Published by Computachem Services

P.O Box 297.
Alstonville. 2477
NSW Australia

Phone:
61 2 66285138

Have you noticed that not a lot is heard about active pharmacist e-commerce retail websites these days?
Since the furore has died down surrounding the first real entrant from pharmacy, those that initially made the grade, quickly realised that to run an e-commerce site properly, you had to create a separate business and do all the things that you would normally do for a business start-up.
The most obvious requirement, even before going to a presence on the Internet, is the preparation of a business plan, detailing the normal elements- a vision statement, a list of goals and objectives, a detailed and chronological list of tactics and strategies required to achieve goals, a subset containing a detailed marketing plan and most importantly a one to three year budget, with proper lines of credit secured before launching.
To not go through this exercise is to risk early failure.

One message that appears to be surfacing from a collage of successful e-commerce sites, involving a diverse range of disciplines, is that your website design should not only say, but do, the things that are important to your brand image.

For example, a pharmacy e-retailer that did not offer a dispensing service and a health information service would not attain success. These are major services provided by "bricks and mortar pharmacies" and the innovative way that you provide them online is important to your brand image. To not provide both would be to dampen down consumer perceptions for your site, and the expectations that would arise from transacting business.
Doubts would arise within a consumer, as to the quality of the service on offer.

You know what they say--"When in doubt--don't!"

Another message that has been learned is to "think globally, but act locally".
For example, some websites from major organisations are starting to be published in a range of different languages.
If you wanted to do business in China, then it makes sense that you should do it also in Chinese.
Looking at it from the potential consumers point of view, if you were a Chinese consumer or business operating in China, which Western firm would you approach to provide your needs?
Remember, actions create perceptions.
While I am not suggesting that pharmacy e-retailers should necessarily develop business in China, the analogy is to do sufficient research within the demographic regions chosen, to ensure your Internet offering has the right "mix and balance".

The final message is to try and create that point of difference.
The formula seems to be:
Technology + Innovation = Customer Value =
Productivity Growth + Greater Competitiveness + A Progression of Positive Outcomes

For pharmacy, that also means leveraging the two major resources of workforce and inventory.
This to ensure the Internet entrance is a relatively low cost experience.
The question is not so much as to "how I can get more out of technology?", but "how can I use technology and innovation to give more to customers".
A word of caution, do not get too far out in front of your customer's ability to come to grips with your technology and inovation. They will have difficulty in keeping pace and will simply judge your site, and business approach, as being too complex to deal with.

Since the bubble bust for major IT companies, it has had a dampening effect on new entrants into the e-commerce field, including pharmacy entrants.
It is therefore interesting to see that one major retailer has decided to expand its online presence by acquisition.

A recent takeover by Coles-Myer, in the form of the Shopfast online grocer, has created a fresh impetus among Australian retailers. They are revisiting their investment plans for e-commerce ventures.

With its recent purchase, Coles Myer is looking to significantly boost its online activity.
While there is an already established presence in the form of Coles Online, Shopfast will continue to operate as a separate entity, except for picking, packing and delivery which will be integrated with existing business and extend the usage of Australia Post's fulfilment centre.

Management of Shopfast reported in April 2003 that they were satisfied with the penetration of their brand, and that they had just serviced one million customers, since launching in October 1998.
Other statistics include the fact that Shopfast has 210,000 registered customers across Sydney, Wollongong and the central coast, and was averaging 5,400 orders per week. In August 2002, the average order size was $170 and it is known to have increased significantly since that date.
Employee numbers are estimated to be 330.
The demographic areas noted above have been strictly focused, and Shopfast has kept within these boundaries for its core business.
Shopfast sees itself as a logistics and distribution company.
While Shopfast does have a warehouse, it has the ability and systems to aggregate and deliver in response to orders, and tries not to hold inventory.

Seventy percent of shoppers place orders on a fortnightly basis, with the remainder shopping weekly (which includes a range of large families). Once customers have placed orders three or four times, it seems that they commit on a regular basis.
Typical customers are those with limited time for shopping, and a typical customer is usually a 25-39 year old female with two children, and is a working mother (part-time or full-time).

On current ratios, only 2.5 percent of registered customers are placing an order in any given week, so Coles Myer will have ample scope to develop targeted marketing and increase this percentage.

The acquisition of Shopfast includes the customer database, operating, software system, delivery vehicles and material handling equipment, and adds Shopfast's business to Coles Online's delivery of more than one million products each month.

The purpose of this article is to alert pharmacists that movement is occurring in the e-tail area, and that with lessons learned, there appears to be a new confidence.
Pharmacy needs to be a part of this movement to ensure that the drift of local market share does not continue to erode, and that there is an ability to go global at the appropriate point in time.

So get to it!