Online sales, a big challenge for small and medium-sized businesses in retail

For small and medium-sized companies, it is a challenge to develop and implement a successful online sales strategy. which contributes to a sustainable increase in sales and is part of the business vision.

According to GS1 Barometer 5th edition: Small and medium-sized manufacturers in consumer industriesMexican SMEs present important advantages in:

  • Quality
  • Price
  • Promotions
  • Availability on the market

However, there are difficulties in aspects related to online sales, such as:

  • e-commerce platforms
  • Marketing and promotion
  • Logistics

Prepared the annual study GS1 Mexico and consultant Psyma Latinashows that 45% of interviewed companies expire internet sales as their main strength.

However, it still represents a significant challenge for many companies. Well, 29% of them point to social media, Marketplace and website as their biggest difficulty.

On the other hand, small businesses that have stopped selling online point out that it is because of:

  • Lack of consumer interest
  • Bad administration
  • They do not dominate the digital channel
  • As a result of the pandemic

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Small and medium-sized businesses that have stopped selling online state that it was due to a lack of consumer interest.

What prevents online sales?

The report mentions that the main obstacle preventing businesses from selling more is online difficulties in implementing a new business model.

Another factor that prevents online sales is the type of product being sold.

In addition, they consider that for successful online sales they need to improve technical issues such as logistics, payment methods and fraud prevention.

For example, in the food industry, it is often about moving perishable products. And it is not within the reach of many companies to have a logistics service or to rent it outright, because they will likely have to move their goods from the shelves in a matter of days or weeks.

In this sense, the pandemic has forced companies to take online sales more seriously and use it as a channel where The customer can easily find the products and buy them.

Despite the above, the interest of small and medium-sized companies in online sales is growing, as is the awareness of the obstacles that prevent them from doing so.

In case companies do not have a solid structure for theirs online sales, There are media such as marketplaces, channels and digital tools that make work more efficient.

For them, it is important to have the necessary intellectual capital and reduce risk aversion, i.e. overcome the fear of selling online.

You can read: The retail sector, an industry that is at the forefront of digital transformation

online store
The pandemic has forced companies to take online sales more seriously and focus on it as a channel where customers can find products and easily buy them.

Trends for 2023

GS1 Mexico will start in 2023 hand in hand with its own the new president, Jorge Garcés Domínguez, which will support companies from all sectors on their digital transformation journey with tools such as:

  • International standards
  • Technology
  • Processes and best practices

On the other hand, it is estimated that for the next year, 75% of manufacturing small and medium enterprises have optimistic expectations about the future of their company. The main reasons are product development and innovation, hard work and online sales.

Knowing and measuring the experience of small businesses that supply retail and markets will allow us to better outline strategies that increase your sales and strengthen the national economy,” he says. Simeon Pickers, General Manager de Psyma Latina.

2023 will begin with optimism among companies, as growth is judged on the innovation that can be implemented, although it will not necessarily be in the product. Innovation is the improvement of any process in order to obtain a good result.

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