The challenge of e-commerce

To halt the migration of their customers to big e-commerce players like Amazon or Zooplus, some of the big pet retail chains like PetSmart, Petco and Fressnapf have already opened online shops. The IJsvogel Group in the Netherlands (“Pet’s Place”) is also currently working on a concept for getting into e-commerce. Before an online shop is up and running, however, a speciality chain first has to invest millions in hardware and software as well as in staff, advertising and logistics. Only then can its appearance on the Internet be guaranteed to bring sustained success. Experts believe that the share of sales of Internet retailers will increase sharply as a proportion of overall retail sales in the next few years. Pet supplies retailers have no alternative, therefore, but to get into e-commerce. Many underestimate the difficulties that can arise in creating and operating an online shop. These start with setting up functional logistics and end with the optimal positioning of an online shop that is distinct from the brick-and-mortar retail trade. Often the retailer’s own goals are not clearly defined in advance, and it is important to clarify some key questions at an early stage:
Is the online shop being run as an autonomous distribution channel, or is it only intended to support the activities of the brick-and-mortar trade?
Does the online shop carry exclusive products that are not sold in the operator’s stationary outlets? Or conversely, are some product groups that are obtainable in the shops not offered at all online?
What about pricing? Are the same price promotions available on the Internet and in the stationary shops?
For franchise businesses, the question also arises of how franchisees can be linked in sensibly to the operation of an online shop. If all the players in a company are not completely behind the online shop project, then a successful e-commerce venture might prove difficult to achieve. Sensible participation concepts must be discussed in advance with regard to this and any misgivings that franchisees may have must be taken seriously. More recently, an increasing number of cross-selling concepts have been tested, in which pet owners can order products in the stationary shop that do not form part of its range but are only available in the online shop. For store chains with smaller retail areas in particular, which only have space for a limited number of products, this could offer the ideal solution. Ralf Majer-AbeleDownload: The challenge of…