The biblical story of David and Goliath portrays the battle between a seemingly weak underdog and his powerful opponent. It may have looked like a foregone conclusion, but it turns out the little guy knew what he was doing. We see a similar thing in the world of e-commerce: the smaller, often local, businesses going up against the big boys, i.e Amazon, Walmart and Wish – except they don’t always have the same fortune.
But actually, the ecosystem of commerce and shopping is dynamic and full of potential, for both Davids and Goliaths. At the same time, you’ll face different struggles and opportunities depending on the size of your business. Know your strengths, and you can fight your way forward.
Concocting the customer experience
Your customer experience needs to be on point, especially if you want consumers to return. A big enterprise can have several departments handling this, but in a company with only a few employees, each team member might wear several hats. Nonetheless, you must place the customer in the lead role in order to grow and profit.
Business is all about people and emotions, and small business owners can create a closer bond with their customers than a larger corp. They have the ability to connect with the shopper on a more personal level and can benefit from offering a customized service.
Tips for the small business owner: Spend time on creative packaging or a personalized note to go with the purchase. Show shoppers that you’re a person, not a megacorp. You could post behind-the-scenes photos on your social channels and build a personal relationship with your followers. Name yourself and your coworkers.
Strengths in conclusion
- Small business owners can personalize and customize the customer experience.
- Big corporations can standardize and make the experience very efficient.
Look good, sell well
Marketing is one of the golden keys to success. While large companies can (and will) spend big bucks to generate sales, a small entrepreneur is often stuck with a meager budget – and probably limited time and knowledge as well. Smaller players often focus on a niche market. Therefore, a David has the opportunity to offer expertise in a more unique way than a giant who sells massive quantities of various products to a wide spectrum of target groups.
Tips for the small business owner: Create content that highlights your expertise. Maybe you publish a guide to the different yoga mats available on the market; a thorough explanation of product ingredients and chemicals if you sell skin products; or interviews with satisfied customers offering recommendations for fishing equipment. Utilize your secret weapons of creativity and fleet-footedness and conquer a chunk of the market.
Strengths in conclusion:
- Small business owners can benefit from their expertise in a niche market.
- Big corporations have larger marketing budgets and the possibility to reach a wider audience.
Financing your business
Money comes from many places. Established companies might get funds from investors and venture capital firms or from selling shares of stock. On the other hand, a small business owner may have used private savings to set up the company, or money borrowed from family and friends or a bank. On a personal level, this can be risky.
Tips for the small business owner: Make a solid business plan with a detailed budget, so potential investors can understand the company. If you’re thinking about loans, research and compare different banks and finance companies. If closing a deal with a family member or friend, make sure you agree to the conditions in writing to avoid misunderstandings and future drama.
Strengths in conclusion
- Small business owners can quickly find personal financing options.
- Big corporations can find larger investments.
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Partner up to level up
Big brands sometimes partner up to give each other a boost, as Spotify and Starbucks have done, for example. This is possible for smaller merchants too, when it comes to choosing partners for platform, delivery and payment solutions.
Tips for the small business owner: Identify what value you want a partner to bring to your company. Research potential partners and evaluate who suits your needs. Finding the right fit will build your brand and emphasize what matters to you. For example, a company with a sustainable profile will benefit from choosing a delivery partner with climate-friendly options.
Strengths in conclusion
- Small business owners can piggyback on famous brands.
- Big corporations can create win-win deals with other brands.
The common denominator
Companies of all sizes face struggles of different kinds. But some of these headaches can easily be cured by using Klarna’s services. Klarna offers frictionless and flexible payment solutions for businesses large, small, and everywhere in between.
Here are some reasons why Klarna is a great partner in crime:
- Several payment options, giving your customers the freedom to pay how and when it suits them.
- Average order value increases.
- Customers love Klarna! 90% of shoppers were satisfied when using Klarna and 85% say it’s a better experience than other online checkouts.
- Worried about fraud? Klarna takes all the risk and you get the full amount paid instantly.
- Your online store is visible to millions of customers in the Klarna shopping app. Actually, it’s the most downloaded Pay Later app in the world.
- Using a well-known, strong and loved brand like Klarna brings value to your business.
And the best part? It’s super easy to get started!