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showrooming

What do you do when you sense that your store is in danger of becoming nothing more than a sample kit for online retailers?

You know the routine. People come into your store, check out the merchandise, ask questions, get the heft of items, seem really interested, poke at their smartphones a bit and then walk out. As a retailer, you’re left with the distinct impression they’re finding what they want and then going online to order it. Some, you suspect, are even ordering from their smartphones from inside your store. What do you do, jam cellphone signals?

It’s called “showrooming” and it’s something retailers of all sizes are struggling to combat. Some are being successful. We’ll look at strategies that work.

Best Buy Most Endangered?

Ask people which retailer is most endangered by online giants such as Amazon and a majority will say Best Buy. The big box technology retailer is certainly a target—as in something you aim at, not the big red stores—but according to a survey, Bed Bath & Beyond (BB&B) is the most “at-risk” retailer.

However, Wall Street is often the ultimate judge of profits and business strategies and it has given BB&B the thumbs up. When analysts looked at what BB&B and others are doing right, this is what they found:

1. Low prices. No surprise here. BB&B offers lower prices overall than Amazon. Much of retail operates on razor-thin margins, and that makes it even more important that everyone is aware of how their online competitors are pricing the same merchandise. Smaller retailers who suspect a customer is showrooming can take a proactive approach and discuss it openly. One Aussie retailer tried to hit showrooming customers with a $5 fee. Not a good idea. Your sales floor people must know how your pricing compares to the competition and they must be trained how and when to engage customers in a pricing conversation.

Walmart, Target and Best Buy will match any competitive price and that has helped them end or reduce showrooming. If you know how online pricing compares to your pricing, you can offer to match a web retailer when it doesn’t go below your cost.

Many shoppers will buy locally if the price is right — especially if they find the local store on their favorite comparison shopping engine. Let the various engines — especially Google — know your prices.

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About Megan Totka

Megan Totka is the Chief Editor for ChamberofCommerce.com, which helps small businesses grow their business on the web and facilitates connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide. She specializes on the topic of small business tips and resources and business news. Megan has several years of experience on the topics of small business marketing, copywriting, SEO, online conversions, and social media. Megan spends much of her time establishing new relationships for ChamberofCommerce.com, publishing weekly newsletters educating small business on the importance of web presence, and also contributes to a number of publications on the web. Megan can be reached at megan@chamberofcommerce.com. Follow her on Twitter @ChamberOnline or @MeganTotka.

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