Category Archives: E Commerce

by Retail Pro

Click and collect gains popularity in the United Kingdom

In the United Kingdom, merchants are offering customers new options to make ecommerce more convenient. The "click-and-collect" system means that consumers buy items online and then pick them up from specified locations instead of choosing home delivery. Retail customer trends point to the popularity of the service, and merchants are transforming this concept to provide shoppers with added conveniences, such as:

  • Faster delivery. With click-and-collect services, shoppers don't have to wait as long to receive their orders. Instead, patrons can reserve items online and then pick them up from the store or from designated areas, The Drum explained. Other merchants provide fast item delivery by avoiding the "final mile" and leaving packages at central pickup locations.
  • Subway pickup. The Transport for London (TfL) public transportation system has formed partnerships with retailer industry leaders to offer pickup locations from Underground station car parks. After initial success with pickup lockers for several retailers, the transit system recently announced agreements with additional merchants. The service gives customers a convenient way to pick up their purchases on their commute, drawing business for the retailers.
  • Try on items first. At a shopping center in Westfield, customers pick up their online click-and-collect purchases and try them on before taking them home, The Telegraph reported. Instead of having to transport items back and forth if they don't fit, consumers can make decisions before leaving the pickup center.
by Retail Pro

Can responsive design help integrate channels?

For omnichannel retail marketing, consistency is key. Customers want to find the same deals, prices and service regardless of how they make a purchase. In addition to integrating their retail management software across channels, merchants can provide consumers with a more seamless experience by making sure their online presence is consistent for all devices. Responsive website design is one option that retailers should consider as mobile becomes increasingly important.

Mobile presence central to marketing
According to Strategy Analytics, mobile phone sales have increased about 5 percent each year, reaching 1.7 billion units in 2013. As smartphone and tablet use becomes more pervasive, shoppers are turning to their devices to look up stores, browse offerings, read emails and make purchases. For that reason, merchants that want to stay ahead of the competition need to make sure their Web presence is convenient and appealing to mobile users.

When creating a mobile presence, retailers must make sure it's integrated with the rest of their Web presence and retail technology. According to Retail Technology Review, merchants need to ensure that customers can see up-to-date information about inventory, prices, deals and orders on any platform. Consumers expect the same procedures and policies for making purchases, regardless of the channel they're using. Unfortunately, the source noted, less than half of retailers use integrated business processes and technology.

Responsive design can help simplify online presence
One way to improve multichannel integration is to make sure websites are consistent across devices. For some retailers, responsive design is the best option. Responsive websites automatically adjust based on screen size, device and locality, providing the optimal Web experience on any devices, without requiring merchants to maintain individual sites for each platform. This helps to ensure that price changes, inventory updates and store news are all presented in the same way for all devices. Responsive design also helps websites to appear higher in Google search results, Business2Community noted.

At the National Retail Federation (NRF) Convention, held January 12-15 in New York City, industry leaders discussed the pros and cons of responsive design. The development process can take longer, and might be challenging for stores with a lot of SKUs, said Jay Dunn of Bare Necessities, according to the NRF blog. Other retailers use a combination of responsive design, mobile websites and apps to provide the best information for customers. For example, the Mall of America uses responsive design for its main site but creates unique, simple sites for promotions that change frequently.

by Retail Pro

EU Consumer Rights Directive aims to improve conditions for retail industry

On June 13, 2014, new regulations will come into effect for retailers in the European Union. The Consumer Rights Directive aims to simplify and harmonize rules for information rights, payment consent, credit card surcharges and buyer obligations. The Guardian noted that it's all part of an effort to make it easier for merchants to enter new markets and gain customers, but business owners need to verify that their ecommerce software and retail technology comply with the new guidelines.

The full report on the Directive is available on the United Kingdom Parliament website, but a number of commentators have identified key areas for retailers. Most of the changes have to do with the way businesses finalize sales with customers, particularly for online transactions. Therefore, merchants should make sure their retail software and websites are updated accordingly to ensure compliance. For example:

  • Confirm order buttons must indicate a contractual agreement to pay. The Guardian explained that this measure protects consumers from accidentally entering subscription services.
  • Clear pricing, including extra fees. Customers will not be held responsible for charges that are not explicitly disclosed in the final charge, BDaily emphasized.
  • 14-day minimum for returns. Retailers must provide full refunds, including shipping costs unless otherwise noted, if shoppers change their minds within two weeks of receiving the product.
by Retail Pro

For omnichannel success, forget the channels

In the retail marketing world, omnichannel was one of the biggest trends of 2013. In the new year, its importance has only continued to grow as industry leaders explore additional ways to keep customers engaged and to use Big Data for personalized marketing. In particular, retailers are focusing on ways to create a more seamless experience for consumers. This means that to customers, the channels disappear into the background.

"Consumers don't think in terms of 'channels,' and neither should retailers," Lori Schafer, SAS retail executive advisor, explained at the 2014 National Retail Federation Convention in New York City, according to Just-Style. "They think 'I need to buy shoes today,' rather than, 'I'll buy shoes from this retailer's website instead of driving to their store today.' The retailer who moves fluidly in this channel-agnostic environment wins."

The most successful omnichannel merchants integrate their channels with comprehensive retail management software so that consumers can make purchases online, on mobile devices, in the store or over the phone just as easily. Not only does consistency over channels improve trust, it also simplifies store operations and increases opportunities to engage customers, Business2Community advised. For example, allowing customers to use coupons from their mobile devices in stores and online creates multiple ways for them to take action on deals.

by Retail Pro

Email remains a key retail marketing tool

The 2014 National Retail Federation (NRF) Convention, held January 12-15 in New York City, showcased some of the brightest innovations in retail technology. However, research shows that new strategies like social media advertising and mobile apps are no replacement for some of the classic tools of the trade. Just as the importance of customer service will never die, email is likely to remain a winning strategy for years to come.

According to a recent McKinsey & Company report, email marketing is nearly 40 times more effective for customer conversion than Facebook and Twitter combined. Despite the gains made by Facebook messaging services, email remains the primary means of electronic communication, which means that it's generally the most reliable way to reach customers.

Of course, merely getting a message to an inbox is not enough. There are a few best practices that retailers can follow to make sure their emails have a greater impact.

  1. Always be useful. Justin WIlliams, a marketing strategist for StrongView, reminded retailers that usefulness is the key to having customers open emails time and again. Whether merchants are sending email receipts or deals, they should use retail customer intelligence to personalize the message and options.
  2. Give subscribers options. Williams and McKinsey & Company agree that bombarding customers with emails can be counterproductive. Regular contact is a good thing, but not when it's unsolicited or annoying. Letting individuals choose which types of emails they want to receive or how often they want to see deals can help retailers foster positive engagement. Merchants should make it easy for customers to unsubscribe and resubscribe so they don't feel like they're being spammed.
  3. The click is not the goal. McKinsey & Company suggested that customized landing pages, rather than links to generic home pages, are far more effective because they're more useful for customers and they draw people deeper into the shopping journey.
  4. Plan for mobile. As individuals increasingly read email on mobile devices, email marketing strategies must incorporate designs that are optimal for the platform. That includes designing buttons and links that are easy to select with fingers rather than a mouse.
  5. Be trustworthy. The need for secure links and ecommerce software is a no-brainer, but retailers must also make sure their emails are reassuring and dependable. Williams recommended keeping language, style and images consistent so customers know what to expect. This also helps consumers recognize emails that falsely claim to represent a company.
by Retail Pro

Latin America retail industry shaped by mobile growth

Mobile users are on the rise in Latin America, and it's having a big impact on retail customer trends. According to a GSMA report, half of the continent's population has signed up for mobile services, including 80 percent of developed populations. Brazil, a market leader among Latin American countries, has experienced astounding surge in ecommerce — with an anticipated growth rate of 23.03 percent through 2017, Canadean found in its 2013 Consumer Attitudes and Online Retail Dynamics in Brazil report. Because Brazil's online sales have continued to climb despite a slowing economy in general, Forrester anticipates a more ecommerce even in Latin American countries with less developed markets.

Despite the diversity of the region, analysts expect to see a few general trends:

  • Mobile users will continue to increase, which will lead to more ecommerce. GSMA classified most Latin American countries as "fast growers" for mobile development. While in Brazil the mobile demographic is dominated by the middle class, retailers in Mexico and Argentina need to market to lower-middle class as well.
  • Social networks are fueling online sales. Forrester reported that Latin Americans are highly engaged with social media, particularly with branding through these networks and branded apps. Consequently, retail marketing should embrace social platforms.
  • Applications and interconnectivity are on the horizon. The next phase in mobile development includes more applications and greater connectivity between devices, according to GSMA. Businesses may see these advancements in retail technology as well.
by Retail Pro

Dependability and deals fuel ecommerce for Britain’s Christmas season

Online commerce was the highlight of the Christmas season for Britain's retail industry. While in-store sales were largely a disappointment, online purchases surged to record highs. Poor weather might have dissuaded some shoppers from venturing out, but increased confidence in online purchasing, as well as enticing deals, brought much of the holiday traffic to the web. 

"People trusted [online purchasing] this year," Christine Cross, an independent retail adviser, told the Financial Times. "They knew it would get there. In previous years, it has always been a bit of a wing and a prayer."

The development of click and collect systems, where customers can buy online and then pick up their item from a retail location, helped inspire confidence in online purchases, The Telegraph reported. This can help consumers avoid having to wait for deliveries.

In addition to enhanced delivery methods, the early presence of online deals were a game changer for many consumers. According to Cross, discounts appeared online before they reached the stores, allowing websites to draw spending first. Online sales accounted for over 20 percent of total retail revenue for Britain this holiday season, up from 15 percent in 2012.

With growing confidence in online shopping, as well as an increased prevalence of digital technology, the trend toward online sales is likely to continue. Businesses can be more competitive by improving their online presence with ecommerce software and online marketing.

by Retail Pro

Capturing the mobile crowd with ecommerce initiatives

When consumers and retailers alike consider the implications of ecommerce software, chances are good that they've got shoppers using their computers to buy products over the Internet. After all, even with the digital age always evolving, when individuals decide to shop online, it seems like they take to their desktops or laptops.

However, thanks to emerging wireless tools, that's no longer always the case. These days, people can seek out merchandise when they're on the go, whenever the whim to buy comes upon them. This can be very convenient for retailers – they can invest in marketing campaigns that make their brand top of mind no matter where consumers are, which can then drive more revenue. 

This is a reason why a number of retail professionals are forecasting that 2014 will be the year of mobile ecommerce strategies. According to Practical Ecommerce, many surveys have revealed that Internet traffic on mobile phones should eclipse that of desktops and laptops in 2014, so it would behoove company leaders to optimize mobile pos software as soon as possible.

Namely, they should work on faster load times, including appropriately sized images and developing apps or similar features, the source suggested.

Moreover, Mobile-Financial recommended that retailers start incorporating mobile in stores, like allowing for mobile checkouts at the register, because smartphones and brick-and-mortar technologies can work together to provide a better consumer experience.

by Retail Pro

2014 expected to usher in more integrated retail technology

With the new year comes new predictions for the market. For 2014, the buzzwords are centered on technology and a more integrated customer experience. From handheld point of sale options to better websites, retailers are focusing on consumer convenience and accessibility. As smartphones continue to become more intimately integrated with daily life, retail technology is essential both for online sales and storefront locations.

Consumers want a seamless experience, whether they shop online, at a store, or both. Businesses can gain a competitive advantage by making the shopping experience more integrated and more helpful for customers. "One of the key trends is more – and better – omnichannel integration," said UK Google Managing Director Dan Cobley in an article for Retail Week. "Done right, the combination of a store network and online is a winning formula that pure-plays can't match." 

The results of an omnichannel sales strategy were impressive for Finish Line in 2013. As reported in Internet Retailer, Finish Line's third quarter sales saw an increase of 22.9% to $364.5 million from $296.6 million. Chairman and CEO Glenn S. Lyon emphasized the company's strategic use of technology in the Finish Line Q3 2014 Earnings Call: "Our total performance is being fueled by effective digital initiatives that create increasingly more personalized consumer engagements through desktop computers, mobile phones, tablets and social media," he said. "Our objective isn't to dictate where customers shop; rather, make sure we are wherever they prefer to shop."

by Retail Pro

Short holiday shopping season may have affected spending from desktops

Shopping habits have changed considerably in the past few years, both from an economic perspective and a technological one. Consumers' budgets were constrained due to hardships in the job and financial markets, while devices such as smartphones and tablets have increased the number of ways that customers can research and purchase items. 

Although retailers have adjusted to some of these factors, managing all of them without the right retail business intelligence can be difficult. Merchants also had to account for a shortened holiday shopping season this year, and according to comScore, that may be one of the reasons why the final spending numbers fell short of some projections. Although gift purchases originating on desktop computers rose by 10 percent between the holiday shopping season in 2012 and 2013, this was a few percentage points short of what comScore expected. 

ComScore noted that there were no billion-dollar spending days during the final week of holiday shopping, and the heavy discounts offered by many merchants may have also decreased the potential for greater gains. Although desktop computers remain a popular choice for consumers to buy gifts and other goods, retail industry professionals should acknowledge that attracting the most customers possible will rely on omnichannel operations that cover the gamut of technology now available.