June 2019 - 36

Pohmer On
COMPETING AGAINST THE
Amazon Effect ...
By Stan
Pohmer
I
came across an interesting statistic recently that
amazed me, though after thinking about it for a
bit, it really didn't surprise me ... 78% of adults in
the U.S. are registered or signed up to an online
marketplace, such as Amazon, e-Bay, Jet or Craigslist,
among others.
With this pervasive penetration and the rapidly
increasing market share online purveyors are taking in
total retail sales, which will approach almost 20% by
2021, online sales are siphoning off retail sales from the
brick-and-mortar segment and forcing major churn and
disruption for traditional physical retail formats. And
with Amazon accounting for almost 50% of all online
sales, that means they will account for almost 10% all
retail sales by 2021.
With the aggressive growth of online platforms,
it's no wonder that digital retailers, led by Amazon,
are having a major influence on changing consumer
attitudes, perceptions and purchasing patterns and
behaviors, and these are impacting the way consumers
interact with physical store retailers.
Retail experts call these new expectations and
demands the " Amazon Effect " and some of these include:
* An understanding that time is a commodity that the
consumer greatly values.
* Convenience, ease of shop, purchasing experience,
36 | LAWN & GARDEN RETAILER | JUNE 2019
checkout, return and delivery; virtually all
operations that touch the consumer in any way.
* Low prices or a readily identifiable and demonstrable
explanation of higher value for the price paid.
* Accessibility to broad assortments, often more SKUs
available online than carried in-store.
* Fast and free delivery.
* Enough information available online from the retailer
to allow the consumer to make informed decisions
before they make the actual purchase; this also
allows the consumer to compare products and prices
from competing retailers.
* Seamless integration of a retailer's online and store
platforms and their total experience.
* Being technologically competitive, meaning their
online processes must keep up with their competition.
* A personalized shopping experience, and understanding
of how shoppers interact with the retailer's brand.
* Support of retailers who take a stand, have
integrity and strong moral and social values
and principles.
As pure play online retailers such as Amazon and
omni-channel retailers such as Walmart and Target
continue to enhance and grow their online presence,
the new model for physical stores' success is being
crafted every day through continual evolution and
adapting of their key competitors.
Although no one has yet staked out a real claim
online for our industry's products, it's only a matter
of time before someone figures out the shipping and
distribution logistics on a broad level. And, more
importantly, we need to deal now with the new and
evolving consumer expectations and demands in
our stores.
It's indeed tough when outside
forces change the expectations and
demands of your customers, but
that's exactly what is happening
with the rapidly growing influence
of online retail platforms.
Here are a few ideas and thought starters you
might want to consider to get in synch with the new
consumer behaviors and expectations.
Website: Even if your customer will ultimately make
their purchase in-store, they may want to do their
pre-purchase research at their leisure online to be
better informed and to make the most efficient use
of their time when they are in your store. And many
customers, especially those who are new to our
industry, don't want to appear " stupid " when they
are in your store yet feel very comfortable educating
themselves online; this helps take away their fear
factor and makes them feel less intimidated.
To accomplish this, take a hard look at your website
from a neophyte consumer's point of view to ensure
that your entire assortment, live goods and hard
lines, are represented with as much detail as possible,
not only product descriptions, but also with use,
application and solution information. This includes
Zone information, light and water requirements,
planting and special care instructions.
June 2019

Table of Contents for the Digital Edition of June 2019
