Imperatives on Swedish online e-commerce market
Summer in Stockholm – a time for Swedish e-tailers to contemplate and to regroup before the stress fest in the fall. Starting with the ”back-to school drive” in September, leading on to the main event of the year, the Christmas craze – starting in early November. At lunch with one sport goods retailer (our client) one internet/ mail order retailer and the leading classified ads site.
On the discussion slate was:
- Multichannel retailing vs. classified ads – similarities in challenges and opportunities
- Product catalog syndication
- Optimization before strategy
- Market expansion (looking east)
- Scripted tests
- Way to grow
Similarities in challenges and opportunities
It is always rewarding to seek similarities in related businesses. If you are in online business, you will always face the same challenges with regards to traffic recruitment and conversion. The same resources and the same knowledge applies. So the managers could probably swap traffic, analytics media planner people between them. Then there are many operational issues which are the same. They face the same decisions about site development, payment strategy, personalization, pricing strategy, product presentation etc.
Product catalog syndication
We will probably see much more of Product catalog syndication in the near future. This is when the e-tailer seek a distributed presence over the traditional ”buy-traffic-then-convert-on-site method”. The challenge is to find the sites and contexts where your target group is already in ”buying mode”, and then distribute your product catalog to this site. The e-tailers site delivers the landing page and the transaction functionality. The syndication site delivers the buyer and the shopping experience. Interesting about this is that you let go of exclusively managing the whole branding and buying process on-site. The price-comparison sites have ofcaurse been around for a long time, but this can certainly be taken to the next level.
Optimization before strategy
An interesting conclusion – The Swedish limited online market requires more focus on optimization, than bigger markets such as UK and Germany. Swedish e- tailers therefore need to be even more streamlined and have even more super efficient sales oriented sites. The e-tailer needs to have an ”Optimization before strategy” orientation. This is important as a cultural statement. This requires a organizational culture which says that optimizing your site is the coolest thing you can do. It also requires in-house development team who can implement the fine tuning that is needed. Optimizing before strategy also means follow leaders rather than of making the big bold moves.
Market expansion (looking east)
A natural geographic market penetration for Swedish e-tailers is to the east. I.e. Ukraine and the Baltic regions. As always new markets requires special arrangements for delivery and payment, and the eastern countries even more so. Decisions about Central control of concept vs. local adjustments needs to be taken. Local rules and regulations have to be taken into account.
Scripted tests
Use Selenium IDE. Useful for regressional tests. Can be applied every time new code is compiled.
Way to grow
Start basic with low overhead. Research customer needs. Launch. Market through distribution to market places, price comparison sites, search engines (applied online marketing and link building) etc. Take care of customer (conversion and fulfillment), make sure she comes come back (loyalty). Optimize!
