How do smaller businesses start a fashion website to compete with top retailers internationally
How do smaller businesses start a fashion website to compete with top retailers such as Saks, Selfridges, Net-A-Porter on an international basis
The problem comes when a company wants to sell internationally, which is where double and triple digit growth lies, it is the reason why companies such as Net-A-Porter have such market dominance in that category. Large enterprise companies have access to technology that reduces the workload by 5-10x over smaller competitors, and with specialist platforms are able to list products within Google in a matter of hours to days ranking first page.
There are many platforms available, however the key aspect to them are their ability to handle international pricing. Customers in other countries demand local checkout currencies, delivery duty paid prices, and the belief of trust that only a large company can provide. It is impossible for a small business to managed the various cost of goods calculations, import duty calculations, margins, currency adjustments in various different base currencies, which are only available in solutions designed for 50%+ international sales.
Nano - Shopify/BigCommerce/
- stre with $10s to low $100s thousands revenue & <20% international sales
- cost of site $100s to $1,000s
Micro - Magento CE
- stores with revenue of $100s to low $millions & 20-50% international sales
- cost of site $1,000s
Small - Magento EE
- stores with revenue between $3-13million & 20-50% international sales
- cost of site $10s thousands
Medium - Hybris/Demandware
- stores with revenue between $13-65million and 50-80% international sales
- cost of site $100s thousands
Large - ATG/WebSphere
- stores with revenue over $65million and 80%+ international sales
- cost of site $millions
With the changes to Google and business conditions, having sites compete with the top stores is virtually impossible for a small business as they normally have to deal with product datasets in the 1,000s to 10s thousands whist dealing with technology, trying to market the site, and work with suppliers all the time keeping costs under control.
The fact that the top 5% of online stores generate 50% of all online revenue and the top 1% generate 80% of that, means that being in the top 5 & top 1% of stores in the fashion & retail industry is a net-positive venture - one that very few can achieve.
We work with a consulting company that has ported the technology from Hybris, ATG & WebSphere to Micro and Small Enterprise platforms working as a layer to remove the complexities of enterprise level environments. Being run on the same Tier 1/2 environment as stores such as Saks & Selfridges, products are indexed and ranked in the search engines within hours to days often listing next to companies 100s times larger.
The Managed eCommerce Platform for Fashion & Beauty is based on Net-A-Porter & Yoox Group Mono-Brand functionality providing modular Large Enterprise features, yet is accessible to smaller retailers and individual designers to launch their products on a truly international basis with virtually no up-front cost.
For further information please visit http://www.serpyre.com/