{"id":112243,"date":"2022-04-17T13:27:33","date_gmt":"2022-04-17T13:27:33","guid":{"rendered":"https:\/\/dataunit.nadlotest.ch\/?p=112243"},"modified":"2026-07-30T12:27:34","modified_gmt":"2026-07-30T12:27:34","slug":"digitalization-in-retail-challenges-and-solutions","status":"publish","type":"post","link":"https:\/\/dataunit.nadlotest.ch\/en\/2022\/04\/17\/digitalization-in-retail-challenges-and-solutions\/","title":{"rendered":"Digitalization in retail: challenges and solutions."},"content":{"rendered":"\n

<\/a>Digitalization in retail has experienced a surge as a result of the coronavirus pandemic. However, there is still a long way to go, with outstanding solutions and challenges that can be addressed through technology.<\/p>\n\n\n\n

In the new blog post, you will learn what these challenges are and how you can solve them to improve your company’s competitiveness.<\/p>\n\n\n\n

The challenges of digitalization in retail<\/h2>\n\n\n\n

The retail sector is far from being intimidated by digitalization and has come a long way in terms of solutions and omnichannel strategies. Nevertheless, challenges still exist that could position this sector as a leader in the field.<\/p>\n\n\n\n

Challenge #1: New customer needs<\/h3>\n\n\n\n

The consumer behavior of retail customers has changed since they can shop 24 hours a day, 7 days a week via their smartphone.<\/p>\n\n\n\n

Today, certain consumption patterns are considered standard, such as receiving orders within a maximum of 3 days, multiple payment and delivery options, and multiple purchasing channels and contact options with the company.<\/p>\n\n\n\n

Furthermore, when retailers sell online, customers are accustomed to having all information available at the touch of a button, such as stock availability or size recommendations based on consumer information.<\/p>\n\n\n\n

Manual systems cannot meet these kinds of requirements, which are only possible thanks to a technology such as a\u00a0ERP system such as SAP Business One\u00a0provides.\u00a0<\/p>\n\n\n\n

At the same time, customer service that takes customers and their individual needs seriously is essential. Modern startups are often better positioned in this regard from the outset.<\/p>\n\n\n\n

Thanks to the digitalization of commerce, you have the necessary digital infrastructure to offer efficient customer service. Implementing an ERP system aligns your CRM with all other business areas. Customer service employees then have access to all important data from all departments.<\/p>\n\n\n\n

Challenge #2: Online retail on the rise<\/h3>\n\n\n\n

Two thirds of retail companies sell<\/a> their products both online and through traditional retail channels. <\/p>\n\n\n\n

Only a quarter of sales are made in physical stores. Companies that focus on online retail generate between 30 and 50% of their revenue through this channel. As we have seen during the pandemic, the importance of this channel will continue to grow in the future.<\/p>\n\n\n\n

But it’s not just about being digital; you also have to face certain challenges in this medium:<\/p>\n\n\n\n

It is not enough to simply set up an online shop. The new channels must be integrated into existing processes, from purchasing and logistics to customer service.<\/p>\n\n\n\n

The same applies to the digital infrastructure. If the new channels are not integrated into the existing ERP system, this leads to high manual effort, inefficient processes, and a poorer customer experience.<\/p>\n\n\n\n

Many companies shy away from the costs of implementing an ERP system. But there are many success stories of small and medium-sized enterprises that have taken the plunge and digitally transformed their businesses.<\/p>\n\n\n\n

Challenge #3: More digital platforms<\/h3>\n\n\n\n

Digital platforms are revolutionizing not only the retail sector, but increasingly also the B2B sector. They offer customers a broad market overview, enable the comparison of offers in terms of price and performance, and are a central channel for the procurement of operating resources.<\/p>\n\n\n\n

Many companies initially benefit from digital platforms: they generate additional revenue with relatively low investment costs. However, these platforms are a double-edged sword: as they grow, they exploit their market power. The example of Amazon illustrates this. After years of acting solely as an intermediary, Amazon is now increasingly selling its own products and pushing out former sellers from the platform.<\/p>\n\n\n\n

This results in two challenges for retailers:<\/p>\n\n\n\n