Online Shopping Part 1
- By Alex Hill
- Published 09/2/2011
Online Shopping Part 1
I get asked almost everyday about online shopping. Most questions relate to and should we get into it or what are doing wrong.
Online shopping is not new has been around pretty much for 15 years and counting. The difference is we are starting to hit critical mass. Meaning online shopping was exclusively the domain and largely made up of teenagers, computer geeks and internet savvy consumers- but this has now given away to masses. The masses have suddenly discovered this online shopping can be fun and cheap. Many housewife's and time poor dads have even started to become quite good at buying and selling on eBay for example. Hey this online shopping is fun!
Why are the big retailers running scared?
Quite simply many of them have long feared this day coming. Many of the people charged with making the important decisions for retail strategy were of the old school- bricks and mortar retailing. They were good at securing a long term lease in the best shopping centre or strip . They were good at racking them high and selling them low having a ton of staff and point of sale to whip the consumer into a frenzy. They took out newspaper strip advertisements and printed catalogs. Every year negotiated with Yellow Pages for a bigger ad at a cheaper price. And ran huge in store doorbuster SALE's.
Some of these old world retailers and shop keepers were good at what they did were true professionals in every sense of the word. Respected and and feared at the same time. In Australia , UK and the US infact all over the world family retail dynasties were created. Huge amounts of money was made. But then something changed. The customers stopped coming. And when they did come they started to inspect the items , conduct due diligence but rarely made it to the counter. The retail customer behaviour was changing.
The retailers all over the world started to fight back. Let's beat the internet at it's own game. New tactics were introduced to hook in the retail customers.
Yearly
So what happened. A death spiral started and retailers Everywhere you looked SALE signs. What a great idea a continuous sale, never ending. Suddenly every shopping centre, mall and high street store has Sale signs 7 days a week. Incredible.
But like anything you are exposed to 24/7 you start to build up immunity. And suddenly the retail customer starts blocking out the SALE signs in their minds. The SALE sign shingle starts to look like regimented requirement for every shop and store rather than the special enticement it once was.
Retail customers started looking for more and it was only natural the internet became that medium.
New dedicated internet shopping sites started to spring up.
First and best known to really crack it was Amazon selling books back in the 90's.
Fast forward to 2011 and these same retailers having just opened their first online stores are now having to face a whole lot of new style online competitors. Perhaps more aggressive, different and bigger than anything that has gone before it.
Deal of the day type website retailers have sprung up, doing huge business. These new age online retailers herd the masses , the like we have not seen before.
For more please read Online Shopping Part 2
I get asked almost everyday about online shopping. Most questions relate to and should we get into it or what are doing wrong.
Online shopping is not new has been around pretty much for 15 years and counting. The difference is we are starting to hit critical mass. Meaning online shopping was exclusively the domain and largely made up of teenagers, computer geeks and internet savvy consumers- but this has now given away to masses. The masses have suddenly discovered this online shopping can be fun and cheap. Many housewife's and time poor dads have even started to become quite good at buying and selling on eBay for example. Hey this online shopping is fun!
Why are the big retailers running scared?
Quite simply many of them have long feared this day coming. Many of the people charged with making the important decisions for retail strategy were of the old school- bricks and mortar retailing. They were good at securing a long term lease in the best shopping centre or strip . They were good at racking them high and selling them low having a ton of staff and point of sale to whip the consumer into a frenzy. They took out newspaper strip advertisements and printed catalogs. Every year negotiated with Yellow Pages for a bigger ad at a cheaper price. And ran huge in store doorbuster SALE's.
Some of these old world retailers and shop keepers were good at what they did were true professionals in every sense of the word. Respected and and feared at the same time. In Australia , UK and the US infact all over the world family retail dynasties were created. Huge amounts of money was made. But then something changed. The customers stopped coming. And when they did come they started to inspect the items , conduct due diligence but rarely made it to the counter. The retail customer behaviour was changing.
The retailers all over the world started to fight back. Let's beat the internet at it's own game. New tactics were introduced to hook in the retail customers.
Yearly
and half yearly Sales started to become a lot more regular. Sales every quarter and then every month. The retail consumer as being educated and accustomed to buying on SALE. It would be stupid to do otherwise, right?
So what happened. A death spiral started and retailers Everywhere you looked SALE signs. What a great idea a continuous sale, never ending. Suddenly every shopping centre, mall and high street store has Sale signs 7 days a week. Incredible.
But like anything you are exposed to 24/7 you start to build up immunity. And suddenly the retail customer starts blocking out the SALE signs in their minds. The SALE sign shingle starts to look like regimented requirement for every shop and store rather than the special enticement it once was.
Retail customers started looking for more and it was only natural the internet became that medium.
New dedicated internet shopping sites started to spring up.
First and best known to really crack it was Amazon selling books back in the 90's.
- Then came Apple itunes leading a music revolution online.
- eBay the online Auctioning site allowed mums and dads to not only buy goods- but sell them also.
- Plus a million more online shopping sites probably not run by anyone with a retail background. Amazing!
Fast forward to 2011 and these same retailers having just opened their first online stores are now having to face a whole lot of new style online competitors. Perhaps more aggressive, different and bigger than anything that has gone before it.
Deal of the day type website retailers have sprung up, doing huge business. These new age online retailers herd the masses , the like we have not seen before.
- Groupon
- Scoupon
- Cudo
- Stardeals
- Catch of the Day
For more please read Online Shopping Part 2
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1 Response to "Online Shopping Part 1" 
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said this on 27 Nov 2011 5:34:34 AM PDT
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