Tag: E-Commerce

Forecast GBP 28 bn online Sales by 2011

Posted by | Jul 14, 2007 | |

According to a recent study by retail analysts Verdict Research, online sales in the UK will almost triple over the next 5 years and they predict that online spending will reach GBP 28.1 bn in the UK by 2011 – equivalent to 8.9 pct of all UK retail spending.

The report reveals the fastest rate of growth in the online sector since the bursting of the dotcom bubble in 2001. In 2006, online retail spending in the UK grew by 33.4 pct , to a record GBP 10.9 bn, almost 13 times faster than the retail sector overall. (Verdict Research figures in this report exclude spending on services such as flights, tickets and insurance).

Despite the scale of this online opportunity, the report urges retailers to take care not to jeopardise the trust of their customers. Whilst we mentioned earlier that we’re pretty relaxed about spending GBP 2.3k online, not all online shoppers are like us and many shoppers still need great assurance that their financial details are safe online.

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Market forces raise the bar for delivery

Posted by | Jul 1, 2007 | |

While retail web sites work to differentiate themselves from stores with web-only features, personalized services, detailed imaging and other tactics, there always will be one thing that separates sites from their braicks-and-mortar counterparts: a reliance on delivery services to fulfill online customers’ orders.

And as shoppers have become more accustomed to online retail, their expectations of timely and reliable delivery services—across a variety of delivery options—have only increased. A comprehensive shipping policy has become a crucial part of e-retailing, experts say.

“A critical component of the online checkout process is the determination and selection of a shipping option,” says Rob Garf, vice president of retail strategies at research and advisory firm AMR Research Inc. “Retailers must offer multiple delivery methods, including overnight, ship-to-store and split shipments, and be crystal clear regarding cost and timeframe.”

For Internet retailing, the average postal rate increase comes to about 6 pct, says David Marinkovich, senior vice president of sales and marketing at DHL Global Mail. “The cost of fuel is having a big effect on retail shippers, but the Postal Service rate change that went into effect May 14 is the most dramatic postal rate change ever,” he says. “Some retail organizations that sell products like CDs, video games, books and apparel are looking at rate increases of about 54 pct.”

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Jupiter research forecasts that off-line retail sales influenced by online research will reach one trillion dollars by 2011

Posted by | Jun 15, 2007 | |

US Online Retail Sales Will Grow By 16 Percent in 2007 But, As The Channel Matures, Growth Will Slow To Single Digits By 2010

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, forecasts that off-line retail sales influenced by consumers’ online browsing and research will increase by a compounded annual growth rate (CAGR) of 12 percent over the next five years. Detailed in a new report, “US Online Retail Forecast, 2006 – 2011,” the healthy growth of off-line-influenced sales will reach 40 percent of total US retail sales by 2011.

“Online retail sales are maturing and the lion’s share of future growth will primarily come from existing buyers spending more in the online channel,” said Patti Freeman Evans, JupiterResearch Senior Analyst and lead author of the report. “Assuming growth continues in a similar trajectory over the coming decades, US online retail sales will plateau at 10 percent to 15 percent of total US retail sales, barring a dramatic change in the online shopping experience that promotes an inordinate spending shift among buyers.”

US online retail sales will grow by 16 percent in 2007 to reach USD 116 billion. Over the next five years US online retail will grow at a CAGR of 11 percent reaching USD 171 billion in 2011. Despite the slowing of growth in online buying, web influenced off-line sales will grow at a slightly faster pace over the next five years, reinforcing the vast advertising and marketing value retailer websites present.

“With market maturation comes opportunity for the retailers that can harness the power of the Internet to influence off-line sales,” said David Schatsky, President of JupiterKagan. “The key for retailers is to create clear, simple and convenient links to the off-line channels that persuade shoppers to stay with them as they cross channels.”

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Online retailers need to innovate more: eBay’s Briggs

Posted by | Jun 6, 2007 | |

The online retail space is growing with bandwidth expansion, and retailers need to match the growth with innovative ideas, according to a panel here at yesterday’s Internet Retailer Conference and Exhibition.

In his presentation titled “How eBay will Continue Reshaping the E-Retialing Industry,” Gary Briggs, chief marketing officer at eBay, challenged his counterparts in attendance at the show to think more outside the box.

“Online retail is rapidly maturing but we are not doing enough to innovate,” Mr. Briggs said. “I am offering a call to action to the industry to innovate more.”

One problem with the retail industry today is that online is not given the credit for what it is, according to Mr. Briggs. Online spending is often much less than traditional retail spend.

Also, retailers are not coming up with their own ideas but merely copying others.

“There is a lot more to offer than just free shipping,” Mr. Briggs said. “Free shipping is important but when I go to Web sites and look at how the marketing is done, there has to be more than free shipping to compete.”

Mr. Briggs said the way to innovate is for the brand to give up control and listen more to the consumer.

One example is the introduction of eBay Motors. EBay noticed a trend of users selling cars on its site, but it did not have a category for it on www.ebay,com. Users were listing cars in categories like toys and this was not increasing the sales. Since eBay added eBay Motors, the online retail giant has sold 2.5 million cars a year.

“Our system of innovation is more than what is inside the four walls of our company,” Mr. Briggs said. “We are trying to let the users help us shape how we create our Web site and offer products to customers.”

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