The Internet: You Ain’t Seen Nothing Yet

In reviewing Internet Retailers, “2014 Top 500 Guide” there is tons of stuff that just keeps popping out that affects one’s marketing practices and potential.  As important as we think the potential of the Internet is for business, we are actually underestimating its worth.

Below are just a few examples illustrating the Internet’s potential:

• Internet retailing is growing 15-20 % per year while brick and mortar retail is only growing 1-3 %.  The implications for buying, retail stores, inventory management, and marketing are astounding.
• Diverse retailers Amazon, Wayfair, Etsy, Google Play, Groupon, Vistaprint, Netflix, Overstock, represent businesses we never heard of a few years ago, are revolutionizing industries, purchasing techniques, and business patterns.
• Much of the differentiation and value of the Internet resides in the connectivity, data aggregation, data-processing, and decision-making activities that take advantage of the data streams emanating from the Internet.
• Numerous and growing challenges face brick and mortar retail stores including for example, over saturation translated into an average 46 square feet of retail space for every person in the U.S.
• Inventory management, consumer tastes, deteriorating stores, and competitiveness are growing in importance.

The following examples represent numerous opportunities for startup businesses:

Startup strategies need to start with Internet realities rather than focus on often obsolete retail practices.

Competition, pricing, distribution, and change all happen much faster on the Internet than they do with traditional retail businesses.  For example, one of the best suggestions I give clients, is to check your competition on Google and Amazon.

Startup businesses must understand the need for professional and integrated programs including web sites, SEO, social media, e-mail, blogging, etc., rather than isolated efforts that often dominate today’s practices.

Startups need to understand their size and flexibility present opportunities to develop improved branding, customer service, operations, and pricing practices at a far faster pace than traditional and existing businesses and that these changes can be frequently less expensive than traditional methods.

Conclusion

We often give lip service to the importance of the Internet but still don’t understand and realize its potential.  Why focus on declining practices, such as brick and mortar retail stores or traditional advertising, when you can participate in a new, evolving, strategy with almost unlimited potential.

Bert Shlensky is president of www.startupconnection.net and has developed an experienced team to analyze and execute integrated Internet strategies.