3 Ways that Independent Electronics Dealers can Compete Against a Shrinking Best Buy

Best Buy, realizing that their current business model puts them at a disadvantage to smaller retailers and online stores like Amazon.com, is in the process of closing 50 stores with a stated objective of opening new locations with a much smaller footprint than their current 40,000+ square foot stores. The company also announced a price matching initiative for online orders as they target both the physical storefronts of independent electronics dealers and online sellers like Amazon and Rapidbuyr.


While the thought of competing head to head with a big name like Best Buy may seem daunting for smaller retailers, there are three areas where independent electronics dealers have the edge over their larger competitors:


  • Service and familiarity – Independent electronics dealers that have focused on providing exceptional service to their customers over the long term have typically built a high level of familiarity and loyalty with their customer base. As a trusted resource for electronics, these stores are positioned as the "go to" place for electronics being purchased for their customers' homes or businesses.
  • Best Buy's current over-arching business model – The current business model at Best Buy has two huge disadvantages; stores that are too big and employees that aren't knowledgeable enough with products on the floor. Smaller retailers typically don't have to carry the high overhead of cavernous stores and often have employees with more longevity, knowledge and experience than those at larger stores with a revolving door of new employees on the floor.
  • Access to competitively priced equipment through electronics buying groups – Joining an electronics buying group can level the playing field for independent dealers in terms of pricing equipment. These buying groups combine orders from their members to receive pricing discounts that are similar to those of larger singular buyers. These discounted unit costs can play a large role in helping independent electronics dealers price their products competitively while still maintaining solid profit margins.


In many ways, Best Buy has taken an, "...if you can't beat 'em, join 'em," mentality while possibly not fully realizing the advantages that independent electronics dealers already possess. That being said, competition in this industry space will most likely intensify, meaning that independent dealers will continually need to extend advantages where they exist and constantly be on the lookout for new opportunities.

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  • User Experience and SEO



    Prior to Google’s implementation of the Hummingbird algorithm in the second half of 2013, search engine optimization and delivering a positive user experience with published content were distinctly different practices. Despite Google’s mission to surface high value content, its algorithms were easily manipulated with SEO tricks that didn’t necessarily deliver the information that the search engine users were looking for. At the same time, content that delivered relevant information often earned lower rankings than poorly written articles that prioritized packing in keywords over adding value.


    Hand it to Google, the search engine has stayed true to its commitment to deliver improved user experiences and is now far less vulnerable to manipulative practices. Its ranking algorithm now factors a variety of signals that result from positive user experiences, including:        


            Links from authority sites – Content that contains valuable source material, topic-relevant information or delivers a positive user experience in general can earn links from authority sites to provide additional information or to be cited as a reference. These links carry an increasing amount of weight in the ranking algorithms due to the quasi-vetting process from originating authority sites. This is a completely different ranking methodology than the one which rewarded web pages that had thousands of spammy backlinks purchased for a few pennies each.       

            Social actions – When content is posted to social media platforms such as Twitter and Facebook, user can elect to share that material with their friends and/or followers. Sharing or liking posted content is referred to as a social action, which is an indication that the content delivers a positive user experience, whether it’s entertaining, informative or a combination of the two. Steady and/or increasing social actions with specific web pages can then boost rankings due to the implied legitimacy of independent referrals.    

             Active and positive comment threads – Quality content draws engagement in the form of active commentary threads. Content that is generating shares and likes will also elicit commentary, with the actions reinforcing each other when being weighed by search algorithms. While these reinforcing actions are great for SEO campaigns, they are equally capable of driving higher rankings for negative content, such as news stories.    


    In today’s SEO campaigns, manipulating the algorithms has become increasingly difficult. This is due in part to the growing sophistication in algorithm methodology that can detect spammy links and content. It is also due to the evolution in the way people communicate and share information on the web. The paradigm change now forces SEO and content distribution campaigns to focus on the same primary goal; delivering a positive user experience. 

  • One SEO Change to Implement Now


    As the sophistication of search algorithms continues to increase, search engines are improving their understanding of what their users are looking for with their inquiries. Prior to replacing its search methodology with the Hummingbird algorithm in 2013, search results typically showed results that had a high percentage of the same keywords included in users’ inquiries. While the pages that were returned based on keyword matches generally reflected some relevance to the search, there were also results that had nothing to do with the nature of the inquiry.


    Two of the primary reasons for these unrelated results were black hat techniques that were used to trick the early algorithms into granting high ratings, as well as words that were spelled the same but had different meanings, known as homonyms. An example of a homonym is the word “lead”, which can either be a noun as in the metal or a verb as in “to guide”. An inquiry such as “lead dog” could list sculptures of dogs made of the metal as well as dog teams in the Iditarod race. Refining the search to “what is a lead dog Iditarod” could still return mixed results. With the implementation of the Hummingbird algorithm, searches provided results based on the context of the inquiry, rather than trying to find pages with identical keywords.


    The change to contextual search, in addition to providing a higher percentage of relevant results for all users, was also influenced by the more conversational nature of inquiries from mobile device users. When voice commands are used, it’s more natural to ask a question than limiting inquiries to a few key words. As the search phrases became longer, keyword-based algorithms struggled to return listings that answered the questions that were being posed, which required follow-on searches and lead to a less than optimal user experience.


    For businesses that have not changed the foundation of their SEO initiatives to the new search methodology, previously high rankings are likely to start falling, if they haven’t already. The key to success in context-based search is to modify content so that it answers the questions posed verbally by mobile users. As a simple example, a searcher may pose the question “Where is a pizza place in Anytown?” Content that answers that question, which would earn a higher search listing, would include something like “Jack’s Pizza is located at 123 Main Street in Anytown.”


    As Google and the rest of the search engines try to deliver the best user experience possible, the focus is on eliminating listings that don’t deliver the answers sought by searchers. To that end, the listings that are presented will increasingly address the full context of inquiries with the delivery of specific answers. In this environment the SEO campaigns that are modified to answer questions, rather than match keywords to searches, will deliver website and storefront visits which will drive revenues.  

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