Recession, changed consumer behavior and increased competition from e-commerce mean, among other things, that physical trade faces difficult challenges. Today, it is almost impossible to run effective and competitive activities around the sale of consumer products without a strong presence on the Internet. Consumers expect DISSAPORE that they will make delivery available and will shop online.
But the opposite trend also prevails
But the opposite trend also prevails – more and more e-commerce companies are aware of the value of physical stores and showrooms. The multichannel initiative, including both physical stores and well-developed e-commerce, is becoming more and more popular. E-commerce complements a physical store where customers can get to know the goods, get inspired and take part in a brand with a few senses compared to surfing the web.
Ehandel.se, a site for Swedish online retailers, reports on a global phenomenon that has now also reached Sweden: “People really want to touch things and check how big they are and want to talk to someone. This should not be underestimated. You can put a lot of effort into making good photos and creating videos for your online store, but it still will not be that the customer can immediately see or buy the product and bring it directly to the home, “says Katie Miller, founder of Scarlett Garnet Jewelry. after seven years of opening an online store in St. Louis.
In the future, smaller and smaller stores
In the future, smaller and smaller stores will probably appear as a result of growing e-commerce. Store owners can simultaneously get more optimized sales by exhibiting large retailers in the store – more odd goods that do not sell as much, customers can take part – and buy – online.
Swedish companies such as Stadium have integrated their e-commerce with physical stores where customers can download and exchange goods purchased online at regular stadium stores.
There is no doubt that the huge increase in trade takes place online. Ehandel.se reports that online shopping in the United Kingdom is growing rapidly. The new study expects the growth of e-commerce to reach 15% in 2013. And it is the mobile units that are behind this increase – desktop computers are losing importance because of smartphones and tablets.
In Sweden, e-commerce sales increased from SEK 4.8 billion in 2005 to SEK 77 billion in 2011. Electronic commerce has many advantages – both for the consumer and for companies:
Prices are often lower in the online store, because the need for staff is not so good. A physical store needs a good location that costs rent. One of the problems in e-commerce is the cost of shipping, so it’s uncertain whether it will be cheaper. Opening hours are not an online problem. The traditional store closes at night, and in some cases even at weekends, while the online store is open 24 hours a day.
The review becomes completely different on the web. The consumer can quickly and easily look around various online stores from a computer, mobile phone or tablet. The search functions on e-commerce websites help the consumer to quickly find a category of goods that interest you.
Convenience is another factor in e-commerce
The range is usually much larger in the online store. The e-commerce catchment area is much larger than in the physical store, which contributes to the fact that the supply is much larger. Moreover, it is not limited by purely physical factors, such as the size of the production hall.
Convenience is another factor in e-commerce. It is easy to order goods from home, and for example, buying tickets for a popular concert, it is more convenient to sit at the computer than stand and freeze in a queue. Thanks to the responsive design, you do not need to adapt the online store to different formats, because it is automatically adapted, for example, to a tablet, smartphone or computer.