Small retailers are facing increasing pricing pressures when selling online, according to a new poll.
Rakuten’s Play.com has released results from its survey of over 200 online merchants into the competitive pressures facing SME retailers and how merchants plan to pursue growth in 2013.
Results revealed that nearly half (48%) of merchants surveyed are concerned about competing purely on price in 2013 and free delivery is still considered to be key to customer loyalty.
32% of merchants surveyed lacked sufficient resources to manage their own e-commerce site and expressed concerns that running an independent website would not attract sufficient footfall to be sustainable. Meanwhile a third of merchants were looking for online marketplaces to extend their customer reach beyond their own website.
When it came to rewarding their customers and encouraging repeat custom, 39% of merchants polled believed that free delivery remained the most powerful loyalty tool at their disposal.
Nearly a quarter (22%) of merchants sought to reward their customers using vouchers and special offers, while 17% used social channels to engage fans with competitions and unique offers.
The survey also revealed that less than half (43%) of merchants had used social media to promote their business. Adam Stewart, Marketing Director, Rakuten’s Play.com commented on the results: “We all know that price is a key factor in customer purchase decisions, but merchants need to think about more than just free delivery when seeking to create brand loyalty.
Engagement, targeted offers and relationship building will be vital for retailers of all sizes next year. Whether it’s sharing a special offer, an exclusive competition or un-boxing a new product range through social media, the power of driving engagement and creating conversations to build brand loyalty should not be underestimated.”
Source: http://www.play.com/GET.html