Online shopping continues to outperform the high street

Thursday Jun 18, 2009

As a typical male, I have never really seen the appeal of fighting with the rest of the world to get to the shops on a Saturday morning. The parking is always a nightmare, the shopping centres are crowded and by the time I actually find the men’s section, the last thing I want to do is rummage through rails and rails of clothing… This is the point at which I usually decide to hit the closest ‘watering hole’, feeling far less inclined to part with my shopping money.

Thank goodness for Internet shopping. It has changed all this for me. I can now shop from the comfort of my own home, choosing from thousands of retailers who are all trying to get me to spend my money on their site. The complete experience is one of ease and convenience (assuming the retailer has a decent ecommerce website!) and allows me to shop with speed, sitting back to await my delivery.

The growth of the online shopping sector has been impressive; in 2007 total sales grew by 35 per cent, and in 2008 growth was 25 per cent. Despite the current trading climate, this year we will see estimated web sales grow by 13 per cent exceeding the £20bn mark for the first time. Internet shopping will substantially outperform the high street, with an estimated sales decline of 0.6 per cent for 2009.

I’m sure not everyone suffers from my dislike of the ‘bricks and mortar’ shopping experience, so why else is internet shopping so popular?

The most commonly cited factor is that the Internet offers better value for money. The opportunity to buy low priced products from a huge choice of retailers is obviously appealing. Add to this the option to use comparison websites, cash back sites, discount codes and you can bring the item cost down to well below the price on the high street.

The shopping experience is also getting better and better. Ecommerce websites are advancing every day with new ideas and technologies. We’ve seen the introduction of 3D imagery, video content and even software that uses a series of interactive reality animations to provide realistic sensations for touch – one of the biggest limitations to buying on the internet.

The issue of trust has always been an interesting debate with concerns over personal security topping the list. The Office of Fair Trading (OFT) recently reported that for 2009 among those people who shop online, 54 per cent now feel it is as safe as shopping in store compared to 26 per cent in 2006. This improvement in trust will only grow, as more and more consumers improve their knowledge of the security in place and the protection that is available when shopping online.

So what next for the online retailer? The new challenge will be how to differentiate your business from the rest of the online market place as ecommerce sites become more and more prevalent. A well designed site, with an easy to use order and trusted checkout system may not be enough to keep your site outperforming your competitors!

Can Generate UK deliver your strategy? If you would like to talk about our services and how we can help your business, please do not hesitate to contact us on 01635 550431. Please feel free to post your comments.

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