tactics for current product offerings can become time consuming and a drain on resources. Although, with software and technology that can help streamline activity through automation, machine learning and data and insights for informed decision making, any issues can quickly be ironed out.
While the shift towards resale is particularly evident within fashion, it is by no means the only sector having to deviate from the norm in order to accommodate the growing eco-focused segment. In fact, Ikea has introduced a similar buy-back initiative for popular furniture items, which will be resold at discounted rates.
In a sense, this is widening accessibility to certain products and increasing the pool of potential customers for many businesses in both the eco-segment and within various financial demographics. And when you think of it in those terms, it makes complete commercial sense to consider a move into the pre-loved market, despite how cautiously you may be inclined to act because of current uncertain conditions.
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NATE BURKE | February 25, 2021
Over the past year, we have seen more businesses make the digital switch and take services online than ever before. For many, an ecommerce offering was a means for survival during an incredibly volatile and unpredictable time. While for others, an online focus has been slowly developing for some time now as the digital revolution becomes increasingly undeniable.
One of the many reasons for the shift is online retail’s ability to offer businesses a number of opportunities, particularly with the way they can get their products in front of customers. For instance, a business can have its own ecommerce channel, be using an omnichannel approach, or selling its products via marketplaces.
It is the latter that are dominating the digital sphere at present. In fact, in 2019, $1.97 trillion was spent on the top 100 marketplaces, globally. Included on this list are the likes of Amazon, eBay and Alibaba – all household names, no matter where you are in the world.
These platforms offer businesses various benefits, which have afforded them their prominent status. Of these, the biggest is their offering of easy access to a substantial pool of customers, who are also increasingly turning to marketplaces due to their convenient, one-stop-shop solution.
As well as this, as platforms are owned and managed by larger corporations, there is little technical or administrative burden on the merchant company when it comes to software upgrades and system integration, for example.
So, with a growing customer base and ease of use clear advantages, it makes sense why more and more businesses are turning to the sales channel, especially those new to digital commerce practices. But is it all as straightforward as it sounds?
Well, not quite. According to Nate Burke, CEO of Diginius, a software solutions partner for ecommerce and digital businesses across industries, marketplaces have their challenges too. And for businesses utilising these sales channels for the first time, or for those struggling to make them work to their advantage, it is likely they are making one, or some of these common mistakes…
Choosing the right platforms
Today, there are countless online marketplaces to choose from, all offering their own unique benefits. It is likely you have heard of some of the biggest, including Amazon, eBay and Alibaba, but there are also many smaller ones which can be just as effective at generating revenue for your business.
Generally, businesses tend to flock to the more well known platforms when setting up shop on an online marketplace. And understandably so, as these platforms attract the largest number of users, thus putting your brand in front of more customers. They also tend to be perceived as more trustworthy, which can then reflect positively on your brand.
However, as more and more businesses take this viewpoint, it is to be expected that the competition on such marketplaces is also on the rise. Therefore, businesses need to take a strategic and informed approach when deciding which marketplaces to use. And this decision should be based on which is frequented by or accessible to your target audience.
For instance, if your target demographic is categorised by geographic location, you may want to consider using platforms that attract the largest audience in those specific countries, such as Alibaba across Asia, and Amazon and Wal-Mart in the US. In Europe, Zalando is the marketplace of choice for fashion.
But with advancements in technology and changing consumer habits, these traditional online marketplaces are no longer the only way to sell, with social media platforms now also getting in on the action.
Notably, Facebook’s investment into developing its Marketplace feature, and now, a Shopping page on Instagram, are changing the way both businesses and consumers interact and make or enable purchases.
So, similarly, the age of your target customer base can also help you determine the right platform, with usage and uptake of such channels more common among the 18 – 34 age demographic, and more precisely, females within this group.
Marketplace management
Although retailers do not necessarily have to manage the technical aspects of a third party marketplace, which is a real selling point for companies with small teams or strained resources, they do have to consider order management and stock list updating, on top of their management of any other channels they are using.
Often, businesses underestimate the amount of work this can involve. But when you consider the reason for using a marketplace in the first instance – to reach the larger pool of customers and maximise sales – the additional workload makes perfect sense.
Whether you are considering using a marketplace, creating your own marketplace, or are having difficulty managing existing activity, don’t let this deter you, because fortunately, there are a number of software solutions that can help.
For example, many of the biggest brands in the world use just one platform, which provides a single comprehensive commerce solution, including marketplace management. It combines activity across every sales and logistics channel, enabling greater efficiency for the business and a unified experience for customers.
For a brand that wants to access global marketplaces, ChannelAdvisor is often used to aggregate data feeds and order management across all marketplace sales channels.
Through use of such platforms then, the management aspect of having multiple order and revenue streams becomes much more streamlined. This will allow businesses to focus on other commercially critical areas, or, scale up their online offerings in order to target the optimal amount of customers in all of their markets, and via the most suitable channels in each.
Furthermore, these platforms offer valuable data capture and analysis opportunities, which also come at no real additional price to the company. With all information held centrally, businesses can get rich insight into the effectiveness of their activity, as well as confirmation of whether their decisions on things such as platform choice for example, have in fact, been successful. If not, the data and insight available could offer a suitable alternative, or at least areas of improvement, enabling the entire process to come full circle.
Ultimately, marketplace success is not too difficult to achieve once you have the right knowledge and tools under your belt. And with clear benefits of the sales channel, and a strong indication that they will be here to stay for some time, there is only a case for businesses to invest in such tools in order to yield fruitful online results.
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NATE BURKE | January 20, 2021
For ecommerce businesses, AI and machine learning are nothing new. Both have been gradually transforming the way retailers operate and improve their online offerings through enabling greater efficiency and a better understanding of their markets.
But in 2021, Nate Burke, CEO of Diginius, an ecommerce and digital marketing solutions provider, believes technological advancements and enhanced intelligence in these areas will expand the way businesses can benefit from an AI integrated model.
Here, Nate explains how businesses can leverage the ever advancement of AI to build out the perfect buying profiles, and in turn, generate more effective marketing campaigns and online sales results.
Businesses are constantly looking for ways to improve both the efficiency and effectiveness of their operations. And this will only become a more important focus as we continue to navigate the complex and volatile COVID-stricken commercial climate.
Fortunately, ecommerce is thriving. Unlike physical retail, which has been significantly impacted by pandemic restrictions, online sales are up. In fact, during the 2020 festive season, which is typically the busiest shopping period each year, online sales were up by 44.8% with almost half (47.8%) of all retail sales taking place through the remote means.
With a permanent digital shift on the horizon, or at least one that will see businesses adopting an omnichannel approach in order to benefit from the best of both worlds, more will look towards ways to streamline what may be unfamiliar practices for new digital business, as well as to lessen the larger workload.
AI is already offering solutions for these pain points. Through its data collection opportunities and automation options, there is the ability to reduce administrative tasks and wasted resources, saving businesses time and money and creating a better customer experience as a result.
But in 2021, there is case to take this one step further. Now that we are aware of the benefits of AI and can be certain that it is here to stay, businesses should see much less risk involved with an integrated approach.
By using the technology and data available to build better buying profiles, firms can truly utilise AI’s power and capability to their advantage.
Better understanding of your customers
AI is known for its ability to collect data in order to demonstrate and predict customer and market trends through analysing shopping behaviours, as well and influences in both the micro and macro environments.
The result is a holistic picture of your market that can then go on to inform business decisions. But as it advances, the quality and use of the data it is able to collect and analyse has moved on in leaps and bounds.
Today, and going forward, data and insights can be used to generate a detailed and accurate understanding of each individual customer, rather than general consumer segments. For instance, through the collection and acceptance of cookie data when a customer visits your website, you can begin to build their profiles, including product interests and browsing preferences.
With this information stored safely in your records, you can tailor content when they revisit a page to create a more personal and favourable experience. And if agreed in your policy, you can even use this information to tailor targeted ads and communications.
Now, there are differing views on the ethics of this practice. Although, with tightening regulations and compliance measures, data collection control does remain in consumers’ hands. For those that do accept, it is the retailer’s responsibility, and in their best interests, that they use it sensibly.
Typically, a consumer will want their browsing preferences to be remembered. It makes for a more convenient shopping experience and saves them time in resetting and re-filtering options. In fact, 90% of consumers are willing to share personal behaviour information with brands for an easier experience. So, a brand that is able to do this will be looked at much more favourably, encouraging revisits and repeat purchases.
What they don’t want, however, is for brands to abuse the knowledge they hold by spamming them with endless communications and retargeted ads. In fact, these may actually damage the reputation of the brand, rather than offer it any favours.
But the data you collect can help you predict that too. You can uncover which type of ads are responded to best by each customer, and even detail the time it was responded to, in what form, on what device or channel, for how long, and whether it did in fact encourage a click through or conversion.
This information is invaluable for building buying profiles. With it, you can create more successful campaigns and offerings as you are giving your customers exactly what they want.
And while in the past, individual profiles tended to be grouped together into segments by similarities, the automation abilities of AI integrated systems mean every individual consumer can be given a personal and tailored experience.
The success and sales results speak for themselves. Personalised content already receives better engagement rates than more general alternatives. For example, personalised emails can achieve up to a 55% increase in open rates, and 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.
Now, just think of how much more successful these activities can be if we take targeting a step further and inform our decisions with information we have collected through AI advancements, in order to create detailed and accurate buying profiles.
Personally, I believe it’s an opportunity that cannot be missed.
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