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e-retailers..how bright is the future..
Posted by Paul McSweeney in World News on July 9th, 2009
In 2004, analysts predicted that a quarter of retail spending would be made online by 2009. Now some are saying that it will only be 10% by 2013. Shoppers it would seem prefer to buy from brands that they already know and trust..hence the success of the online arms of Tesco, Next, Argos, HMV inter alia.
But there are some notable successes..and how have they got this right? Take ASOS for example..their success has been based upon choice and the ability to fulfil rapid delivery. Enabling buyers to have the option to return their items is also become increasingly important.
If you take fashion retail; this makes up for 22% of all site traffic for e-retailers; so companies operating in this sector must find competitive advantages where they can. I think that flexible delivery is key. Shoppers making impulse purchases want not only rapid delivery but also hassle free delivery. They don’t want the item delivered when they are not in for example. Going to the Post Office to pick up the item can take time out of your day and dampen your online retail experience considerably.
But the rub here is that e-retailers want to keep costs low for customers; so flexible delivery options are not an option in some cases..so whoever comes up with the way to solve this in a way that e-retailers can provide choice (that’s their responsibility, not yours) and flexible delivery at a low cost (Home Delivery Network – they say they can do it but not at the cost e-retailers want to charge their customers) will really be on to something; and be courted by e-retailers and consumers alike!



