Future of retail: technology to accelerate change and the way we shop

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Interesting insights on how technology accelerates change, transforms the way we shop and shapes the future of retail. Shopping centers of the future will become just “centers” by reinventing themselves as mixed-use destinations and adding healthcare, educational and leisure uses, according to new insights from The Future Of Retail 2030, a series from CBRE. CBRE also foresees that the focus of traditional gas stations will change as they become important mini-logistic hubs, including serving as collection points for online shoppers. Another prediction: Ownership of electric and hydrogen-powered vehicles will become more common, and there will be an increased need for fast-charging points.

Spotlight

Rakuten.com

Rakuten.com is an innovative marketplace with a world of products, from the everyday and essential to the quirky and unexpected. Our mission is to empower both merchants and shoppers alike. Because we don’t sell our own stuff, we’re able to partner with merchants to help showcase their brand, drive sales, and grow their business. Consumers get an inspired shopping experience that’s fueled by discovery and directly connected to the brands they love.

OTHER ARTICLES

Walmart will cut store hours starting Sunday to give workers time to restock

Article | March 15, 2020

Walmart Inc., the biggest U.S. retailer, will cut its store operating hours starting Sunday to give its workers time to restock shelves as the coronavirus outbreak intensifies. The pandemic is prompting Americans to buy more groceries and other daily necessities, often emptying shelves in anticipation of an extended period of so-called social distancing or self-isolation. The number of confirmed Covid-19 cases globally has risen to almost 152,000, with deaths nearing 5,700. “I don’t think any of us have been through an experience like this,” Dacona Smith, Walmart’s U.S. executive vice president and chief operating officer, said in a statement, adding that the change is to ensure “associates are able to stock the products” that are in demand. Stores and neighborhood markets some operating as long as 24 hours a day will open from 6 a.m. to 11 p.m., while those with shorter hours will retain their existing schedules, the Bentonville, Ark.-based company said.

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Why retailers need to embrace renewable energy in 2020

Article | March 15, 2020

We’re constantly being pummelled by bad climate news. Despite the efforts of individual countries and international organizations, a November 2019 report by the United Nations asserted that “countries collectively failed to stop the growth in global GHG emissions.” This has led to increasing average global temperatures and the unquestionable need for deeper and faster emission cuts. But the private sector can’t sit idly by waiting for governments to act – it’s time for retailers to step up and be leaders in the fight against climate change. And for businesses, research is proving that prioritizing sustainability is beneficial for long-term financial success.

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POS SOLUTIONS

How To Avoid Overpaying On Your POS Processing Fees

Article | March 15, 2020

Running a small business requires a tight eye on profits. More than likely, you will face scenarios in which you incur higher transaction fees you didn’t expect and could have avoided in the first place. Knowing how to navigate processing fees is a key part of your success. Whether you run a single location, a multi-location business, or even a mobile business, avoiding unnecessary fees should be part of the game plan. Unfortunately, less-than-reputable POS providers are out there, and understanding fees associated with taking payment from customers isn’t easy, but knowing what to look for will help. In this article, we cover fees to keep an eye on and how to save more on your processing fees. How To Avoid Paying Unnecessary Credit Card Processing Fees Unfortunately, if you want to accept credit and debit cards as a form of payment in your business, you’re going to experience processing fees. The financial benefits outweigh the transaction costs, but you can still save some money on your POS system and credit card processing. Negotiate Your Processing Fees The reason it can be so hard to understand the actual cost of processing fees is that many merchant service providers bury fees in the fine print, and these fees can come back to haunt you. In general, the more upfront a company is about all its charges, the more trustworthy and reliable they are because they have nothing to hide, and typically those rates will be fair. But it also helps to keep an eye on certain aspects of a contract. You can then negotiate them or repackage services to boost your profits. Transaction Fees: Choose The Right Plan When setting up your contract, you are given the option of a range of credit card pricing plans. Here are three of the most common pricing models. Interchange Plus Fee Pricing This option offers different transaction rates for different card types, bank issuers, methods of transactions, and more. By understanding these fees when processing transactions, you can benefit financially by encouraging the usage of certain cards or procedures that are least costly. Tiered Pricing In this scenario, you are charged different rates for different tiers created by your provider. It’s important to evaluate this option carefully because most transactions can fall into a less favorable tier rate. Flat-fee Structure Pricing This fee allows for one charge for card-present (CP) transactions and another for card-not-present (CNP) transactions, regardless of card type. This predictable, one-rate pricing model is easy to follow, allowing you to encourage a lower cents-per-transaction option and formulate special pricing deals. However flat-rate can sometimes come out as more expensive than interchange-plus pricing. How To Avoid Monthly PCI Compliance Charges A semi-regular fee many merchants run into is not falling in line with PCI Compliant in how they handle payment information. Being PCI compliant means maintaining important standards for customer data protection, and it is taken seriously. Compliance is required for major credit cards such as Visa and Mastercard and is becoming more popular as businesses continue to shift to online sales. Rule enforcement is most often the responsibility of payment processing companies. Your provider will charge you two fees: a PCI compliance fee – which is once a year – and a PCI non-compliance fee – which occurs every month you have not completed your yearly PCI Compliance audit. Providers are free to charge however much they like for each service, and it can range anywhere between $30-$99 a month. Monthly charges are done both directly or indirectly via higher monthly fees, processing rates, or both. In some cases, the charges begin months after originally signing up with the processors hoping you won’t keep a close eye on all your ongoing processing fees. As a merchant service provider, we at BNG Point-Of-Sale have a long and reliable history in helping our customers practice PCI Compliance within their business and avoid non-compliance fees. PCI Compliance is necessary and it does require some work by the processors, so the charges aren’t a hoax, but there are some ways to keep costs down: You can take on the responsibility of PCI Compliance yourself and forgo the processor’s fee; however, you will be on your own if issues arise. In today’s world of increasing e-commerce, it’s not recommended. You can prevent the risk of non-compliance fees by working with companies that handle compliance internally. If they (not you) are the source of customer purchasing data, they are automatically in charge of it. Square and PayPal are examples of companies that handle all PCI Compliance, and we often account for these services when onboarding our customers and annually remind them to follow PCI Compliance. At first glance, it may appear you are not charged by these companies for compliance and non-compliance, but in reality, compliance is still built into the standard fee for service; you just won’t see it specified. Still, you won’t be responsible for non-compliance fees since they own the data and are fully responsible for it. The amount of compliance required of your business depends on how you take in payment and store customer data. Since processors have numerous clients and prefer not to get specific about it, they may charge a basic fee to cover most issues. This means you could be overpaying, so it’s a good area to evaluate this price of the packaged service vs. when it is priced individually. There may be companies that don’t charge for compliance, but they are rare and may be suspect. In most cases, any free compliance is covered with higher fees in other areas. How To Avoid Chargeback Fees Chargeback fees should be avoided since they are more expensive than traditional transaction fees – especially if you are categorized as a “high risk” client. The first step is to avoid chargebacks in the first place. Chargebacks can be the result of sales errors by you and your team, a misunderstanding by the customer, or the result of identity theft. Here are some ways to combat each. Reduce Transaction Errors Know when to stop a transaction. If an error occurs, push the cancel/hold button inside the transaction. If you are unable to do this, the transaction has already been claimed by the processing company. Accurately process credits as credits and sales as sales. Receive an Authorization Approval Code (AAC) before running a transaction. Before batching your credit card processing at the end of the day, review all charges to verify all charges are correct and not duplicated. Keeping this as an active daily routine can prevent costly mistakes. Ensure shipped items arrive to the customer to avoid disputes. Select the “ship product to billing address” to alleviate data error. Keep Records Of Voids Provide records to your customer of any proof of voids and include companion documentation for any disputes showing details of each purchase. Decrease Risk Of Theft If your processor charges more for card-not-present transactions, which most do, it’s because the risk of theft is higher. By requiring a driver’s license and signature and doing manually keyed-in card payments in person rather than over the phone, you lower the risk and enjoy lower charges per transaction. Try to avoid non-qualified processing (when a card isn’t present or keyed or is missing billing information.) This type of processing is considered a high-risk factor, and processors charge accordingly. When Possible, Run Orders On Debit Cards Debit cards are considered a lower risk than credit cards and, in turn, the transaction rates are quite a bit less. This has mostly to do with the fact the purchase is a direct bank-to-bank transaction, but other factors make a difference such as PIN verification and signature requirements, bringing these purchases into a lower risk category. And typically the rates hold. You will still experience rate differences among debit cards related to how the purchases are conducted and who the issuing bank is. Special incentives such as loyalty programs for debit card users help to easily boost profits. A Final Thought On Keeping Processing Fees Low As you can see, several variables can affect your processing rates. From fines to the pricing model your merchant service provider recommends, there’s a lot to consider. As tempting as it can be to just try and find the cheapest option, be careful going with the lowest bidder. Remember, all POS and payment processing providers have to make some money to cover the costs of support their merchants. If you choose a processor with incredibly low fees, you run the risk of getting what you pay for when it comes to supporting your business. If you’re not sure if you’re overpaying on your processing fees and want a free analysis, let our team review your current monthly statements and we’ll let you know if you’re getting a good deal or not.

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How field research can help retailers reach untapped sales opportunities

Article | March 15, 2020

When you think of field research, you might think of an archeologist bent over a dig site investigating civilizations from the past, excavating the terrain and sifting out important artifacts. In marketing, field research is also about the study of the human experience and uncovering those important pieces of knowledge — but as they pertain to your business. Field research can give you insights into your customers' pain points, what they need to solve their problems, their thoughts on how your product helps or even what where they feel your services might be improved.

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Spotlight

Rakuten.com

Rakuten.com is an innovative marketplace with a world of products, from the everyday and essential to the quirky and unexpected. Our mission is to empower both merchants and shoppers alike. Because we don’t sell our own stuff, we’re able to partner with merchants to help showcase their brand, drive sales, and grow their business. Consumers get an inspired shopping experience that’s fueled by discovery and directly connected to the brands they love.

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