According to recent studies from a variety of sources, including E-commerce Times and Forrester Research, over-all ecommerce sales are on the rise. While this is good news for online retailers, recent studies have also shown that for a variety of reasons, not all consumers are ready to abandon a trip to a traditional brick-and-mortar store when it comes time to make a purchase.
Lack of knowledge, lack of time, and concerns over order-security and shipping times and costs are the most common stumbling blocks for those who have yet to embrace the practice of online shopping.
Knowledge
While a fair number of people are aware that it is possible to purchase products online, many still view the Internet as a place to purchase novelty or one-time, as opposed to every day necessity items.
“Most people don’t know that you can buy just about anything—-and I do—from Amazon, including car parts, office supplies, food, and household items,” said In-Stat chief technology strategist Jim McGregor in a recent interview with E-commerce Times. “Some people are accustomed to going to the store whenever they need something.”
Advertising is one way to reach those who may not know that online ordering is an option. Using social media sites like Facebook and Twitter to promote online store promotions and specials is another. Digital coupons, and exclusive online-only promotions, particularly with the rise of sites like Groupon, can also help to attract new customers.
According to recent studies, the rise of mobile ecommerce is one of the most immediate ways to reach consumers who may be slow to try online shopping from a computer, but may be more inclined to compare deals and prices of items while on-the-go or even while comparison shopping in a physical store location.
Time
Not everyone sees online shopping as a convenient, time-saving alternative. Studies have shown that a number of consumers still feel that driving to a store and purchasing a product in person is a faster way to obtain something than by ordering it online and waiting for it to be delivered.
“Time is the number one thing that needs to happen for ecommerce to take a bigger bite out of retail,” says comScore industry senior analysis director Andrew Lipsman.
For online merchants, studies say, simply pointing out the benefits of online shopping may not be enough to attract and retain their customer base. Making the checkout process quick and uncomplicated, and providing customers with information about their order (item type, quantity, shipping costs, etc.) as they go along can help to reinforce the message that shopping in an ecommerce store saves time in the long run, even if the main draw of in-person shopping: instant receipt of the product, isn’t part of the equation.
Security Concerns
Sending personal information over the Internet can sound like a risky idea to some people, particularly those who are new to the concept of ecommerce. Online scams and reports of identity theft as a result of hackers stealing information from ecommerce sites have contributed to fears among consumers that shopping online may make them vulnerable to theft and fraud.
Online retailers can help to reduce the risk of cyber crimes and reassure customers that their site is secure by making sure that it is properly secure in the first place. Letting an SSL certificate expire or failing to adhere to PCI-DSS requirements is bad news for both the merchant and their customers for a variety of reasons.
In the real world, the majority of people avoid shopping in stores that don’t seem concerned about the quality of their merchandise or the safety of their customers while shopping. In the online world, consumers see lack of payment and site security verification symbols and features as similar red flags.
Point-and-click convenience, in other words, only works if consumers understand the benefits. It is up to online retailers to make sure that this happens.
Miva