TO:
FROM:
REF:
DATE:
This memo to inform you that it is a smart business decision to incorporate an online pick-up and delivery service at the store. Over the past six months, the company’s sales have been plummeting, and we must change the general idea of how we conduct our business. It is essential for any business to dynamically adapt to the changes in the consumers’ needs if it is to remain viable and competitive. It has come to my attention that our primary competitor has adopted the services mentioned earlier, and I believe this has left our company with fewer and fewer customers as they tend to favor the convenience of the after-sale services. It has come a time that our business needs to do something to alleviate this issue. What I have in mind is we add after-sale services, notably online pick-up and delivery services to our customers. The memo will describe ways the services will impact our business direction by discussing potential merits and caveats of integrating an online pick-up and delivery service.
Currently, our store relies primarily on the customer, making a physical visit for them to make a purchase. Over the past years, this has been working, but of late, not much can be said about this business strategy. The major issue we have right now is making our sales shoot over the roof. Businesses that offer after-sale services bringing about added convenience ultimately have a stronger customer base, which leads to increased sales. This is the problem statement that will be discussed in the memo to support the necessity of a new business strategy that will incorporate after-sale services, all in an aim to elevate the volume of sales in the store.
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E-commerce is an emerging concept across retail businesses. A study on the consumers’ perception of online shopping discovered that most shoppers prefer the convenience of being freed from physically visiting the store while making purchases at the comfort of their home and having them delivered at the doorstep (Shanthi & Desti, 2015; Rust & Kannan, 2016). Additionally, the fact that online goods can be contrasted before purchasing over a multitude of other stores offering similar products, consumers feel confident with their online purchases as compared to physically visiting the store. Also, with the current increase in broadband coverage and low prices, most people have access to an internet connection, which has led to the boom of online shopping.
Nevertheless, Yeo, Goh, and Rezaei (2017) assessed customer experiences and attitudes towards online food delivery services. This study is particularly pivotal to the store’s next course of action since it deals with groceries, which can also be termed as food. The authors discover that convenience is among the significant factors influencing a buyer in making a purchase. The idea that one can order and get food all while at the comfort of their home affects the buying patterns of a potential customer. Additionally, the time-saving element in that a person can order a commodity and continue with their business all while it is being delivered encourages many people to make an online purchase, despite the additional delay between purchase and delivery.
Jeff Bezos is arguably the richest man in the world. He gained this title by investing in the online retail market, Amazon. Amazon is the largest online retailer in the world, offering a myriad of items. Team (2018) note that over 60% of Amazon’s net revenue comes from its online business segment. Additionally, Team (2018) predicts that by 2020, Amazon will increase its net revenue by about 38%, with about 44% of it being contributed by online sales.
At this stage, online business might seem like the best step forward; however, it is essential to gather feedback from our potential customers and hear what they have to say about this new business idea. Moreover, the customers may provide useful insights into how best to adopt the online system. Having a survey whereby customers walking in the store fill out a questionnaire will be critical in gathering this piece of information. The questionnaire will be well structured, paying close attention to the consumers’ perception and attitudes of the store having an online service. With this memo, I believe I have shed some light on the current situation of the business and potential remedies that we can adopt to improve our sales. We must carry out a market survey before integrating the online system, lest we will be treading in uncharted territories that can pan out rough for the business.
References
Rust, R. T., & Kannan, P. K. (2016). The era of e-service. In E-service: New directions in theory and practice (pp. 15-34). Routledge.
Shanthi, R., & Desti, K. (2015). Consumers' perception on online shopping. Journal of Marketing and Consumer Research , 13 , 14-21.
Team, T. (2018, October 14). How Much Will Online Store Sales Contribute to Amazon's Top Line By 2020? Retrieved from https://www.forbes.com/sites/greatspeculations/2018/10/12/how-much-will-online-store- sales-contribute-amazons-top-line-by-2020/#5eb91077eaed .
Yeo, V. C. S., Goh, S. K., & Rezaei, S. (2017). Consumer experiences, attitude and behavioral intention toward online food delivery (OFD) services. Journal of Retailing and Consumer Services , 35 , 150-162.
