skip to main |
skip to sidebar
A recent study by consulting firm Shipware LLC documented the commanding advantage Amazon has established in shipping. The "big shippers" - so-called Mega-Retailers like Amazon, Target & Wal-Mart - get dramatically more favorable rates from carriers such as FedEx and United Parcel because their volume is "guaranteed and predictable."
As a result, the costs absorbed by the Mega-Retailers to provide "free shipping" are breath-takingly less than those for their smaller competitors.
Shipware estimated the shipping costs that would be incurred by each type of merchant to ship a 10-inch square box weighing 3 pounds from New York City to a suburban residence in Atlanta.
But are the shippers relying on this "guaranteed and predictable volume" to offset the discounts they offer? Or, are the shippers looking to their smaller customers - with far less negotiating power - to bear a disproportionate share of the costs?
- For the mega-retailers, free shipping drives tremendous volume (and customer loyalty) while also enabling greater and greater negotiating strength with the shippers. A powerful dynamic: the big get bigger.
- And for the smaller merchants? Matching the mega-retailers' online prices and absorbing the "free" shipping costs are much higher hurdles. They represent the opposite but equally powerful dynamic, the downward spiral....
Will there be any relief for the Small-Medium Retailers as Amazon grows its own shipping fleets? That is, faced with reduced volume from Amazon, might FedEx and UPS be more willing to offer better rates to all the other customers?
SIgh. We wouldn't count on it.
Or, given this huge discrepancy in costs, might other shipping services emerge to fill this vacuum? Perhaps consolidaters of some sort? Or...???
The Internet of Things (IoT) – all the web-enabled devices for the home – is a dynamic and fascinating arena. One of the latest devices is the Family Hub, the "Smart Refrigerator" from Samsung.
The Family Hub has 3 cameras inside the fridge and a 21 inch touchscreen on the front that connects to the web. Samsung says they want to move your refrigerator beyond storage, and bring your kitchen into the digital age.
For that, the Family Hub comes complete with...its own family! (And you thought it was about your family.) It's all about the "home shopping vertical."
So, when you wonder (or are being asked), "What's for dinner?", the Family Hub has lots of partner-enabled help for you.
- First, you can look inside your refrigerator – from anywhere with an internet connection – and see what’s in it right now, including expiration dates.
- Meanwhile, the Groceries by MasterCard app has been studying your habits, and offers a grocery list of suggestions on specific items and brands.
- AllRecipes has recipes, cooking tips and suggestions for you (complete with shopping lists).
- Others in the household have been adding to the grocery list too.
- Once you approve your shopping list, items are added to a cart at a FreshDirect or ShopRite location, the payment is processed by the MasterCard app, and the groceries are delivered by Instacart.
Whew! It's giving a whole new meaning to "food chain", isn't it?
Our questions: Are these smart fridges - and all their connections - really cool? Or, really chilling?
- Is this a time-saving, technological break-through? The perfect blend of technology, merchandising, and convenience for today's consumers?
- Or, despite the amazing connections the technology can allow, Is it even solving a real problem?
- Meanwhile, as with all these technology advances, who actually will own all the valuable data these smart refrigerators are collecting?
It will be fun to watch, for sure.
And who knows? With the web-connected video screen on the refrigerator, the Family Hub may give a whole new meaning to “binge watching”!!
"How do you do analytics in such a way you don't become creepy?" asked Jill Standish, Senior Managing Director of Retail at Accenture Consulting.
And her answer? A technology that looks at the shoes of customers as they walk in the store.
"You can actually get a lot of pretty accurate demographic information about the customer based on their shoes, such as their age, whether they are male or female, and even their income status. And it's not that intrusive, unlike facial recognition."
Revealing "Foot Traffic"
That got us wondering: even without that technology, what might you be able to learn about your customers by looking at their shoes?!
- For example, with just the camera on your phone, get some pictures of the shoes on the shoppers entering your store. Then, take pictures of the customer's shoes at your cash wrap counter.
Now compare those sets of pictures. How much consistency is there between the folks coming into your stores, and the ones actually buying from you?
- Considering a new location? Or a different location in a mall? Supplement your research with some "ground up" analysis. What can you discern about the "foot traffic" available in that new location? And how well does that match up with your present customers?
Intriguing, isn't it? It won't take much time, or even an investment in technology. (And it might be a great project for one of your newer and/or younger staff members.) You will undoubtedly find some surprises – and more opportunities!
Just a little time and effort can reward you with some revealing and useful insights. All free, too! One more way that independent retailers can work smarter, not just harder.
