Keys on competition between e-commerce and traditional establishments

Keys on competition

The development of electronic commerce is a fact and more and more consumers opt for this mode of purchase. In fact, online stores have clear guarantees, among them ease of access to products, fast service and, most importantly, the frequency with which they can update and fix the prices of their products and services, as well as promotions and discounts.

A pace that can hardly cope with traditional businesses that are directly affected by the new standards developed by the purchasing behavior of consumers. Thus, we are witnessing a greater demand from customers, who recognize willing to take more time when making purchases and direct efforts to do so.

Keys on competition
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In fact, as is clear from a recent research conducted by Display data, three-quarters of American buyers opt for the web rooming, or what is the same, discover products through Internet and look for online information about those who interest. The decision confirms the detriment of show rooming, whereby only choose one out of four consumers. One trend is to compare prices and alternatives to products that previously have realized in physical stores and taking in water.

High level of competition

With this background it is not surprising that traditional stores are displayed concerned about the high competition from electronic stores them, who can not face a major issue as updating the prices of their products or promotions.

And it is that if we consider the margin of maneuver which have large e -commerce platforms such as Amazon, you can update prices 2.5 million a day easily understand the situation of helplessness with which feature traditional establishments see the example of the legendary American brands Walmart or Best Buy, they can barely make 50,000 monthly price changes.

In this sense, it is interesting to look at the report Rethinking Retail: Getting the Right Price In-Store in a Digital Age, in which the important advantage of electronic commerce is found. Their results show that digital platforms can react quickly and flexibly to price competition, availability of stock, anticipated sales or even adequately respond to inclement weather.

A responsiveness that consumers appreciate since according to the same report, 42% of respondents believe that prices offered via Internet are more competitive than those offered physical stores and, what is more striking a 72% of them acknowledge to have been persuaded to buy through the network.

Electronic product labeling

However, traditional stores have all lost. His solution particular: the electronic labeling, or also known as Electronic Shelf Labels (ESLs). This alternative is to apply a technology that allows traditional establishments display their products relevant information, such as price, its main characteristics, availability or discounts digitally on the shelves where they are located.

In fact, this pathway becomes a very useful solution for retailers, as they can improve their competitiveness with regard to updating their prices or even show customers the competitive prices, reducing thus the likelihood of showrooming.

In this sense, electronic product labeling becomes an interesting way to traditional commerce escape, a way to provide transparency to customers, ensuring them that the price is right at each point of contact. And one way to gain their trust, which can be decisive to realize their purchases.

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