Views > ecommerce
Learning from the
downturn
One man’s
profi tability are becoming realised as never important as a browsing platform. Consumers
before. Ecommerce moves from receiving a should be able to make a purchase in whatever
cursory glance to becoming a board priority. platform suits them best, even if that means
using two or three channels—for instance,
pick of
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Ecommerce moves from local to global. browsing and buying online and then picking
The European Commission released in May up in-store on their lunch break. Selective
the results of a poll exploring consumer online product ranges discredit a multichannel
emerging
attitudes to cross-border ecommerce. The offering and are highly irritating to any
report revealed that there is a low level of consumer trying to browse or buy online.
trust amongst consumers making transactions
ecommerce
from a website in another country. A third of
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The social explosion continues. Social
respondents said they had considered making media—which for the sake of our discussion
an online purchase from a foreign site because we could describe as any online peer-to-peer
it was “cheaper or better”, but only 7 percent communication—will continue to permeate
trends for
had actually completed an international online the mainstream ecommerce offering in 2010.
transaction. In short, the report pointed to the Merchants initially viewed consumer product
fact that while country-specifi c ecommerce is reviews and discussions as a threat, as the
2010
doing well, the potential for cross-border trade feedback could be negative, and the retailers
is failing to materialise. lacked control over it. The fact is, however,
Truly global brands will look for the right that authentic and sometimes negative reviews
strategic platform to develop and grow this reinforce the platform’s credibility and instil
n January 2008, experts were business, moving fast to resolve internal trust in consumers. Shopping is fundamentally
I
predicting that the following two complexities in pricing and organisational a social activity, and this interaction online
years would be some of the worst for structure and external complexities around mirrors the offl ine experience.
retailers in more than two decades. payment methods, privacy laws, and local What is important to remember is that
Since then the turbulent trading consumer behaviour. Larger brands will identify social media should enhance a great modern
conditions appear to have clearly and invest in international expansion as a core shopping experience and should not be
distinguished the market leaders from the rest long-term growth proposition, one that will something novel and trendy that inhibits or
of the pack. At the same time, some emerging surely prove to be a large source of payback slows down your customers’ online shopping
trends became apparent. For instance: during the next 10 years. experience in any way.
We will also see local retailers look tactically
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Ecommerce arrives as a board priority. to expand beyond their borders, in some cases Although the online retail space is set to
Challenging economic times and ensuing taking advantage of the weak pound. These expand in 2010, competition will become
restrictions in capital spending have meant efforts will largely prove small and short term. tougher, and with the increase of cross-border
that all retailers have been forced to spend Smart retailers will keep their primary focus on etailing, the competition will be at a global
more time analysing the different areas of their serving their core market, and while others may level. Consumers’ expectations of an online
businesses to justify investment. A consequence temporarily lose focus by chasing international shopping experience will also become more
of this closer attention is that many in senior volume, they will soon realise that focus on the sophisticated. Covering just the basics of an
management who were previously indifferent core needs to be maintained. online experience will no longer cut it. A
have realised the potential and profi tability of seamless multichannel experience that includes
investing in ecommerce.
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Online product ranges grow from selective a consumer browsing products and reading
With the current squeeze on wallets, to expansive. As ecommerce gains credibility product review sites with his mobile phone will
consumers are making more purchases online not only as an extension of a core business become standard. Staying ahead of your game
in an effort to save money. This has led to activity but also as a core activity in its own right, and anticipating consumers’ expectations will
an overall increase in online sales. As such, independent ecommerce profi t-and-loss targets ensure your business remains robust.
retailers have also seen that investing in a will disappear, and investment in providing full
streamlined online strategy is highly profi table product ranges will become the norm. Steve Davis is executive vice
and, particularly in the current climate, can Offering the full merchandise range online
president and president,
yield signifi cantly more than investing in is fundamental to a streamlined multichannel
international for GSI Commerce,
traditional growth areas. offering. As 60 percent of purchases made
With this shift in focus and investment, in a bricks-and-mortar store are researched
a provider of multichannel
ecommerce’s credentials and potential for online beforehand, your website is immensely commerce solutions.
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