It was 25 years ago in 1994 when the first online purchase was made. Since then, online shopping has changed the way people shop, allowing people to buy everything and anything from the comfort of their own homes. The e-commerce boom has changed shopping habits as we don’t have to wait in queues any longer, walk round multiple shops or talk to sales assistants face-to-face. However, shopping online can come with complications and customers can face certain problems.
ver the past couple of years, there’s been much talk of online retail and the impact it’s having on the bricks and mortar realm.
Major e-commerce players like Amazon have re-shaped the shopping experience, offering consumers the convenience of purchasing from their office, their home or in transit courtesy of online storefronts.
But according to National Retail Federation President and CEO Matthew Shay, online retail hasn’t posed the threat many assumed it would.
Rather than replacing the traditional shopping experience, many real-world retailers have come to embrace it, providing new and innovative ways to offer greater convenience, a better experience and an improved customer journey.
Here’s an insight into online versus in store in 2019, and why it’s far from the cause of the ‘retail apocalypse’ that many assumed it would be.
Unveiling their predictions for the upcoming holiday season, the National Retail Federation recently noted US consumers were expected to fork out 3.8 per cent to 4.2 per cent more than in in 2018.
Should their estimates prove correct, it will see a $727.9 billion to $730.7 billion windfall for the retail sector over the coming months.
A major component of this figure will be online sales, with online accounting for about 20 per cent of holiday season retail sales, compared to about 10 per cent of sales throughout the rest of the year.
It will also be an increase on last year, the NRF predicts, with US consumers expected to spend 11 to 14 per cent more via e-commerce.
But Mr Shay has also pondered whether ‘online’ sales is even a relevant figure to highlight any more.
“We continue to have ongoing discussions about whether it even makes sense to break the online figure out anymore, because retailers really look at this as a holistic way to engage with their consumer,” Mr Shay noted in an interview with journalists.
“Really, I think the world is becoming increasingly agnostic as to whether purchasing is in store, online, or buy online pickup in store. It continues to blend and converge and that will accelerate this holiday season.”
The online/in store blend
While shopping from the comfort of a smart phone, computer or tablet may offer convenience, an emerging school of thought notes it will never replace the in store experience, due to a distinct series of advantages and strengths that only bricks and mortar can offer.
Only in the real-world retail environment can consumers try, test and feel a product, enjoy the social experience that is shopping, find instant gratification, or engage in a fully immersive customer journey.
And a host of traditional retailers are playing these assets to their strengths in fresh and innovative ways.
If there’s one trend that truly harnesses both the power of online and the benefits of bricks and mortar it is Buy Online Pick Up In Store (BOPIS).
It’s a feature that allows consumers to shop online from the comfort of their home, and then harness the convenience of picking up the product they buy at their nearest brand outlet.
For the retailer, BOPIS offers a number of benefits:
- It saves shipping time and cost
- It makes use of the retail real estate at its disposal
- It lures customers into a physical outlet, where there’s a good chance they will buy additional items
And it’s a trend that is incredibly popular with consumers due its ease, convenience and near instant gratification.
- Over 68 per cent of US shoppers have made more than one click and collect purchase – Total Retail
- 50 per cent of US shoppers decide where to buy a product online based on whether they can pick it up in-store – Total Retail
- 85 per cent of shoppers make additional in-store purchases while visiting stores to pick up what they already had bought online, with 15 per cent saying they engage in that practice “somewhat frequently” – Retail Dive
BOPIS
If there’s one trend that truly harnesses both the power of online and the benefits of bricks and mortar it is Buy Online Pick Up In Store (BOPIS).
It’s a feature that allows consumers to shop online from the comfort of their home, and then harness the convenience of picking up the product they buy at their nearest brand outlet.
For the retailer, BOPIS offers a number of benefits:
- It saves shipping time and cost
- It makes use of the retail real estate at its disposal
- It lures customers into a physical outlet, where there’s a good chance they will buy additional items
And it’s a trend that is incredibly popular with consumers due its ease, convenience and near instant gratification.
- Over 68 per cent of US shoppers have made more than one click and collect purchase – Total Retail
- 50 per cent of US shoppers decide where to buy a product online based on whether they can pick it up in-store – Total Retail
- 85 per cent of shoppers make additional in-store purchases while visiting stores to pick up what they already had bought online, with 15 per cent saying they engage in that practice “somewhat frequently” – Retail Dive
Try, test, feel
No online experience can replace the tactile adventure that is traditional retail. Despite the convenience of online, many consumers still want to touch, try, test, feel and engage with a product prior to purchase.
What they will do online, however, is research that product, its price, reviews and availability before they opt to buy.
Accenture recently examined the retail habits of Millennial’s – the prime generation when it comes to shopping behavior and found 82 per cent prefer bricks and mortar over online.
Across all generations Accenture notes:
- 55 per cent of consumers seek out “the cheapest return option.”
- 41 per cent of all three groups said they practice “showrooming”—examining merchandise at a nearby retail store and then shopping for it online to find the lowest price.
- 36 per cent go online to buy from a retailer’s website if they want a product when the company’s stores are closed.
- 89 per cent note having access to real-time product availability information influences their shopping choices.
The social experience
At its heart, shopping has always been social. It is the chance to gather with friends and family and explore new products.
And according to a recent sur
E-Commerce Growth in 2020
There has been significant growth in e-commerce in recent years and in 2020, amid the coronavirus pandemic, sales have continued to grow. In 2014, sales worldwide reached $1.3 trillion, but that number in 2020 has more than tripled to $4.2 trillion and it is anticipated to keep growing throughout this year. Experts have predicted the annual revenue to rise to $6.5 trillion in 3 years and if this trend maintains, e-commerce sales could potentially reach $8 trillion by 2025.
As of 2020, there are around 7.8 billion people in the world and 26.28% of them are online shoppers, with more and more people buying digitally, meaning e-commerce brands have more chance to reach larger audiences.
People that do shop online do so frequently, 20% of people shop online once a week, 24% shop online every fortnight and 31% shop online once a month. Online shopping is becoming the norm, particularly with lockdowns and shop closures in many countries still in place. Online shoppers making purchases through their mobile phones in 2020, has increased to nearly 50% and with technologies advancing, these figures are likely to rapidly grow and evolve.
Recent data shows, products that are easy to find through simple searches is the most important attribute when shopping online. Product ratings and reviews is the second most important attribute, ensuring the customer is making a well-informed choice. However, there are reasons why people leave certain shopping websites without buying anything; having extra costs is the number one reason, extra costs during checkout, shipping, tax and fees could drive customers away. The number two reason is forcing a shopper to create an account, online shops should always give the option to ‘checkout as guest’.
Product Quality
Product quality is a very important factor considered when making a purchase for goods and services online. However, when buying online you don’t have a guarantee of the products quality. Reviews are not always reliable and there are many fraudulent sellers who intentionally mislead customers. As the volume of e-commerce goods rises, it can be difficult to ensure top-quality checks are taking place on each and every product. Additionally, sizing remains to be a huge issue when buying clothing and shoes online, sizes vary from each brand and as the customer can’t try on the products, selecting a size can be a risk.
Delivery
A common predicament when shopping online is, when will the item be delivered? Most e-commerce website have tracking systems for customers, but they are not always accurate. Delivery drivers often arrive whilst the customer is at work or they leave the delivery in an exposed place. The same issue also occurs with returning products, as some people may live in rural areas with no local post-offices and some e-commerce sites still don’t provide return services.
Payment
Digital payments can be risky, a faltering internet connection may cause your credit/debit card to be declined or the order could go through more than once and retrieving a refunded payment can be a slow process. The e-commerce sector is trying to improve and focus more on cashless transactions. However, additional charges are still common especially, shipping charges and on many shopping sites customers may get added charges on each individual product and not the collective order.
Cyber Security
Cyber security, is a major problem on the internet, e-commerce sites have customers important data, name, phone number, address, bank details etc. All sites need to ensure they have top-quality cyber security measures. Online shopping is so convenient and many people still don’t fully understand the need for stringent cyber security.
If e-commerce sites can improve their product quality, delivery, payment and security issues, they will expand their customer base and therefore, generate more sales.
Online Shopping Top Tips
Want to understand how you can you become an online shopping expert? These top tips may help you to ensure you don’t get caught out by scams, find yourself with clothes that don’t fit or products that don’t meet your expectations.
- Don’t rush – find an item you want, add it to your shopping basket and have a few hours or days to think about the item. Retailers can view your shopping activity and may send you an email with a discount code, motivating you to purchase that item you have been thinking about it.
- Second-hand markets – try to introduce eco-shopping into your usual shopping routine; shop in charity shops, use online second-hand websites, vintage clothes sites and browse around, this can help with donations towards organisations that matter and make a difference.
- Vouchers – use voucher codes where you can, you may find yourself getting 20% off your purchase, because you signed up to their website. There are many different voucher sites or newspapers and magazines regularly have discount codes inside.
- Safety – ensure you are browsing on a safe website and using a secure Wi-Fi connection.
- Research – read reviews, look at the company’s social media accounts and try to find other customers wearing that same item of clothing, ensure you are buying a top-quality product before buying.
- Social media – follow fashion blogs or retail social media accounts, sign up to emails and keep up to date with the latest news about certain products, helping you to stay informed of the latest trends.
Your Online Store
For customers, clear approval marks awarded by external companies can help people to be certain the products are top-quality. Therefore, product inspections can help to ensure your online shop is trustworthy.
Building trust with your customers can help your online business to succeed, making deeper connections and helping to gain confidence of your consumers. If a customer begins to associate a face with a company, it creates loyalty and the customer feel more appreciated.
Word of mouth can be a persuasive force when purchasing online, as 92% of people trust recommendations from friends and family above all other forms of advertising. The higher quality products, the higher chance of receiving positive reviews, and consumer recommendations.
Product quality can also be improved through customer service, opting for a good online consultation service through online chats with top-service personnel or trained stylists can help advice the customer and may lead to an increase in sales.
Ensuring your prices match with the product quality is very important when running an e-commerce business, customers are willing to pay more if they are convinced that the higher price signals better quality. Set fair prices, monitor the prices and products of your competitors and match to your own products.
Perfecting the quality of your products has many benefits for e-commerce businesses, ensuring your business has trust, credibility and loyalty from customers will gain repeat sales and positive recommendations, helping to gain a wider customer base.
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