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Adding Wish products to your inventory could keep your small shop open

(BUSINESS NEWS) Online retail giant Wish moves to push products through small businesses in the US since a UN shipping subsidy was cut. Could piggybacking e-commerce afford retailers a lifeline in pandemic America?

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The $11 billion e-commerce purveyor of dollar-store value tchotchkes, Wish, was built on the foundation of cheap shipping subsidies. The Universal Postal Union (an arm of the UN that governs international shipping rates) previously provided a subsidy such that any package weighing less than or equal to 4.4 pounds could be shipped more cheaply from China than within the United States. But on July 1, the subsidy was eliminated and shipping costs doubled overnight.

Since January 2019, 36,000 small businesses in the United States and Europe have partnered with Wish to stock their items. In return for putting a few kitschy knick-knacks on their shelves, they get access to Wish’s 80 million active users. These users are generally low-income folks who either can’t afford or refuse to shell out the $119 per year for Amazon Prime membership, which affords customers oft-discounted goods and free shipping. Wish saves on operating costs for warehouses and workers, and consumers save money on the back end.

Wish hopes to increase their small business partners to 100,000 businesses by the end of 2020. That goal is ever more important given the subsidy cut that now disincentivizes their initial model. If customers want the same low-price goods they have grown used to, they will now have to pick up their parcels from a local retailer that Wish is bundling and funneling orders through. These partnerships – though they may water-down the quality of offerings by small retailers – provide an innovative solution for small business that have struggled to survive closures and capacity restrictions since the coronavirus outbreak took off in the US.

Granted, the world will keep turning without services like Wish. The website is the ultimate data-collecting scam. You can’t enter the website without logging in, and once you do, you have to select your age range and the gender you’ll be shopping for: women or men (Can’t I shop for everyone, including those in between and outside the binary? Get with the program, Wish!) Can’t they figure out my shopping habits by spying on me through cookies like everyone else?

At least they offer 10% off during your first three days of shopping! AND 50% off if you login 7 times in your first month! How’s that for a predatory shopping experience?

But I digress. If capitalism has taught us anything (as much as it pains me to put this in writing) it’s that America cannot rely on the government for nimble, holistic solutions that support the shared interests of public health and economic health. At least not for this particular public health crisis during this administration, if not always. Instead, we consistently rely on the private sector to offer us innovative solutions to our daily frustrations: transportation access (Uber/Lyft), grocery shopping (Instacart), affordable prescriptions (GoodRx), job hunting (LinkedIn/Indeed), and more. What makes this different?

Small businesses have suffered deeply from this pandemic and subsequent recession. Metlife and the US Chamber of Commerce conducted a poll of small businesses published on July 29, which found that 70% of respondents are worried about long-term financial hardship due to closures, and 58% worry about permanently closing. Retailers could pivot to set up e-commerce solutions to their brick-and-mortar woes, but the barrier to entry using that technology costs time and money that owners may not have as they fight for PPP loans, rent forgiveness, and negotiating interest rates.

The United States practically guarantees affordable manufacturing can only be imported from Asia. And so long as capitalism guarantees there will always be a class of consumers surviving on the lowest margins of our society, there will always be demand for cheap goods. Every purchase matters for a small domestic retailer to stay open and afloat. If the flow of these goods through American small businesses offers owners a way to keep their doors open and low-income consumers a way to keep purchasing – even if only by small tokens of increased foot traffic and impulse buys – it’s worth it.

Heather Buffo is a Cleveland native, a recovering Bostonian, and an Austin newbie. Heather is the Venture Growth & Partnerships Lead at Republic where she works with partners in private investing to democratize access to capital for entrepreneurs. Heather studied neurobiology at Harvard University, and is a City Year Boston AmeriCorps alum. She likes to write for AG, drink Austin beer, and ride around town on her road bicycle. His name is Pippin. Say hello if you see them.

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Business News

Leadership versus management: What’s the difference?

(Business News) The two terms, leadership and management, are often used interchangeably, but there are substantial differences; let’s explore them.

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leadership Startups meeting led by Black woman.

Some people use the terms “leader” and “manager” interchangeably, and while there is nothing inherently wrong with this, there is still a debate regarding their similarities or differences.

Is it merely a matter of preference, or are there cut and dry differences that define each term?

Ronald E. Riggio, professor of leadership and organizational psychology at Claremont McKenna College, described what he felt to be the difference between the terms, noting the commonality in the distinction of “leadership” versus “management” was that leaders tend to engage in the “higher” functions of running an organization, while managers handle the more mundane tasks.

However, Riggio believes it is only a matter of semantics because successful and effective leaders and managers must do the same things. They must set the standard for followers and the organization, be willing to motivate and encourage, develop good working relationships with followers, be a positive role model, and motivate their team to achieve goals.

He states that there is a history explaining the difference between the two terms: business schools and “management” departments adopted the term “manager” because the prevailing view was that managers were in charge.

They were still seen as “professional workers with critical roles and responsibilities to help the organization succeed, but leadership was mostly not in the everyday vocabulary of management scholars.”

Leadership on the other hand, derived from organizational psychologists and sociologists who were interested in the various roles across all types of groups.

So, “leader” became the term to define someone who played a key role in “group decision making and setting direction and tone for the group. For psychologists, manager was a profession, not a key role in a group.”

When their research began to merge with business school settings, they brought the term “leadership” with them, but the terms continued to be used to mean different things.

The short answer, according to Riggio is no, not really; simply because leaders and managers need the same skills to be productive and respected.

This editorial was first published here in June of 2014.

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Does Raising Cane’s have the secret to combatting restaurant labor shortages?

(NEWS) Fried Chicken Franchise, Raising Cane’s, has turned to an unusual source of front-line employees during the labor shortage- Their executives!

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White paper sign with black text reading "Help Wanted."

I wouldn’t call myself a fried chicken aficionado or anything, but since chains are designed to blow up everywhere, I have experienced Raising Cane’s.

I’m pretty sure the Cane’s sauce is just barbecue mixed with ranch, but hey, when you’ve got a good idea, keep with it.

In the further pursuit of good ideas, the company has resorted to an intriguing method of boosting staff in a world where the lowest paid among us are still steadily dying of Covid, and/or choosing to peace out of jobs that they don’t find worth the infection risk.

Via Nation Restaurant News: “This is obviously a very tough time, so it was a joint idea of everybody volunteering together to go out there and be recruiters, fry cooks and cashiers —whatever it takes,” said AJ Kumaran, co-CEO and chief operating officer for the Baton Rouge, La.-based quick-service company, from a restaurant in Las Vegas, where he had deployed himself.”

The goal of this volunteer mission, which involves 250 of the 500 executives deployed working directly in service roles, is to bolster locations until 10,000 new hires can be made in both existing locations and locations planned to open.

It’s obvious that this is a bandaid move – execs exist for good reason, and in terms of sheer numbers (not to mention location and salary changes), this is hardly tenable long-term. But I can say this as someone who’s gone from retail to office, and back (and then forth…and then back again) several times – if this doesn’t keep everyone at the corporate level humble, and much more mindful of employees’ needs, nothing will.

The fast-food world is notorious for wonky schedules only going up a day before the week begins, broken promises on hours (both over and under), horrendous pay, and little to no defense of employee dignity in the face of customers with rank dispositions. With the wave of strikes (Nabisco, John Deere, IATSE) making the news, and lack of hazard pay/brutal physical attacks over mask mandates still very fresh in workers’ minds, smart companies are hipping themselves to the fact that “low level” employee acquisition and retention needs to be much more than the ‘work here or starve’ tactics that have served since the beginning of decades of wage stagnation. The best way for that fact to stay front-of-mind is to go out and live the truths behind it.

In Raising Cane’s case, the company also announced that they’re upping wages at all locations — to the tune of an actually not totally insulting $2 per hour, resulting in a starting wage of $15 and a managerial wage of $18.

Ideally, paying people more to cook, clean, and customer service all in one job will actually attract people back to fast food work. Seriously consider the fact that the people cleaning fast-food toilets are the same people making the food that goes into your mouth. The additional fact is that it’s better for everyone’s health when they’re paid enough to care about what they’re doing and stay healthy themselves.

Of course, one does also need to consider how much inflation has affected the price of goods and housing since the ‘fight for $15’ began almost a decade ago in 2012. Now, raising wages closer to the end point of multiple goods still might not be enough!

AJ Kumaran continued, “The chicken prices are through the roof. Logistics are very hard. Shipping is difficult. Simple things cups and paper napkins — everything is in shortage right now. Some are overseas suppliers and others domestic suppliers. Just in poultry alone, we have taken significant inflation.”

That’s global disruption for ya.

It remains to be seen whether this plucky move can save Raising Cane’s dark meat, but I’m very pro regardless. Send more top-earning employees into the trenches! No more executives with 0 knowledge of how the sausage sandwich gets made.

No more leading from behind.

Why not? What are ya? Chicken?

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Business News

Unify your remote team with these important conversations

(BUSINESS NEWS) More than a happy hour, consider having these poignant conversations to bring your remote team together like never before.

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Woman working in office with remote team

Cultivating a team dynamic is difficult enough without everyone’s Zoom feed freezing halfway through “happy” hour. You may not be able to bond over margaritas these days, but there are a few conversations you can have to make your team feel more supported—and more comfortable with communicating.

According to Forbes, the first conversation to have pertains to individual productivity. Ask your employees, quite simply, what their productivity indicators are. Since you can’t rely on popping into the office to see who is working on a project and who is beating their Snake score, knowing how your employees quantify productivity is the next-best thing. This may lead to a conversation about what you want to see in return, which is always helpful for your employees to know.

Another thing to discuss with your employees regards communication. Determining which avenues of communication are appropriate, which ones should be reserved for emergencies, and which ones are completely off the table is key. For example, you might find that most employees are comfortable texting each other while you prefer Slack or email updates. Setting that boundary ahead of time and making it “office” policy will help prevent strain down the road.

Finally, checking in with your employees about their expectations is also important. If you can discuss the sticky issue of who deals with what, whose job responsibilities overlap, and what each person is predominantly responsible for, you’ll negate a lot of stress later. Knowing exactly which of your employees specialize in specific areas is good for you, and it’s good for the team as a whole.

With these 3 discussions out of the way, you can turn your focus to more nebulous concepts, the first of which pertains to hiring. Loop your employees in and ask them how they would hire new talent during this time; what aspects would they look for, and how would they discern between candidates without being able to meet in-person? It may seem like a trivial conversation, but having it will serve to unify further your team—so it’s worth your time.

The last crucial conversation, per Forbes, is simple: Ask your employees what they would prioritize if they became CEOs tomorrow. There’s a lot of latitude for goofy responses here, but you’ll hear some really valuable—and potentially gut-wrenching—feedback you wouldn’t usually receive. It never hurts to know what your staff prioritize as idealists.

Unifying your staff can be difficult, but if you start with these conversations, you’ll be well on your way to a strong team during these trying times.

This story was first published in November 2020.

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