Last week (Nov. 12), GroupM's digital boss said "Amazon will crush Australia's e-commerce like an Anaconda."
And this week (Nov. 18), Mark Troselj, NetSuite's managing director for Asia Pacific/Japan (pictured below), wrote an article for Mumbrella.com arguing that Aussie businesses needn't be crushed by Amazon; rather, they can beat the e-commerce giant at its own game.
Only 38% of Australian retailers have the ability to transact online.Source: Frost & Sullivan
"Local online retailers have the real opportunity to exploit local brand awareness and leverage their physical stores to reduce shipping costs, improve delivery time and cut inventory carrying costs, with the potential to beat Amazon at its own game," he wrote.
"Then they can use their brick-and-mortar stores to create advantages Amazon can’t match – particularly pertinent given the rise of the multi-channel path to purchase and as retailers are beginning to experiment with iBeacon technology, not to mention the potential of the next wave of wearable/Internet of Thing devices and applications."
Troselj is quick to point out that the Australian e-commerce market has plenty of room to grow. He refers to a recent Frost and Sullivan report that found only 38% of Australian retailers have the ability to transact online.
"With Nielsen recently reporting that six out of ten Australians taking a multi-channel pathway to purchase (according to Nielsen’s 'Australian Online Landscape Review’) and US retail juggernauts on the way, which seems like retail suicide. But crucially, it is entirely avoidable."
60% of Australians take a multi-channel pathway to purchase.Source: Nielsen
How to avoid the anaconda's grip? Troselj suggests the following:
- Choose the right commerce software platform: "to drive (your) ecommerce operations and manage its integration into (your) bricks and mortar presence if (you) have one and as well (your) financials, shipping, order management, inventory, supply chain and warehouse."
- Superior shipping and fulfilment: "Ship to your customers faster and they will be delighted. Ship to them more cheaply and profit will go up."
- Nail marketing and insights strategies: "The tools are out there to enable businesses of any size to precisely identify, segment and target consumers in granular detail, without requiring an army of analysts or a resident actuary genius to decipher. Loyalty programmes, targeted discounts and personalised EDMs are all simply executed at the push of a button."