In the last two weeks I’ve been reviewing the packaging of orders sent from online retailers in Australia. And let’s just say it’s been a mixed (shopping) bag.

Three examples really stand out. Robins Kitchen, K-mart and Cotton On. And the standard of packaging I received from all three were vastly different.

With so much focus on online shopping and the influx of International retailers targeting Australian online shopping dollars, you would expect local retailers, especially the big ones to be trying to get it right.

The first package to arrive was from Kmart. We got the kids toy shopping for Christmas out of the way early and spent up big on a large order. I’m happy to say that the approx. 20 odd toys arrived 2 days later, extremely neatly packed in a large branded box that really did make it feel like Christmas. No bells and whistles, just a well-packed, clean box, with an invoice and con note stuck neatly square on the box rather than just slapped on any old how. All in all, a positive “packaging” experience.

Next, were Robins Kitchen, and a new pizza stone and pizza cutter. I have to say that the Brisbane based retailer did a fantastic job of “dishing up” their order ensuring it arrived within 2 days. Both products were neatly placed in a box that had been cut down to size and packed out to ensure nothing moved in transit. To top it off my invoice had been placed in a bright red (company colours) envelope on the top of my order. It was a nice touch and one I consciously noted when I opened the box. It made me feel confident that I had made the right decision to buy from Robins Kitchen online.

And the last package to arrive was from Cotton On. One of Australia’s most prominent fashion retailers, who have recently made the jump to selling online. I figured that, since it was starting to heat up, some new shorts were in order. My order was simple, 2 pairs of shorts, same style, same size, just different colours.

Simple right?…………

8 days later a beaten up plain white satchel was shoved under my front gate. To be honest, when I saw it lying there, I had no idea what it could be as so much time had elapsed that I had forgotten I even placed the order. I did get a little spring in my step though when I read the con note on the package and saw the name Cotton on. You beauty….new shorts for the week-end. I have to say that my enthusiasm was short-lived. When I sliced open the satchel and reached inside I found my shorts screwed up in a ball in the bottom of the bag. My invoice was also just chucked in and looked like someone in their warehouse had been practicing origami with it. The whole experience was deflating. Something that should have conjured thoughts of the beach on the week-end, simply left me thinking, who the hell at Cotton On thinks that it’s OK to send parcels out like this.

The one thing that I had purchased that was just for me was the one thing that didn’t impress me on any level. Not to mention one of the products was faulty, but that’s a topic for another article.

If you are selling products online my advice is simple. Buy something from your online store. Do it anonymously so you don’t get any special treatment, and when the package arrives make an honest assessment of your satisfaction levels. If you’re not completely chuffed, it’s time to review your packaging. It may just be the one thing that gives you a competitive advantage over other retailers who are targeting your loyal customers.

Because when we fork out good money for anything, we all care what it looks like.

The old adage “you need to speculate to accumulate” could not be truer in todays changing retail landscape.  As mentioned in part 1, various credible sources including Forrester, PriceWaterhouse, Westfield and Morgan Stanley concur that online retail revenues are set to grow dramatically juxtaposed to modest growth in “bricks and mortar” businesses at best.   So, the writing is on the wall, it just needs to be read by Australian retail business owners.

The level of investment required will, obviously, depend on the quality and flexibility of current business processes and systems.  The lower the starting base the higher the investment required.  That being said, a retailer does not have to deliver a full cross-channel service offering on day one, but a retailer does need to have a strategy to deliver cross-channel services over a period of time.  This will allow strategic investment decisions to be made wisely and with a considered view within the context of the cross-channel strategy.  Common sense, but not always common practice!

Transforming the business into a cross-channel service organization also presents opportunities to rationalize or streamline operations.  A simple but straightforward example of this is re-engineering how you service your customers over the phone.  If staff are currently handling customer calls in store, consider directing all calls into a single contact team outside of the stores.  This team will typically cost less to operate presuming your business has multiple stores, gives increased visibility on the type of calls coming from your customers, allows you to measure the quality of service that you provide and also allows you to cross and upsell to your customers.

Whilst it is likely that you will need to invest in technology and change within the organization, the change process itself presents the opportunity to look again at the way operations are performed and identify new ways of providing excellent service that may actually work out to be cheaper than the cost today!

In summary, it cannot be denied that online retail has and is changing the way consumers and retailer interact.  “Bricks and mortar” retailers have a strategic advantage over pure-play retailers in that they have many brand advocates (aka staff) and have footfall from their target demographic (aka customers) flowing through their stores.  These customers want to be able to interact with retailers on their own terms (aka through a channel that they want to use) and if you get it right, they will reward you with loyalty to your brand and a higher than average interaction rate (aka spend more money, more regularly with you!).  This will require investment and change, but if planned correctly and implemented incrementally needn’t break the bank!