Sarah Elizabeth
In today’s uncertain market, e-commerce retailers are looking for new ways to confidently grow their business. Exploring new sales channels, implementing new delivery methods, and even partnering with other trusted providers are all potential ways to expand your reach and develop a loyal following.
But knowing where and how to start isn’t always easy. That’s why we’ve identified four enterprise retailers to watch in 2020. Mark what they’re doing to build their business and stay relevant in an ever-evolving e-commerce market—emulating their strategies may help boost your own growth in 2020 and beyond.
Amazon
It’s no surprise that the leading U.S. enterprise retailer is Amazon, with a shocking 38.7% share of U.S. retail e-commerce sales.
Amazon’s transformation from its 1995 debut as a book-only retailer to its current status as one of the world’s largest e-commerce companies is impressive. And it continues to revolutionize the e-commerce industry at every turn. From developing its Alexa devices to exploring cashierless grocery stores to test-driving drone delivery service, Amazon is never content to rest on past successes. Instead, it’s a leader in innovation, always looking at the next big idea.
Their commitment to customers also drives Amazon’s success. They’ve developed a range of helpful tools to improve the customer experience — like the ease of returning products (even without a box!) by dropping them off at a local UPS or Kohl’s store. It’s no wonder they continue to build a foundation of dedicated followers.
Another major driver of the company’s success is simply its outstanding user experience. Amazon makes it easy for its customers to find and buy the things they’re looking for — while helpfully encouraging the purchases of items customers didn’t realize they needed.
Why Watch Them?
Amazon is one of the innovators in the Internet of Things space, and is always looking to take its technology one step further. The company often sets the standard for online shopping — inexpensive, fast shipping and a wide variety of products. If you want to try to emulate Amazon’s success, it’s wise to integrate similar strategies.
Walmart
Walmart has long been a giant in brick-and-mortar, with its 11,484 stores in 27 countries often serving as the go-to source for family basics.
Even though millions of shoppers visit its stores weekly, Walmart is still determined to give customers even more. It’s taken its grocery lineup upscale by including organics, charcuterie, and even sushi in many stores. For those who are wanting to save time (or who are just uncomfortable shopping inside stores during the COVID-19 pandemic), Walmart’s free next-day shipping and free curbside pickup have been attracting new customers while keeping long-term customers on board. And thanks to a streamlined, easy-to-navigate app, customers are finding it easy to browse, buy and schedule services.
Why Watch Them?
In today’s uncertain market, customers are often hyperaware of how much they’re spending and the value they’re getting for that price. If you’re an e-commerce retailer with a brick-and-mortar component, you might consider how you can ensure you’re delivering quality products at a great price point — and then how you can get those products in the customer’s hands quickly.
Target
Target, often thought of as the more fashionable older sibling to Walmart, enjoys widespread popularity, but it’s only in 2020 that Target broke into the top 10 list of e-commerce sales, with 1.2% of total sales.
What changed? Store renovations have been made with an eye toward the digital channel — making more room for online order pickup. But inventory overhauls, same-day in-store pickup, and online ordering with curbside pickup have also helped fuel Target’s growth. These curbside pickup options, coupled with a collaboration with Shipt for purchase delivery, have made it easy for consumers to continue their Target shopping trips even during the height of the pandemic.
Target’s reasonable prices for chic home decor and clothing and partnerships with designers like Missoni, Marimekko, Lily Pulitzer, and Chip and Joanna have further elevated the brand.
However, Target also provides a cautionary tale for any merchant looking to expand into other countries. In 2015, Target pulled the plug on its disastrous foray into the Canadian market. Canadian shoppers who knew and loved the Target experience when visiting the U.S. were dismayed when Target’s Canadian locations offered high prices, sporadic inventory, and a poor customer experience.
Why Watch Them?
Developing collaborative relationships with in-demand brands and shipping partners can help you attract a new swath of the market to your e-commerce store and convert them into loyal followers. Additionally, paying close attention to delivering a consistent customer experience across all locations is a major key to success.
Costco
Costco made news during the pandemic by requiring its members to wear masks while shopping at the big-box retailer, but they made the top 10 list of e-commerce sales by employing a smart approach to growth. While the warehouse giant has traditionally focused on discount pricing, bare-bones decor and tight margins, the retailer has demonstrated a shift in focus to the online channel. The result? A 17.9% increase in e-commerce revenue for the six-month period ending March 1, 2020.
Thanks to the acquisition of logistics company Innovel, Costco has been able to expand its e-commerce reach to most of the United States, allowing it to sell and deliver the bulky merchandise that many customers had avoided purchasing from the retailer in the past.
Additionally, Costco’s reputation as a good employer cannot be discounted. By paying their employees well (including benefits and health insurance), Costco makes sure the customer feels good about shopping there.
Why Watch Them?
Making a statement with your customers can be done without having to invest in expensive interior design. By delivering great value on the products your customers need — and being able to deliver that to them no matter where they are — can win over customers for life.
Keeping Safe in Evolving Markets
As you try new strategies to capture new customers, you’ll want to make sure you’re also protecting yourself from unscrupulous fraudsters. Selecting and implementing the right comprehensive fraud protection solution can help you build trust and keep transactions safe. Contact the experts at ClearSale today to learn how we can help you safely expand your business into new channels while still protecting your business from the devastating impacts of e-commerce fraud and chargebacks.
