Shelving is both an ancient and a modern practice, which is at the origin of the presentation and organization of products in a point of sale. Strategies have evolved in recent years, and shelving in physical stores and online are not quite the same, but this practice is still one of the most fundamental aspects of a store or website. In this article, we'll take a look at the different ways in which shelving is implemented in both physical stores and online, and how these differences can impact on your commercial success.
Physical store shelving: appealing to the senses
Shelving in a physical store offers customers an attractive and practical sales space. It requires special attention to ensure that each product is presented attractively and easily:
- Products must be positioned correctly so that their location is clear and easily identifiable by customers.
- Labels must be legible, precise and contain the information customers need to understand what they're seeing.
- Good shelf design makes it easy for customers to browse the store and quickly find what they're looking for.
In this context, the installation makes it possible to offer customers a unique sensory experience, thanks to the direct presence of products on the shelves. Customers see, touch and smell directly what they are likely to buy, making them want to buy. Staff can be consulted if they have any questions or need any further assistance, something to bear in mind when thinking about product positioning.
Shelving enables customers to obtain immediate answers to their questions or personalized suggestions about certain products. Consumers have physical access to the product, and this is sometimes what triggers the act of purchase.
The question of costs
In the context of a physical store, shelving requires a significant amount of skilled, well-trained labor to ensure proper product presentation and customer satisfaction. Additional costs are also associated with the space required to offer optimal placement to the customer, and the inventory needed to satisfy his or her demand. If staff are poorly trained or do not receive appropriate instructions concerning the organization of the products on offer, this can have a detrimental effect on the final customer experience.
Clearly, each type of shelving has its own advantages and disadvantages, which retailers need to take into account in order to optimize every aspect of the process to enhance the final customer experience and increase sales. Care must therefore be taken to choose the shelving solution that best suits the end-consumer's particular needs, while offering impeccable service to sales staff, so that every aspect is a win-win situation for both company and end-consumer.
Online shelving: the web experience
In e-commerce, shelving is carefully thought out. An online store is generally far more profitable than a physical store when cost alone is taken into account. The main reason for this is the absence of any rental or hardware costs for set-up. Businesses can also save on the costs of hiring and training staff, as they don't need dedicated employees for product layout.
Adapt quickly
Unlike a physical store, online shelving gives companies greater flexibility to make changes. Changes can be made quickly and effortlessly, an asset for reacting quickly to market changes and trends. For example, a company can easily adjust its prices to attract more customers and adapt its products to consumer preferences.
For example, at the start of the COVID-19 pandemic in 2020, many restaurants closed or had to switch to limited activity due to health and safety restrictions. A local online food retailer experienced a drop in demand for its meal delivery services.With rapid changes to its onsite shelving, the company quickly adapted its strategy to adapt to the new realities. As a result, it began to offer deliveries of essentials, groceries and parapharmacy. It would have been much more difficult to turn a restaurant into a grocery store in a physical store.
Case study: Amazon Amazon
One online company that has implemented an innovative shelving strategy is Amazon, one of the world's largest online retailers.Amazon uses sophisticated algorithms to organize products in its warehouses according to customer demand and the frequency with which products are purchased together. This enables the company to place the most popular products within easy reach, making them easier to retrieve and ship more quickly.
On their site, Amazon uses product search data to organize search results. The most relevant and popular products appear at the top of search results, making it easier for customers to find them.The company also uses features such as "Best Sellers" and "Top Rated" to help customers buy new products based on their popularity and the satisfaction of previous customers.
Amazon uses a combination of data and algorithms to optimize its online shelving, offering a more convenient and personalized shopping experience for its customers. This strategy makes Amazon one of the world's most appreciated companies in terms of customer experience.
Different risks
Online merchandising also has its share of difficulties and constraints. Companies need to understand that their products need to be visible and accessible on a computer screen, or even on a smartphone screen, and that this means making more choices than in a physical store about what to display or showcase.
A reliable IT system capable of properly supporting online users is essential. Companies need to ensure that their website is easy to navigate, with :
- clear, logical flow
- clean design
- good product organization.
You also need to be able to manage inventory effectively, taking into account both current and future demand. An online store is open around the clock, so stock levels need to be monitored more regularly. Good inventory management enables companies to adapt their products to consumer tastes, and to anticipate shortages so that they can be avoided or minimized. Companies underestimate the risks associated with online theft or fraud, and it is mandatory to adopt certain measures such as securing the website, encrypting sensitive data and actively monitoring the site.
Two complementary models for a renewed shopping experience
Whether in a physical store or an online store, merchandising is a fast-growing theme that hinges on the way customers interact with a product or service. Consumer habits are evolving much faster than ever before, and are influenced in many ways before their final purchasing decision.
Having different sales channels, and why not an online store combined with a physical store, makes it possible to diversify shelving strategies and add value for customers. By multiplying the possibilities, marketers of both online and brick-and-mortar stores can test different price points and locations. They can react more quickly.
Shelving in physical stores and online share common features such as preparation, consistent presentation of items, data collection and security. A certain degree of complementarity can be beneficial, or at least will depend on the specific needs of each company and its available budget.
