How To Increase Retail Profits With An Ecommerce Platform

Theoretically, adding another physical store could approach doubling your profits, assuming that your new operation can be essentially a clone of your existing operation. You could approach doubling your profit because while all facilities and processes could be duplicated, the most essential ingredient, YOU, is limited to one. Additionally, you will be required to add at least one additional manager, further reducing the profitability gain of the new operation. And, the investment will equal your original investment in your physical store. On the plus side, you may make small gains on the basis of economy of scale; and, if logistically feasible, your inventory might be less than doubled. Also, some back room operations, accounting, payroll, billings, etc could be integrated.

But, today, with the availability of innovative retail management software, establishing an ecommerce operation to work in tandem with your physical store is a far more effective way to increase sales volume with multiple increases in profit. With implementation of an integrated retail management software, your sales volume could be triples or more using far less in resources than adding a second physical store.

What are the essential features of an integrated retail management software?

1. It seamlessly integrates the offline and online operations. Make Promotions, items, pricing, customers, vendors etc in either systems and let the software sync all systems for you.
2. Your inventory is maintained and serviced through a common data base. Physically, inventory is located within the offline operation with product and inventory data being readily available to the online store. In turn, the online sales orders are directed to the physical store for fulfillment.
3. The integrated data base tracks online and offline sales for each of your customers enabling you to concentrate additional marketing and sales effort where it is likely to be most profitable.
4. All performance data for the combined operations is presented in an integrated fashion with breakout of the two entities available on demand.
5. You retail management software will include a loyalty system to encourage enhanced customer engagement
6. Be able to provide product info and purchase ability through mobile devices, including providing supplementary product info in your physical store.
7. Your retail management software system must be scalable. To run your back-end accounting processes, you may start with an SME ERP like SAP Business One as back-end for small store chains but you should be able to migrate to larger systems like SAP All-in-one (SAP Retail) without changing your retail systems.
8. The provider of your retail management software must be provably skilled in installation and maintenance; and must be able and available to service the system on demand.

Operational advantages of adding an ecommerce channel to your existing physical store with integrated software are: .

1. It enables, YOU, the manager to more closely control the combined operation as compared to either two physical stores, or an off-line and on-line operation that are not integrated or synchronized.
2. The ecommerce channel adds a communication channel to your link with existing offline customers. It will be easier to make additional sales to these existing customers simply because you can reach them online with additional offerings. Customers can use Loyalty points either in physical or online store.
3. Retail management software provides opportunities to sell-up, sell-more, and sell-more-often. Planning engine can tell you what sells where and how you can increase sales via which mode.
4. A retail management software system reduces cost of sales by increasing sales without a commensurate increase in overhead. Able to offer physical store pick-up for local customers.
5. Your retail management software system enables you to duplicate work. A promotion can be made for physical store but should be easily be sent to online store as well.

To get additional specific information on how an integrated retail management software with Webstore will improve your profitability, read more about Ecommerce Platform for iVend or contact your local CitiXsys partner today.