Posts from the ‘retail’ Category
June 20, 2017
Everyone’s talking about the death of retail, and what’s next for eCommerce: AI, IOT, and so on. This, combined with today’s more brand agnostic customer, is enough to make a retailer despair. But let’s face it- people are still shopping. Retailers need to up their game to stay in it- and to avoid being eaten alive by Amazon.
While there are so many epic things on the horizon to do- there’s one fundamental opportunity that most online retailers haven’t figured out yet, and hardly anyone is talking about: immediate gratification. The impulse purchase. If we can figure out how to make that easier, faster and better- we’ll have something.
Apple pay is a step in the right direction- it makes it easy to buy from a compelling email in about two seconds. The first part of the impulse buy is there- but I still have to wait for that package to arrive.
Amazon has us all trained to expect 1-2 day delivery on everything. Forget paper towels at the grocery store on Sunday? Amazon can have those to you by Tuesday. Most retailers have followed suit with at least free standard shipping. But anything that takes 3-5 days is like waiting an eternity. I find myself thinking- didn’t I order that WEEKS ago? The new standard is fast. If I could have gone to a store to get it by now, it’s taking too long. But what if I want it today, and don’t have time to go to a store?
Back in the internet boom- Urban Fetch was a great start-up in NYC that would deliver anything within an hour- bagels from your favorite place, the book you need for your daughter’s English class by tomorrow that she forgot to tell you about…a present for a baby shower, etc. It was the best thing ever. But they didn’t survive- it just wasn’t cost effective. It’s surprising in all this time, that no one has figured out how to do this at scale for fashion- it exists for food- Seamless, Instacart, Uber-eats. But not for fashion.
If stores, every major brand, including department stores, could figure out how to deliver same day- within hours, this would create a huge paradigm shift for shoppers. Fashion brands need to be looking at how to facilitate this & stock the stores for it. If I have to go home, and think about it, or wait for it- I might change my mind. Yeah- it’s online in the end, but the stores become local points of distribution.
Everlane has it right: in NYC, they’ll deliver within an hour. BAM. I need a raincoat or a new bag? Instant gratification in 5 minutes of browsing on my phone. But who else? Even with online groceries, I have to set my delivery window 48 hours out (more on that in a future post). The model here has to change.
On a recent trip to the mall, I experienced the worst of mall madness- it was the day before Father’s Day, and it was mobbed. Every store was a mess- like Macy’s the week before Christmas. Even shopping in Nordstrom was so unpleasant, I couldn’t begin to find anything good, because the tables were a mess- it looked so junky and worked-through. I wasn’t shopping for Father’s Day, thankfully- so was able to bail, and just shop online without the stress.
Will people still go to stores? Sure. There will always be those last-minute shoppers, and the delight of discovery- finding something you weren’t looking for & didn’t know you needed ’til you stumbled across it. But stores need to get more creative about making the experience of shopping worth that effort. Burlington, VT is a great example of this- Church street is closed to traffic, and filled with retailers and restaurants- making it a great place to shop, eat, meander and discover. The nearby mall is empty. Malls are becoming a depressing and uninspired destination. But that’s a story lots of others are already telling.
For the time-being, people will continue to be pressed for last-minute shopping, and until online retailers can figure out how to deliver same day, those shoppers are going to the mall.
July 31, 2015
The approach is based on a lower pricing strategy, combined with fast delivery. It’s a major, gutsy play for Jet.com’s founder and CEO, Marc Lore. No one has seriously tried to beat Amazon on price – until now. But if anyone can do it, the founder of Diapers.com, Wag.com and Soap.com can. After successfully building these powerful brands, defined by amazing branding, customer experience and convenience (personalization- reminding me that it’s time to reorder, and making it easy to do so; free 2 day shipping, even on a 40lb bag of dogfood), Lore sold Quidsi brands to Amazon for over $500 million.
So it’s just a little bit epic that he’s going after Amazon now.
The key differentiator for Jet.com is that Lore creates beautiful and engaging customer experiences that create a devoted customer base with loyalty and an emotional connection to his brands. And from that perspective, Jet doesn’t disappoint. The site has a powerful brand identity and a great customer experience. The search is powerful, the sort features are what’s needed, and the selection seems robust. The homepage promises ‘club price savings’, which alludes to Costco as well as Amazon’s prime pantry. Jet is going directly after Amazon on price, showing comparative pricing against Amazon on every item, to demonstrate the savings.
How is Jet.com doing it? They’re sourcing wide and far- and instantly serving up the prices that are lowest based on your location and things that are cheaper to ship together. Jet will show ‘smart savings’ on items that work well together. every time you add to cart, an animated calculator comes up to show you how many items are now cheaper on the site- it has a little bit of a slot machine effect, of making you feel like there’s a reward with every transaction.
There’s a ways to go- Jet is operating at a huge loss currently, as it gets the infrastructure in place to do this efficiently. From a customer perspective, there’s work yet to be done- product descriptions at the thumbnail level don’t always make it clear what the quantity is for the price, so it can be a little confusing. In the shopping cart, I see how much I’ve saved per item, but no subtotal for line items I’ve ordered in multiples. They need to add a quick-view feature to the search display- something Amazon doesn’t have, so could be yet another differentiator.
In the shopping cart, you can save even more if you select certain payment methods, or to waive the ability to have free return shipping. More incentive to checkout. On my $50 purchase, I saved over $9- not bad.
The biggest obstacle for Jet in driving repeat purchases, is that their creative sourcing means that an order ends up shipping in many multiple packages: My order of 8 items will arrive in 5 separate shipments. I’m not paying the added cost- Jet is absorbing that. But as a customer, I don’t like the inconvenience and waste associated with receiving that many packages and keeping track of whether everything has arrived.
Will Jet give Amazon and Walmart a serious run for their money? Maybe. I hope so, because the competition is good- and I love a site that takes the time and effort to make the customer experience feel like a wonderful place to be. It’s a differentiator that matters- Amazon has never tried to go there, and Walmart failed when they tried- their customer associates a certain over-crowded messiness with savings. It could be the differentiator, combined with price- that makes Jet.com a serious contender.