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How small online retailers can beat Amazon on Black Friday

Irish sellers should try to win the war on service – and play the ‘shop local’ card.

IT SEEMS LIKE a David-versus-Goliath situation – but Irish digital merchants can take on giants like Amazon this sales period by beating them on service, not on price.

So says Alan Coleman, head of digital marketing firm Wolfgang Digital, who warned that if online merchants lose customers to the shopping behemoth today, Black Friday, it could eat into their customer base during the Christmas period and “really hammer them in 2017″ because of changes in how Google displays ads.

Black Friday has become a lucrative sales period in the retail calendar and was worth over €100 million in sales in Ireland last year, according to Retail Excellence Ireland.

But a recent report by Amárach for Virgin Media found that Irish retailers are losing roughly €4.5 billion throughout the year in online sales to companies abroad – and stand to lose a fair sum in today’s sales blitz.

Coleman told Fora that online shoppers tend to be more loyal to merchants that they recognise and trust, but indigenous firms can turn around their fortunes through focused marketing campaigns.

For example, Irish retailers can capture data from customers who visit their online store today and use it to target them with special offers during the after-Christmas sales.

“There are always opportunities for nimble marketers to out-innovate the competition,” he said.

For example, a retailer can build a database of its most loyal shoppers by using email addresses and other information submitted by users through previous transactions and site visits.

That list of customers can then be used to create a ‘customer match campaign’ on Google whereby a retailer can tell the search engine to show a specific ad when any of those customers search for ‘Amazon.co.uk’ or other such keywords.

“They’re not targeting all the people in Ireland who search for Amazon, only customers who have bought from (their own site) before,” Coleman said. “They can meet that person with a specific ad and try to defend their business.”

Wolfgang PR_28 Wolfgang Digital CEO Alan Coleman Dave Keegan / Wolfgang Digital Dave Keegan / Wolfgang Digital / Wolfgang Digital

Coleman said that “if retailers can’t win on price, maybe they can win on delivery”, especially as shoppers rush to buy gifts in time for 25 December.

“If Amazon is a couple of days longer on the delivery, there’s a real danger that customers can end up with empty Christmas stockings,” he said, stressing that smaller firms should focus ads on their more generous delivery times or customer-friendly refund policy.

Shop local

Coleman also suggested that merchants should play the ‘buy Irish’ card as much as possible.

“The money spent in Ireland goes back into communities through taxes, wages,” he said. “If you’re spending money with multinational companies, it’s going somewhere else.”

He also said encouraged retailers to use the recently launched ‘Google Shopping’ product that was quietly rolled out in Ireland a few months ago.

“It’s Google pay-per-click advertising,” he said. “If someone searches for an iPad, they’re shown an image, price and other retailer information like reviews. It’s great for advertisers because the clicks are cheaper than normal and conversion rates are higher.”

He said shoppers who click on “these image-rich ads are more likely to purchase”. The downside, however, is that Google Shopping is not the most user-friendly platform.

Coleman explained that retailers have to create a spreadsheet of all their products with images, prices, descriptions and other data, upload that file to a ‘Google Merchant Centre’ account and link it to a Google AdWords account before they can start experimenting with the ads.

GoogleGoogle's headquartersSource: Marcio Jose Sanchez/AP/Press Association Images

SMEs lose out

According to IEDR, the company that manages Ireland's dot-ie web domain, the vast majority of Irish SMEs stand to lose out this Black Friday anyway because they don't have the capacity to process online payments.

A study of 500 small- and medium-sized businesses found that just under a third can take sales orders online while just over a quarter have the ability to process payments online.

That said, the majority of those surveyed - over 80% - said their website was important for driving future sales.

“It is alarming that in 2016, only one third of SMEs can sell or take payments online," IEDR chief executive David Curtin said.

"The failure to properly tap into the growing €9 billion online market may have long-term consequences for Ireland’s economy, particularly for rural communities given their significant dependence on SMEs."

IEDR's 'Digital Health Index' found that one in five SMEs have no online presence at all. The main reasons for being off the digital grid were financial constraints and a lack of time.

"This is a shame," Curtin said. "These problems can be easily addressed. There are plenty of inexpensive, easy-to-use tools that put together websites with basic e-commerce functionality in a few hours or less.

“However, there are infrastructural deficiencies and business support issues that can only be properly fixed through collaboration between industry and government, particularly broadband availability."

Written by Conor McMahon and posted on Fora.ie

Read: Irish retailers are going big on Black Friday, but is it worth the hype?>

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31 Comments
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    Mute Drew TheChinaman :)
    Favourite Drew TheChinaman :)
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    Nov 25th 2016, 12:16 PM

    There’s no such thing as a sale anymore… nearly everything is ‘on sale, promotion or discount’ somewhere at any given time. The sale price is what the retailer is hoping for. The new normal.

    Anything that’s actually on sale is just a box of rubbish they couldn’t possibly sell unless they gave it away.

    96
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    Mute mccumhail
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    Nov 25th 2016, 12:26 PM

    @Drew TheChinaman :):
    Try telling my wife that.

    51
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    Mute Quiet Goer
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    Nov 25th 2016, 12:32 PM

    @Drew TheChinaman :): Any electronics that are ‘on sale’ are just end of life, which is the step before going obsolete.

    31
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    Mute Shane Corry
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    Nov 25th 2016, 12:48 PM

    @Quiet Goer: Irish Tech stores don’t do sales at all, they just rip you off all the time.

    Just looking at the biggest sale items on PCWorld, there’s one laptop claiming to be marked down from €700 to €450 but then that same model is listed on the manufacturers website with a retail price of €420..

    Their sales are just going from massively ripping you off to slightly less ripping you off while still charging more than say Amazon (and usually the manaufacturer themselves..)

    49
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    Mute Lily
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    Nov 25th 2016, 5:49 PM

    This is what I’ve been saying for years. I bought my husband a shaver yesterday. Cosy 165 marked down from 185 which apparently was half price but never sold at full price.

    TBH I know nothing about shaving so thought buying an expensive one means it’s good?

    1
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    Mute Lily Martin
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    Nov 26th 2016, 2:31 AM

    I usually check everything on Reevoo before making a decision. It has worked so far.

    1
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    Mute Jonathan Baum
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    Nov 25th 2016, 12:54 PM

    Before the crash in the value of the pound, when 1 pound was around €1.35, I bought a food processor. It was €250 in all the Irish shops, and €190 on Amazon including delivery. So you can keep your “shop local” card.

    36
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    Mute Gary Sargent
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    Nov 25th 2016, 12:20 PM

    The challenge is retailers continue to look at the value proposition from their own perspective and not the customers. You’re more likely to
    build genuine trust if you hold a sale that clearly is a sale and not as others have commented wheeled out crap. Integrity goes a long way. More of the same does not. We’re not zipped up the back.

    33
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    Mute Nick Allen
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    Nov 25th 2016, 12:33 PM

    @Gary Sargent:

    Well said Sir!

    14
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    Mute Shane Corry
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    Nov 25th 2016, 12:42 PM

    The great thing about Amazon is that everything is in the one place and for better prices. (for example, PCworld here are selling on a “sale” today at the same price or more compared to what they would cost without a sale on Amazon..)

    That means you can do your Christmas shopping on one site rather than across 10 different sites. (Irish sellers can always list their products on there too).

    16
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    Mute John S
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    Nov 25th 2016, 12:51 PM

    @Shane Corry: Beware if you are thinking of using Parcel Motel to deliver anything, I’m waiting for over 5 days for a package to get from Dublin Depot to Parcel Motel in South Dublin.
    Their customer service is absolutely diabolical, even Ryanair have better customer service. Currently on hold for 14 minutes and counting, support ticket unanswered for 4 days, “live chat” non-existant, tweet unanswered.
    If you want to be sure you get it, AVOID IT AT ALL COSTS.
    I am never using the service again once I get this package.

    9
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    Mute Jonathan Baum
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    Nov 25th 2016, 12:55 PM

    I’ve used Parcel Motel loads of times and have never had a problem.

    27
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    Mute Shane Corry
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    Nov 25th 2016, 12:59 PM

    @John S: Most things on Amazon do ship to Ireland, the only time I’ve had to get something shipped to a UK address I used this: https://www.dpdparcelwizard.ie (as there’s no parcel motel pickup point close to me) and had no problems.

    5
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    Mute Cian Martin
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    Nov 25th 2016, 1:21 PM

    I’ve ordered a dozen things this year and not had a single problem. It’s VERY busy this time of year though.

    12
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    Mute Aidan Finn
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    Nov 25th 2016, 1:50 PM

    When parcel motel works, it’s great but they do have shite customer service and support.

    12
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    Mute John S
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    Nov 25th 2016, 2:10 PM

    @Aidan Finn: I can understand its busy for them, but they seriously need to up their game. They should at least have a decent customer support service, I waited for 40 minutes on hold earlier.
    Above all, they should have a plan for the huge volume of parcels they will get at Christmas. Either a pickup from the depot option or something. I would have had no problem picking my package up from their depot if they are struggling for motel space.

    6
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    Mute Peter
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    Nov 25th 2016, 4:21 PM

    An Post now do the virtual
    UK Address. It’s called AddressPal. It’s cheap and there are no charges per stay as in you don’t need to collect it within 24 hours before additional charges are applied. Saying that, I like Parcel Motel for being able to collect it as soon as it arrives. Any time of the day or night.

    6
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    Mute Veroníca
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    Nov 25th 2016, 10:19 PM

    Try address pal with an post, i use it more then parcel motel as my p/o is only 2 mins from my area & nearest patcel motel is about 40 min walk

    1
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    Mute Stephen Kinsella
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    Nov 25th 2016, 12:23 PM

    http://www.trafficattic.com is a website for local businesses in Ireland that don’t sell on amazon or other websites. Keep it local

    11
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    Mute Shane Corry
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    Nov 25th 2016, 12:44 PM

    @Stephen Kinsella: If they’re going to sell online anyway on that site I don’t get why they wouldn’t just list their products on Amazon? Considering Amazon has a much greater and international reach that whatever that site has.

    12
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    Mute Stephen Kinsella
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    Nov 25th 2016, 1:03 PM

    @Shane Corry I think the idea behind it is to shop in Ireland only, I am sure they have ideas to expand worldwide, I only suggested it as I have used it myself. Most of the retailers do not have their own online presence

    2
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    Mute OCallaghan TP
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    Nov 25th 2016, 5:03 PM

    All I’ve seen on sale so far are items you really don’t need.. and are the basic units. None of the good stuff is available. Littlewoods increased there already inflated prices and took a few quid off..Some sale! !!

    4
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    Mute ACturnbull
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    Nov 25th 2016, 1:34 PM

    Black Friday is a cod. I only got 200 quid off a fridge I bought. Not much of a bargain.

    3
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    Mute Luke Windak
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    Nov 25th 2016, 1:46 PM

    You can always store your food in plastic bags outside

    17
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    Mute ACturnbull
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    Nov 25th 2016, 1:50 PM

    I keep lots of tinned food in the shed. I read tins are carcinogenic if left in cupboards

    2
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    Mute Luke Windak
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    Nov 25th 2016, 1:56 PM

    Well, you don’t need to worry about any brain related cancers as you appear to miss this vital organ

    12
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    Mute Lily
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    Nov 25th 2016, 5:47 PM

    I actually did laugh out loud to that one!!!

    I have tears in my eyes heading back into work now…

    1
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    Mute Curragh Bill
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    Nov 25th 2016, 3:46 PM

    https://www.7dayshop.com/

    Brilliant online store and dirt cheap in comaprison to many of the more established online retailers, and even cheaper now that sterling is weak, excellent customer service and very trustworthy, unlike ebay.

    2
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    Mute Michael cunnane
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    Nov 25th 2016, 2:59 PM

    More often than not we will be dictated by price in what we decide to purchase.we see what we want, we research the price across the market and we go with the value, even if it’s away from home.

    1
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    Mute ▁ ▂ ▃ ▄ ▅ ▆ ▇ ‏
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    Nov 25th 2016, 9:58 PM

    Fair play to Alan and co. They really know their stuff when it comes to Google Shopping: https://www.wolfgangdigital.com/google-shopping-ads-ireland/

    1
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    Mute Jim Carolan
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    Nov 25th 2016, 12:18 PM

    We are still being ripped off in the republic e.g. PlayStation 4 bundle in Smyths Newry retailing at £249.
    Exact same bundle in Smyths ROI retailing at €359.
    Exchange rate 15%. No brainer!

    1
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