Ultra-cheap online marketplaces have changed what many shoppers expect to pay. Almost half of Australian consumers now say they often or always consider these platforms, and nearly eight in ten retailers are concerned about the competition.
No independent shop can match those prices, so don’t try. Compete on what a marketplace can’t offer, and make sure customers can see it.
Stop competing on the wrong thing
When a customer mentions a lower price online, it’s tempting to discount or explain your costs. Neither helps much. What the customer really wants to know is why they should buy from you.
Have a short, confident answer ready. You know the products, you stand behind them, and the customer can take one home today.
Make your value visible
Most of what makes a local shop worthwhile is invisible unless you show it.
- Shoppers buying online have to guess. In your shop, they can ask. Make it known that your team can help choose the right product, size or fit.
- Products sold through Australian retailers are expected to meet Australian safety standards. Shoppers worry about this more than they used to, especially for children’s items, electrical goods and anything worn on the skin.
- Your customer walks out with the product today instead of waiting on a delivery.
- Easy returns. A local shop resolves a problem across the counter. A marketplace return often costs more effort than the product is worth.
- Service after the sale. Repairs, refills, adjustments and replacement parts are part of what you sell.
Say these things on your signs, your shelf talkers, your website and your social media. Don’t assume customers already know.
Choose your range carefully
Be honest about where you can’t compete. If a product is a basic commodity and customers shop on price alone, it may not deserve prime space. Put your effort into ranges where your knowledge and curation matter.
- Products that need explanation or fitting.
- Quality brands customers trust.
- Locally made or exclusive lines.
- Gift ranges you’ve chosen with care.
- Consumables and refills that bring customers back.
Your POS sales data will show which categories earn their space and which don’t.
Offer what an algorithm cannot
There are many ways local specialty retailers can compete with cheap online marketplaces. here are some suggestions from us based on years of experience helping small business retailers:
- Special orders. Getting a specific item for a customer builds loyalty fast.
- Gift wrapping and bundles. A thoughtful gift, ready to give, saves your customer time and stress.
- Local knowledge. You know your community, its events, its seasons and its people.
- Remembering a customer’s name and what they bought last time is worth more than any discount code.
- Loyalty that feels personal. A loyalty program tied to real relationships keeps customers returning. A points based program is very common, but not always the right approach.
Make the visit enjoyable
People like to shop when the experience is good. A well-lit, tidy shop with fresh displays, a warm greeting and products they can touch gives customers a reason to come in. Change front-of-store displays regularly so regular customers always find something new.
Tell your story
More shoppers understand that spending locally keeps jobs in town and the main street alive. You don’t need to lecture anyone. Show, don’t tell – that you’re part of their local community.
What to do this week
List the five reasons a customer should buy from you instead of a marketplace. Put at least two of them on signage in your shop and on your website. Then review your range for one category where you compete on price alone, and decide whether it deserves its space.
If you would like to see how Tower supports special orders, loyalty and gift-focused selling, Tim and Justin are happy to help. Call 1300 662 957 or email sales@towersystems.com.au.
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