Wednesday, May 1, 2013

Is it time to get into the e-commerce game?


First, I want to be clear about who I am talking to. The title of this article would suggest that it’s only for those who don’t currently have an online store. While it does speak to that audience, those of you who do have an e-commerce solution already might ask yourself the following question: are you actually in the game?


The direction we’re moving: an overview of the stats


According to Forrester Research by the year 2016 consumers will spend $327 billion (that’s billion with a “B”) online. That is a 45% increase from the past year, 2012. The study attributes much of this growth to improved website functionality. You might be thinking, “that’s just from ‘online shoppers’” (i.e. those already doing their shopping online.) True. However, the number of those doing their shopping online is also steadily increasing and is projected to be up 15% by 2016. In short, more people are doing their shopping online and those
already there are spending more.


What does this mean for you?


It’s obvious that e-commerce is more than a fad. For those of you who have products to sell and aren’t selling them online, it’s probably time to consider what an e-commerce solution could mean for your company. For those of you who are B2B, don’t think this doesn’t apply to you. The number of wholesalers and distributers on the web is also on the rise. Again, according to Forrester Research, B2B e-commerce sales are expected to reach $559 billion by the end of...wait for it. 2013! Half a trillion dollars of B2B revenue will be generated from online purchases by the end of this year. Think about that for a minute. Lastly, those of you who have an e-commerce solution, think about
these three questions:

Have you reached a glass ceiling?


Some popular e-commerce solutions out there seem great at first blush, however after a few years you realize there’s little room for growth. You’re not getting the brand awareness you wanted, you’re limited in the number of products you can offer and you can’t offer your customers the latest tools that emerge as the result of the thriving industry that is e-commerce. On top of all that, you’re being charged transaction fees and closing costs. If any of this is remotely familiar it might be time to consider a more scalable platform.


Are you competitive?


Again, because the e-commerce industry is booming, new tools are constantly emerging from innovative developers. You want to make sure that you’re on the front end of that innovation, and are showing your customers you care about their online experience by making it easy for them. Which leads us to the final question.


Do you have customer loyalty?


Online loyalty programs are all the rave. Giving your customers specialized pricing or reduced or expedited shipping will keep them coming back for more. The percent of online shoppers belonging to a customer loyalty program was at 12% in 2011, up from 9% the previous year according to Forrester. Of the 12% that belong to programs, 61% said they purchased from the retailer offering that program at some point throughout the year. You spend time getting the customers, make sure you’re keeping them.


In the end...


You can ignore it, but what are you losing if you do?

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