The technology that big-box retailers and e-commerce giants have at their disposal is phenomenal – often so much more than what SMB retail businesses have in their tech stacks. Enterprise retailers can collect data about each customer, analyze it, and then upsell or cross-sell and target customers with personalized promotions. Who hasn’t had a “You May Also Like” offer pop up on a website or have a sales associate make a relevant offer to enhance a purchase?
When the pandemic hit in early 2020, consumers were shopping online for essentials and nonessential items alike. According to a Deloitte report, as of May 2021, 71% of consumers feel comfortable shopping in stores. However, their shopping preferences are forever changed – only 27% will return to their pre-pandemic shopping habits. For SMBs, that means stepping up to meet changing customer expectations.
In the last couple of months, you might have come across few blog posts from my colleagues that discussed a range of topics related to SMBs. From preparing for 2021 with technology solutions to looking at other factors that can help SMBs boost business. Both articles discussed a very vital aspect of the SMB ecosystem – their access to new and innovative technology. Typically, large merchants have the means and budget to implement new and cutting-edge solutions as soon as they hit the market. It takes more time for SMBs to fully adopt these technology solutions. By then, new solutions and use cases are already being talked about at higher levels. But Android can change everything for ISVs and their SMB customers.
2020 was a difficult year. Apart from the obvious, we all know how the COVID-19 pandemic is impacting the SMB community as they are working hard to stay in business. While technological trends and solutions, such as contactless payment acceptance, mobility, etc., are increasingly moving downstream to SMBs and helping them better prepare for the year ahead, they will need additional support to boost their business. For example, compared to most large merchants, many SMBs don’t have strong online eCommerce capabilities. Even though it is imperative for them to get customers back to the store, they don’t have the necessary eCommerce capabilities to fall back on, particularly in the context of the current health crisis.
The COVID-19 pandemic has wreaked havoc for many businesses but SMBs have been the most affected. According to Yelp’s Local Economic Impact Report, nearly 100,000 small to medium-sized businesses that had temporarily closed during the initial lockdowns are permanently out of business today. Campaigns like the American Express Small Business Saturday do encourage consumers to buy locally, but with the growth of eCommerce, it is becoming hard for SMBs to win their customers back. Low price points, cheap delivery options, intuitive eCommerce design and usability from retail giants have eaten into the SMB market share. This has also hit the SMB merchants harder during the pandemic. Small businesses have been the backbone of our economy for decades, but they are also the most vulnerable.
