According to a report, in the year 2020 more than 2 billion unique people purchased something online via online retail shops. This statement follows our observations that with the digital transformation, the traditional shopping ways are vanishing and are getting replaced by modern shops. With more than half of the customers switching over to online shopping applications, digital retailing is the new revolution. Today consumers get all the information about their products online. With nearly a million startups opening every year and many of them being online service providers, the customer has a thousand options to choose from.
But what is the impact of digital transformation on traditional merchants? Needless to say, they’re incurring heavy losses. Companies like Flipkart, Amazon, Meesho, BlinkIt, and numerous others are competing with them every day. The competition between these two is unmatched and certainly not a fruitful one. Thus, it is high time for the traditional shopkeepers to incline towards digital transformation. Using high-tech technologies like big data, data science, machine learning, etc., one can easily know the current market trends and thrive their business by implementing them. The retail solutions do not just provide services but they provide the software as a service. In this blog, we shall get to know more about this.
What are Retail Solutions?
Retailing refers to the act of selling a particular product directly from the shop to the customer without any involvement of the middleman. This is a profitable deal for the consumers since he does not have to pay for the middle man’s services. Traditionally, the product was produced and was brought over to the customer using the service of a third person, so the final price of the product was the sum of its actual production price and the service charges. This led to a huge profit margin for the third parties.
In retail solutions, the services are directly provided to the consumer without him paying the additional charges. This enhances customers’ satisfaction and reliability towards the shop.
Online Shops taking over Traditional ones with Digital Transformation
As the statistics have already been mentioned above, the rate at which consumers are switching toward online platforms is exponential. The stores provide them discounts and incentives which traditionally they were deprived of. With digital transformation at its peak, you can get anything delivered to your home without leaving your couch. And that is the best part!
Applications like Flipkart, Zomato, Meesho, Zepto, and many more are always trying to lure customers with offers such as free deliveries, discounts, and sales. No one wants to leave the comfort of their homes and go out to the market to purchase just a couple of things. Eliminating the location boundaries, customers can buy anything and get it delivered to their homes within minutes,
Impact on the Local Markets
With more and more people tending to purchase things online, the traditional trading services are declining in the market. The local markets are disappearing from the roads and that is leading to survival problems for their families. Between the years 2015-2020, the online retail shops grew by almost 56% whereas, the traditional market emerged only by 2%. This shows the declining rate in the local markets and the problems happening to them. Although just like a coin has 2 sides, this concept of online retail business also has advantages!
Thanks to digital transformation, the traditional shop owners are now starting their business in an online mode resulting in exponential growth of their business. With the use of innovative graphic designers and social media influencers, these businesses are thriving. People are now getting attracted to the local shops using the online services. They not only provide the product but the way they provide their services is also commendable. People tend to use those applications and platforms, which offer good GUI along with a quality User Interface. Shop owners are now getting this fact and are collaborating with services like Meesho to provide products at affordable rates and from the comfort of their homes. This is increasing their revenues resulting in higher profits and better business.
What happens in these Retail Services?
Many people believe that the value they pay is only on the product they consume. The price they pay is for the experience they gain. The online retail marts are understanding these concepts by making the retail service digitally available for people worldwide. They not just offer you the product at a minimal price but also increase brand loyalty. Let’s see how.
With thousands of options available for the consumer online, brand loyalty is really low. The best way to increase user engagement is by giving them the most affordable products in the easiest manner. Let’s admit the fact we are likely to use applications with easy User Interfaces and services rather than complex one. People are afraid of using complex applications so, they prefer the ones with simpler interfaces. This is what the retailer aims for. They provide software as a service and then the product. The retailer is well aware of the fact that products are available in large numbers across the world, but what is not available is the services that he needs to provide.
So, he offers the best-rated products with simple applications to increase user retention. Thus, offering software-as-a-service.
Final Words
The digitized retail industry generated around 4.88 trillion dollars in 2021. With advancements in technology and digital transformation, they are expected to grow more than ever in upcoming years. With this, the retailers are providing better services at minimal rates to lure customers’ attention and increase brand loyalty.
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Our Retail solutions can help you increase your profitability & achieve great success.
Whatever might be your online retail goals, Sunbridge can be your partner in creating the perfect retail interface.
We have worked with several organizations in Microsoft Dynamics 365 retail solution module implementation in Dakota
