U.K. shoppers reveal pros and cons of online retail experience

It's no secret that not all traffic to an ecommerce website will result in sales, but a decent amount of customers select items and begin the checkout process only to abandon their digital shopping carts at the point of sale. The issue is costing U.K. retailers more than £1.02 billion (nearly $600 million) annually, according to a recent Experian report. The findings also indicated that online shoppers were deciding to not purchase items due largely to inefficient and archaic identification processes, but there are many other reasons for shopping cart abandonment as well.

What services are working to convert site traffic to sales?
CWCS Managed Hosting, a U.K. server and hosting company, recently conducted research to learn more about what convinced and dissuaded British shoppers from making purchases online. Some aspects of ecommerce software may not only meet customers' expectations, but convince them to spend even more than they might've planned. For instance, 53 percent of shoppers who took part in the survey said they were likely to spend more when an online store offered better payment security, and 49 percent felt that better personal information protection gave them the confidence to spend more.

Online merchants may want to emphasize these two areas of their retail management systems as well as accurate delivery dates, more payment methods and customized offers. All of these factors have helped encourage shoppers to make bigger purchases, so improving upon them may drive sales.

Why are shoppers abandoning carts?
The biggest issue that led to abandonment was unexpected costs, which were enough to convince 56 percent of shoppers not to buy. Another 26 percent were dissuaded from making a purchase if they were required to register an account on the retailer's site. Merchants may want to offer a way for buyers to check out without signing up, such as creating a guest account option.

Confusing navigation, site crashes and prolonged load times rounded out the top five reasons British shoppers changed their minds about making a purchase. In fact, the researchers learned that 57 percent of online shoppers give up after waiting just three seconds for a page to load. Retailers may want to take a closer look at their sites' functionality and the quality of the online shopping experience. Better POS software, for instance, could help reduce the frequency of cart abandonment.

Keep up with fast-changing online luxury retail trends

Consumers who shop in the luxury retail sector may expect more from online retailers in terms of shopping experience, ecommerce software and point of sale offerings, among other factors. A recent McKinsey survey looked into trends among this consumer demographic in the study "Digital Luxury Experience: Keeping up with Changing Customers."

The report revealed that online "window shopping" influences purchase decisions for more than 45 percent of luxury consumers, and researchers indicated this trend will continue to increase in coming months and years.

"Most shoppers may remain reluctant to purchase more expensive and custom products online, preferring to see them and touch them first," wrote McKinsey analysts, "but many will compare product features and prices online before settling on one to buy and choosing a retailer."

The researchers found that roughly three-fourths of luxury shoppers own smartphones and half own tablets, making it important for retailers to develop a streamlined omnichannel experience that can take users from their smartphones to their PCs to brick-and-mortar stores. For instance, allowing shoppers to add items to their digital shopping cart via a mobile device and having the selection ready for in-store pickup could give retailers an advantage in securing luxury sales.

India’s online retail growth driven by women and mobile users

India is currently experiencing major growth in its online retail industry driven in part by female shoppers and mobile purchases. The Internet and Mobile Association of India recently estimated the number of online retail businesses serving India to be approaching 1 million, and this sector is estimated to be worth about $12.6 billion, according to The Economic Times of India.

"Nearly 1 million large and small retailers make use of online marketplaces to reach out to their customers in India today," Subho Ray Friday, the president of the IAMAI, said in a release, the source reported. "These online retailers represent a very wide range of categories including electronics, books, apparel, accessories, footwear and jewelry."

Women are driving online sales growth
A recent report by global venture capital firm Accel Partners revealed that the online consumer base in India, which was 20 million in 2013, could reach about 40 million by 2016. This will largely be due to female shoppers, as they will grow five times more influential for online sales by 2016, especially in categories such as fashion, jewelry and motherhood products. Fashion ecommerce, for instance, is set to grow exponentially. It doubled between 2012 and 2013, and by 2016 Accel predicted this sector would increase another 400 percent. Jewelry, accessories and other female-led retail sectors are already making moves to online shopping platforms, according to the IAMAI report.

Mobile sales will continue to increase
Ladies aren't the only influence over India's online retail customer trends, either. Mobile users are becoming a formidable demographic for retailers as well. Tech Crunch indicated that India currently has about 155 million citizens using mobile devices to go online. Between 2012 and 2013, the amount of people using their phones to shop online increased by 800 percent, and that trend is expected to continue at a compound annual growth rate of 150 percent through 2016.

Having a mobile-optimized site will prove to be an advantage in coming years for retailers in India, as most online merchants have yet to invest in ecommerce software that works across multiple channels. As mobile shopping increases, Indian retailers may want to invest more time and funds into mobile marketing. Currently, the budget for marketing initiatives tends to be less than 10 percent of a company's overall marketing budget, according to the Accel study.

Optimize ecommerce software languages to extend global reach

When consumers are able to browse a website in their own language, they'll likely be more inclined to make a purchase than if they have to navigate a site in another language. Thankfully, ecommerce software and retail websites can be optimized to provide different language options.

A recent Common Sense Advisory Study revealed the importance of catering to an international clientele in terms of language. The study found that nearly 75 percent of non-English-speaking shoppers would rather buy products from sites that are in their native languages, and more than half will exclusively shop on sites in their own tongue.

Providing visibility in product descriptions and at the point of sale for an international audience can help to drive up sales. Business News Daily suggested a few different language options for retailers to expand their global audience. Crowdsourced translations, for instance, may be an inexpensive but lengthy option to convert a site to a new language. Retailers can also consider hiring professional translators or using translation services. It is important to know, however, that online translation tools like Google Translate may not generate perfectly accurate translations, which is why it may be beneficial to have a native speaker on board as well.

Internationally capable retail management software may provide retailers with a competitive edge both online and in-store. RetailPro offers retail management software that offers more than 18 language options, making it easy to implement language options that will be sure to please a global customer base and help a business grow.

Embrace social media as a customer service outlet

Everything moves faster in the digital age, so it is important that your retail business's customer service keep up with the fast pace. Social media can provide an excellent opportunity to improve and personalize the experience for your customers.

Even if you have ecommerce software that provides a traditional way for shoppers to contact your company, whether through email or a dedicated phone line, offering alternative methods for customers to reach out with questions regarding your products and services can create greater transparency. In turn, this may lead to better customer loyalty and improve your reputation as a merchant.

Practical Ecommerce suggested setting up a Twitter account that focuses only on customer service, giving customers an easy way to get answers. The added benefit of this is that inquiries and your responses will be visible to the rest of your customer base, so it can act as an alternative to a frequently-asked-questions page on your website.

Keep in mind that the way you respond to customers will be visible as well. U.S. News and World report suggested avoiding negative responses, as these can reflect poorly on the business. Deal with unhappy customers in a positive and helpful way rather than starting an argument.

Retail sales climbed around the world in February

As the second quarter of 2014 begins, reports of month-over-month retail sales from countries around the world have begun to pour in, and most nations have seen improvements. For some nations, retail business intelligence reports from February were in line with expert predictions, while others saw better-than-anticipated improvements in this sector.

United States
The U.S. was one country where retail sales beat out expectations. Reuters reported that sales across the nation fell 0.4 percent in January, so economists were cautiously optimistic that they would increase 0.2 percent in February. However, once the month came to an end, February saw a rise of 0.3 percent, just slightly beating predictions.

United Kingdom
Food and online retail drove sales up in the U.K. this February, which saw an annual increase of 3.7 percent, according to Bloomberg News. This is three times higher than experts had predicted, showing that Britain's recovery from the recent global economic slump is continuing.

"Consumers are still loosening their purse strings," Samuel Tombs, a British economist told the source. He explained that the latest numbers show the economic growth is so far remaining strong in 2014.

Australia
Things are going well in Australia as well, as February marks the 10th consecutive month of growth for the nation's retail sector. The Sydney Morning Herald pointed to low interest rates as a driving factor of the 0.2 percent increase in retail spending. Unlike the U.S. and the U.K., Australia did not outpace predictions. Rather, the nation's retail market is behaving just as economists guessed it would.

However, the upward trend may slow in coming months, as one expert told the Herald that a dip in consumer confidence may result in slowed growth.

Eurozone
​Unlike Australia, the Eurozone experienced a rise in retail sales that far surpassed expectations. Experts had predicted this region would see a 0.5 percent decline, but it turned out that February's retail spending actually climbed 0.4 percent, according to RTT News. The news source indicated that while the month-over-month increase was good news, it didn't change much in annual terms.

As sales improve on a global scale, there is room for retailers to improve and expand their businesses. For instance, taking advantage of point of sale and ecommerce software to streamline and improve the buyer experience can help draw in and retain more customers.

Mobile shopping on the rise in Taiwan

Taiwan shoppers are following global retail customer trends by shopping online via mobile devices. The Taipei Times reported that smartphone and tablet purchases are outpacing computer-based sales. Online sales made through PCs only increased 1.3 percent between 2012 and 2013, according to the latest data from Taiwan's Market Intelligence and Consulting Institute, as reported by the news publication.

While computer sales increased only slightly, purchases via mobile devices saw a massive surge in comparison. This sector of online shopping grew by 365 percent to become a much more formidable aspect of the retail industry in Taiwan. Mobile sales only came to about $152 per person (up from just $33 per person the previous year) compared to computer sales, which reached only about $575 per person in 2013, but the massive increase indicates a strong trend toward mobile shopping.

According to a report released in February by Digital Strategy Consulting, 68 percent of shoppers across the globe have made purchases on their mobile devices, and 60 percent rely on smartphones and tablets as their primary means of accessing the Internet. For this reason, online retailers may want to invest in ecommerce software that can function smoothly across any platform. Having a solid point of sale that is easy to navigate regardless of the device it's being used on can help drive sales.

Fashion retail: Reduce online returns

Buying clothing online can be a risky venture, as the products may not match their descriptions exactly, and this often results in consumers returning goods to online merchants. The rate of online returns of clothing ranges between 20 and 50 percent of purchases, according to various news sources, including the New York Daily Post. This highlights a need to provide better and more accurate information to shoppers. Reducing the rate of returns can help improve the customer experience and keep retail inventory management in line.

Consumers commonly return clothes due to poor fit, which can be traced back to a lack of transparency about the items. The Washington Post reported that technological options may be able to improve consumers' ability to get a more accurate idea of how clothing will fit before they buy. This has the potential to leave more customers satisfied in their purchases the first time around, scaling down the rate of returns.

Even with the best efforts and intentions, it's still likely that some shoppers will need to return or exchange items they purchase online. Retailers may be able to keep these customers coming back if they have solid return policies and easy-to-navigate ecommerce software to streamline the process. Online shoe and clothing retailer Zappos.com, for instance, includes a return shipping label with every purchase that makes it easy to box items up and send them back if they don't fit. 

How can retailers adapt to the changing teen retail sector?

The overall retail market has seen moderate increases in month-over-month sales, but retailers that target teenage shoppers are not doing so well, according to the latest retail customer intelligence. The New York Times reported that sales have been dropping for many teen apparel stores lately, due to fashion trend lulls as well as a shift in interest among this age group. A recent Thomas Reuters survey of retail analysts predicted a decline of 6.4 percent in sales by the fourth quarter, making it clear that retailers will want to develop new marketing strategies to bring customers in and make sales.

Where are teens shopping?
A recent survey conducted by StageofLife.com found that only 37 percent of high school and college students went shopping more than twice a month, and the majority (77.5 percent) preferred visiting brick-and-mortar locations to online shopping. However, this demographic may not have the spending power needed to bolster the sector. The NY Times pointed to high unemployment rates among teens, and the survey confirmed this. Only 27 percent of respondents used funds earned at jobs to shop, while 10 percent didn't have jobs or money to spend. 

How can you best market to this demographic?
Social media may prove to be the most useful tool in getting a sense of teenage retail customer trends, but retailers will want to look beyond typical outlets like Facebook and Twitter to reach this consumer group. Teens are less likely to be engaged on Facebook than older adults, as a marketing agency director explained to The Guardian that teenagers prefer more simplistic, direct forms of online communication. Connected apps like Instagram, SnapChat and WhatsApp may prove more lucrative platforms to engage this group

What else can you do to improve the shopping experience?
The current teenage population has grown up surrounded by technology, so having modern ecommerce software is a must. It may be worthwhile to consider adapting the point of sale systems in-store to improve the shopping experience. According to Sap, 30 percent of retailers are planning to upgrade their POS software in 2014.

Omnichannel strategies that allow shoppers to seamlessly switch between mobile, online and in-store shopping may also prove attractive to younger customers. SAP suggested that creating a consistent brand experience can take a while, and it may be better for retailers to approach integrating the shopping experience one step at a time for a more fluid transition.

4 myths about brick-and-mortar retail debunked

Brick-and-mortar retail is not going to be replaced by online shopping – far from it. More retailers are integrating their shopping experiences across all mediums with omnichannel strategies and ecommerce software that allow customers to seamlessly transition from online browsing to in-store shopping, and this seems to be paying off.

Myth #1: Consumers prefer shopping online.
While online shopping is a growing sector of retail, consumers are not shying away from visiting store locations to make purchases. A study conducted in 2013 by global management consulting firm A.T. Kearney found that more U.S. and U.K. shoppers were heading to brick-and-mortar locations than shopping online. Specifically, 61 percent bought items in-store versus only 31 percent who shopped online.

Myth #2: Physical stores are just showrooms now.
For a while it looked like consumers were beginning to visit stores exclusively to examine products before returning home and ordering these items online, but that stampede has slowed significantly. In 2012, roughly 50 percent of online purchases were made after consumers visited stores, but this number dropped to just 30 percent in 2013, according to IBM studies as reported by AdAge.

Myth #3: Brick-and-mortar stores cannot compete with online technology.
There have been many advancements in technology that make it easier than ever for retailers to enhance the way they run their brick-and-mortar locations. For instance, the point of sale experience can be enhanced with modern POS software that makes transactions more efficient. Merchants may be able to track their customers' purchases to tailor special promotions to the individual. Retail Customer Experience pointed out that customer-specific data can be used for loyalty and rewards programs that have the potential to drive in-store sales even higher.

Myth #4: Online prices are too competitive for brick-and-mortar to match.
Online retailers may be able to offer lower prices on the same goods that are sold for more in brick-and-mortar stores, because the businesses don't have to factor in extra costs of running a store. However, more than 50 percent of shoppers said they would buy in-store after researching product information and reviews online, according to a report titled "Showrooming and the Rise of the Mobile-Assisted Shopper."

"[Mobile] shoppers show a strong willingness to join loyalty programs in exchange for rewards, and this gives retailers the chance to build long-term relationships with them," said study co-author Rick Ferguson, vice president of knowledge development at Aimia, a global loyalty expert that partnered with Columbia Business school to conduct the research. 

The rise of online retail presents new challenges for the brick-and-mortar sector, but there are myriad ways for businesses to enhance their physical locations to continue to appeal to shoppers.