Small and medium enterprises frequently faced competition from global corporations as well as online start-ups, particularly those that were inventive and moved quickly. The explosive rise of e-commerce over the last decade poses a challenge to traditional brick-and-mortar firms. Retail locations such as booksellers and mobile phone stores have been failing, while hyperlocal commerce has grown. Small businesses may be able to benefit from the shifting buying tendency if they are able to take advantage of it.
The fact that more and more companies are penetrating deeper into the markets, has brought a sense of urgency for the local and small businesses to step up. Local businesses should move online, expand their reach and deliver faster to their customers.
Local businesses have the following advantages to have an edge and to start building their brands. The buying trends have changed, customers are now looking for more genuineness and convenience.
Greater value for local products
There is a rising worry about eating and living properly, as well as for the future of people around us. Although the crisis is worldwide, the local impact is what most impacts consumers. Choosing local commodities may be related to new prejudices against imported products, but on an economic level, it appears more reasonable, trustworthy, solidary, and inexpensive.
Large stores and chains will always make more noise with their aggressive pricing techniques, but small enterprises have an advantage: the public notices them.
The local shops may increase the benefit of convenience by offering a better, local choice to buyers through e-commerce.
A quick target
If you decide to sell online to everyone or to Asian teenagers, it will be more difficult to find the items that will best meet the demands of your target audience and the best methods through which to contact them.
A target consumer who is local or regional is considerably easier to identify and get to know. It is simple to uncover patterns using demographic data, and it is also much easier to conduct research or alter advertising campaigns online – all with much faster results.
For reasons of convenience or safety, many consumers continue to prefer that their purchases be delivered directly to their homes. Why pick things at a real store when you can order everything from the comfort of your own home? Furthermore, this is a service that SMEs may readily provide because local and regional shipping costs are typically quite low.
Less inventory, but a wider catalogue
Dropshipping may help SMEs increase their online sales. This technique is based on a customer making a purchase in a store and the store then requesting from the distributor that the items be delivered directly to the customer. This assists local commerce businesses and small enterprises in avoiding a major issue: a shortage of warehouse space and a buildup of unsold merchandise.
Possibility to view the entire catalogue
Sometimes the opposite is true: someone may desire to make a purchase at a store but first look and compare things in the catalog. Currently, shopping is not as popular leisure activity as it once was; as a result, customers prefer to have a deeper understanding of what each shop provides and purchase local or national brands. Users want to know about pricing and product information and zoom in on photographs, so an Instagram profile isn’t adequate.
Lesser delivery times
The local businesses can reach faster to their customers and provide deliveries within minutes. This would give a boost to customer satisfaction, and hence a confidence booster for the business. Items like medicines and groceries, can be delivered faster and made available to the customer at lesser rates.
Space constraints in stores
Small businesses are particularly affected by the safety precautions enforced as a result of the COVID-19 outbreak. Because these businesses typically have limited space, the number of individuals who can enter at one time is now fairly limited — sometimes just one person can enter at a time. Visits will be reduced, aside from dedicated regulars, because many people will not want to wait in line. Online sales are a good alternative for a secondary source of revenue with no capacity constraints.
Considering the rising competition the time has now come that small businesses have to gear up to compete well. Local businesses are still the leaders if we think big in a local way! If you’re an SME looking for an upgrade to move online and have an edge over your competitors, then the Jungelworks suite might be the right fit for you.
Jungleworks is powering local commerce with an end-to-end powerful tech stack, that includes, online ordering, delivery management, and marketing automation. Book a demo with our industry experts and start your entrepreneurial journey today.