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Washington Cannot Let Amazon Water-Down Consumer Protection Legislation

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Washington Cannot Let Amazon Water-Down Consumer Protection Legislation

The holiday season is a reminder that with more Americans than ever heading online to do their shopping, lawmakers must continue taking action to prevent consumers from falling prey to internet scammers. That’s why it was welcome news when Amazon recently reversed course on its longstanding opposition to bipartisan consumer protection legislation in Congress that would require third-party online marketplaces to verify independent sellers, with the goal of reducing counterfeits and stolen goods from these platforms.

But while Amazon’s public change of heart seemingly paves the way for the eventual passage of the bill, known as the INFORM Consumers Act, lawmakers must ensure that the retail giant and other tech companies do not work behind the scenes to water down the legislation and render it toothless. Counterfeits pose great harm to consumers and small third-party sellers, and Congress must pass strong, comprehensive enforcement mechanisms to adequately protect both groups.

Amazon’s decision to endorse INFORM was certainly a surprise. Just this summer, Amazon launched an aggressive lobbying campaign to kill a more robust version of the legislation. But while Amazon ostensibly supports the current bill, it has reportedly unleased its lobbyists in the Beltway to weaken it. While lawmakers such as Sen. Dick Durbin, one of the bill’s co-sponsors, say they refuse to let this happen, they should remain on high alert.

This is because we’ve seen Amazon’s playbook for publicly supporting legislation while simultaneously working to weaken it behind the scenes. For instance, Amazon CEO Jeff Bezos won praise earlier this year when he embraced President Biden’s plan to raise the corporate tax rate. But behind the scenes, the company enlisted an army of lobbyists to maintain the research and development tax credit, which has been estimated to save the company hundreds of millions of dollars a year. As I’ve said before, Bezos’s support for a corporate tax hike is meaningless if the company can continue to engage in egregious tax avoidance schemes.

And it’s not just Amazon; other Big Tech companies have resorted to similar “two-faced” tactics to weaken legislation. In April, an investigation by The Markup uncovered how some of the country’s most powerful technology companies, including Facebook and Google, advocated for mostly toothless privacy protection legislation in statehouses across the country — all with the intention of preempting state lawmakers from taking stronger action in the future.

Now with the prospect of a comprehensive consumer protection measure being signed into law, Congress must resist Amazon’s arm twisting. Counterfeits are far too serious of a threat, and watered-down legislation will fall short of creating the bold transparency measures that are desperately needed. Online counterfeiters have been known to peddle toys and children’s products, putting those most vulnerable in grave danger. These products fail to go through robust safety testing, meaning there is potential for serious health consequences.

But what many may not realize is the impact that counterfeits have on third-party sellers. As someone who works with Amazon sellers every day, I know exactly how legitimate businesses suffer when criminals sell fakes at below the market value. Small businesses are doing everything they can to fight these criminals — even if it means spending hundreds of thousands of dollars to do so.

Many of those selling fakes from the comfort of their own homes and hurting American businesses are overseas. According to the Department of Homeland Security, a staggering 85 percent of contraband items seized by U.S. Customs and Border Protection came from Hong Kong and China. Nonetheless, Amazon’s marketplace has become a hub for China-based sellers.

Amazon has no problem touting all of the measures it has taken to clean up its third-party marketplace. But, as I have explained, it’s a common tactic of Amazon’s PR department to just share the numerator — and not the denominator. Thus, the $700 million it invests to fight fraud is pennies in the bucket when you consider that Amazon’s worldwide gross merchandise volume is estimated to be $490 billion.

It is critical that Congress advances the INFORM Consumers Act as it stands today. While I welcome Amazon’s endorsement of the common-sense measure — along with the other third-party marketplaces that recognize the benefits it would bring to e-commerce shopping — I can only hope it is sincere. Working behind the scenes to weaken this bill will be devastating to the millions of shoppers and sellers who have come to depend on Amazon’s third-party marketplace.

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Jason Boyce is the author of “The Amazon Jungle” and founder of Amazon managed services agency, Avenue7Media. Previously, Boyce was an 18-year Top-200 Amazon seller.

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7 Little Things to Improve an eCommerce Business

An eCommerce business is more dependent upon the goodwill of its clientele than brick-and-mortar stores. It is very simple really. In an average real-world store, once a customer walks in they are more likely to purchase something. After all, they have made the effort of reaching the store and checking the products. Few people walk out of a physical store empty-handed. However, the same does not apply to an eCommerce outlet since they can simply close the link and go to another site.

Here is what you can do to make sure that this doesn’t happen frequently.

1. Downtime is off time

One of the best things about an eCommerce site is that it’s always available,  24/7. Now that more and more people are logging on to the net to buy products, you can take advantage of it by selling your wares even when you are fast asleep. However, that won’t happen if unfortunately, your site crashes repeatedly. If the site is offline, it is likely that your target audience won’t wait and simply move on to another site.

2. Slow sites don’t get many customers

The average attention span of an online buyer is around 3-4 seconds. If the site doesn’t open fast enough, it is likely your customers will simply move on in search of other options. And why not? After all, there are millions of other online eCommerce outlets out there. If you want your customer to stay with you, make sure your site is as fast as possible.

3. Make sure the CTA is always accessible

Why should your customers come to you instead of your competitors? It is because of your CTA. This is basically the ‘call to action’ that attracts people into the web marketing tunnel. If this call to action is not available or accessible, you will lose out on a lot of customers. Your shopping cart should also be easy to see so that the customer knows how to buy the product.

4. Get rid of slow-selling products

In every store, there are products that sell fast and those that don’t. Concentrate on the former and eliminate the latter entirely from your store. They will stop your cash flows and over the course of time, bring down your business. Of course, you don’t have to throw them away. You can offer them at a real sale (as opposed to one where retailers inflate prices and then cut them down to give an impression that they are on sale). Once the customers see that you are offering a brief opportunity to add real value to their lives, they will buy your slow-moving products and help you clean your shelves. This way, you will also be able to get your cash flows moving.

5. Make sure your site is mobile-friendly

The number of people shopping with their smartphones has increased dramatically in recent months, and there is no sign that the trend will be slowing down anytime soon. In fact, 79% of smartphone users have made an online purchase using this mode within the last six months! This means a site that is not mobile-friendly will lose all of that vast potential market. It is absolutely imperative that your site should be mobile-friendly so it can be easy to see even on a small screen. Apart from that, you should also work on your SEO (search engine optimization) techniques so your site will show up on organic searches on the search engines.

6. Add a live chat option

Live chats will help to gently nudge your customers towards the purchase decision by answering all of their questions. It is a great way to boost your conversion rates and keep your target market happy. Even if they don’t buy the product, the speed and excellence of your response will make them come again. At the very least, they will bookmark your site.

7. Consider using residential proxies

Using residential proxies for market research will give you great insight into the buying habits of your target audience. At the same time, they will allow you to remain incognito.

If you are really interested in increasing your sales and improving your eCommerce business, you must make sure there is no downtime or latency on your site. You should also use residential proxies to help you with your market research with regard to your target audience.

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Reinventing Retail: 6 Ways Retailers Can Drive Customers Back In-Store

We’re about to experience one of the biggest booms in the history of retail. As the world continues to recover and stabilize, we are entering unimaginable levels of consumer spending. By all predictions, the second half of 2021 will result in a highly competitive race between marketing investment and retail spending that will fuel unprecedented retail expansion.

The last 16 months have led to dramatic changes to the retail landscape and consumer expectations overall. The global pandemic has shuttered many retail operations and crippled the in-store experience. It’s no surprise that customers not stepping foot in-store is a massive and multi-faceted problem for retailers.

No retailer could have predicted the current situation and the preceding events that brought us here, but that’s all about to change. With the global economy on the verge of breakthrough growth, now is the time to reflect and reinvent retail to attract consumers, bring them back in-store, and capitalize on the massive opportunity that lies ahead.

Here are six ways retailers can drive customers back in-store to reinvigorate growth.

 

Start With A Fresh Perspective

Before a wave of customers floods your store, it’s essential to start with a fresh perspective.

What drives your customers? Why would they want to come in and shop? What have they been missing over these last 16 months?

No amount of tactics will help attract customers in-store unless you can provide what they’re looking for—and delight them in the process.

Being fully stocked with the latest SKUs, along with having updated displays and a revitalized interior, are the bare minimum to motivating customers to set foot in-store. In addition, having enough staff available to provide prompt and friendly service is essential.

Give Them A Reason To Visit

Many customers will need an incentive to justify coming back in-store, so give them one. Whether it’s exclusive discounts, priority access to limited-quantity items, a loss leader, or a free bonus for stopping by, make sure that you give customers a reason to visit.

Remember that not all customers want the same thing, so you’ll need to use various incentives to cater to the different types of customers you have. In addition, you can use triggers like new products, inventory restocks, customer birthdays, or other events to solicit customers to stop in. Starbucks does this exceptionally well with their rewards program where they offer double points (called stars) based on the customer’s purchase history and behavior.

Amazon Prime delivers unparalleled (and frankly unbelievable) delivery times on many products, but often even overnight shipping is too long for customers to wait. Retailers can play to their advantage by promoting in-store availability on products that customers are eager to have the same day.

Do everything you can to find creative and personalized ways to motivate customers to come back in-store. There is no silver bullet; you must regularly test new ideas and offers to see how customers respond.

Create A Memorable Customer Experience

When customers return in-store, you must deliver a memorable and favorable experience. This experience could include creative point-of-purchase displays, free samples, or self-checkout. Think about the experience you want customers to have and find ways to surprise and delight them at every touchpoint.

Trader Joes is famous for its exceptional customer experience. There are many stories of employees giving free flowers to customers who are going through challenging times. Similarly, Chick-fil-a is world-renown for its impeccable operational process and unheard-of attitude and kindness.

It’s not enough to deliver the same experience as you did before. Level up your customer experience by defining new procedures that will make your customers leave the store happier than when they entered.

Drive Traffic From Digital To In-Store

To get customers back in-store, you have to reach them where they are, and that means digital. Use your social channels to get the word out and stay current with customers. Similarly, your email marketing and website should both generate awareness and in-store visits.

Paid digital advertising is incredibly effective for reaching the right customers at the right time. Two of the most powerful digital advertising capabilities are targeting specific customer segments and testing offers and incentives to see which work best.

Use your digital marketing wisely and ensure it plays a cohesive role in helping drive awareness and foot traffic to your locations.

Retrain Your Customers

The harsh reality is that consumers are lazy—and they’ve been trained to become even lazier. Delivery and curbside pickup have become mainstream, and many consumers prefer this convenience over setting foot in a store.

You have to retrain customers how to shop with your business, which means cutting back on the convenience factor. To drive in-store visits, you must create an experience where the past of least resistance—and highest value—is through the door.

All of the tactics mentioned above can help create such an experience, but the key takeaway here is to make sure you’re not cannibalizing your efforts. Any curbside and delivery options should include flyers or catalogs that help customers understand what’s available in-store and why it’s worth their time and effort.

Keep Them Coming Back

Getting customers back in-store will require effort—and you want to make sure you maximize your chances of customers coming back and telling others to do the same.

One of the best ways to get customers to return is by giving them a tangible, monetary reward. Kohl’s is famous for “Kohl’s Cash” which is essentially a voucher for a fixed amount of money that you can apply to your next purchase within the specified redemption period. The key detail being the redemption period, which is always a week or two in the future—meaning you have to come back again to use it.

In addition to generating return visits, consider why a customer would spread the word and tell others to stop in. Small gestures go a long way, and anything you can do to help customers become advocates will add up incrementally to drive a sustainable increase in in-store visits.

It’s Time To Reinvent Your Approach To Retail

Now is the time to reinvent your approach to retail. The world has changed, and there is no returning to normalcy. There was no advanced warning of how drastically retail would be affected and the long-lasting impacts the pandemic would bring. Treat this as your forewarning of the opportunity that lies ahead.

Customers are tired of the predictable retail experience, and you must invest in creating an innovative experience that can satisfy customer demands while exceeding their expectations.

The retailers who prepare and invest in the reinvention of retail will thrive and experience unprecedented levels of customer acquisition, satisfaction, and retention. Retail will never look the same again—and that’s a good thing for those who are willing to evolve.

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Tim Parkin, President of Parkin Consulting, is a consultant, advisor, and coach to marketing executives globally. He specializes in helping marketing teams optimize performance, accelerate growth, and maximize their results.

By applying more than 20 years of experience merging behavioral psychology and technology seamlessly, Tim has unlocked rapid and dramatic growth for global brands and award-winning agencies alike.

He is a speaker, author, and thought leader who is featured frequently in industry publications. Please visit www.timparkin.com for more information on Tim’s services and his private community of marketing executives.