With Kantar publishing that Global online FMCG sales grew by 20% in 2018 and are forecasted to grow a further 10% in the UK by 2025, a lot of FMCG companies have already or are looking to implement an eCommerce website as part of their 2020 growth strategy.
I have put together a summary of some of the benefits of eCommerce platforms specific to FMCG companies so if this is something you’re interested in then please read on.
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Cut out the middleman and maximise profits
With eCommerce you are selling direct to the consumers so there are no margins. You can make 2/3 times the profit per product that you can through the major retailers.
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Overcome geographical limitations
If you have a physical store, you are limited by the geographical area that you can service. With an e-commerce website, the whole world is your playground.
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Keep your eye on consumer’s buying habits
Data is one of the most valuable commodities within FMCG and using analytics on your eCommerce platform you can learn more about your consumer and this can help build more effective NPD, Marketing and digital campaigns
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Low investment: high ROI
Setting up an eCommerce platform is surprisingly affordable. The automation of checkout, billing, payments, inventory management, and other operational processes lowers the number of employees required to run an eCommerce setup. Additionally, an eCommerce merchant does not need a physical location so real estate isn’t an expense.
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Open 24/7
eCommerce websites run 24/7/365 meaning more convenience for the customer.
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Easier to encourage impulse buying
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Consumers can locate products quicker
No searching in various retailers or up and down shop isles, with a few clicks your consumer can easily find your products.
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Provide abundant information
There are significant limitations to the amount of information that can be displayed in a physical store and sometimes it can be challenging to convey your brand’s message and the benefits of your products. eCommerce platforms are a limitless platform to provide this information in the form of videos, images or text.
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Create a market for niche products
Consumers and brands can find it challenging to locate each other in the physical world. Online, it is only a matter of the consumer searching in Google
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Scalability
Brands can reach new markets easily and scale internationally
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Use consumer data to build a long-term relationship
Consumers typically don’t feel comfortable giving their personal details in a physical store but on your eCommerce platform you have access to their email, name and number. Email marketing is one of the most effective digital marketing strategies and costs nothing to implement
Have you thought about implementing an eCommerce website or are you looking to bring traffic to your website? Or do you currently outsource this and are you looking to bring this in house?
If you want to discuss further feel free to drop me an email on shauna.penistone@drnewitt.com or give me a call on 01618330181 for a speculatory chat!