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Online retailers must not forget that they have to work in tandem with offline systems to satisfy their customers
The fourth and last session of the Click to Buy seminar organised by IAMAI and agencyfaqs! was a return to the roots of online retail – that it is really about delivering a product in the hands of the customer. Entitled ‘Supply Chain Management – Ground Realities’, the session aimed to do exactly that: bring to the surface the logistical and operational complexity of running a retail store online.
Harish Bahl, founder and CEO, Smile Interactive Technologies, said that there is no lack of buyers in e-commerce in India, but there is a lack of credible sellers. “We cannot ignore the physical aspect of online retail. Therefore, the model for online retailers in India will remain hybrid for the next few years,” he added. Bahl pointed out the fallacy that online retailers tend to compete with their channel through online sales. This will not work, he said, adding, “You need to partner with the channels and have an integrated strategy for sales.” He underlined the need for “assisted e-commerce” in India, where online service providers have to depend on their offline partners to enable smooth transfer of products and services.
Harish Bahl |
Gopal Modi, marketing and global supply chain head, Flora 2000, hit the nail on the head when he said, “Retailers should stop building unrealistic expectations among customers.” He added that the challenge was to be able to deliver where your brand can be seen.
Manan Sharma, managing director, Indian Gifts Portal, enlivened the discussion with anecdotes of how online retailers goof up. He described how in one case butter was delivered to a customer along with flowers, instead of butter cookies, and in another, how a customer accused the company of breaking up his relationship. At the bottom of these humorous incidents was the underlying fact that online retailers need to pull up their socks when it comes to delivery and customer support.
Raghav Kher, founder of Seventymm, described his company as ‘Netflix meets FedEx’. He said that the company has invested heavily in setting up its own delivery system to ensure that customers get their movie DVDs on time.
In the Q&A session, Gopal of Flora 2000 said a 2-3 per cent error rate was common among retailers; Gadia of Ferns ‘n’ Petals admitted they put up the very best pictures in the online catalogue, which may or may not be the same as the actual delivery.
Clearly, online retailers cannot afford to ignore the essential offline aspects of their businesses. Not only does this entail a close, working relationship with the offline system, but also a need to work harder on an efficient CRM model.