Discover 9 Ways Small Businesses Can Compete With Big Companies
Do Small and Medium Local Merchants Stand A Chance in E-Commerce? 9 Ways Small Businesses Can Compete with Big Companies
One of the biggest challenges that a small business owner faces is keeping up with big corporations. These larger companies – with their big marketing budgets and bulk purchasing power – can easily overshadow small and medium local merchants, both physically and in the digital world.
While it may seem like you are fighting an uphill battle, there are numerous advantages that small businesses have over their larger competitors.
Read on to learn about 9 ways your business can compete with big companies.
DTI Encourages Small and Medium Enterprises to Adopt E-Commerce
The Department of Trade and Industry (DTI) is encouraging small and medium enterprises to adopt digital commerce for their businesses to thrive amid the COVID-19 pandemic. DTI Assistant Secretary Jean Pacheco said in a recent webinar that the department is creating an e-commerce roadmap which aims to improve market access for small and medium enterprises, prepare them for digital transformation, and make logistics at a lower cost and more efficient through integration.
As of August 10, business registration related to online retail grew to over 68,000 from around 1,700 registrations in January to March 2020. According to Pacheco, 33,000 of the total business registrations of online retailers were listed in the month of June alone.
Pacheco said, “For market access, the opportunity for Philippine businesses is huge, and we’re mindful of these following statistics: the Philippines, our total retail sales is valued at USD63 billion, while e-commerce accounts for less than 4 percent valued at USD2.4 billion.” She added that global e-commerce sales reached US$3.34 trillion with 4.57 billion active internet users. The Philippines has the greatest number of mobile subscriptions at over 120 million.
Competing with Big Brands
One of the first steps that every business owner should take when establishing their business is to study the competitor. Knowing how your competitors operate will shed light on industry standards and trends, which in turn, makes it easier for you to know how to price your products and services, what marketing strategies work best in your industry, and so on.
But, how do small and medium-sized companies compete with bigger rivals?
Here, we’ll cover 9 business competition strategies that will give your small business the edge it needs to stay in the race with large companies.
Know Your Customers
Did you know? 80% of companies don’t have enough customer data to build effective marketing strategies! Most marketers know their customers’ purchasing patterns, which is definitely helpful to track. However, there is so much more information that you can use to continue streamlining your marketing plans. By knowing your customers, you can build a solid relationship between them and your business, extending the customer lifecycle beyond just a couple of purchases.
Aside from tracking your customers’ purchasing patterns, study data regarding your customers’ social activities as well. By looking into this data, you can get crucial insight into timing of purchases and related searches. Using online tools like Facebook analytics, you will be able to better understand what ultimately prompts your customer to make a purchase.
Know Your Unique Selling Point
Your unique selling point is a quality that you have, but your competitors don’t. It can be anything from free shipping services to selling only eco-friendly products. If you don’t have a unique selling point, then customers won’t find your store any different from your competitors. Figure out what your unique selling point is by asking yourself these questions: ‘What goods am I selling?’, ‘Why would anyone buy from me?’, and ‘Who am I selling them to?’ Write down your answers and define your unique selling point.
If you’re having trouble generating momentum for your business, consider focusing on a specific local market and expand from there. As an e-commerce business, you can optimize your site with local-specific keywords. Targeting a local audience will immediately narrow your demographics, giving you more power to tailor your services and products to their needs. More importantly, it will greatly reduce the number of businesses directly competing with you. Once you start seeing growth, you can then expand to target other areas.
Tap Niche Markets
While bigger companies focus on reaching a broad range of demographics, being a small business gives you the chance to tap niche markets more effectively. The competition may be making investments and purchases based on regional or national sales trends. You, however, have the advantage of knowing what your local customers want the most.
Stop trying to compete directly with large companies that offer a wide variety of products – it’s a difficult task, and you’ll find that the odds aren’t in your favor. So instead, tap into more specific categories of customers and offer unique services and products as a way to create a niche for your service.
Build Engagement and Authentic Relationships
It’s essential to build authentic relationships with your existing and potential customers. Social media platforms like Facebook, Instagram, and Twitter offer a great way of interacting with your customers in real time. However, don’t spread yourself too thin by marketing on every social media platform. Instead, study your options carefully and identify where your target audience spends the most time. Once you identify which social media platform serves them best, concentrate your marketing efforts and interactions on that platform. Post regular updates. Respond to inquiries and comments. Keep your audience engaged.
When a customer trusts and knows you, there isn’t a whole lot that can get in the way of them returning to purchase your products or use your services. Focus on building engagement and authentic relationships with your customers, and that will be one of the keys to staying competitive with big corporations.
Strategize Your Pricing
Its easy to only focus on getting new customers when you run an e-commerce business, but you should also invest in retention strategies for high-value customers too. Implement bonuses or loyalty programs for your best customers. They will be reluctant to switch brands once they have accumulated a certain amount of rewards points because they don’t want to lose out on any discounts or special offers that they have earned.
Also, when setting prices, keep in mind that you don’t always have to have the lowest price. Customers buy for various reasons. While price is one of those reasons, you shouldn’t compete exclusively based on price. A key point to remember in order to stay ahead of e-commerce competition is that customers are willing to pay more for things such as better customer service and higher-quality products.
Incorporate Video Content and Marketing
Video content and video marketing are virtually everywhere today. As consumers spend more time watching videos across desktop and mobile, it has become an important element in e-commerce. After all, video is a fun and compelling way to actively engage consumers and can be a memorable way to share your brand’s voice and story. So, its beneficial to incorporate videos throughout your e-commerce website. By embedding video from social media or by adding video-based design elements, you can improve your homepage and product pages with how-to and promotional videos.
Simplify Your Online Payment Method
Just because your online customers reach the checkout and payment process doesn’t mean that they will actually complete it. Unless the final stage of your shopping experience is simple and smooth, you could end up losing potential customers. In fact, about 70% of online shoppers end up abandoning their carts, with 26% of shoppers blaming a complicated checkout process as the main reason. So, if you want to improve your conversions and gain a competitive edge over bigger e-commerce merchants, make sure that your online store offers a hassle-free checkout process with easy payment options.
Stay Educated and Ahead of Trends
Always stay updated of new technologies and trends that are relevant to your e-commerce business, and know which ones your competitors are using. Customers expect e-commerce sites that load quickly and are easy to navigate and use. If they can’t easily navigate your site due to outdated technology, then they certainly won’t feel comfortable inputting their credit card information to make payments.
If you stay educated and ahead of e-commerce trends, you will have insight into the best ways to enhance your e-commerce platform, market it effectively, and build loyal customers who trust your brand. This will keep you ahead of the e-commerce competition.
The Bottom Line
Don’t waste your time worrying about what those large corporations are capable of. Instead, shift your focus to what they are not capable of, and capitalize on their shortcomings.
We have provided you with some strategies to help compete with large companies. Don’t be intimated by what they can do. In reality, the chances of your small business succeeding are in your hands, more than they are in the hands of your bigger competitors.
But if you want to get ahead of the competition by having an immediate presence and visibility of your products online, utilize the BigBuyBay.com marketplace platform.
Listing your products in BigBuyBay.com marketplace will give you an online competitive advantage since most of present day shoppers nowadays , do their shopping by searching products on the internet.
And fortunately for the merchants who sell products in BigBuyBay.com marketplace, delivery service couriers is no longer an issue.
JAS Intermodal Logistics, Inc. is the dedicated logistic partner of BigBuyBay.com.
All Merchants in BigBuyBay.com marketplace is guaranteed to have a dedicated logistic partner who will pick-up and deliver their products to their respective customers, including the corresponding payment of the items if the term is Cash-On-Delivery.
Contact us if you want to sell your products in our marketplace!