How to successfully launch an e-commerce presence

With market and media spotlights on digitally native brands (e.g., Allbirds, Away, and Casper), incumbent retail and distribution companies are still grappling with how to effectively utilize e-commerce alongside their existing business models.

As more customers and businesses embrace online purchasing, there is a need for incumbent companies to evaluate their e-commerce strategy.  Below are three considerations a leader should consider when defining their e-commerce ambitions.

Existing Customers - How do my existing customers behave online? 

One primary difference between incumbent and digitally native brands are existing customers.  Many incumbent retailers have spent decades building a large and loyal customer base.  These customers have been trained over the years on how to interact with the retailer offline; they have different expectations than what most consider the norm online (e.g., pricing, return policies, customer service).  As you begin your e-commerce journey, it is important to understand more about your existing customers. 

Questions to consider:

• What is my existing customer behavior

• Do they already purchase online? If so, who do they purchase from and why?

Competitive Set - Who are my competitors online?  What does my online competition look like?

It is important to evaluate your online competitive set.  Many incumbent retailers have a well-defined offline competitive set.  However, the online competitive landscape can be different and more nebulous.  Below are three typical categories of online competitors.