Infographic: What do Swiss SMEs think about online retail? We asked!
The Federal Council announced the lockdown in an extraordinary meeting on March 16, 2020. Shops and restaurants must close; only grocery stores and healthcare facilities remain open. More and more consumers are turning to laptops or smartphones and are becoming aware of online shopping. But what do Swiss SMEs think about online shopping? At the beginning of the year, we surveyed Swiss shop owners directly for their opinions.
Over 300 Swiss shop owners participated in our survey in January 2020. The infographic below highlights our key findings. What shop owners can do now can be found in the analysis below.
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How do shop owners assess online trading?
In our previous blog on the decline of shops, we highlighted that a portion of Swiss consumption is increasingly shifting to online channels, such as Zalando. Along with euro fluctuations and shopping tourism, this is certainly a key factor in the market turbulence and the decline of shops.
However, it also shows that online commerce offers opportunities for SMEs in Switzerland. Meeting customer needs, reaching more customers, and creating new sales channels are just some of the opportunities.
17% of Swiss shop owners want to sell online – why?
Sell around the clock
Offering products 24/7 is attractive not only for companies but also for customers. As an entrepreneur, you lose fewer customers and thus fewer sales. Customers value convenience. Not having to adhere to store opening hours can make customers very happy.
The problem is often that companies don’t know how to create an online store. MyCOMMERCE has made it very easy. Firstly, our product catalog can be used on any website (MyWEBSITE, Wix, WordPress, etc.), and secondly, our starter page provides you with a ready-made online store website. You don’t need your own website and can start selling right away.
Customers are influenced by social media
Consciously or subconsciously, many purchases today are influenced by what we see on social media. Shop owners have long since discovered this. However, placing products on these channels requires careful planning. Implementation often falls short. MyCOMMERCE also offers simple social commerce integrations with Facebook and Instagram to support businesses.
Customers are increasingly finding out about products online
“Research Online Purchase Offline,” or ROPO for short, is the term used to describe this behavior, which has been observed for some time. Customers conduct extensive research about products in advance via online channels, comparing prices, analyzing product details, etc. Therefore, it’s important to be present at this sales stage with an online store. We’ve summarized how to optimally position yourself in a short marketing guide for beginners.
59% of Swiss shop owners do not want to sell online – why?
“My customers don’t shop online”
Many shop owners believe their customers don’t want to shop online at all. There’s no question about it – maintaining loyal customers, providing on-site advice, and making customers happy is essential for every business owner. Many aspects of this are lost or become impersonal through online channels. But are shop owners underestimating their customers? According to the Federal Statistical Office (FSO), Swiss consumers are among the top European consumers when it comes to online shopping, right after the United Kingdom. And the following factors shouldn’t be overlooked!
1. ROPO (Research Online Purchase Offline)
You have the opportunity to attract customers from the internet to your store! Seize the opportunity.
2. New customers
The internet offers you the opportunity to acquire new customers who aren’t yet familiar with your business. Regular customers and walk-in customers are geographically very limited. Online sales give you greater reach.
Many products and services cannot be sold online
There are many shop owners who don’t consider online retail because their core products are difficult to sell online; or they’re too big, too expensive, etc. If that’s the case, you need to explore opportunities around your products:
- Complementary Products
For example, do you install parquet floors? No one is going to buy that online. But what about maintenance oils and cleaning products for these floors? Smaller products that work well alongside your core products are easy to sell online. You also save time, as customers no longer have to call you but can go directly to your online shop. - Attract customers to your store
For example, are you a sculptor and create large, heavy products? Shipping such products is difficult and often expensive. Customers often want to inspect such products first. This is also possible with online shops. For example, offer “pickup only” to simplify shipping. This way, you can also “attract” potential customers to your store and provide on-site advice, just as you normally would.
Conclusion
The decline of Swiss shops and online retail are topics that have reached SMEs. However, our survey shows that considerable uncertainty and fear exist; but the positive benefits and new opportunities are also recognized. Currently, shop owners recognize the importance of e-commerce, but a large proportion are hesitant to respond proactively. Are Swiss shop owners underestimating online retail? Or is there a lack of will for change?
