Thursday, 28 January 2010

Online retail - the Perfect Storm


What makes the perfect storm in online retail? Huge demand and out of date systems. One such example is the Roof Box Company. They supply amongst other things snow chains and snow socks. Just like local councils, they could never have foreseen the cold snap and heavy snow heading our way and as such planned for normal levels of supply in snow products. So of course when the cold snap hit, demand went through the roof. There has for example been unprecedented demand for snow socks. You put them over your tyres to help you grip. A simple solution to immobile cars. One of the original issues with the Roof Box Company's site was you could order snow socks and select next day delivery. However there was no information on stock levels. I purchased a pair thinking I'd get next day delivery only to find out they had ran out of stock. They only take payment once the stock is dispatched and the next day delivery charge is cancelled, however I had to contact the company to get this information. If you select next day delivery you presume there is stock and they will be delivered next day. This has effected many customers as according to the company's director they have received hundreds of calls and emails, with one day receiving 500 answer machine messages. The company can't deal with all of these enquires leaving many customers frustrated and wondering where their stuff is.

Many online retailers don't properly display stock information and it can work with consistent levels of demand. However it's a dangerous game to play and consumers need to be wary. The simple solution is to have a system that notifies stock levels on the e-commerce site, so customers know what to expect. The Roof Box Company have since put notifcations up on their site and are working hard to deliver stock. They are also planning to update their system to make it more resilient to demand and manage customers expectations better. So the message to online retailers is, don't learn the hard way, implement systems now so you can manage customer expectations and provide good service.

For consumers looking for more information, Plebble's Advicecentre provides a guide for shopping online.

1 comment:

Hearing Aids said...

It was very nice blog and got lots of information .Thanks