5 critical e-Commerce trends to be aware of

Maybe you, like me, remember the "good old days" of marketing on the Internet.  The late 80's and early 90's were very much the wild, wild west of having an online presence.  Clunky websites with little pizzazz, zero visitor interactivity, and the same information you'd find on the company's brochures.  In short, their website was just a brochure - and usually done with way less class than the original!

In a report from earlier this year, Forrester Research Inc from Cambridge, MA, USA, identified 5 critical trends for 2011 and forward in e-Commerce.

1. The growth of multi-channel monster.

An increasing number of retailers are now multi-channelling their marketing efforts and seeing more of their sales through their web divisions than previously. This tendency for the web channel to outstrip the physical retail store has been going on for years.  But much of this growth is coming at really critical times, like Christmas. In another study, Forrester conducted in December 2010, 49% of online shoppers agreed with the statement: "I shopped at stores less because I bought online instead" when thinking of thier Thanksgiving experiences (Source: Forrester and Bizrate Insights Holiday Flash Survey.).
And there is nothing to show that this trend won't continue as more and more consumers become familiar, and confident, with shopping online.

Takeaway... Diversification of your online marketing strategy is critical.  Although the company website will still remain the kingpin, expansion into other areas is now becoming very important.

2. The explosion of tablet commerce.

Despite the fact that the iPad was only released to the market in spring 2010, it immediately distinguished itself to be a great traffic funnel device.  Many retailers report that even half of what they consider a mobile traffic purchase to be via these devices. This will probably lead to a new subset of mobile trade: tablet-commerce. This trend is also likely to continue as smartphones have the inherent weakness of a smaller form factor making it a challenge to purchase on them. So what's the future for smartphones, and other forms of m-commerce?  It will continue to grow, but for different reasons. While consumers are less likely to use their mobile phones as they will their desktop or laptop computers to surf the Internet, for now at least, they will continue using their phones to complete shopping transactions.  But tablet devices are expected to to steal market share from the traditional PC by freeing buyers from their desktops, allowing them to browse, research and shop while commuting, waiting at the airport, or even camping.

Takeaway... Thought needs to be given to mobile visitors.  Websites which are difficult (some are impossible) to navigate and use by mobile devices are potential money losers.

3. Online marketplace investment for retailers.

One very important fact surrounding e-Commerce in recent years is how Amazon.com has grown faster than the rest of the e-Commerce industry.  Despite their aggressive pricing and shipping policy, it has been very profitable.  The driver of profits is the Amazon Marketplace, a drop-ship model, in which Amazon picks up orders without holding inventory or incurring shipping charges (because the order is filled by other carriers).  Amazon also takes an income share of at least 8% of the price paid by consumers. Amazon has reported that these products are 34% of all units sold at their website.
Retailers who compete with Amazon have discovered that by offering  marketplaces on their own sites is essential to drive margins and remain competitive in pricing and shipping of items they hold in stock. Companies like Buy.com and Walmart have already introduced marketplaces.  Look for other in sectors such as clothing, toys and sporting goods to do the same. This strategy will help them to maintain a certain market share which would otherwise be lost to Amazon.

Takeaway...This is really a sub-set of point #1.  And it means diversification.

4. "Conversion marketing" mainstreaming.

Marketing tactics are a series of specific actions taken by retailers to drive more customers to their sites, and then covert more to sales while they are there.  This activity is rooted in behavioral ad targeting, which, over the years, has enabled the success of "intelligent display ads" by analyzing a shopper's clickstream paths and deduced intentions. 
Retail conversion rates are usually around 3%.  Conversion marketing provides opportunities to address the other 97% of visitors.  Some examples include new companies such as Runa, allowing retailers to enhance offerings to customers valid for the current session only.

Takeaway...This requires a move, in all areas, towards more intelligent ads (such as current session only offers), and the use of smart email campaigns.

Social networking5. Skepticism surrounding the role of social networks in terms of sales.

  Although the promise of social networks created a frenzy around the S-commerce '(social trade) and "F-commerce" (Facebook commerce), the reality is that the hype was more speculative than proven. For two consecutive years, Forrester's research with Shop.org has shown that, although traders have created a presence on social networks, most are unable to identify the ROI, with fewer noticing a growth in their business directly attributable to social networks.
Finally, what may spell the doom of the s-Commerce craze, was that, when Forrester's surveyed retailers in their 2010 Shop.org survey, social networks are actually ranked dead last on the list of the top 10 customer acquisition tactics.

Takeaway...Whilst there is no concrete evidence according to Forrester's survey, we, personally, still recommend a presence on Facebook and Twitter.  While they may not directly generate sales (but, then again, they may...), they still can give brand awareness, and consumers are still, in our experience, looking for companies to be on them.

Authors

Ian Shere

Ian has been in the web design world since the early 2000s. At that time, he was living in New Zealand and was operating a successful architectural design business that won a number of awards. He was an early adopter of web-based marketing for the business, and after having a local designer unsuccessfully complete a website for him, Ian took it upon himself to learn HTML and launch his own site.

25 years of web designing

The first iteration of the site appeared on April 1, 2001 (and it wasn't an April Fool's joke!), meaning Ian has been designing websites for over 25 years.

Web design in the early 2000s was pretty crude by today's standards. Basic HTML and hard-to-manage layouts made building and managing websites tough going. One positive was that, with the advent of an internet-connected phone in everyone's pocket still a few years away, no allowance had to be made to design for mobile-friendliness. How times change.... And there have been changes aplenty! As mentioned, mobile-friendliness isn't a nice-to-have; it's a critical part of the overall web design process. Back then. SEO didn't exist! With so few companies existing on the web, anyone with a presence, no matter how bad, was front-and-center.

When Ian moved to America in 2009, he'd had a fill of architecture and dealing with city processors and planners, and was looking for a new challenge. He naturally transitioned into website design, having already been in that world for 8 years, and, in early 2010, he and his wife set up CitrusKiwi Web Solutions. The name comes from his wife being a Californian girl (hence the Citrus part), and Ian is from New Zealand, where residents are called Kisis (after the national bird).

CitrusKiwi Web Solutions founded 2010

For over 15 years, CitrusKiwi Web Solutions has been providing cutting-edge web design and hosting solutions to America and around the world!

Since its foundation, CitrusKiwi has delivered quality website design to a range of business industries, from the trades to aviation, to legal and non-profit organisations. When they set up CitrusKiwi, Ian and his wife looked to bring website design to every business, regardless of size, with a particular emphasis on small businesses and non-profits. They were also one of the first design houses to offer a monthly subscription model to enable even more businesses to benefit from fully-managed websites.

As the senior web designer, Ian has personally overseen hundreds of websites, from building and redesigning to hosting, SEO, and more. He has kept pace with the changes in the industry, always learning and reinventing how CitrusKiwi meets the current challenges and opportunities that are available in the marketplace. Whether it's utilizing new technologies like responsive web design or carefully using AI and Large Language Models to enhance client websites, Ian is constantly researching new methods and technology to give their clients the very best in website design.