Price, time and service are all key factors
New online retailers need to give users a good reason to buy from their shop. This reason is called the unique selling proposition (USP), and is one of the key success factors for start-ups.
Every entrepreneur needs to find a way of standing out from his competitors using one or more unique selling points. He needs to be able to come up with a USP and also defend it against his competitors over a prolonged period of time.
Here are a few examples of how online retailers have created a USP for their shops:
1. Price, time, service
We are, of course, talking about Amazon here. Jeff Bezos has managed to ensure his online shop stands equally for low prices, short delivery times and well-functioning service around the globe. Anyone still looking for a present on the day before Christmas Eve buys from Amazon because consumers know that it will be delivered the very next day.
And, if the present isn’t a hit, the buyer can just send it back to Amazon and get a refund. What’s more, Amazon places special importance on ensuring that the lowest prices can always be offered in its shop as well as on its marketplace.
2. Completeness
Completeness can also be a USP. For instance, at Littlewoods.com, the consumer can find virtually anything he can buy in a department store on this website. Completeness can also be limited to part of the product range. Zalando is a good example of this. Originally begun as an online shoe shop, the shop now comprehensively covers almost the entire fashion range, from ladieswear and menswear to childrenswear.
3. Product
Those who have something other people want also have a USP. This could be an innovative new product, original, trendy products, or the highest-quality luxury goods. The German celebrity Stephan Raab, for instance, has developed a new kind of shower head that is so far only available in Europe via the lifestyle shop Butlers.
This USP has enabled Butlers to experience a huge boost in its profile, which has naturally also had an effect on its online business.
4. Security and trust
Documenting your respectability and security can be an enormously important USP for an online retailer. After all, the number of online shops is growing year after year. For consumers, it is becoming increasingly difficult to tell the respectable retailers from the black sheep.
When the retailer demonstrates his respectability and reliability via a neutral, recognised organisation, he gives himself a unique selling proposition over all of the retailers who decide not to use this organisation. One effective way of doing this is to have a shop awarded an online trustmark.
Some trustmark providers also offer further measures, such as a money-back guarantee and customer reviews, which make a further contribution in terms of security and USP.
Conclusion
Entrepreneurs should constantly ask themselves at what point in the customer journey they can offer added value that isn’t offered by any other retailers. Online retailers who take a serious look at this issue have taken a major step towards lasting success in e-commerce.
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