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What e-Commerce Growth Says About Online Shoppers
During the past three months, a variety of reports have been published highlighting the growth and success of the e-Commerce industry. Just this week, comScore, an Internet marketing research firm, reported that online retail spending increased a staggering 12 percent in the first quarter of 2011. While this is another great piece of news for e-Commerce, what we found most compelling about the report is what it revealed about the buying habits of online consumers.
The comScore report attributes the 12 percent growth to an increase in the number of online buyers (up 7 percent) and transactions per buyer (up 9 percent). While it is obvious that these statistics are in line with the overall increase in sales, the report also found that there was a slight decline in dollars spent per transaction (down 4 percent). This particular finding raises some very interesting points about the differences between online and real world shopping.
When it comes to traditional retail stores, price is everything. Retailers at brick and mortar stores define success in terms of the amount of money derived from each individual sale made. On the other hand, online merchants focus the bulk of their effort on driving traffic to their sites and converting visitors into buyers. In the virtual world, monetization is not about price-point. Instead, it is about leveraging online media, such as social channels, to draw consumers in and then create a shopping experience that keeps them coming back time and time again.
In the past, we have discussed how online merchants can best leverage the influence of the social Web in order to attract and retain customers. Additionally, we have touched on the importance of creating a seamless purchase experience for buyers. The latest comScore report proves that these online shopping trends are effectively changing the economics of online shopping. As the dynamic between online merchants and online shoppers continues to evolve, Plimus will continue to provide the tools necessary to successfully monetize today’s virtual economy.
| Print article | This entry was posted by Charlie Born on May 16, 2011 at 4:38 pm, and is filed under Conversions. Follow any responses to this post through RSS 2.0. You can leave a response or trackback from your own site. |
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