The competitive advantage retailers have over online giants

The competitive advantage retailers have over online giants

Why Online Giants Like Amazon Win?

When Amazon enters a new market, it has to acquire customers while retailers already have a dedicated customer base. Most retailers measure ROI based on one given sale, Amazon has changed to view its customer from a long-term perspective. Amazon is ready to lose money on a customer’s first purchase, once it acquires a customer. When this customer has overcome the first major hurdle for a new retailer – actually making their first purchase. From this point forward, Amazon is able to continue driving the best experience for this customer with the data they gather, which in turn creates a loyal customer, driving long-term ROI.

What Retailers Should Do?

For retailers, their focus should be on what they need to do to retain their customers. Retailers should focus on putting together plans for tailoring the customer experience and leveraging their CRM database to ensure they are still capturing their existing customers during the burst of Amazon competition.

While there is an aspect of on-site personalization, retailers should also be focused on re-engaging with this customer throughout their shopping journey. If we already know someone is a loyal customer and they are in the market to purchase, a retailer should be doing everything they can to bring them back to the website.

Amazon is able to offer quick and low-cost shipping to customers. However, customers are still looking for in-store services such as click & collect so they can try before they buy.

For retailers, this click & collect has become an important factor for their overall digital commerce strategy, allowing them to leverage their brick-and-mortar stores to provide a more convenient and personal buying experience while helping them save money.

Automating click & collect (Implementing BOPIS) helps deliver a superior customer experience while opening up numerous up-selling and cross-selling opportunities.
Smartbox is a global provider of smart locker technology. Our technology can automate your instore Click & Collect by integrating with any type of parcel lockers. Our platform also has the unique capability to offer electronic payment options at the time of pick up for a truly seamless Customer Experience.

If you are curious to learn more, dial +91-8882-760-760 to speak with one of our representatives or send an email to We would be glad to assist you.


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