“Beyond the revenue from online sales, Manitowoc's merchants say the biggest benefit of e-commerce is that it enables them to turn over their inventory much more quickly, so owners can add more products and variety to their sales floors. That, in turn, encourages more interest and customer traffic, diversifies the revenue stream and contributes to downtown street life here and in other small cities.”
“On the face of it, at least, the report seems like more depressing news,” the website writes. “The report -- fairly convincingly -- demonstrates that consumers are still unconvinced about their privacy and security online.”
But consumers can be mollified. About 54 percent of survey respondents say that they are “more likely” to read a privacy policy than in the past – suggesting that easier-to-read and simpler policies might be effective in getting consumers to increase their online purchasing behavior.
And this means that Wal-Mart can offer higher end merchandise online than in its stores, selling more expensive electronics and fashion items than it might sell otherwise.
- KC's View:
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We believe that these three stories illustrate the realities and advantages of using the Internet as a differential advantage.
On the one hand, you have small stores that are driving sales, traffic – both on-line and in brick-and-mortar stores – by using the web to offer an expanded selection of products and services not offered by big box stores. (Remember – “compete” is a verb…something that these retailers clearly understand.)
It has to be an ongoing effort – because quite obviously Wal-Mart is learning the same lesson.
But retailers also have to be careful to be transparent about their procedures and policies – and always put the customer first.
Win. Win. Win.
