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Online Retail Challenge

The business world is changing rapidly. The internet is disrupting commerce, without regard for sector or geography. In 2017, 9.1% of retail sales were generated online, which is expected to grow to 50% by 2022 according to a study conducted by eMarketer.

This growth brings ever increasing competition, resulting in shrinking margins. And with the advent of mobile, consumers are now demanding brick and mortar retailers to match online prices.

As a result, businesses that sell packaged consumer products must now have a direct B2C channel using the internet. This opens up the discussion: So where does a business start?

1. Selling thru a website presents the following challenges for any business:

  • The high cost of establishing an e-commerce enabled website and back office
  • Finding the right talent to manage an e-commerce operation at the right price
  • The lengthy and expensive process of generating traffic to the website
  • Optimizing the site to produce the highest possible conversion rate, turning viewers into buyers

And when a business overcomes these challenges they face a new reality:

  • To make a profit the business must achieve large scale due to the shrinking margins
  • They must have an efficient pick/pack/ship operation for a large volume of packages
  • They are expected to provide 24/7 (or close enough) customer service
  • Their website must constantly be updated with new content, functionality and features

The Challenge

In addition, running an online business will heavily depend on making the right decisions based on performance data. Since the desired outcome is to generate a healthy bottom line, being cash flow positive is key to success, which becomes increasingly difficult.

Such difficulty comes from the fact that, to grow sales you must grow the inventory. But, without access to accurate financial data and effective inventory management, making the right decisions is extremely challenging.

And to establish the necessary technology infrastructure with the systems, processes and comprehensive inventory management capabilities that must be present for success requires specific expertise. And time.


2. Starting an Amazon business
How and what to sell on Amazon? This is where our Amazon experts come in.

The Founders of ArgoMetrix faced these challenges and built an online retail operation from start up to generating 2,000 orders a day and it was this experience that was the genesis for the idea that has become the Seller Concierge Service.

Whether you’re looking to start an Amazon FBA business or to increase your Amazon sales exponentially, we have the right solution. Learn more.

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