Tag: online shopping

Intel signs up with Chinese giant

Posted on December 17, 2014 by - News

Intel-logoIntel and Chinese e-commerce giant jd.com have signed a deal with each other to create a new type of laboratory.

According to the Xinhua news agency, both companies will work on creating 3D product displays and “visual fitting rooms”, smart hardware, and servers for enterprises for promoting online shopping.

Xinhua said jd.com is one of the world’s top 10 internet companies and Intel will help it improve its existing e-commerce services as well as working on new applications related to ID authentication, security, and database monitoring.

Jd.com has something like 25 million registered users.

No financial details of the deal between the two corporations was released.

Intel has been trying to reposition itself in the last 18 months as more of a general purpose corporation, rather than just a manufacturer of X86 chips.  It also wants a chunk of the lucrative pie known as the internet of things, and is still desperate to make its mark in the mobile and tablet markets.

This deal, then, is something of an oddity.

eBay, Argos partner for collection

Posted on September 24, 2013 by - News

argos-logoFor some time now, eBay has been pushing discussion about the future of etail, the high street, and how brick and mortar will intersect with online shopping – now, in a bold move, the company has joined up with Argos in a bid to offer the best of both worlds.

Online shoppers will be able to buy selected goods from eBay and pick them up in-store at Argos outlets across the UK. 50 eBay merchants are taking part, but are anonymous at time of publication.

Argos already has its own click and collect service but expanding it to include popular eBay stores will certainly not harm the company, provided the scheme is implemented properly. Amazon, which eBay increasingly sees as its top competition rather than its original selling point as a bidding website, has collection points in the UK too.

Earlier this year, Argos reported its first sales boost in years. It attributed much of this to the check and reserve feature. This is not to be sniffed at considering the otherwise lacklustre state of the UK’s tattoo-parlour, betting and pawn-shop packed high streets.

eBay has trialled a service called eBay Now across the pond in New York and San Francisco, partnering with popular retail outlets such as Home Depot and Urban Outfitters to arrange for goods to be delivered within the hour for a fee. This may be rolled out to Britain next year.

Commenting on the announcement, Warick Business School’s retail expert, Dr Scott Dacko, said whether or not this service becomes “the” model, integration between online and offline sales is “the future for retail”.

“It is likely to be a win-win-win arrangement, with both partners and UK consumers benefiting all round,” Dacko said. “I am sure the arrangement will prompt a host of competitors to move more quickly into not only seamlessly integrating their online and brick-and-mortar operations but also looking into similar partnerships as well”.

During Christmas last year, eBay experimented with a bricks and mortar showroom where customers could try out products and interact with them through an app.

Tablet shopping survey reveals strange new sofa habits

Posted on August 14, 2013 by - News

smartphone-shoppingA report fresh out of Nielsen found that shoppers behave quite differently when they’re doing their shopping on tablets rather than smartphones. Tablets are a lot more likely to be used for product browsing and tablet users write more product reviews.

Two thirds of smartphone shoppers use their devices mostly at home, while the same goes for four fifths of tablet users. More often than not, they watch TV while their playing with their smart devices. Tablet owners are more active with product research (59 percent) and are more likely to purchase physical items (38 percent) than smartphone shoppers (24 percent).

However, smartphone shoppers make up for it by being more active outside the home. On the other hand, Nielsen found that quite a few mobile shoppers are on the sofa while they’re shopping. This is true of 95 percent of tablet users and 72 percent of smartphone users, who make their purchases from home. Tablet users are more likely to make a purchase overall.

In a brick-and-mortar setting, smartphones reign supreme. As many as 70 percent of smartphone shoppers use a store locator to plan their shopping trip, while 37 percent arrive with organised shopping lists stored on their phones. The majority of smartphone and tablet shoppers use their devices to check prices before pulling the trigger. More smartphone users do this in physical stores. Smartphones also lead the way when it comes to mobile coupons and mobile payments.

Even when their shopping spree is done, many shoppers turn to their tablets to write product reviews or write comments about their purchases on social media. The majority of smartphone and tablet shoppers also use their devices to track the progress of their online orders.

UK B2C e-commerce to hit £62.49 billion

Posted on August 7, 2013 by - News

visa-epayBritish people are falling in love with e-commerce and a new eMarketer report claims their enthusiasm for buying things they don’t need and can’t afford with money they don’t have will drive UK business-to-consumer e-commerce sales up to £62.49 billion this year.

It gets better – by 2017 the figure may hit £89.73 billion, or 16 percent of total UK retail sales. However, the figures include digital travel sales. The volume of retail e-commerce sales this year may be £44.06 billion and they will represent 70.5 percent of B2C e-commerce sales in 2013. The share is expected to rise to 72.5 percent by 2017.

Although the average UK buyer often ranks as the top spending e-commerce consumer worldwide, non-UK people are starting to play a notable role in B2C sales. IMRG speculates that online retail sales made by non-UK people will total £10 billion this year, up from £7.4 billion in 2012.

Mobile e-commerce is also showing signs of growth. Sales from mobile phones and tablets are expected to increase 71.8 percent year-on-year to £6.6 billion, that’s 15 percent of total UK e-commerce sales. In 2017 they will  hit £17.2 billion. Possibly.

Most online shoppers are after clothes, sports goods, household goods, travel arrangements, accommodation, tickets, music, films, newspapers and books. British fashion outlets are doing particularly well, unlike their counterparts in the rest of the world. Many people are still reluctant when it comes to buying clothes online, but fashion shops in the UK are offering free shipping and generous return policies.

High street must evolve or die

Posted on August 6, 2013 by - News

highstreetA retail company is calling out for a change in the way the high street manages and expects upticks in sales.

Powa Technologies CEO Dan Wagner suggested it is ridiculous to rely on the weather for an upturn in sales when the country is in search of wider improvements in economic performance. “There should be a greater emphasis on innovation that engages more directly with consumers to deliver more activity at the tills,” Wagner said.

Online shopping has transformed the way people buy and the high street has struggled to keep up. Of course, high street stores were bound to have a hard time if they clung to old models, which has lead to the death or transformation of what were once givens in any town centre.

Convenience has trumped the bricks and mortar approach for many people. Especially when it comes to delivering content, microtransactions online get that content to whichever device you prefer so much faster than a bricks and mortar shop, it’s unsurprising that many film and music outlets have faltered.

But this won’t necessarily mean the death of the high street.

“New shopping models involve convenient delivery and collection methods, more enjoyable methods of browsing, and quick means of payment,” Wagner said. “We shouldn’t be anticipating the loss of the high street, we should be anticipating its evolution”.

Just where that evolution will go depends on companies being prepared to take risks. One possible model is a hybrid approach, where consumers can buy online and collect in store or vice versa in interactive showrooms.

Brick and mortar, ecommerce start to converge

Posted on July 26, 2013 by - News

visa-epayPhysical retail outlets and e-commerce operations are starting to converge and consumers are starting to treat all channels as shopping, which it essentially is. Although high streets are suffering, e-commerce is becoming a force to be reckoned with, but e-commerce and brick-and-mortar retail are not mutually exclusive.

Google reckons that retail channels are converging, as traditional retailers are starting to make inroads in e-commerce. Physical shops are undergoing a transformation, they are becoming more focused on brand building than actual retail and they are becoming catalysts for related e-commerce services.

In a recent whitepaper Google VP of ads and commerce Sridhar Ramaswamy concluded that consumers no longer see a distinction between online and offline shopping. The experience is becoming seamless and intertwined.

“Whether it’s searching on a laptop, browsing main street shops, or hanging out at the mall — it’s all shopping,” he wrote.

Since shoppers seem to be growing blind to the distinction between e-commerce and traditional shopping, they might end up with similar expectations for customer service regardless of the channel, reports Practicalecommerce.com. In other words, they might expect the same level of service online as they do in actual stores. Salespersons keep physical retail going by offering consumer advice and more information than sterile e-commerce sites, while the online channel is unbeatable for comparing prices and saving money.

“Today’s shoppers have become accustomed to doing their own research to get the maximum value out of every dollar they spend, and to feel secure about the purchases they’re making;” Ramaswamy wrote. “With this power shift comes a great opportunity for retailers; those that use tools and insights from the web have the opportunity to close the gap between the smart online consumer and the offline retailer, and stand out in a competitive marketplace.”

Searching for products and comparing prices online is easy, provided one knows what to look for, and this is where salespersons need to be involved, with expert advice. Getting a better deal on a product doesn’t really matter if that particular product does not meet the customers actual needs and properly informing and advising consumers online is just as important as having as competent salesperson in a brick-and-mortar shop.

Online retail growth slows

Posted on July 23, 2013 by - News

visa-epayAlthough online retail sales are still growing, new research from Mintel has revealed that growth is slowing quite rapidly. The online retail sector expanded by about 50 percent in 2008, but last year growth slowed down to just 15 percent. However, this is still much better than the rest of the retail sector and it means the UK online retail sector will double by 2018, with double-digit growth rates.

On the other hand, the slowdown means new players will have a much harder time gaining market share. Established operations only need to maintain their lead, which was gained with little or no competition. The next big frontier is mobile retail.

Mintel retail analyst John Mercer believes online only retailers have possibly picked all the “low hanging fruit,” so new outfits will have to get more creative. However, he notes that the market is still very dynamic.

“In a low growth market [for retailers generally], double digit growth [in online sales] is nothing to be sniffed at,” he said.

Although online-only outlets seem to have grabbed an early lead, they are about to face a lot more challenges. They currently account for less than half of all online sales, but Mintel believes they won’t see much more growth, as high street retailers enter the online space, reports the Financial Times.

New services like click and collect, coupled with new POS and payment technologies might help the high street gain a competitive edge over online-only retailers. After all, many people still like to touch and feel products before they pull the trigger and this is something the convenient online channel simply can’t deliver.

Retailers think online sales tax is rubbish

Posted on July 22, 2013 by - News, Products

poundsCalls for the introduction of a new online sales tax have been growing louder and unsurprisingly online retailers are having none of it. They believe any additional tax burden imposed on their businesses would be detrimental for people, for jobs and investment.

In an open letter, signed by the CEOs of Ocado, Shop Direct, N Brown, Boden, Appliances Online and notonthehighstreet.com, the plans for the introduction of a new tax were branded as “nonsense”, as online retailers are overburdened as it is.

“Online retailers already pay tax on many fronts. Customers pay VAT while other taxes include fuel duties, employment taxes, corporation tax, as well as business rates on their warehouses and offices. Just because the online business model does not require as much property does not mean that other areas should be taxed more heavily,” the execs said. “A popular view has been that bricks and mortar retailers have a high tax burden whilst a few very large international online businesses pay a small amount of tax here, therefore the tax system for all online players – big and small, UK and international – should change. But this is a red herring, an issue of domicile not online retail.”

The retailers believe that a new online sales tax would kill entrepreneurial spirit, making it harder for small retailers to get started. It would also have a detrimental effect on supporting industries and exports abroad. They noted that SMEs would be hit by the unintended consequences of the law, along with people that buy stuff.

“The idea is vague and ill thought-out. Does it include just those retailers which operate online-only, or those with stores too? Should online travel agents be wary? Could it also capture online financial services providers? There is no logic to penalising companies that provide consumers the convenience, efficiency and value online shopping offers,” say the e-tail execs. “Online is a rare and precious success story for the UK and one that we should take pride in. We support our high street counterparts in their call for lower business rates, but hitting online businesses by replacing lost revenue with this type of tax will hamper growth, slow the economy, impact jobs and reduce investment whilst not achieving a significant uplift for the Treasury.”

Tablet retail searches are soaring

Posted on July 22, 2013 by - News

Keep taking the tabletsYe ancient Tablet has already taken a toll on PC sales and now they appear to be changing the online retail landscape as well.

According to the British Retail Consortium and Google, retail search volumes grew by 15 percent in the second quarter, but tablet search volumes were up a staggering 132 percent. Smartphone growth was 66 percent.

So what are mobile users searching for? It appears many of them enjoy DIY and gardening, as mobile searches for the two categories were up 170 percent and 81 percent year-on-year. Obviously, much of the growth is seasonal. Clothing is also popular and unsurprisingly it appears that most mobile searches are coming from consumers making their purchases while soaking in the sun, or tinkering around the shed.

Helen Dickinson, Director General, British Retail Consortium, said the results also show the changes the internet is bringing to the international retail market.

“The considerable increase this month in the number of UK consumers searching overseas retailers show that barriers are increasingly being broken down. UK retailers are already responding well to these changes and will be keen to continue seeing equivalent increases in overseas customers searching them out,” she said.

Peter Fitzgerald, Retail Director, Google, said the new data merely backs up seasonal trends seen in previous editions of BRC’s Retail Sales Monitor.

“Pureplay retailers in particular regained their growth, responding to the pressure of multichannel retailers in the online space. International interest remains a strong lever for our homegrown retailers,” he said. “UK interest in overseas brands however, has really peaked this quarter driven in particular by interest in US brands.”

Total search volumes from UK consumers searching overseas retailers increased by 51 percent in Q2 compared with the previous year.

Retail apps may cut price-comparison shopping

Posted on June 11, 2013 by - News

nexus4-ceIt sounds counter intuitive, but according to a survey commissioned by UPS, retail apps might actually cause consumers to do less price comparisons and more shopping. The vast majority of shopping apps do the exact opposite, they are designed to find the best deals and pinch pennies.

However, the survey revealed that 46 percent of US online consumers are less likely to “comparison shop” once they are immersed in well designed apps peddled by the retailers, reports Business Insider.  It sounds like good news for everyone who ever tried to justify the expense of developing a proper app for their business.

Interestingly, the survey also found that shopping satisfaction was better on a tablet than a proper PC. The experience on smartphones lags behind both tablets and regular PCs, which probably has something to do with screen size.

Of course, this doesn’t mean that retailers with good mobile apps should try to gouge consumers. Most people still like to browse and compare prices. There is no substitute for good deals and good service.

High street apocalypse on its way

Posted on May 28, 2013 by - News

highstreetThe UK is “facing a crisis,” when it comes to highstreet shopping, a retail group has warned.

According to the Centre of Retail Research, one in five of Britain’s high street shops could close by 2018 as more customers turn to the internet for their shopping. The analyst company warned that, as a result, around 62,000 shops could close in the next five years – putting around 316,000 jobs on the line.

A further 164 major or medium-sized companies were also predicted to go into administration, involving the loss of 22,600 stores and 140,000 employees.

“Many of these companies will survive but at the cost of closing more than half their stores,” the company said.

Retail Futures 2018 forecasts found that consumers were shunning the high street with the share of consumer spending declining from 50 percent in 2000 to a predicted 40.2 percent next year.   As fewer shop in stores, online retail is set to account for 21.5 percent of total retail sales by 2018, from 12.7 percent today, the highest online retail share in the world.

It also pointed out with such a high number of transactions carried out online, retailers with a strong web offering now need just 70 high street stores to create a national presence compared to 250 in the mid 2000’s.

Wales and the North West are predicted to see the highest number of closures, with nearly one in three expected to fold, while the South East is expected to see a 13 percent decrease in the number of shops by 2018.

Store stays as hub for connected customers

Posted on May 24, 2013 by - News

highA pan-European retail survey commissioned by Fujitsu reveals that most retailers believe stores are still important despite the fact that online shopping is going mainstream.

Even in the age of multichannel, 65 percent of Europear retailers interviewed said they believe the importance of stores is rising rather than diminishing. However, eight out of ten believe online is the top distribution model for the future.

The survey found that the humble store will continue to serve as a hub for retail engagement with “connected” consumers. Ongoing competitive pressures and the widespread adoption of smartphones will force retailers to combine the efficiency of online, while at the same time delivering a good in-store customer experience.

It echoes the findings of a recent Google survey, which concluded smartphones are slowly starting to improve the shopper experience both at home and in actual retail stores. In other words, retailers cannot afford to ignore either component of their multichannel approach.  Fujitsu’s survey also stresses the importance of a unified view of all customers across all channels, on top of technology innovations designed to deliver new multichannel solutions.

Retail managers in some countries believe the importance of stores is going up, especially in France and to some extent in Italy, which is also betting on hypermarket and supermarket models. However, German retailers believe online shopping is currently more attractive to their customers. In the UK, however, there is a greater balance across all models.

“It is clear the store remains the shopping ‘hub’ for the majority of consumers across Europe, but the store operating model is changing rapidly to meet the needs of the multichannel shopper.” said Richard Clarke, Vice-President, Global Retail at Fujitsu. “Fujitsu helps retailers to achieve this goal by simplifying their technology deployments and radically increasing agility and customer intimacy.”

Although e-taliers and m-commerce are still on the rise, the study found that traditional retailers are still convinced there is plenty of room for brick-and-mortar stores in the future of retail, no matter how connected it might be. However, service is slowly becoming a key value-add for the store, and some hybrid services such as click and collect are also emerging. Interestingly, British retailers lead the way when it comes to their confidence in traditional stores and their role as a shopping point.

Rich people prefer online shopping

Posted on May 20, 2013 by - News

jewelsAlthough there are thousands of penny pinching price comparison sites out there, it seems online shopping is pretty big among affluent consumers who really don’t need to save at all. According to  research released by the Shullman Research Centre, the rich love to do their shopping online. Apparently they don’t want to mix with their serfs, for whatever reason.

The survey found that the vast majority of affluent consumers tend to research products online and make the purchase from an online device. Most of them still rely on desktops, at 64 percent, while tablets and smartphones are used by 18 and five percent respectively.

“I do not think luxury marketers are totally aware that [consumers] are using online for research and are getting comfortable buying that way,” said Bob Shullman, founder and CEO of the Shullman Research Center. He added that consumers enjoy convenience and that is exactly what online shopping is supposed to deliver.

To some extent it sounds a bit counter intuitive, as one would expect people to actually touch and feel upmarket merchandise before reaching for their credit card, but in reality just 10 percent of affluent consumers said they prefer researching in-store as opposed to online. Furthermore, 62 percent said they are comfortable using online services to buy stuff, while just 33 percent said they felt comfortable buying in person at a brick and mortar store.

However, rich people don’t shy away from mass marketed products, either. The survey found that 73 percent of them made purchases on Amazon in the past year, which means Amazon is the top service for rich folk and proles alike.

People regret boozy online buys

Posted on March 29, 2013 by - News

boozebeltAccording to a new OnePoll study, nearly a quarter of British consumers have bought products online while under the influence of happy juice. Needless to say, they regret their purchases, like most other things we do while inebriated. 

Two thousand consumers took part in the survey and the results indicate that the convenience offered by e-commerce services is a double edged sword. It is not like e-commerce outfits are targeting drunk consumers, but the ease of spending hard earned cash with just a few clicks seems to be a bit too much for some jolly consumers to miss out on. Spending too much money while drunk tends to be a bad idea, whether you do it online or out on the town.

In addition, the interfaces of e-commerce sites are susceptible to all kinds of shopping mistakes. A total of 56 per cent of consumers admitted that they regretted buying clothing items online, while 22 per cent felt buyer’s remorse after getting a gadget, reports shopsafe.co.uk.

It is estimated that British consumers spend over £1,000 online a year on average. It seems that a good chunk of that is spent after a few glasses behind the laptop.

Metro.co.uk reports the case of a 22-year-old man, who somehow managed to order 22 tickets to an Oasis concert after a drinking session. The drunken shopping spree cost him over £2,000. It is not clear whether he enjoyed the gig.