Is Retail Dying?: Why E-Commerce is More Efficient
- December 7, 2020
- Written by : Carl Eschenburg
Our most recent Black Friday Shopping experience says it all. This one-day event turned into a week of discounts, with a majority of deals listed as available-online.
Weâ€™d be wrong to say that a true shopping experience is going out of style, which it why Neil Stern, a senior partner with the retail consultancy McMillan Doolittle says, â€œphysical retail isnâ€™t dying. Bad retail is.â€
Now, why is this? If a shopping experience is so appealing, why are e-commerce sales skyrocketing why retail sales are slowing?
E-commerce is efficient, convenient, and personalized, and benefits both business owners and consumers.
E-commerce Efficiency & Convenience
On the consumer side
Online shopping gives consumers the freedom to shop how they please. One can see few big differences as far as convenience goes: comparisons, discounts, and ease.
Consumer decision making has been made simple through comparisons. For example, instead of comparing three shirts by trying each on in the dressing room five times each, consumers are viewing their favorite items in multiple opened tabs on their computer.
Next, with too-many-to-count online discount applications or websites such as Honey. Consumers are able to apply coupons and codes to just about every purchase made online.Â
Lastly, consumers are able to browse through hundreds of online items from kitchen pieces to clothing without moving a foot, making their shopping experience simple and easy. Have you ever walked into a store with an agenda. Yet walk out empty handed because you didnâ€™t find something or because the item was out-of -stock? TOne can solve these problems with online shopping; consumers can search, decide, and purchase without hassle.
On the business side
Businesses are benefiting from e-commerce in many ways: working capital is increasing due to lower demand for in-store employees; the use of technology is simplifying the way we track and target customers allowing businesses to become more automated; sales are increasing due to greater personalization and customization permitted in online shopping.
E-commerce Advertising & Personalization
On the consumer side
Oh, how advertising and marketing have changed. Businesses now have the ability to target, track, and re-market to all consumers. Crazy, right?
Think about it. Have you ever bought something online, decided not to, and then a few days later received an email or a pop-up banner ad that reminds you of your sitting-on-the-shelf product ready to be purchased? This is a prime example of re-marketing at its finest and happens more than youâ€™d think; in fact, the average shopping cart abandonment rate is around 68.8% according to the E-commerce Guide in 2020.
On the business side
Once you are on the list (and you are probably on the list, just FYI), one can track you by businesses. If they can understand why earlier you click on certain pages; what part of the journey you stopped in prior to purchase, and why you were interested in the product or service, then they can personalize your ads online.
Ads made easy.
But â€” personalization doesnâ€™t just come in handy for tracking purposes. Itâ€™s also a great way to customize your consumers shopping experience.
According to writer, Jia Wertz of Forbes, “successful e-commerce companies are leveraging personalization technology to give consumers a customized experience. Delivering personal experiences on e-commerce sites is achieved by dynamically showing content, product recommendations, and specific offers based on browsing behavior, previous actions, prior purchase history, customer demographics, and other enriched personal data. As compared to traditional retail, e-commerce doesnâ€™t include a retail salesperson to recommend products based on interest, preferences, or tasteâ€¦ And, that is the magic of personalization â€“ mimicking what a consumerâ€™s in-store experience would be, through a personalized customer journey online.â€
As you can see, e-commerce is advancing and advancing quickly. Are you advancing and evolving alongside as a business owner?
Learning to leverage e-commerce to benefit your company is crucial, and we can help. If you need new technology and equipment to make this happen, weâ€™re your guys. If you need additional working capital to go after partnerships or to expand, weâ€™re definitely your guys.
At REIL Capital, weâ€™re here to help.