The State of Retailing Online 2009 reports that ecommerce spending will rise 11% to $156 billion this year from $141.3 billion in 2008.

Although many retailers have experienced lower sales, four out of five online retailers surveyed think the web is better suited than other channels to withstand the recession. Furthermore, one-third of the retailers said the downturn has helped them capture greater market share. Retailers report their conversion rates continue to run between 3% and 3.5%, as they have for years.

What can a wholesaler or retailer do to weather the economic downturn? Most businesses are doing more with less by making smart spending decisions and using effective, affordable tactics to grow their businesses.  Search Engine Marketing is ideal because it’s both accountable and cost-effective.

According to comScore, $595 million was spent online on Black Friday 2009, making it the second best shopping day of the year.  With over $10.5 billion spent during the holiday season so far right now is the best time for internet retailers to ensure their websites are getting the traffic they need to help their business grow.

Search Engine Marketing for Wholesalers

The benefits of paid search advertising are many. Directory listings in particular are extremely cost effective. With a small initial investment, you get tons of qualified traffic, unlimited category selection, ample keyword selection, a site description, and options for premium listings, banner ads and more.

Paid search advertising is realistic for every type of business, small or large. It is an excellent way for small businesses to level the playing field and for big businesses to get found. Your listing has a chance of placement right above or below a larger competitor or national chain. A wholesaler can easily be found by retailers looking for its products, and retailers get the benefit of quickly sourcing products.

The beauty of paid search is immediate results; your listing can be up in a matter of days as opposed to the time it takes for natural search listings to materialize. This is not to degrade organic listings, because the best of all worlds is to have both organic and paid listings for conversions and branding galore.

The biggest advantage of directory listings is targeted traffic. While it’s difficult to target your message with traditional media, directory listings zero in on your target audience through your selected keywords. You’ll be pre-qualifying your customers before they land on your site.

Lastly, you get branding with directory listings. Top placement on sites like WholesaleU or OffPriceNetwork is proven to be very effective for promoting your brand.

In closing, let me remind you that the Internet gives you top value for promoting your business and results are accountable. WholesaleU helps wholesalers connect with thousands of resellers looking to order their products online every day. What’s not to like?

Many of the intended readers of this blog may currently be participating in the ASD/AMD Show in Las Vegas this week (3/15-18).  I wish all of you the greatest success at an event that continues to be critical to general merchandisers in the US and beyond. For those of you interested in developing new business, as you may know already, there is a growing demand for home/gift, general merchandise and new categories by apparel retailers who are looking for that one niche product that will get new customers into the store and allow their apparel lines to sell themselves. Accordingly, our team at the Off Price Specialist Center is launching a new salon area at our August Off Price Show called “HOME.”  HOME @ the Off Price Show is designed to be a home/gift, gen merch and new product “incubator” for apparel retailers looking to add more excitement at their stores. It is a ground level opportunity for vendors in these categories to make a significant impact at the largest and perhaps ONLY Off Price Show in the apparel industry.  Our apparel “jobbers” or off price specialists (the newer, more politically correct term) have become known as heroes to struggling apparel retailers who have found excellent values at our semi-annual trade show – which is the offical Off Price Show of the multi-venue/concept Las Vegas Fashion Week. Home/Gift, Gen Merch / hard goods are not new to the Off Price Show.  My good friend Larry Manus (who is at ASD this week) has been bringing his hard lines to the Off Price Show since its inception in 1995.  “I meet entrepreneurs and savvy retailers who already got the message about the need for diversification.”  His New Jersey-based company, United Auction LLP, has been wildly successful at our show in hard goods, as has St. Louis off price specialist CWC Inventories.  And as long ago as 2003, when I was first involved with the Off Price Show as its outside marketing agent, I met candle and gift vendors in the second last row of the show who were doing cartwheels because they were writing orders like crazy from aggressive retailers looking for new products. Now that I have been more directly involved with the show for the past 5+ years, it doesn’t surprise me that there is a great fit for home/gift and gen merch vendors at Off Price.  Our concept is known to many of our seasoned buyers as “the treasure hunt” because you are sure to find 1-2 new products (not on your pre-show shopping list) that could make your whole season or year.  The show is not arranged by category because of the nature of the off price business.  Our vendors carry either all categories or they specialize in one or two, plus they may come across an opportunity in a new category or product line that they know (based on their years of experience) could be a winner for their retail customers or prospects.  For Home/Gift, Gen Merch and new category vendors, we are making a more centralized HOME salon area to accommodate our largest retailers (who serve on our retail advisory board) who have been begging us for this kind of centralized space so that they can go back to their offices and – mind you they are all CMOs, CEOs and other executive types) tell them about the great values they found in bed & bath, table top, home decor, gift and other non-apparel categories that could be real winners for their chain. I invite all who are interested to contact me at the Off Price Specialist Center at either 262.754.6910 or dbrowne@offpriceshow.com.  I feel that this is an exciting opportunity for these vendors to develop new business that happens right on our show floor.  If you need further assurance, talk to my good friend Jason Prescott, President of JP Communications, whose TopTenWholesale.com is an official sponsor and media partner for the Off Price Show and has been since 2001 (I think).  Jason is a real visionary who’s very big on building bridges online for wholesalers and retailers, and takes advantage of the onsite connections at the Off Price Show to transcend this message across apparel retail lines.  Thanks, Jason, for this wonderful blog and for all the great things you do to support our respective industries.

This warning is meant to send a message to would-be petty criminals explaining the prize is never worth the consequence. But, to the retailer, crime does not pay either. When the kid stuffs a DVD in his pants and walks from your store….He is not paying for your merchandise!

In the last few weeks I have spent some time researching shoplifting and the direct impact it has on the retail industry. Retailers, small and large faced with slumping sales due to our current state of economy should probably leave the room before reading any further. 

Retail shoplifting (including employee and vendor theft) costs an estimated $10 billion per year here in the US alone. By contrast, bank robberies net only $25 million, and most bank robbers get caught. It is purely logical to state  when “times are tough” retail shoplifting increases. 

Some anti-theft measures that have been effective in reducing, though not eliminating, shoplifting include: store detectives, exit bag checks, strategically placed mirrors, electronic devices attached to products, locked display cases, closed circuit TV, and more. Simple precautions include maintaining good sight lines from a checkout station to displays of those items most attractive to shoplifters, circulating through the store on a frequent basis greeting customers, and generally being alert to suspicious behaviors.

Do not confront a suspected shoplifter without sufficient cause (check your local laws regarding detaining and charging suspects) and never do it alone – the most pervasive shoplifters are career criminals and should be considered dangerous.

Some retailers feel it’s not even worthwhile having a shoplifter arrested when it’s frequently so difficult to prove an item has actually been intentionally stolen. There’s also the matter of employee time lost in testifying against an accused in court. Moreover, counter-lawsuits against a retailer for false arrest are rife in shoplifting cases.

At the other end of the spectrum, some large retailers enforce a zero-tolerance policy against shoplifting and make it known they will not go easy on shoplifters; they post signs throughout the store, “Shoplifters will be Prosecuted.” 

What loss control measures do you have in place at your retail location?

How much revenue have you lost due to theft?

Some e-retailers have the notion that the absence of brick and mortar anywhere in their operation is reason enough to forgo commercial insurance.

Wrong.

Even in cases where your business consists of a computer in a corner of your bedroom and you store no at-risk inventories of goods, holding commercial insurance is a wise move simply because you do have potential liabilities.

Anyone who sells a good or a service to the public is at risk of being sued for damages. You can be sued for virtually any kind of misstep you might make. For example, if you are selling a doll made in China, you can count on being the target of a lawsuit when inspectors discover lead-based paint on the dolls’ faces, a toxic hazard. You didn’t know it was there, but that’s no defense against litigation and a big dollar judgment against you. Therefore, at minimum, you need product liability insurance for your business. Some retailers even consider it wise to carry umbrella coverage that covers them against a disastrous judgment.

Sellers who do own a brick and mortar establishment need, in addition to product liability coverage, general liability insurance to absorb the costs of such things as accidental falls by customers.

Next, protect your property against damage. If you lease, cover only damages to goods and fixtures you have brought into the building and let the owner cover the structure. However, some retailers who think they are safe by covering loss or damage to their goods and fixtures make the mistake of not thinking about what happens after the disaster. Until the building is rehabbed or you have moved new inventory into a new facility, you have no cash flow. Unless, that is, you have purchased commercial insurance that covers suspended operations.

Other coverages you need to consider depend upon the type of business you run and whether you have employees. There are special policies for franchisers and franchisees, automotive garage operators, restaurant owners, wholesalers, and many other kinds of operations, each of which has its own special risks. Should you have employees, you may want to cover yourself against employee dishonesty; you may also want to, or are legally required to by law, carry workman’s compensation insurance to handle injuries on the job.

Protect what you have worked hard to build by researching Commercial Liability policies, Business Auto and Workers Comp insurance. It is best to find a knowledgeable independent insurance agent who specializes in commercial risk. An independent agent represents several insurance companies, therefor competitive premiums can be offered.

When visiting a local insurance agent be prepared to answer in depth questions about your business including gross sales, projected sales, payroll and your overall business experience. Disclose all information about your business that way your agent can customize a policy to protect your financial future future!