Group buying sites are growing like weeds in the digital commerce space. Every day it seems there's a new one offering discounts to expensive restaurants or a new approach to the flash sale. That's because the category is bringing in revenue hand over fist.
Just yesterday, I wrote about how these sites are using gaming tactics to separate shoppers from their money. And today comScore released some numbers that help explain the growing popularity of these sites. In addition to the great revenue they bring in, they're actually getting people to spend considerably more money online.
At TechCrunch Disrupt on Wednesday, The Future of the Market Is Social panel was stocked with executives from new media commerce companies that have seen impressive growth in the past few years. Rather than trading on low prices, companies like Gilt Groupe, Etsy and OMGPOP work to develop other sales advantages. And they all emphasized the role of community in their sales efforts. But going forward, they agreed that retailers will be relying on another trick to sell goods: game theory.
What do you sell? I mean really, what is it that you actually sell? Why do people visit your website, or even buy your product? What do you offer that compels them to do this?
In a world of substitutes and alternates, we have to learn to better understand what drives our customers. Understand this and you understand how to make your site more effective.
If you’ve read the Selfridges Site Review, you’ll know that during
testing, I came across a quite a severe bug. This bug displayed a
confusing error message at the checkout when I was trying to place my
order, but also charged my card at the same time. What fun.
Inspired by this, I've written about four simple & easy to implement ways to reduce onsite errors, whilst making your Helpdesk staff's job a bit easier.
Double-digit growth over the next five years? We'll take it, particularly in the wake of a grueling recession.
This according to Forrester, which is predicting that by 2014 US online retail will grow at a 10 percent compound annual growth rate to reach nearly $249 billion. Correspondingly, the major Western European nations will grow at an 11 percent CAGR, hitting €114 billion in five years' time.
On Monday, after a year of industry rumours and hushed gossip, luxury
retailer Selfridges launched their full commerce offering, having
previously only sold sundries such as hampers online.
As someone who
spends an inordinate amount of time looking at pretty bags, I couldn't
but help get stuck in with a site review.
Impressive advances in e-commerce websites — and consumer web proficiency — have changed the business of online shopping. But while retailers may have started to downplay the importance of catalogs a few years ago, there is still plenty of insight to be gained from those print products.
In fact, according to Coy Clement, who runs catalog and multichannel direct marketing consultancy clementDirect, online shoppers who read retail catalogs are often better at using e-tail websites than those that get there through search engines. A look at one of his client's website's — J.Crew — shows how retailers can take those lessons to heart.
Online retailers have made a lot of progress in the past year, increasing conversions, sales and customer satisfaction rates in the 2009 holiday season. But that doesn't mean that consumers are happy with the online shoping experience. According to a survey from performance monitoring company Gomez, 1/3 of consumers had a poor online shopping experience during the 2009 holiday shopping season.
More problematic for retailers is the fact that consumers couldn't care less about the increased pressures that retailers are under during these times. Of those surveyed, 88% of consumers who have a bad experience on a website during peak hours may never come back.
Retail has been hard business in this recession, but over the 2009 holiday season, there were many winners, and those companies that learned how to listen and serve their customers online reached well deserved sales figures.
Traditional retailers have worked hard to compete with online brands on price and consumer satisfaction. And while they may not have reached their goals just yet, they are getting closer. According to a new survey from RIS and IHL Group, many retailers are focusing on improving their cross-channel capabilities in 2010. And if there's a lesson from 2009, it's that those retailers that don't keep up in digital will fall behind in sales goals overall.
Domino's may be focusing on better tasting pizza in the states, but in the U.K the chain increased sales last year the way it always has: by making it easy to get pizza.
Acknowledging a weakness in their "core product" of pizza, Domino's has spent the last few months revamping its recipes and relaunching its pizza brand stateside. But it looks like a cold front in the U.K., some key brand partnerships and revamped digital efforst are to thank for the company's sales boost across the pond in 2009.