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Where to in 2013 for your online retail business?

Where to in 2013 for your online retail business?

So where are you taking your online retail business in 2013?  The latest Sensis reports show that online retail has increased close to another 10% over the past 12 months.  All of Neto’s clients have increased their volumes well in excess of the industry average over the past twelve months, in fact Neto clients have been increasing their online sales volumes well in excess of the industry average for the past five years.

The entire online experience is the key to increasing your online sales over the longer term.  Sure the product is important and so too the price but all of the surveys point to the fact site structure, user experience and the delivery experience are what count the most.  John Rolland from Ernst & Young found that unless online shopping sites get the fundamentals right the abandonment rate can exceed 25%, our Neto experience is that this figure is often much higher.

The Ernst & Young survey also found that 47% of online shoppers believe value for money was more important than buying from sites that are Australian-owned. This perception of the international market as a level playing field also plays into cost, with 54% of online shoppers saying Australian retailers should offer the same prices as offshore sites.  So as you can see, the whole debate continues.  The reality is that there are many compelling reasons for shopping on Australian based websites and the majority of Australian consumers still prefer Australian based online shopping sites however Australian online retailers need to ensure they do not become complacent and many of them need to ‘lift their game’.
So what are some other key findings from the latest Ernst & Young report into online shopping habits?
  • 51% of those surveyed were chasing shorter delivery times;
  • 47% wanted fewer hidden fees;
  • 19% said they abandon their purchase if they cannot find what they are looking for or if they believed that buying online would cost more once delivery was factored in;
  • 6% of people said they abandoned a purchase due to inconvenience.
The survey is highlighting the importance of ‘getting the basics’ right and in achieving a ‘seemless’ or ‘frinctionless’ experience for the online shopper.  Unfortunately far too many online shopping retailers believe getting a good website and good product is all that matters.  Sadly, this is about 20% of the formula to success in online retailing.  The whole E2E experience is what is important and Neto’s most successful online retailers are:
  • Selling across channels (eg eBay and Facebook);
  • Focusing on how they present their products on their site;
  • Monitoring and trialling different techniques for how they connect with their customers via email marketing campaigns;
  • Conscious of how freight is charged;
  • Focusing on the quality and timeliness of the freight company they use;
  • Ensuring the product packaging is unique;
  • Ensuring they promptly reply to customer enquiries and complaints.

And these are just the minimum they are doing....

2013 is going to be another exciting year for online retail.  In the next few weeks and months the Neto team will be rolling out a number of new modules and product extensions to enhance the security, caching speed and functionality of our platform, all of which will further enhance your customers experience with your neto online shopping site but don’t forget about the other components which go into making the online shoppers experience something they cannot live without.

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