Category Archives: E Commerce

by Jennifer Bosavage

Why Beacons Are the Next Big Thing

There’s a war being fought in retail between the brick-and-mortar store fronts, and the e-commerce players. Physical stores have had to beat back e-commerce competitors, which often offer lower prices for products, due in large part to low overhead costs. Slowly but surely, e-commerce is nibbling away at the retail pie: The fourth quarter 2014 e-commerce estimate from the census bureau increased 14.6% from the fourth quarter of 2013, while total retail sales increased 3.7% in the same period. E-commerce sales in the fourth quarter of 2014 accounted for 6.7% of total sales. But brick and mortars are fighting back with beacon technology.

Business Insider recently reported it expects beacons to directly influence more than $4 billion worth of U.S. retail sales this year at top retailers, or 1% of the total). That number could climb tenfold by 2016. In particular, beacons — which alert shoppers to deals, specials and discounts on in-store merchandise, while the customer is in close proximity to the item — are the next evolutionary phase in store operations and can become integral parts of loyalty programs. Repeat shoppers are rewarded with personalized offers, generated via the beacon technology.

Beacons push out messages to shoppers, rather than gather data. Once shoppers “opt-in” to the location-based marketing program, their smartphones can detect the beacons. The smartphone relays a “VIP in store” message back to the beacon, which directs the information to a store associate’s mobile retail management device, and the store associate then personally greets the loyal patron.

Beacons could beat back much of the competition from e-commerce merchants because, despite online shopping’s growing popularity, approximately 90% of what people buy still comes out of brick-and-mortar locations, according to Adweek. In addition to burnishing loyalty programs, beacon technology, with its broadcast capability, can successfully entice passersby to come in. That is a clear and distinct advantage over e-commerce retailers, which must rely on search engines and word of mouth primarily.

Beacons can broadcast a “consider stopping in” message, which a shopper receives on his or her smartphone. That can drive new customers, who may not otherwise come into a store. An even more directed effort can be obtained through hyper-local marketing, which provides very specific messages to very specific customers.

Despite the growth in e-commerce, brick and mortars are stepping up the offensive by employing beacon technologies to communicate to shoppers the deals they just shouldn’t be passing by.

by Jennifer Bosavage

Bricks and Mobile Makes Retailers More Efficient

Payments take time: time away from selling — if you’re the retailer  — and from shopping, if you’re the customer. Either way, it’s a point of friction. The easier and faster that process goes, the happier retailers — and their customers — will be.

According to figures from eMarketer, the global retail market will see continuous growth during the coming years, and in 2018, worldwide retail sales will increase 5.5% to reach $28.300 trillion. And, according to the Keynote Executive Presentation at eTail West this month, Americans see an average of 29,000 marketing messages daily. That means competition is stiff for sales dollars. So, retailers that implement smooth payment processes and streamlined shopping experiences will receive a competitive advantage.

During the keynote: “Defining The New Retail Experience – Stores And Mobile” session at eTail West, Jamil Ghani, vice

Consumers using mobile to engage with retailers.

Consumers using mobile to engage with retailers.

president of enterprise strategy said that integrating mobile into stores results in bigger sales. Target recently redesigned its mobile app to create an efficient shopping experience, as well as to entice consumers to buy more products and steer the retailer toward its goal of becoming a bricks-and-mobile store.

The so-called bricks-and-mobile philosophy is a retail strategy that combines mobile and in-store offerings to drive sales, increase awareness of items that are on sale or otherwise “special” and let harried consumers get more done by providing features such as in-app shopping lists.

Another way to blur the lines between channels is to use digital signage to feature shopper-generated online content within the physical store. Shoppers engage with reviews and opinions and often become more certain of their impending purchase as a result. And, Rob Manning, content marketing manager at a digital marketing software provider, told CIO.com that stores can further “promote content sharing within stores by displaying [brand-related] hashtags on signage and on monitors and kiosks and encouraging customers to share content right then and there using the hashtags to enter to win a prize, receive an automatic discount code, and/or have their content featured on the website.

Experts agree that it is pointless to prevent customers from comparison shopping online while in store. So retailers should just go ahead and provide free Wifi. Shoppers finding alternatives online can be incentivized to stick around with a low price guarantee. And QR codes are still around; stores can put them to good use and have more control over the shopping experience by attaching them next to products with links to discover them easily on your site.

When customers finally reach checkout, retailers must provide the technology to facilitate mobile wallets. The technology will become critical, and a differentiator, in the near future.  Although Apple Pay has heightened interest in mobile payments recently, Google is the granddaddy, first introducing Google Wallet’s tap and pay feature in 2011. On Feb. 23, Google said it would partner with Softcard, a joint venture of Verizon Wireless, AT&T and T-Mobile. The Google Wallet app, including tap-and-pay functionality, will come pre-installed on Android phones (running KitKat or higher) sold by those carriers in the U.S. later this year.  The deal will expand Google’s reach, as well as provide more choices for consumers.

by Jennifer Bosavage

Is It Time To Update Your eCommerce Site?

The most successful retailers have updated ecommerce solutions — rather than vestiges from the turn of the 21st century.  A recent report from RSR Research notes that the highest-performing retailers have eCommerce sites that are positioned as being a vital part of the

Is your ecommerce website appealing?

Is your ecommerce website appealing?

customers total shopping experience. The laggards? Many times their ecommerce systems are in the way of their success.

According to the report:

It turns out that under-performers are far more likely to be hanging on to legacy homegrown eCommerce sites than their better-performing competitors. This is consistent with other studies that we have conducted; laggards are far more likely than Winners to operate old technology long past its “sell by” date. In the case of eCommerce, while it may have been true that retailers were forced to develop their own capabilities in 2000, in 2014 commercially available solutions (delivered as an outsourced service, “in the cloud”, or licensed for on-premise operation) offer far greater functionality and flexibility than yesterday’s custom sites could.

It’s important for retailers to get current with commerce technology because shoppers are leading the way. As shoppers rely increasingly on smartphones and tablets to research and ultimately purchase products, retailers that haven’t upgraded their mobile commerce systems will be left behind. The way customers are shopping differently than they did 15, 10 or even just five years ago: 44 percent of respondents told RSR that keeping up with evolving consumer shopping patterns was one of the top three business challenges.

That wasn’t the toughest hurdle, however, said those surveyed. Forty-six percent of respondents said getting customers to engage more with their brand online was their top challenge. Pushing content to consumers through email or texts may drive short-term results, but those techniques don’t necessarily promote repeat business or loyalty. To that end, many retailers are eyeing social media as a significant marketing tool. Fifty-seven percent of respondents said that social media will be a valid selling tool in 2015.

It’s critical for retailers to keep up with their customers’ technology use, just as they do with their tastes in merchandise. Implementing mobile payment systems, buy-online-pick-up-in-store and using geo-location to offer personalized shopping experiences are all ways in which the retailer of today will usher in the shopper of tomorrow.

by Jennifer Bosavage

The Key To Increasing In-Store Sales? Mobile

Digital retail growth is slowing, but the key to pumping it up likely exists in the palm of customers’ hands.

Sucharita Mulpuru-Kodali, vice president and principal analyst at Forrester

How are consumers using mobile to engage with retailers?

How are consumers using mobile to engage with retailers?

Research and a research partner for the NRF’s State of Retailing Online recently noted that digital retail continues to be strong but growth rates appear to be slowing slightly. She noted that in recent years, many retailers experienced high double-digit growth; now, fewer retailers report that level of fast growth.

It’s important to remember that slower growth doesn’t mean no growth at all. It just means the rate is no longer at breakneck pace. And as e-commerce continues to nab a bigger piece of the retail pie, it will become more difficult to rack up huge percentage increases, although the amount of revenue will rise handsomely.

Still, how to grow those sales? Retailers should look for expanding existing avenues that are succeeding. And that means investing in mobile commerce.

Mobile shopping retail sales in the US were $70 billion in 2014, and Goldman Sachs Group predicts growth to $173 billion by the end of 2018. Goldman’s research found that nearly half of all smartphone users have used their phones to locate store information, such as location and working hours. Clearly, consumers are comfortable with the devices, so it makes sense for retailers to capitalize on that comfort zone, by inventing customers to use their mobile devices while they’re in the store. Wipe away fears of “showrooming” — that’s a thing of the past. The future lies in letting customers access all the information they need to make a decision while still in the store. It’s all about location, location, location for brick and mortars.

The potential growth comes from retailers working with and appealing to mobile phone users. While Forrester Research Inc. says 42% of the world will own a smartphone by the end of this year, research firm IDC notes that just 16% of enterprises have a mobile strategy. Retailers should look at ways to become more aggressive in reaching out to mobile consumers, as conversion rates are typically only 1% on smartphones compared with 3% on desktops. Too often, shoppers can’t find what they want on a mobile site, it’s too difficult to checkout, or service is just too slow.

By embracing mobile shopping within the confines of the physical store, brick and mortars may actually extend their reach. Consumers spend in-store time on their phones, comparing product information. Smart retailers are pushing product information of their own to shoppers’ phones as well, increasing the shopper/retailer connection. And enhancing that connection is key to a revenue uptick in 2015.

by Jennifer Bosavage

Online Still Wooing Customers from Brick and Mortars

Omnichannel retailers will have their work cut out for them in 2015, as they attempt to entice shoppers with both their web and brick and mortar presence in order to compete effectively against online-only stores.ecommerce

A recent study by Wipro found that when consumers browse online and in a store, many opt to ultimately make the purchase online: 34% of U.K. consumers and 33% of U.S. consumers reported purchasing in that manner.

‘There is no doubt consumers are interacting with brands across both the online and in-store channels,” said Avinash Rao, Global Head, Wipro Digital. “But omnichannel retailers are missing a big opportunity to capture the 1/3 of consumers who say they are researching in store but leave to buy online.”

Indeed, online shopping this past holiday season continued to grow in popularity and accessibility, with 71% of surveyed consumers in U.K., and 61% in U.S., reported they did more than half their 2014 holiday shopping online. That is a major uptick from 2013, when just 45% in U.K. and 36% in U.S. reported doing the majority of their shopping online.

The online shopping trend is being driven by three factors: greater convenience, better prices and ease of use. Online pure play retailers are the big winners of this shift: 44% of U.K.  and 47% of U.S. shoppers report doing more than half their online shopping on such sites. What should concern brick and mortar retailers is the finding that a quarter of the shoppers are not even considering bricks and mortar retailers’ websites.

Sounds like retailers need to leverage the one thing they have that those pure play online stores do not: location, location, location.

“Omnichannel retailers need to invest more in understanding and improving the customer experience journey to entice shoppers to spend more with them in-store,” said Rao. “Customer journey engineering as an approach to understanding, designing and delivering relevant and differentiated customer experiences across all channels and touch points will help retailers reverse the trend and avoid a future when consumers are no longer visiting their stores.”

Competitive pressures can be a motivating force to drive retailers to provide a differentiated shopping experience. Ecommerce retailers understand how customers want to shop online and deliver that experience well; brick and mortars need to learn what drives customers to buy from them, and capitalize on those strengths. Further, if retailers can determine the source of dissatisfaction and not just fix it, but turn it around into an enjoyable experience, that can turn consumer indifference into delight.

 

by Retail Pro

The merits of combining ecommerce, physical storefronts

In the past several years, the number and rate of companies that have started up solely in the digital frontier have increased exponentially, driven by the much lower costs associated with Web-based ownership and lackluster state of commercial real estate. While many of these firms have been highly successful in generating revenues without spending all that much money on their facilities, ecommerce is still best served when accompanied by a physical storefront. 

Consumers, even younger ones who are becoming more apt to purchase goods and services online, still prefer the ability to visit the establishment, especially for many types of products that need to be tried out or evaluated in person. As such, combining an ecommerce platform with a physical storefront can be one method to maintain a competitive edge moving into the new year. 

Proof is in the pudding
Small Business Trends recently explained some of the reasons why retailers will still want to have a physical storefront in the coming years, affirming that businesses are already seeming to pick up on this need ahead of expectations. According to the news provider, brand management and online sales can often be significantly improved when the retailer has a physical storefront, which can be seen in myriad examples across the industry. 

The source pointed to two separate entrepreneurial firms that decided to complement their burgeoning digital ventures with a brick-and-mortar location, which has since proven to be the right choice. Citing an interview between Fox Business and Suzette Munson of Love 41, a retailer, Small Business Trends quoted the company's leader regarding her experiences in this venture. 

"We can see the trend of Internet sales going up every year," Munson explained to Fox Business, according to the source. "Every year people are becoming more Internet buyers for Christmas rather than going to jam-packed malls. But we have a dedicated following – and one thing they've always desired is a destination where they can put their hands on our products."

Takeaways for retailers
Now, this is not to say that physical storefronts are for everyone, but rather that businesses should at least diligently look into the potential merits of launching one to complement their ecommerce platforms in the near future. When it is feasible to do so, this can have a profoundly positive impact on brand image in the eyes of current and prospective clientele. 

by Retail Pro

Is your ecommerce website appealing?

There is no denying that the ecommerce industry has exploded in recent years, becoming incredibly saturated and competitive in a range of market segments and showing now signs of slowing any time soon. Businesses are increasingly reliant upon strong financial performances in both physical and online stores, and this can be difficult when the brand and website do not stand out from the crowd. 

Retailers often have the most to gain from putting a little pizzazz into their brands, focusing on the creation and consistent improvement of all marketing, ecommerce and other strategies that defy convention and enter into the bolder category. Looking toward the coming years, retailers will want to keep up with the trends that are defining what it means to be bold in marketing and other operational components. 

What's to come?
Practical Ecommerce recently listed some of the trends in ecommerce website demand that it expects to have a major impact on the sector in the coming year, affirming that a combination of aesthetic appeal and intuitive functionality will continue to be the driving forces of success in this arena. According to the news provider, hidden menus have become a bit more popular and preferable among consumers, as they allow the firm to reduce clutter from mobile webpages. 

However, the standard components of ecommerce websites are not necessarily the most interesting sources of innovation to watch, as newer additions by way of video content and background images are also going through some changes with respect to best practices. The source pointed out that video content, larger-format pictures and more appealing typography are all likely to be priorities among ecommerce retailers in the new year. 

Retailers who work hard to set trends in these matters, rather than merely follow them, will likely enjoy a greater level of opportunities to excel in the coming years. 

Strategic tactics
When it comes to making an ecommerce website as appealing as possible, business leaders should be looking to streamline the visual and functional aspects of the pages, then try to add in various pieces of flare to truly keep customers coming back for more. This can often be achieved through the integration of marketing and sales procedures with standing brand objectives and strategies, as this will effectively yield a consistent and desirable voice across channels. 

by Jennifer Bosavage

Optimize Your Mobile Platform Now, Before It’s Too Late

Mobile shopping continues to grow in use, and now accounts for roughly one-third of all e-commerce transactions, according to a recent report from Criteo, a performance marketing technology company. Given that the Census Bureau of the Department of Commerce reported last month that the e-commerce revenue total, adjusted for seasonal variation but not for price changes, was $78.1 billion, that’s a very big number. E-commerce sales as percent of all retail sales is currently 6.60%, up from 6.40% last quarter. That’s a quarterly annualized growth rate of 12.50%.

Online retail shifts to mobile content

Online retail shifts to mobile content

So if your retailers are not interested in optimizing their m-commerce platforms, they are in for a rocky road for the foreseeable future.

Criteo, in its State of Mobile Commerce report, found that mobile is responsible for more than 30 percent of eCommerce transactions globally and more than 27 percent of eCommerce transactions in the United States.

“There has been a significant lack of information about mobile commerce, leading many marketers to under-estimate the opportunity,” said Jonathan Wolf, Criteo’s Chief Product Officer, in a statement.

So much for thinking smartphones were simply being used for comparison shopping and showrooming. Clearly, shoppers are purchasing through their phones, in fact they now beat out tablets for being the shopping device of choice. The study found 53% of mobile retail transactions use a smartphone. And why not? When a retailer provides a simple, easy to understand and navigate interface with a fast response time, why not purchase while on the site? It’s a no-brainer. Illustrating that trend, mobile conversion rates are improving.

“The report demonstrates that mobile is now about purchasing not just researching, and that there are huge opportunities for eCommerce businesses to capture increasing sales via mobile devices, particularly in the retail and travel industries,” added Wolf. “We expect mobile to rapidly move toward 50% of all transactions, as mobile usage continues to skyrocket and retailers better optimize mobile sites for conversion.”

The report notes that a third of fashion transactions now come from mobile, with average order values close to desktop levels. Further, the top 25 percent of U.S. retailers — companies that would include Walmart, Kroger, Costco, Target and The Home Depot — generate almost 40% of their e-commerce transactions from mobile, compared with 27% for retail in general. The bottom quarter see a very small amount (5 to 10%) of transactions from mobile. That’s four times the share of mobile transactions, a sizable difference.

Retailers should also be aware that shoppers are using various devices; Android devices now make up 39% of smartphone transactions in the U.S. for retail. In addition, Android smartphone share of ecommerce transactions is higher than the iPhone’s in several countries such as Germany, Italy, Spain, South Korea and Brazil.

Mobility, once the wave of the future, is here, and retailers who are ill-prepared will drown in their own antiquated ways. Retailers must ensure their m-commerce sites are tied into their e-commerce and brick and mortar channels, and are effortless to use, because mobility without ease will get them nowhere fast.

 

by Retail Pro

Pave a path toward ecommerce success in 2015

The past 12 months have been filled with gains in the ecommerce arena, as companies from around the globe have become a bit more competitive in the digital realm. No longer are retailers capable of truly competing without having at least some foundation in the World Wide Web, while the complexities and challenges of doing so in such a way that separates the business from others in the market are intensifying as the years roll on. 

In a word, the time is now to iron out ecommerce strategies before the new year begins, as studies have indicated that consumers will continue to flock toward these platforms and websites to make purchases on products and services. When these platforms are efficient and intuitive, strategies are aligned with best practices and marketing programs are fueling traffic to the websites, retailers will be able to position themselves for success. 

How to make it fly
CIO Magazine recently suggested several steps all ecommerce retailers should take soon to ensure that they perform more prolifically in 2015 than this year, affirming that this begins with taking a close look at the website and evaluating where it is in need of improvement. Considering the fact that the firm has 12 months to look back on, leaders would do well to also look for issues that caused website disruptions and outages. 

According to the news provider, when evaluating the accessibility, seamlessness and reliability of their website, decision-makers might want to also look at the design and layout of various pages, ensuring that every component is going to catch the eye of the viewer. Not surprisingly, the source urged companies to make their ecommerce websites accessible via mobile devices, as smartphones and tablets continue to take up a larger market share of all revenues online. 

This was further illuminated during Thanksgiving weekend, when mobile devices accounted for much higher rates of purchases on Black Friday and Cyber Monday than was the case in 2013. All signs point to continued growth in the frequency of mobile-driven purchases and commerce. 

Finally, CIO Magazine went on to explain that the metrics and tools used to evaluate performance and other activities should be ironed out, with analytics solutions being deployed as soon as possible for maximum intelligence in real time. 

Keep it cohesive
Another strong move ecommerce retailers should consider making is to adjust marketing plans to ensure that brand image is cohesive across all platforms in use, and that the highest possible traffic volumes are hitting the actual product and service pages. When marketing and ecommerce platforms are disjointed, consumers will be less likely to see a consistent and preferable brand voice and image, leading to fewer conversions in many situations. 

By leveraging a comprehensive strategy that governs activity from lead generation all the way through client relationship management down the road, 2015 can be a highly successful year for all retailers. 

by Jennifer Bosavage

Same-Day Delivery a Gift to Holiday Shoppers

The omnichannel is evolving further this holiday season, as online shoppers will be able take advantage of same-day delivery at several large retail chains as well as several malls. The idea is to combine the benefits of e-commerce — 24 hour availability and convenience — with those of brick and mortar — namely, immediate gratification.

Online ordering and same day delivery helps retailers compete against Amazon.

Online ordering and same day delivery helps retailers compete against Amazon.

Two retailers, Macy’s and Bloomingdales, have launched same day delivery for their online customers who live within a 15-mile radius from the store. The solution takes the click and collect model and extends it to delivery. It works like this: A shopper buys online from Macy’s, for example, and selects same day delivery. Macy’s collects the items and brings them to a central location within the mall. A service called Deliv picks up the order and brings it to its destination the same day the order is placed.

Of course, the system requires that either online and brick and mortars offer the same inventory, or that the service is not provided on every item available online. Further, malls are offering this service to their retail tenants as a way to promote foot traffic in the stores; the pleasant experience the customer had online will encourage him or her to visit down the road.

Deliv uses a same-day, crowd-sourced model similar to the car service app, Uber. However, Deliv corrals drivers to pick up packages for delivery, rather than customers looking for a ride.

Deliv offers a welcome convenience to the mall-weary in Chicago, Houston, Los Angeles, San Francisco, San Jose, Seattle and Washington, D.C. It, like a similar service called WeDeliver, helps retailers compete directly against the same-day delivery service offered by Amazon. While Walmart is trying out a similar service,  working with third-party crowdsourced services seems to be more economical, allowing traditional retailers to cut delivery costs and giving Amazon a run for its money. But don’t count Amazon out just yet; it is testing its own fleet of trucks for same-day deliveries — and has even experimented with using taxis.