- Read this article, “E-commerce for the pool and spa industry. How specialty retailers can start an online store.”
- Take the quiz here.
- Earn 25 credits towards the Pool & Hot Tub Council of Canada’s ( PHTCC’s) Trade Certification Program.
E-commerce refers to the process of buying and selling products or services over the internet. Although the concept of e-commerce does not necessarily work with every business model or product, it can generally be broken down into three categories: business-to-business (B2B); business-to-consumer (B2C); and business-to-government (B2G). For the sake of this article, and its purpose, the focus will be on B2B and B2C, and how they relate to the pool and spa industry.
Why e-commerce?
The obvious benefit to an e-commerce sales strategy is customer reach/business development. When selling online a retailer can target outside of their brick-and-mortar vicinity and ship to new consumer areas with ease. Another plus is the cost of overhead; it is minimized (especially when products are drop shipped from manufacturers/distributors) because the operating costs are much less than a retailer’s alternative shipping methods. Ideally, a B2C retailer will have a physical location/warehouse/plant and an e-commerce strategy to support it.
E-commerce for B2B
Going back to the initial point of e-commerce not being for everyone and everything, there are items in the pool and spa industry that do not necessarily make the cut in regard to online selling. For instance, one-off shipping costs associated with size and weight (e.g. a heavy pool heater), product exclusivity, dangerous chemicals, etc.
An online ordering system does come in handy if a business offers a replenishment program for commonly used items such as filters, small point-of-sale (POS) items, accessories, and maintenance chemicals. These systems will not only save a company time and money by auto-shipping to B2B customers, but will also ensure the company is constantly in touch and following up.
E-commerce for business can be integrated with a customer relationship management (CRM) program, too. The ability to see the purchase history of customers allows a business to make suggestions or offer digital pricing incentives to entice customers to use a referral or rewards program. These types of strategies work well because reporting is easily accessed and downloaded digitally. The customer’s account can be easily retrieved and reviewed. In the pool industry, some of the bigger brands have created program initiatives to remove their products from online purchasing availability in hopes of supporting their brick-and-mortar builders and service companies, making certain products only available online, which allows for responsible pricing, purchasing, and professional installation.
E-commerce for B2C
Setting up an online store to cater to the end-user is becoming more and more of a necessity as the popularity of online shopping is growing. According to a GE Capital Retail Bank report, 81 per cent of shoppers1 looked online to browse multiple businesses before making their final purchase decision. Now, some of those online shoppers are merely online ‘browsers’ who will use a retailer’s generic website to gain information about products, but Shopify found that online storefronts represent more than 80 per cent of sales and over 62 million buyers have made a purchase from the same store twice.2
Having an online store is not only beneficial for sales and customer reach outside of a retailer’s physical location, it allows a pool and spa store to have a storefront that is not only open 24-7, but is also relatively easy to setup and manage. For smaller businesses, platforms such as Shopify, Wix, B-Commerce, or Square space can be used to manage an online storefront.
The flexibility of design, ability to upsell and cross sell items, as well as use Google analytics to gauge trending products and push them via e-mail marketing are all quick and effective sales and marketing strategies that are not costly and time-consuming. An e-commerce platform also creates the perception of a grand brand. The ability for customers to purchase products online elevates a pool and spa retailer’s professional image.
Further, having an online store that complements the brick-and-mortar location is a match made in heaven. It is proven online buyers are more likely to purchase from a retailer if they have the option to return the product in-store.3 As a result, a retailer is still driving foot traffic to their store through their site (even a return can be a positive interaction).
