Is Online Sales the hope for low In-store sales?
Continued from post http://www.infosysblogs.com/oracle/2008/12/is_this_the_right_time_to_go_a.html
In this tough economic environment one definite trend is emerging, more and more consumers are buying online, finding wider availability, better pricing and ease of service. Let us evaluate some key trends in online sales.
As more consumers face difficult issues at home, balancing their own personal budgets, there is a distinct trend emergeing in consumer spending
-> Ease - With gas prices fluctuating, more people are choosing to shop from home, be it TV Shopping or Online shopping. It is also faster and less energy spending than shopping in a mall or a physical store. Also lot of Retailers are now offering some versions of Buy Online and Pick up at Store, which combines the ease of online sale with the comfort of pick up at a nearby store. Oracle Order management offers a variety of order types and shipping options that can provide such functionalities.
-> Wider range of Products - With an online catalog, Retailers can offer the entire range of products to the consumers, there is no phyisical limitation that a store poses, also key concepts such as upselling and crossselling can be employed with greater efficiency. The bought stock can be directly shipped to the consumer, or shipped to a nearby location.
-> Faster Access - With the online sales channel, products can be offered to the consumers as soon as they are manufactured/conceptualised in the supplier network. This is a very important aspect in merchandising Fashion, Technology and other Fad products where time to market is of essence.
-> Better Pricing - By cutting down on the merchandising costs, a better price can be offered to the consumers. Also with the variety of payment options online, innovating discounts, coupons and other deals can be provided.
These are some of the key themes that are continuing to drive consumers to buy online! Even in these difficult times, online buying offers consumers a better bang for the buck.
What have been other themes that you have seen in the online sales space?
Comments
Hi Venu, you are right.
There is a large scope for online sales to pick up in India. As of now, online sales contribute only around 1-2% of total retail sales whereas in the West, it constitutes 6-10%. So there is still scope to grow. Increase in Internet penetration (currently at around 4%) and broadband speeds (India stands at less than 2Mbps whereas some of the OECD countries average speeds more than 20 Mbps) will certainly help propel more consumers to shop online.
Posted by: Sathyaraj | June 2, 2009 11:28 AM