Open-To-Buy Retail Planning: How to Plan Inventory Budgets Using the OTB Formula

An open-to-buy plan is a purchasing budget for future inventory orders that a retailer creates for a specific period. It helps a retailer stock the right amount of the right products at the right time by showing the difference between how much inventory is needed and how much is available.

Having a solid handle on your inventory is the best way to guarantee you’ll always have enough stock on hand to meet demand. Excess inventory, or too much of the wrong product, can slow your cash flow and reduce profits, especially if you’re forced to mark items down. It’s this supply and demand imbalance that causes retailers to lose out on an estimated $568.7 billion in out-of-stock items.

At the same time, underbuying a product can result in missed sales opportunities, hurt your profit, and damage the customer experience. When products are out of stock, just 27% of shoppers go to a retailer’s website or return to the store to purchase the item when it becomes available. The majority will look in another store or skip the purchase entirely.

Creating an open-to-buy plan can help retailers decide how much inventory to buy or manufacture while keeping cash flow positive. This guide shares how to create one for your retail store.

 

What is open-to-buy?

Open-to-buy (OTB) is an inventory management strategy that helps retailers calculate how many products they need to buy. This includes physical inventory on hand and in transit, as well as any outstanding orders.

An OTB can be calculated in units or dollars, but is usually calculated in terms of cash, as there are variations in costs between products. OTB plans are also incredibly flexible—apply one to a single product category, a department, or across your entire retail business.

When to use open-to-buy planning

OTB planning is an inventory management practice used by all types of businesses, though it’s especially useful for retailers selling large numbers of SKUs—like fashion and apparel brands. You can plan merchandising budgets for future items based on historical data of how well products in t-shirt, shoes, and purchase categories have sold.

Because of this, some retailers strategically spend only a part of their OTB budget so they can take advantage of special buys. Your manufacturer might give discounts on summer products when the season ends, for example. A higher OTB budget here means you can capitalize on low-cost items in preparation for next summer.

The Charming Bench Company sells garden furniture to customers year-round, yet partner Chris Campbell says the main advantage of an OTB merchandise planning process “is that we can plan on seasonal buying trends.”

“In September and October, we know that pricings for summer patio furniture drop and we can expect an influx of buyers taking advantage of these deals in preparation for when they’ll be enjoying time outside again. We therefore make sure, earlier during the year, that we will have enough stock to meet these demands.”

Now that you have a better grasp of the concept behind an OTB plan, here’s a look at how to calculate OTB, along with definitions of some of the terminology involved.

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The open-to-buy formula

The open-to-buy formula will help you create forecasts for your OTB plan. The values in your open-to-buy are projections, so they may not be perfectly accurate. But a sensible way to check your numbers is if your actual month-end inventory is within 5% of your prediction.

💡 PRO TIP: Ready to leave your spreadsheets behind? To see your ending inventory, view the Month-end inventory snapshot report in Shopify admin.

Here are definitions of terms used in the OTB formula:

  • Planned beginning of month inventory: How much retail inventory (in dollars) you expect to have at the beginning of the month.
  • Planned sales: How much retail sales (in dollars) you forecast during a given month.
  • Planned markdowns: A projection of product markdowns (in dollars).
  • Planned open-to-buy dollars: The dollar amount that you have available to buy more inventory at the end of the month.
  • Planned end-of-month inventory: A forecast of balance inventory (in dollars) at the end of the month. End-of-month inventory carries over to become the beginning-of-month inventory for the next month.

The OTB formula looks like this:

Planned sales
+ planned markdowns
+ planned end of month inventory
– planned beginning of month inventory
= open-to-buy (OTB)

Here’s an example of an open-to-buy plan for a single month:

$15,000 (planned sales)
+ $350 (planned markdowns)
+ $25,000 (planned end of month inventory, October 31)
– $30,000 (planned beginning of month inventory, October 1)
= $10,350 OTB 

How to calculate your open-to-buy at cost

Initial markup (IMU) is the calculation used to determine the retail price of an item in your store. For example, if you have a wallet that costs you $15 to make or to purchase at wholesale, then the IMU is the measurement of how much you mark up the wallet when you sell it to the customer.

If your IMU is 75%, you would use this calculation to determine your retail price: cost or wholesale price / (1 – IMU %) = retail price.

  1. Convert the markup percent into a decimal: 75% = 0.75.
  2. Subtract it from 1 (to get the inverse): 1 – .75 = 0.25.
  3. Divide the wholesale price by 0.25.
  4. The answer is your retail price.

For example: $15 (cost or wholesale price) / (1 – 0.75) = $60 (retail price)

While your initial retail price must cover the cost of the product and the selling expenses that are associated with the item, remember to factor less obvious costs into your retail price. Consider covering a portion of your business’s day-to-day overhead, such as the cost of your website each month and marketing. You want to be left with some profit, right?

To figure out your OTB at cost, multiply the OTB value by the initial markup. If your initial markup is 75%, for example, your open-to-buy at cost is $10,350 x 0.25 = $2,587.50.

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The benefits of open-to-buy planning

Optimal stock levels

Managing inventory is one of the biggest challenges for retailers of all sizes. There’s a sweet spot between:

  1. Having too much inventory. With too much inventory, you lose money by keeping items in expensive storage or distribution centers—or worse, they become unsellable if they’re kept in storage too long. A food retailer that has unsold meat sitting in storage for two months is a recipe for disaster.
  2. Having too little inventory. “Sorry, this product is out of stock” is a phrase you never want your retail team to have to say to customers. But inventory shortages happen, with complete stockouts costing retailers $1 trillion every year.

OTB planning, however, helps retailers find the middle ground between bloated and sparse inventory levels. You’ll know exactly how much inventory you have and how much you’ll need for the upcoming period, giving you a clear budget to spend on purchase orders for new products.

If you have more inventory than you need, you are wasting money, space, and personnel dedicated to caring for that inventory. If you have variation, inventory can end up lost, damaged, or hidden, which can result in less stock and unsatisfied customers.

More flexible inventory

Unlike quarterly or yearly inventory replenishment, most retailers do their OTB planning on a monthly or weekly basis. Your budget will change accordingly, giving you the flexibility to order more (or less) inventory on any given week or month.

Let’s put that into practice and say you’re planning to do a last-minute pop-up shop in your local area next month. You’ve already done your quarterly inventory planning without factoring in the extra stock you hope to sell at the event. By doing an OTB plan the month prior, you know exactly how much inventory you need to order—both in terms of SKU quantities and the dollar amount you have to spend.

Identify trends

When managing inventory, it’s safe to assume that there’s always more than meets the eye. What seems like an obvious trend isn’t always as accurate as you might think.

We can see this in action with fashion retail stores. It’s obvious t-shirt sales would spike just before summer, right? But OTB planning research shows that trend starts to accelerate earlier than you’d expected—throughout April you see increased t-shirt sales.

Going without an OTB plan altogether means you’d get to April and not have enough inventory to cater to the shoppers buying t-shirts earlier than expected.

Not only that, but creating an OTB plan factors in sales and promotions. Retailers lose $40.2 billion when their marketing departments don’t communicate upcoming sales or promotions with their supply chain team. Inventory falls short; customer experiences are ruined. Shoppers don’t get the amazing deals they were promised if there’s no stock available to buy.

OTB planning takes all of those factors into account. You’ll see upcoming flash sales and year-round seasonal patterns, like Black Friday and Cyber Monday, when planning your inventory budget. The result? No stockouts during peak sales seasons.

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Prevent overspending

OTB not only helps you better plan inventory purchases, but it’s also a financial budget that can help you tighten your belt.

For example, you might have a total of $100,000 tied up currently in your retail inventory. Creating an OTB plan can help you carefully manage retail merchandise across your business for the year. As a result, this kind of planning can help you find “slack” in your inventory investment budget. Even a 10% cost-savings in this example means you’d have an extra $10,000 to invest elsewhere.

The limitations of open-to-buy

It’s not ideal for staple items

Staple items are products that customers rely on your store to stock. A grocery store’s staple items are bread, milk, and eggs. Staple items for a brick-and-mortar store selling home decor might be the plush throws you’re known for.

Regardless of what these staples are, it’s important to have them well-stocked at all times. OTB planning may not be the best method for staple items, since there’s a risk of losing order quantity discounts. Buying $300 worth of bestselling inventory every month won’t give you a volume discount. A $2,000 order every six months might.

The supply chain industry is also in limbo. Shipping containers are gridlocked and there’s a shortage of HGV drivers in some countries. Ordering your inventory one month in advance—using OTB planning—leaves you exposed to risk. Should something go wrong, you don’t have much time to fix it before shoppers visit your store for staple items and leave empty-handed.

Inventory budget should be set well in advance, as inventory purchasing should begin no later than one month prior to opening to account for potential shipping delays and merchandising needs adequately.

It needs to be supplemented with other metrics

An OTB retail plan takes only six metrics into consideration. However, inventory management and financial planning is like a machine with several cogs. You might run into problems if you’re not looking at the bigger picture.

Supplement your OTB plan with other metrics that could impact those you’re using in the OTB formula. That includes:

  • Order cycle time. Also known as lead time, this shows how long it takes for a product to be acquired, manufactured, shipped, and sold. OTB planning isn’t the best budgeting method for inventory with longer order cycles because of its short-term forecasts.
  • Inventory carrying costs. How much does it cost to keep your inventory in storage? If your planned end-of-month inventory is costing $3,000 to store but is only worth $3,500 in sales, consider cutting down your OTB budget.
  • Demand forecast accuracy. You have sales data to go off when predicting future sales. But unpredictable and unavoidable things happen (take COVID as the most extreme example). When OTB planning, look back over previous predictions to see how accurate your forecasts were.
  • Inventory shrinkage. Planned and predicted inventory are totally different from your actual inventory count. Stock can go missing for many reasons, including employee theft, return fraud, or admin errors. OTB planning doesn’t take shrinkage into consideration, meaning your predictions could be inaccurate.

How to create your own open-to-buy plan

Ready to create an OTB plan for upcoming stock replenishment? Here’s how to set an OTB budget that works for your retail store.

1. Know your inventory turnover

Part of creating an OTB budget involves planning inventory turnover—a calculation that measures how fast you sell through inventory and need to replace it. The quicker a retailer “turns” its inventory, the more it will need to buy or make in a year.

Calculate your inventory turnover using the following formula: Sales / inventory = turnover rate.

For example, if you sold $50,000 worth of product and had $25,000 worth of inventory, then your inventory turn would be $50,000 / $25,000 = 2. You turned over your inventory two times during the given time period.

Most retailers don’t set turns at the same level for every product or category, since it’s common for products to sell at different speeds. With the right open-to-buy plan, you can manage your product categories and stock levels by planning inventory turns for each.

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2. Run the financials

OTB planning doesn’t have to be anything complex. Many small- to medium-sized retailers plan their OTB month-to-month, but for businesses with high spikes in seasonal sales, try creating a weekly OTB plan.

You can start by creating a six-month open-to-buy plan in a spreadsheet. For each product you’re forecasting inventory budgets for, add the following rows for each month or week:

  • Planned sales
  • Planned markdowns
  • Planned end of month inventory
  • Planned beginning of month inventory
  • OTB dollars

Take this financial planning off your plate with open-to-buy software like Inventory Planner. The app pulls your Shopify ecommerce and POS data to forecast inventory and create budgets for restocks.

3. Sense-check your predictions

Over time, you’ll learn and adapt your OTB plan each season or year based on your unique business’ sales and markdown history. But regardless of which method you chose, make sure you carefully review each number and ask yourself if it’s realistic before you put your retail OTB plan into operation.

Example open-to-buy plan

Unsure what an OTB plan looks like? Alexis Damen shares an example OTB plan a fashion retailer might use over the Christmas period.

Peak shopping months—December and January—have higher planned sales, hence why the OTB budget for those months is higher. February’s OTB budget is even higher to account for depleted inventory in the months prior.

Six month OTB plan

Using open-to-buy planning for your retail store

Each year, countless retailers have to close up shop due to mismanaged inventory.

Use an OTB plan to stop going under or over budget. Know your inventory turnover, run the formula, and sense-check any predictions by comparing them against previous sales data. It’s a great starting point to creating accurate retail merchandise budgets.

Article source: https://www.shopify.com/retail/open-to-buy-plans

4 trends impacting retail marketing strategies

4 trends impacting retail marketing strategies

Street vendors of the 18th and 19th century would sell their goods and services in open-air markets to make themselves known.

Fast forward a few centuries and brands can now rely upon the likes Google, Amazon, and Facebook to help them push their products in front the eyes of consumers.

Retailers are now exploring new channels and traditional advertising methods to promote their products and diversify their marketing strategies, despite rising digital advertising costs.

Print is back in fashion

The history of direct mail in the United States is long. The first direct-mail catalog sent out in the U.S. is said to be Tiffany’s “Blue Book” in 1845. Montgomery Ward, Sears, and J.C. Penney were among the others who joined the fray. According to Nick Egelanian (CEO of SiteWorks) the largest players in print advertising were at one time grocery stores and drugstores.

Retailers used to be more inclined to shop catalogs because customers weren’t as online at the time. RetailNext’s head of insights, partnerships Lauren Bitar said that consumers could easily flip through print catalogs and choose the items they liked, then call or return the completed order form in the mail to make their purchase.

Bitar stated that online shopping became a major channel and that more advertising dollars were spent on it than on a catalog.

As data-rich platforms such as Facebook and Google became more popular for digital advertising, catalogs lost their appeal.

“Print’s historic difficulty was that there was no attribution — compared with digital — so you can’t track the actual sales,” Alex Song (CEO of DojoMojo), told Retail Dive.

However, despite the rapid rise of ecommerce, which was further accelerated in the past year due to consumers’ limited visits to the stores, some retailers and brands still use print catalogs strategically. The appeal of print catalogs is partly due to the fact that major players have begun to abandon it. This has made them more attractive for retailers who want to stand out.

Bitar explained that catalogs enable retailers to show their brand to consumers in a way that they might not be able experience online. When the consumer is missing that tactile experience, being able to display something in a space can help them feel more connected.

According to Polly Wong (President of Belardi Wong), direct-mail marketing has seen a significant increase in popularity, besides catalogs. Wong stated that since May, between 80% and 90% of Belardi Wong clients, which tend to be more wealthy, reported “really high growth numbers” in any given period, as well strong response rates in mail for customer acquisition and retention.

“She has to touch it in order to recycle it.”

As online competition heats, direct mail has been a popular option for direct-to-consumer companies. However, relying on Facebook and Google alone has led to direct mail becoming less attractive.

Wong stated that there has been an “incredible resurgence” in mail. We have successfully launched more than 200 DTC brands into the mail over the past five years, which is why we have so many customers. They are looking to diversify their marketing strategy. With all the changes and rising digital costs, nobody wants to be totally dependent on Google or Facebook.

Wong stated that food, outdoor, and home were the most requested categories in advertising via the mail over the past year, thanks to pandemic trends.

Brands have had to rethink their approach to direct-mail marketing. “Honestly, the people who left print — the Victoria’s Secrets of the world – they just created a downward spiral. Wong stated that as a customer, he received three direct mail pieces within a week. “People who turned down direct mail were probably not interested in receiving it.”

While some people abandoned the channel, many found it an affordable marketing solution as digital advertising became more costly.

To give you an idea of the cost, you can mail a full-sized catalogue for 65 cents including postage. DTC retailers and brands spend an average of $2-$4 per click. It’s crazy,” Wong stated. You can mail 6-8 catalogs to highly targeted audiences for as little as one click. What’s more, direct mail and catalogue marketing are actually very affordable.

DojoMojo’s Song says that having a physical presence can help build credibility and legitimacy around your brand.

A physical catalog may be the key to enabling consumers to purchase more expensive products online.

Wong stated that if you want to convince someone to buy a $300 sweater and you are an emerging DTC brand, it is difficult to acquire digital customers for brands with high ticket items, such as jewelry or fashion. There is a correlation between square inches and response rates if the consumer doesn’t know you and you have a higher pricing point. This is because the direct mail piece itself has more response rates.

Wong said that print, by default has 100% visibility with the consumer. “She has to touch it in order to recycle it.”

“What’s old is new again”

Brands have reintroduced other advertising forms that were not as popular, such as direct mail and catalogs. Wong stated that “we always joke around here, What’s old is still new again like TV and print,” noting that technology and data associated with these channels are much more advanced today.

However, brands will approach physical marketing in different ways, particularly between bigger, more established retailers and smaller DTC brands.

The general cost of print advertising is high. Song stated that even though costs have decreased over the years, it is still a very expensive marketing channel for young brands to pursue, especially if there isn’t clear execution. Song said that bigger brands will find ways to use it in meaningful ways. I believe smaller brands will do things we have seen before, such as subway takeovers.”

Many digital brands, including Spotify and Thinx, have disrupted traditional marketing by buying subway ads in New York City in recent years to draw attention to their products and companies.

Song warned that as channels become more popular, they may no longer offer the same opportunities. Think about the Casper subway takeover. Song stated that the Casper subway takeover took place four years ago. It was quite innovative because New York’s subway ads were not considered prime print advertisements to buy. Casper was able to obtain it for super low prices, and they made economics work. This legitimized them somewhat because it made all subway commuters feel like they were a big brand. They are taking over the whole subway.

Combining agile marketing with print can help brands combine the appeal of print and the benefits of digital marketing. Song explained that brands can place a printed advertisement on the side a vehicle. If people are near the vehicle with GPS enabled, they can receive an ad based upon their location.

“The store is not a new marketing channel, but it’s who uses the store to market their products that has changed.”

However, the physical store is still the best marketing tool for brands.

Bitar stated that “the store as a channel for marketing is not something new.”

9 Secrets to Effective Retail Management for Employees [Infographic]

LoyaltyOne’s survey found that nearly half of shoppers reported having a problem during their last shopping trip.

81% of those customers decided to not contact the retailer regarding the issue. 32% of these silent shoppers said that they would not recommend the retailer to their friends and family.

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It’s not surprising. I’m not surprised.

It is difficult to understand the leadership and best management practices of a retail employee. Poor management has led to associates being as disengaged on the sales floor than in other aspects of their lives.

This allows your staff members to work at a minimal level with little interaction with customers and minimal impact on sales. Even though they want to feel part of something…part your store, part your team, part your success.

These 9 secrets will help you manage your employees if you don’t want them to be as inept as the g lasagna.

Respect them for having a brain.One grocery store driver noticed that yogurt from one store was never sold, and they had always run out of the particular salsa. He decided to double the salsa and drop the yogurt from an order. He was called by his boss to explain that he had modified the order independently.Think. This boss was wrong. The most successful retail manager knows that great ideas can come anywhere. He or she also communicates with associates to share his time and concerns.

Public compliments.Everybody likes to feel good about their job.AttaboyIt is great to have a retail manager who can do more than that. You can develop leaders within your store by taking time to acknowledge associates who did well, and recount their stories during staff meetings.Why?They did a great job. You can find out more about what employees do.RightMore thanWrongTell them directly in front of others that you want to foster employee engagement and a team atmosphere.

Train privately.Learning involves judging. Training must be able to overcome bad behavior, which will require correction. You can’t correct everyone in front of other people – or worse, in front of customers. Time can be set aside to train associates off-floor, away from customers’ demands. Retail staff can explore the store and ask questions, without being interrupted on the floor. This gives them the opportunity to learn.

Explore the product.Three of the most insulting words a sales representative can use to describe a customer are:I don’t know. Everyone should make it a habit to inspect shipments for new items. Encourage employees to handle, try on and use new merchandise.

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Minimum wage plusThe new employee was willing to accept a minimum wage retail job. Although she did a wonderful job pitching in, her check arrived two months later. She posted her dismay on Facebook. She quit soon. You must pay the best to attract and retain the best. Create an environment that is welcoming and supportive.extraordinary experience It takes the ability to think, act, and have maximum talent. People who are able to do this will be compensated accordingly.

Be accountableYou must. You must make sure that you hold your associates accountable for meeting your expectations. Retail managers are often limited in their accountability to those closest to them, such as assistant managers and shift leaders. Part-timers, who are often in direct contact with customers, should be held accountable.

You can help them find a friend.Managers are responsible for motivating, encouraging, and challenging their employees. A great team is built by a strong manager. onboarding . It is your goal to help the new employee make friends with fellow crew members. This will help you forget about the feeling of me against them.

Ask them for their opinions.Bad bosses are often criticized for their inability listen to or pay attention. You must engage Millennials and allow them to freely express their opinions. You don’t have to use all of them, but collaboration is essential.

You can reward them with thought.Reward them with a gift card or car wash if they achieve goals or make large sales.

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Infographic

How To Manage Retail Employees Infographic

Sum

Effectively managing your employees will help them reach their potential, and allow them to sell with confidence while helping grow their retail business.

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The retail industry as we know it is changing

Ecommerce is growing 10 times faster than brick and mortar retail. This year, store closures were the most talked about topic: Macy’s(r), J.C. Penney (r), Payless (r) and Toys “R” Us (“r”) to name just a few. Are we witnessing the end of retail? Is this the end of retail? Some retailers like Ulta(r), Walmart(r) and Home Depot(r), have shown great success.

There are many factors that can distinguish winners from losers, but one thing is certain: winners know how to use all channels — mobile, online and retail — to their advantage. The winners are mobile-savvy and can serve today’s consumers from a different angle.

It’s now easier than ever for consumers to shop anywhere and anytime they want. Mobile shopping is so convenient that it’s almost impossible to hunt for goods in person. Every consumer has access to an infinite number of goods and services.

All stock can be shown and sold by merchants. They can answer any question including price and can do so 24/7. An online store acts as a sales rep, available 24/7.

Why shouldn’t every merchant have an internet store, if the benefits are so great? Local retailers don’t see the value of shipping orders. Shipping requires marketing and staff. Online selling is often seen as expensive and complicated by many.

Today’s customers expect service from all channels. Online sales must be complemented by in-store pickup at any store. They have to accept returns from any store and manage inventory across all stores. This is in real-time while they do their day job.

These complex requirements are not addressed by legacy multi-platform platforms. Multi-store orders, inventory and fulfillment require a new unified platform. This is what an omnichannel native retail platform does.

How do you set up an SSL?

It’s all about trust. Because customers trust brick-and-mortar stores to provide top-quality service, great prices and protect their privacy, they are loyal. What happens to those customers who make the switch to online shopping? How can you make sure that any digital data you acquire — credit card numbers, personal details and transaction histories — is treated with the same security level as hardcopy information? Start with SSL.

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How do you set up an SSL?

SSL stands for Secure Sockets Layer and is a protocol that protects information when it’s transmitted to or from your website. SSL is a type of digital trust. You receive a certificate from a recognized authority confirming that you have implemented data encryption procedures in order to protect all information being transmitted to and from your site. It sounds complex, doesn’t it? Let’s take a look at it.

Reliable

The first step in making the switch to SSL is to apply to a certificate authority (CA). You will need a website that works and is registered for you or your company. After verifying your information, the CA will usually issue temporary certificates that you can post on your website. This certificate uses the CA’s trust to show you are above board.

Next step: Next step? The private key can only be accessed by you, but the public key will automatically be used by users who submit forms, send emails, or otherwise interact with your website. Your webmaster or hosting company will install an SSL Certificate on your site. This ensures that all outgoing and incoming communications are encrypted. Your website URL will now be appended with the “s”, and it will become “https”. You can also use the green padlock symbol, which users associate with security and trust.

Are you ready for SSL security? Get started with our easy checklist to get your website up and running quickly.

CHECKLIST – How to Set up an SSL Certificate on Your Web Site or Server

SSL technology protects customer data by encrypting communication between web browsers. This checklist will help you put an SSL certificate into action.

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Basics

SSL protection encrypts transmitted data by using a public key that a browser uses to navigate to your site. A private key is used to protect the information. Hackers are not likely to be able to decrypt the information.

Go Dedicated

Upgrade to a dedicated IP address through your web host. SSL issuers should ensure that traffic using your key goes to your site, and not another hosted at the exact same address.

Sign a Request

A certificate signing request is encrypted text that you want to include in your certificate. It can be any of the following: domain names, organization, locality, etc. This can be done by contacting your web provider or creating one through your web hosting control panels.

Get a certificate

SSL certificates can be issued by companies for a small amount. Open-source solutions allow for free and automated access to SSL certificates. A certificate authority account is required to verify information and create a public/private pair of keys.

Install/Activate

If everything goes smoothly, your certificate authority will email you a.CRT file for installation. You can activate the certificate through your web provider or via your web control panel (Install SSL Certificate).

Try it!

Enter http:// along with your domain name. The certificate should work if you are able to land on your site. Contact your certificate authority if the website doesn’t load.

Make sure to update your site

Change any links to your site that transmit sensitive data (account logins shopping carts payment gateways, account logins) so users can access your site via https-enabled URLs and not just http.

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The Retail Pop-up Shop: Power Selling

A retail pop-up store is a stunning, flexible thing. You can revive a brand, launch new products, test a theory, or create major buzz. You can also move some merchandise. This is why the “shop” section of “retail pop up shop”

Pop-ups of the old school were all about selling. Selling product is still a noble goal, even in these times of expectation-busting pop-ups that are bound to break new boundaries, and shopper-beckoning pop ups.

Five ways to drive sales at your retail pop-up shop

Allow customers to fully experience products

Your retail pop-up shop is a place where customers can see your products in action. Make sure that they find what they are looking for. Visitors can touch and feel the products in boxes by displaying samples. Make it easy for customers to touch and feel the products. Present product demonstrations, both in-person or via video, that show shoppers the benefits and uses of your products.

Make it easy for shoppers to buy stuff

You can allow shoppers to make purchases in the pop-up. It could be as simple a matter of giving shoppers pencils and paper so that they can note down the item numbers. It could also mean having nearby salespeople who can call a shopper using mobile POS or who will bring tags and products to the register as she browses.

Create upsell opportunities and cater to impulse buyers

You can maximize the space at your checkout counter by purchasing impulse items and upselling products. Shopper behavior is shopper behavior. Impulse buying can occur in any retail store, online or pop-up. In your retail pop up shop, make impulse buying work for you.

Make focal points

When designing your pop up, make sure to create eye-catching displays and focal points that will draw customers in. A focal point can be added to each department if the space has many departments. For a smaller shop, only one attention-grabbing display is required.

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Empower staff to Really help customers

You want your customers to have the best possible experience in your pop-up shop. Remind them that they will be serving guests. Install information kiosks and provide tablets to employees so they can quickly access any information that customers might need. Your associates should be able to offer the shopper the type of interaction she prefers, whether it’s giving a lot or letting her explore the world on her own.

Reminder:

A retail pop-up shop is the perfect place to gather customer contact information because of its “special event” vibe. This is a great opportunity to build a relationship with your customer. Incorporate opportunities to collect emails addresses into the design and flow for the pop-up. In order to receive VIP status, early access to the next pop up, and a discount, invite visitors to fill out their information at check-out.

Ecommerce and Brick-and-mortar Retail Converge

While there might still be plenty of space for pure-play ecommerce companies, retailers with physical stores should look to expand online as customers stop seeing a distinction between purchasing online and at a shop. Increasingly, physical retail outlets are being changed into a type of brand-building media.

The U.S. retail sector grew 2 percent in the first quarter of 2013, based on trend-tracking firm, comScore. By comparison, online retailing in the U.S. climbed 13 percent to about $50 billion for the same quarter, effectively making ecommerce the fastest growing retail segment.

This form of information generally has online merchants happy at their prospects and store-based retailers concerned about trends like showrooming — where shoppers compare prices or even make purchases on a mobile device while standing at a physical store. (See “Showrooming Challenges Brick-and-Mortar Retailers.” ) But it might not be the case that the ecommerce and brick-and-mortar channels are somehow at odds, but instead that all of retailing has changed so significantly that, in a sense, there’s no true distinction between stations, at least in which the consumer is concerned.

If, in actuality, retail stations are somehow converging, it’s the traditional retailer that’s responsible for the most change. However, no merchant can go untouched.

Clients May See All Channels Just as Shopping

Consumers no longer find a distinction between offline and online shopping,” composed Sridhar Ramaswamy, Google’s senior vice president of advertisements and trade, in a recent whitepaper. “Whether it is searching on a laptop, browsing main street stores, or hanging out in the mall — it is all shopping.”

There’s absolutely no basic difference to the shopper if she looks at a product online and buys it in a store, or does the inverse viewing a product on a stand, simply to purchase it from her phone because it’s simply more convenient or, possibly, less expensive.

“When something can be economically shipped to anybody, anywhere, the question of where the sale takes place is quickly becoming moot,” compose Doug Stephens, a retail sector futurist and the creator of Retail Prophet, in a recent issue of Retail Environments magazine.

Convergence may mean that each and every store must compete with each other shop, irrespective of format. Ecommerce companies have recognized this, since from the start every online retailer has had to compete against big box stores and local specialty stores alike. But small or even midsize physical-store-based retailers who have enjoyed a sort of geographical monopoly are increasingly exposed to the net of retailers because of mobile devices and faster Internet connections.

Convergence can also affect how all retailers offer customer support and how brick-and-mortar retailers consider their physical locations.

Allergic Effects Client Service

Shoppers who see no distinction between ecommerce and offline buying might also have similar expectations for customer support in both channels.

For instance, shoppers in stores are accustomed to using an attentive clerk that they might talk to. In precisely the exact same manner, a shopper visiting an internet store may expect to have the ability to speak to an associate almost immediately via chat, phone, email, or perhaps social websites.

As yet another example, Google’s Ramaswamy wrote that contemporary shoppers often know as much as a shop’s salesperson about a given product or product class. Previously,”people came into shops with little to no understanding and relied upon a salesperson to advise them on what to purchase.”

By comparison,”today’s shoppers have become accustomed to doing their own research to find the most value from each dollar they invest, and to feel secure about the purchases they are making. With this power shift comes a excellent opportunity for retailers; people who use insights and tools from the net have the chance to close the gap between the clever online consumer as well as the offline merchant, and stick out in a competitive market,” Ramaswamy wrote.

To put it differently, Ramaswamy is suggesting that conventional retailers should post decent product information online so that they might continue to help inform shoppers.

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Convergence Impacts Branding

The convergence of electronic commerce — such as mobile — and in-store retailing can also significantly alter how brick-and-mortar retailers think about stock and branding, and the manner that primarily online retailers have a look at the advantages of having a physical place.

“In the long run,” composed Stephens,”sales of merchandise simply can not be the primary strategic purpose or metric for the [physical] store.”

“Until quite recently the principal purpose, form, and purpose of shops was to distribute goods. Shops were the principal and, oftentimes, the only means of availing supply of goods to a given market.”

Online shopping transformed that purpose. As a result of ecommerce and carriers such as FedEx, UPS, as well as the U.S. Postal Service, it’s almost easier to find a product in the ecommerce station than it’s from a shop, where a shopper must lug products around.

According to Stephens, this tendency can be viewed first hand in some brick-and-mortar retailers. “Some of the world’s biggest retailers are struggling with this jarring reality already,” Stephens wrote. “`Stack it high and watch it fly’ has turned into’Stack it low and hope it moves’ as big-box stores scramble to lower inventories in the face of declining sales.”

At exactly the exact same time, some major ecommerce companies are opening physical shops. For instance, online men’s clothing retailer Bonobos has begun to open physical shops.

Bonobos and other pure-play online retailers”realize that in order to’fully actualize’ their brands,” Stephens wrote,”they will need to animate a physical existence and visceral experience for their clients, to not move products but more seriously to move hearts and minds.”

Effectively, some online retailers are recognizing that they can expand their brands with real stores. For instance, online merchants that open a physical store often see an increase from Facebook fans from the geographical area around that shop. The physical shop, whatever it’s doing to the main point, is building the brand.

In short, since the offline and online shopping channels converge, pure-play ecommerce retailers might seem to open physical shops, and conventional stores should start to market online, if they haven’t already.

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How to Establish Retail Discounts, for Ecommerce

One-day sale, holiday sale, Presidents’ Day sale, or just about any sale you can imagine: Online retailers often provide top-grade products at a discount, broadcasting these specials through email or advertisements them with pay-per-click advertisements. But how can merchants know how much to discount a product or if a reduction is functioning?

Discounting is a standard retail tactic. At a high level, ecommerce merchants use discounts to attract customers to the store or “increase sales.” These might be good business purposes, but it might also be true that some ecommerce supervisors don’t put enough thought into ignoring and don’t follow up to determine whether the discount worked.

There are numerous popular retail pricing strategies, including keystone pricing (double the wholesale price), manufacturer suggested retail prices, different prices for different customers, and discount pricing. What follows is one approach to placing short-term retail sale prices and quantifying to learn whether the sale was successful.

Know Just How Much Products Cost to Sell

Before an internet retailer’s supervisors can intelligently put a product on sale, those supervisors will need to understand how much that product costs to market. This should be a fairly straightforward calculation.

Wholesale Price + Share of Freight + Estimated Shipping Cost = Cost of Goods Sold

The Wholesale Price signifies how much the merchant paid to purchase or acquire the item.

The Share of Freight signifies how much it costs to transfer each unit to the merchant from the wholesale supplier. By way of instance, if a merchant buys 10 widgets for $10 and pays $5 to get those widgets sent to a warehouse, the actual cost for each widget is $1.50 — price plus freight.

When an ecommerce merchant has a cost associated with sending a product to a client, it can be a fantastic idea to also look at that cost. If, normally, the merchant will pay $1.00 of the Estimated Shipping Cost, the widgets currently cost $2.50 each — Cost of Goods Sold.

As a specific example, imagine that you sell six-pound bags of Diamond Naturals Small Breed Puppy Food. Each bag costs $6.99 when you purchase 144 bags at a time, and the typical freight from the distributor to your warehouse is about 81 cents per bag. For pet foods, you pass the entire cost of transport on to the consumer so that your cost per bag is $7.80 — $6.99 + $.81 + $0.00 = $7.80.

Know Your Earnings History

The next bit of information ecommerce supervisors will need to understand before ignoring a product is its own earnings history at the normal price.

This has two parts. How much profit do you make on every unit sold? How many components do you usually sell in a given time period, like a week or a month?

Before you can specify a purposeful sale price for a product, decide what it costs to market and what your objectives are.

Returning to the Diamond Naturals puppy food example, we know that each bag costs $7.80. If we market that bag for $9.99 at normal price, there’s $2.19 in gain per bag.

Next, based on information from previous purchase, we might expect to sell 250 bags monthly. So at regular price, we would earn $547.50 in profit every month selling the puppy food.

Have a Reason for the Discount

There may be as few as four great reasons to dismiss a product:

  • Boost profit;
  • Reduce inventory;
  • Attract new clients;
  • Meet a vendor agreement.

Each of these motives will have consequences on the price you set for a product and how you measure success. By way of instance, if your aim is to boost profit, make sure that more money hits the bottom line. If your purpose is to reduce inventory, you want a larger number of units to be marketed, etc.

Establish the Discount

When the sale has a target, begin to consider how much to discount the merchandise. By way of instance, imagine that you wanted to raise gain 10 percent in March for the Diamond Naturals Small Breed Puppy Food mentioned previously. Offering a discount may encourage sales, so you choose to place the regularly $9.99 thing available for $9.49 — 50 cents off per bag or about a 5% reduction.

At regular price, you’d expect to make $547.50 in March. To do so, you may need to sell 250 bags of their puppy food at $2.19 in gain per bag. To reach your target — a 10 percent increase in profit — you will need to generate $602.25 in gain.

In the new sale price of $9.49, you earn $1.69 in gain ($9.49 — $7.80). Thus you will need to market 357 bags in March to reach your objective.

When you place the discount price, ensure that the objective is achievable. In this instance, the merchant would need to market 157 additional units to warrant putting the puppy food available for $9.49.

If just 300 bags were sold, which is still greater than ordinary, the ecommerce company’s profit would fall from $547.50 generally to $507.00. The shop would have missed out on $40.50 in gain. In that instance, $9.49 might have been too deep of a reduction.

But if the goal was to decrease inventory, the exact same sale price may have made perfect sense.

Measure to Ensure Success

The last step is simply to gauge the sale’s actual performance relative to your target, to learn whether the sale actually fulfilled expectations.

Additionally, consider measuring as you go. If, as an instance, your goal was to increase profit in March, and on March 5, you’re already up 10 percent in gain and upward 157 units sold, you might want to tone down the market or, possibly, consider promoting the puppy food with no discount next time.

Conversely, if on March 5 there isn’t any sign that the sale price is driving any additional orders, you could send out another email or consider ending the sale and only collecting full margin.

15 Digital Marketing Suggestions for Retail Store Owners: How to Advertise Your Company & Get More Clients

Retail shop owners put on a good deal of hats, particularly in the morning.

You are managing stock , training team , working with vendors, and many other jobs your company should operate smoothly.

You understand digital advertising can help increase earnings, but you are trying hard to locate time to get this or even know where to begin.

Luckily, there are lots of low-cost, easy-to-learn digital marketing strategies you can attempt today.

15 digital advertising ideas for retail shop owners

Keep on reading to see all 15 thoughts, or use the listing below to jump into one which stands out to you!

  1. Live movies
  2. Promotional mails
  3. Worker spotlights
  4. Branded hashtags
  5. Social Networking tales
  6. Spotify playlists
  7. Contests and giveaways
  8. Messenger apps
  9. Behind the scenes seems
  10. Holiday posts
  11. Present occasion participation
  12. Videos and GIFs
  13. Surveys, surveys, and quizzes
  14. Facebook bands
  15. In-store apps

1. Live movies

Videos are a terrific way to interact with clients, but were you aware that 80 percent of individuals favor live movies on pre-recorded ones?

To begin, all you will need is a platform using live video alternatives, such as Facebook, YouTube, Instagram, or Vimeo–that you most likely already have!

What do you need to do a live movie about? The choices are endless! Live movies are fantastic for performing in-store excursions, Q&As, and even product attributes (providing your digital viewer a behind-the-scenes look in your retail shop is also a fantastic omnichannel selling strategy!) .

To increase participation, consider announcing your plans to your live movie beforehand so that your followers may plan to listen.

2. Promotional mails

They are among the oldest tricks in the electronic playbook, but nothing beats an engaging promotional email.

In reality, one analysis asked individuals”How often, if ever, do you prefer to get promotional emails (e.g.coupons, sales alarms ) from companies that you do business with?”

The answer?

61 percent of people said they’d love to get those mails at least a week, and 86 percent stated yearly. That is a whole lot of chance!

But how do you begin?

You’re going to want an email platform along with also an email listing (Shopify will be able to assist you !)

From that point, consider developing a very simple email template you may use to announce your most recent product or purchase, or get private by revealing your shop’s community participation or behind-the-scenes photographs and stories.

Source: MarketingSherpa.com

3. Worker spotlights

A research showed that 52 percent of website traffic go straight to some new About page after seeing its homepage.

What do we understand from this?

Shoppers want to find that the folks behind the brand. That is why worker spotlights could be such a potent strategy.

Consider worker spotlights as tiny introductions of your shop staff for your clients. If you host them in your own site or your social networking accounts, they are a fantastic way to bring a personal touch to your advertising efforts and present your clients to the folks they might experience when they go to your shop.

Resource: Architect’s Wife

4. Branded hashtags

A branded hashtag joins customers not only to your merchandise but also your manufacturer –but what is it precisely?

Require Old Navy’s #oldnavystyle, for instance.

Clients post images of themselves wearing outfits from Old Navy on platforms such as Instagram using all the hashtag #oldnavystyle, that has created an internet community around a shared love of their clothing Old Navy offers.

Decide on a exceptional hashtag that talks to a brand worth and utilize methods like social websites, emails, as well as in-store signage to encourage shoppers to utilize the hashtag. Be certain that you stick to the hashtags on societal websites so that you may repost and attribute clients on your newsletter to incentivize more sharing!

Resource: #oldnavystyle on Instagram

5. Social Networking stories

Facebook, Instagram, Snapchat, and WhatsApp have a Stories works for instant, lively, and speedy movie content.

There are almost one billion users around those four platforms with Stories regularly. And almost 64 percent of manufacturers were using or intended to utilize Stories within their electronic marketing strategies just annually.

To begin, all you will need is an account on a few of those social networking platforms we recorded.

Begin with doing daily check stories,”look round the boutique” tales, merchandise unboxing tales, product tutorials, and customer-service-themed stories.

This is a strong method to create fast video content which may be categorized and stored using the Highlights attribute in those apps.

Resource: Beardbrand on Instagram

6. Spotify playlists

Retail stores often concentrate on producing ambiance with audio.

As you most likely already have curated shop playlists, why don’t you discuss them with the entire world?

Sharing playlists on platforms such as Spotify is a wonderful way to expand your brand expertise to your clients when they are not in your shop.

Urban Outfitters has over 65 people playlists that its faithful shoppers may enjoy. It retains UO top of thoughts and conveys Urban Outfitters edgy brandnew.

To begin, you want a Spotify, Apple Music, or alternative audio playlist building-and-sharing account. After that, get to work! Consider building playlists around specific topics, special occasions, or seasons.

7. Contests and giveaways

Social networking is an excellent way to market your retail shop, but imagine if you do not have a large after yet?

For retail shops, a simple method to get people to accompany you and participate with your brand is by simply performing a spoonful or a competition.

Some ideas to begin:

  • Run a competition in cooperation with another shop, manufacturer, or vendor to expand your audience
  • Use competitions to Construct enthusiasm for new product releases
  • Strategy competitions as a Means to market overstocked products

Ensure that you communicate clear involvement needs and adhere to this platform’s promotional recommendations .

Source: claybysteph on Instagram

8. Messenger apps

A fantastic way to promote more goods is making it much easier for prospective buyers to ask you questions and maintain offers about the platforms they are spending some time on.

By way of instance, Facebook and Instagram direct messages may be excellent ways to interact with your customers and make one-on-on adventures that instill confidence in your own brand. In reality, based on Facebook, 69 percent of individuals say being in a position to message a company helps them feel confident about the brand.

Resource: Facebook

9. Behind the scenes seems

For electronic marketing retail adventures to come living, consider revealing what happens behind the scenes for your clients.

Should you utilize an offsite producer who matches you about manufacturing or you’ve got local vendors send goods to your shops, share that with your own crowd!

Give a peek of exactly what sets products in your shelves and provides your providers the value they deliver to your clients.

To begin, you need agreements with your suppliers and anybody else involved saying they are OK with you posting this particular content. It might be incredibly successful if and when you’re doing!

10. Holiday posts

At the start of the calendar year, download a vacation calendar using the date of each legal, spiritual, and celebrated holiday.

This is a superb way to plan social networking posts and other electronic marketing retail material beforehand. You can also get creative and post for a number of your favourite “national day” parties that include a sense of humor to your posting.

Krispy Kreme does a weeklong party of Instagram posts and giveaways each year in honour of National Donut Day.

Resource: Krispy Kreme on Instagram

To begin, have a look at the vacation calendars we connected above and incorporate them in your articles calendar. Look at developing a custom picture in Canva or another simple online tool in order for this to seem professional with branded content.

11. Present event involvement

Participating in present events, political movements, and neighborhood happenings may seem frightening. Nonetheless, it is a highly effective way to have a stand, align yourself with an origin, and also attract the sort of client you need purchasing your services and products.

To begin, consider your perfect client, and about everything you believe in and wish to market along with your shop. Then select approaches to have a stand on social networking and over your other stations.

12. Videos and GIFs

80 percent of clients state that they use video and internet content to create a purchasing decision–reason enough for retail shop owners to think about adding videos for their electronic advertising plan!

Particularly now, as COVID-19 is preventing you from linking in-person with sellers as far as you used to, video may connect clients with you and your shop from the comfort of their property.

To begin, make a decision as to which sort of video material you have the tools to produce. When it is a video blog (vlog), a educational how-to movie, or a tricky GIF, animated content is a highly effective way to acquire customers participated with your shop, your products, along with your providers.

Source: Believe with Google

13. Surveys, quizzes and surveys

As a retail shop owner, you might be acquainted with requesting comments on site, but are you aware that you may use social networking to gather opinions and customer insights too?

Among the fastest ways is via Instagram Stories. Throughout a quiz, open-ended query, survey, and slider, you’ll acquire real-time feedback from the clients as soon as they see and react to a Stories.

14. Facebook groups

Consider beginning a Facebook set around an occasion or shared interest to get a subset of your clients.

A good deal of retailers that offer pop-up or classes occasions might want to utilize a personal Facebook group to allow customers share more securely and personally.

This is a means to provide your shop’s brand visibility and reveals you are invested in your clients.

15. In-store apps

While not every merchant is prepared to present an in-store app to their electronic marketing mix, apps may be great rewards for getting shoppers to your shop.

You may begin with an easy digital punch card bonus system in checkout. However, you may also acquire sophisticated and make an app that functions like an in-store helper, with product manuals, reviews, and descriptions.

Could you envision scanning a label in a clothes shop and having the ability to swipe and watch pictures of these clothing modeled on various body types? This may reduce fitting room dependence and empower faster earnings.

Decide what matches and operate with it

When these thoughts could be exciting ways to engage your clients, they are not for everybody. It is important to examine in which you are likely to have the greatest bang for your advertising buck and begin there.

Leveraging any sort of digital advertising for retail is a fantastic first step. The combination of your digital and physical storefronts can help boost your organization, establish your brand, and get more clients.

What Is the Future of Traditional Retail?

Did the events of 2020 and the related changes in buying behaviour break the traditional brick-and-mortar retail model?

The combination of Covid-19 lockdowns, supply chain issues, and financial woes hastened digital retailing in a number of regions of the economy. Although some experts believe this will lead to more individual retail companies, it might indicate that the traditional retail version won’t work or not work also in the not too distant future.

Let us see our merchandise:

“Let us begin with the version that just does not work,” stated Bloomreach CEO Raj De Datta, who’s also the author of the book”The Digital Seeker: A Guide for Digital Teams to Build Winning Experiences.”

“What does not work anymore is’I am a retailer. I have got a certain degree of selection. I source all of my products. I work with all of my brands. I deal with the supply chain. I open a whole lot of brick-and-mortar shops — that’s my supply. I market online and offline. I’m determined by the amount of people who walk into my store and get the product that I purchased from somebody else and mark it up a little to pay my margin and call it a day.’

“That version of retail, which has existed for a hundred years, is gone,” De Datta said through an exclusive CommerceCo by Practical Ecommerce occasion.

Bloomreach CEO Raj De Datta, right, was interviewed by the author during a live CommerceCo by Practical Ecommerce event on January 14, 2021.

The Path Forward

De Datta was reacting to a question when he explained the traditional retail version was at risk. Specifically, he was asked how conventional retailers could compete when so many brands, such as Nike and Carhartt, are opening their own physical shops and encouraging their own ecommerce websites.

Finally he saw three possible avenues toward future success if these standard retail businesses adapt.

Specialty retail. Specialty retail has existed for quite a long time, also. You might think about pet shops, boutiques, as well as greeting card vendors as specialty retailing. However, to be successful long term, it’s important to pick a specialty that can’t be overrun the next time an internet marketplace like Amazon adds a new class.

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Since De Datta put it, this is a”high bar” for retailers, but it might work.

“There are certain types, especially more intricate classes where [incredibly specialized retail] is achievable….it turns out glasses are a fantastic example of that. It’s pretty tough to be a excellent eyeglass retailer. There’s lots of depth from prescriptions to filling the prescriptions and making certain that matches works and all these other things. So specialization can work to an extent,” De Datta said.

Other regions of specialty success might live in Blue Ocean companies that have unique selling propositions.

Direct-to-consumer retail. Imagine you run a traditional retailer in the Pacific Northwest. You sell online and through your network of retail shops. Among the brands that you sell is Carhartt, and it opens a new Carhartt store only a mile from one of your places. How can you win from the most brands you sell?

“We have got to quit talking about brands and retailers. Every retailer has to be a brand,” De Datta said.

Effectively, traditional retailers will want to white label products and establish their own brands. By way of instance, Mid-States Distributing, which is a type of joint-venture performance with dozens of ranch and farm chains as its members, launched its own brand of pet food, Wildology.

The Wildology manufacturer sells in every one of the members’ shops — over 1,000 physical locations and dozens of sites — and is regulated by the members jointly. Wildology is, effectively, a direct-to-consumer brand which sets on the shelf (physical and virtual ) alongside classic pet food brands.

Mid-States Distributing is developing similar DTC products for everything from hardware things to power-equipment.

Nearly 40 ranch and farm chains worked together to establish their own brand of pet food. Since the chains jointly have stores throughout the USA and Canada, they could build a brand with clout.

Many other retail shops do the same.

“Owning your brands is actually important because you will need the margin, and you have got to understand that your brands are competing with you, and when they are competing with you, you have got to finish together,” De Datta said.

Marketplace retailing. The last path forward could be available only to the biggest traditional retailers: turned into a market.

“If you are Target or a Walmart or even in case you’ve got incredible scale, your organization could succeed if you say,’I will play with the selection game. I am okay without having proprietary solutions. I am okay with a high level of specialization,'” according to De Datta.

Combining the 3

If the traditional retail version, as De Datta describes it, won’t work, a merchant should adopt one of these approaches or any combination of those. By way of example, a retailer could be equally technical and the owner of DTC brands.

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Lighting Decisions to Enhance Gross sales and Merchandising at Your Retail Retailer

Enhance Income by Putting in the Proper Lighting In Your House

The lighting of a room dictates the temper or feeling of area and it’s the very first thing individuals discover once they enter. Lighting is particularly vital in retail areas as a result of it impacts the best way product shows are interacted with by clients and what a buyer will spend cash on. Making a welcoming ambiance to your clients can be closely depending on the lighting selections made when designing the shop.

Lighting has the ability to make or break gross sales of a retailer due to the temper it’ll convey to clients. It’s vital that the temper is becoming to the merchandise which can be bought within the retailer. The suitable lighting of a retail retailer can positively enhance the enterprise and even enhance gross sales, right here’s how:

The Aesthetic Values

The best way a retail retailer appears to be like is what will drive gross sales. If a retailer has beautiful, well-lit shows and appears clear and complicated, the chance of gross sales is larger than a retailer that appears just like the shows had been haphazardly thrown collectively. Lighting particularly provides to the aesthetic values of retail area.

The best way mild is projected onto totally different areas and merchandise are key to enhancing gross sales. By way of retail areas, it’s really helpful to make use of vibrant show lights round new merchandise to be able to draw clients over to them. Equally, utilizing vibrant white lights can present a chic and clear look to a retail area.

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Select The Proper Lighting Fixtures

Lighting are sometimes focal factors inside a retail area which makes it vital to decide on lighting fixtures that make sense in your retail retailer. Ask your self who your buyer demographic is. Are you making an attempt to draw younger individuals of their twenties, or are you attempting to draw businessmen and girls? Likewise, does your retailer promote vibrant, get together garments or do you promote fits and enterprise apparel? The lighting in each of those areas can be vastly totally different due to the totally different eventualities tied to the totally different demographics.

In case your demographic is the younger individuals of their twenties, it’s possible you’ll need to select lighting which can be extra genuine and eclectic somewhat than commonplace, basic lighting. Traditional lighting can be higher used for the businessmen and girls.

The suitable lighting will make your retailer look a sure method and this may convey clients in and preserve them coming again; subsequently boosting gross sales. Lighting could be lights instantly put in into the ceiling, lights hanging from the ceiling and even lamps all through the shop.

Use Product Centered Lighting

Product centered lighting creates a visible hierarchy that’s vital in retail shops. Projecting mild onto sure merchandise can draw clients to sure merchandise they could not have observed or purchased in any other case.

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Spotlights and backlights

Utilizing spotlights and backlights are maybe an important types of lighting in a retail retailer. Spotlights will illuminate merchandise and can make an space look engaging; particularly if the product shows are additionally organized in a sexy method. Backlights are additionally nice lighting selections that may enhance gross sales as a result of they’ll permit for bigger areas to have consideration drawn to them. Backlights are brighter than the final lighting within the retailer.

Set up LED Mild Bulbs

LED mild bulbs in a retail retailer supply one of many greatest pragmatic values to a retail area. LED mild bulbs are the largest development in lighting proper now due to their copious advantages. Lasting for as much as 30,000-50,00 hours, in comparison with commonplace mild bulbs that solely final about 1,000 hours, LED mild bulbs are an excellent selection for retail shops as a result of they’re brighter. Brilliant LED lights are an excellent addition to highlight and backlight lighting in retail areas.

LED lights are additionally nice additions for a retail area due to their extended lifespan. Since LED lights final considerably longer than different lighting, they won’t must be changed typically which is handy not solely by way of saving cash, however clients can be inconvenienced much less often by laborers putting in the bulbs/

LED mild bulbs could be put in into nearly any lighting fixture, particularly with the usage of an LED retrofit package. These kits convert any lighting fixture into an LED one, permitting you to include LED lighting in your retail area. LED lights could be put in on the surface of retail area as effectively with an HID retrofit package.

How Lighting Temperatures Will Affect Gross sales

The temperature of sunshine in shops is one other lighting facet that may impression gross sales. Heat and comfortable/comfy lighting goes to attract clients in additional so than vibrant, cool lighting. Although cool lighting is nice for spotlights, an excessive amount of isn’t pleasing to the attention and may even flip clients off from a retail area.

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Creating Environment friendly and Sensible Lighting in Your Retailer

Lighting could be one of many some ways you’ll be able to enhance gross sales in your retail area. The correct lighting will make clients really feel comfy and preserve them coming again. It’s vital to make use of numerous lighting in an area to convey the right temper that’s related to the merchandise you might be promoting. Preserve these easy factors in thoughts as you utilize lighting to your benefit in your retail retailer

How an Oklahoma Native Constructed a Retail Enterprise Impressed by Her Travels

Whereas finding out in Colima, Mexico, Sally January turned impressed by the artistry of hand-embroidered clothes and small-batch items. She got down to convey these wares again to her neighborhood in Oklahoma. Right this moment, Sally is the proprietor of Siempre Viva, a life-style model centered on offering sustainable employment to artisans all through rural Mexico. The enterprise has two brick-and-mortar outlets, one situated in Beaver Creek, CO and the opposite in her hometown of Norman, OK. Her outlets function the Siempre Viva model in addition to ethically sourced merchandise from all over the world.

Sally shared the founding story of her worldwide model and retail idea and what it’s wish to handle outlets in two completely different very places — all whereas elevating twin boys.

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Faire: Inform us about your childhood in Oklahoma and the way you got here to spend time in Colima, Mexico as a younger scholar. 

Sally January: I used to be fortunate sufficient to have entry to an change program once I was in highschool. I went to Colima, Mexico, the place I bought to be taught Spanish and immerse myself of their tradition. It actually influenced the alternatives that I’d make sooner or later so far as what I wished to review in school. I ended up finding out worldwide improvement as a result of I knew I wished to have an effect on communities that will not be as lucky or who could also be scuffling with poverty. I knew I wished to do one thing that was greater than myself.

From my time in Mexico, I used to be in a position to form of construct a skillset round tips on how to work with artisans from indigenous villages. It took me a very long time to determine tips on how to flip it right into a enterprise mannequin that may make cash and empower these ladies.

Did you see any variations in how these ladies promoted themselves as artists?

I feel their satisfaction is simply overwhelming. I like listening to them say how grateful and proud they had been that anybody would wish to put on the clothes that they made. The power to have entry to promote their items outdoors of their small villages is actually probably the most impactful.

How did you come to open your first retail location in Oklahoma? 

It was a 10-year span from school till I switched to retail. I used to be instructing Spanish on the College of Oklahoma once I had this loopy concept that I used to be going to fly to Mexico and make this one skirt with one lady in a single village. It was a single artisan that I began with and we bought out of each single skirt — which was fairly loopy. It went from that to a complete wholesale line and, at first, I solely bought wholesale.

Then I received a contest to get free lease in a retailer in Oklahoma Metropolis for a number of months, which bought me up and going. I shortly realized that I couldn’t give you sufficient merchandise to fill my retailer from my very own line, so I began incorporating candles from my girlfriends and wholesale jewellery traces or something that complemented [the clothing] effectively. [The concept was what] we name “thoughtfully chosen items.” Each product in our retailer both empowers another person or it offers again not directly, together with my line.

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How do you purchase and plan in another way in your Oklahoma store versus your Beaver Creek location? 

The markets are very completely different. The place we’re situated in Beaver Creek, we’re within a resort, so it’s very a lot tourist-based. We have now much more “Colorado” T-shirts right here relatively than in Oklahoma. However once we purchase these T-shirts, we nonetheless purchase them from a feminine owned, female-designed and female-printed firm. We nonetheless use the identical shopping for ideas.

How has COVID-19 impacted your two outlets in another way?

It has been a night-and-day distinction between Oklahoma and Colorado. In early March, Colorado bought hit actually exhausting and issues began shutting down right here far more shortly than the Midwest did due to all the individuals who traveled in [to Beaver Creek] from different locations. Due to that, I had the [Colorado shop] retailer shut down a for much longer time, whereas my Oklahoma retailer closed later and was in a position to reopen with limitations earlier.

On prime of juggling two states’ native pointers, you additionally need to juggle two landlords. What recommendation would you give to different retailers making an attempt to navigate the method with their landlords?

I’ve two completely different conditions. In Oklahoma, I’ve a landlord who invested a big sum of money into the area. I simply moved into it and I’ve a protracted lease, so he must recoup that cash. Approaching him, I requested, “How can I unfold this out over time so I can succeed?”

Whereas renting from Vail Resorts in Colorado, in a vacationer city the place we needed to shut for 4 months, was a very completely different dialog. That dialog was extra about renegotiating the lease altogether.

My greatest piece of recommendation is to not settle with the primary supply given. There are many choices to barter and to guard the integrity of your enterprise long run. I feel most landlords respect that.

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What steps are you taking to maintain your prospects secure throughout the pandemic

I’m making an attempt to observe the county pointers. There’s a type that you just obtain and a 72-item lengthy sanitation guidelines that it’s important to submit in your storefront. It’s actually necessary to observe the county’s pointers.

In what methods have your six-year-old twin boys impressed you throughout this time?

We have now a household motto that’s “work exhausting, play exhausting.” My greatest purpose is to point out them that I can fail, I can succeed and that daily I present up it doesn’t matter what, even when it’s troublesome.

The rationale my enterprise exists is as a result of I wish to present them that they’ll do something on the planet they wish to. I got here up with this loopy thought with one artist in a single neighborhood, and now we’ve got 24 artisans throughout three states which have been working with us. I’ve two shops in two completely different states. The sky is actually limitless.

What do you see the panorama of native retail wanting like? 

I feel that if everybody can have slightly little bit of grace and soak up some loss, then everybody can come again. We’re so linked with know-how. Faire is an ideal instance — though I missed commerce reveals this summer time, I’m in a position to nonetheless do that purchasing. I’m in a position to scale back these prices and make the most of a few of the federal help applications, then faucet into our native following and neighborhood who actually assist us. As small companies, we’re so fortunate to have that reference to our prospects, whereas the bigger shops might not have that and may’t dig deep for sympathy, or empathy, or assist on-line and at your storefront throughout this time.

I feel that with the mixture of tapping into all these sources and instruments which can be offered to us, a variety of the small companies can succeed.

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In-store Beacons: What Are They And What Can They Do For Retail?

As mobile phones are becoming more commonplace, mobile marketing approaches are becoming more progressive. In the last few years, retailers have set up in-store beacons to blur the line between online shopping and shopping in a physical store.

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Which Are In-Store Beacons?

Beacons are Bluetooth enabled devices that connect to mobile phones inside the building, allowing retailers to send messages in real time based on where a shopper is at the shop. By way of instance, if you are in the maternity section of a department store and have downloaded that shop’s app, you might be given a message about a sale that the store is having on baby clothing. A beacon shares information with the merchant about customers’ shopping habits and moves through a shop. What the merchant does with this information is where the marketing strategies are involved.

How In-Store Beacons Benefit Retailers

Beacons have the capacity to benefit retailers in three specific ways. They enable a shop to send location particular messages to customers in real time. It is sniper-style direct marketing rather than the machine gun approach of (almost obsolete) newspaper advertisements. If you have ever walked down an aisle at the supermarket and noticed coupon dispensers near that specific solution, you have got the idea. Beacons, however, send the data to a customer’s individual device.

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That leads us to the next advantage to retailers. Beacons make it possible for retailers to collect consumer data. When that data is linked to customer loyalty data, the specific messages can be even more specific depending on the person’s previous shopping behavior. Imagine having the ability to offer loyalty points to clients only for stepping foot into the shop with the app in hand.

Ultimately, the beacons can help retail workers with customer support. Beacons have the capability to tell service agents whether the shopper is a first-timer or a loyal client. Sales staff on the floor can attend to their needs so. Consolidate online shopping history with in-store motion and previous purchases to acquire a clear comprehension of goods which would probably be of interest to people who frequent the physical store.

How Do Clients Access In-Store Beacon Benefits?

This is where a terrific idea hits some bumps in the road. For the in-store beacon to communicate with a mobile phone, the client must do three things:

  •      Download the shop’s app
  •      Have the Bluetooth on their phone turned on
  •      Share their place

It is not a”three strikes and you are out” situation. If any one of these things fails to happen, the beacon can not do what it was made to do.

Early adapters of this beacon technology will probably be coupon clippers that are ready to offer up certain amounts of personal data as long as they see how it benefits them. People who are slower to participate are individuals that are concerned about privacy problems that surface with motion monitoring and location sharing.

In short, retailers that decide to utilize in-store beacons must make customers believe it is worth it to get store-specific notifications whenever they shop.

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