There’s recently been a lot of negative publicity around the economies of southern Europe. Most of it is centered on Portugal, Ireland, Italy, Greece and Spain (rudely abbreviated the “PIIGS” in a WSJ article). For sure, these countries face challenges, and consumer spending will likely suffer. How should online retailers tackle the gloom?
Here’s my take: continue to invest, but wisely. “Invest” meaning continue to build your platform where it matters – the underlying e-commerce operations, traffic acquisition and merchandising. Much like turning off the electricity to a factory, cutting down on these components just to cut cost seldom translates into better bottom-line results anyway. And “wisely” meaning culling underperforming and unnecessary elements. Pay for performance only and prioritize what has been proven to work for others.
By doing so, you can beat the gloom – perform better during any downturn, and be better positioned for the upturn that will eventually follow.
The strong interest in online merchandising from Southern Europe that we still see at Avail seems to prove my point. For example, IBS, a book store, and Bow, a consumer electronics site, both from Italy – went live with Avail in January. Benvenuti!
