KPMG states consumers place greater trust in traditional retailers than they do in online only retailers (source). But with a projected annual growth of 9.4% (source), there is no denying the upward trend of e-commerce in Australia.
E-commerce defines the series of transactions that occur electronically.
Overtime, these transactions have been slowly growing in popularity. But 2017 is forecasting Aussies will spend over $32 billion on e-commerce, globally ranking us in the top ten for online spending (source).
Australian growth in E-commerce sales over the past four years.
Source: Web Alive, 2017
E-commerce growth represents an opportunity for digital marketers to further entice customers with product offerings, but there is definitely a knack to it. My top three tips for E-Commerce success are as follows-
Ensure a seamless experience across all platforms:
Deloitte claims nearly 80% of Australians have a mobile phone (source). Via this, mobile and tablet optimization of e-commerce websites is vital. If a website isn’t mobile friendly, it endangers the likelihood that the customer will discontinue browsing that website.
An NFL website that is optimised for Mobile browsing.
Source: Kissmetrics, 2016
Streamline a simple purchase process:
Almost 70% of intended purchases online result in cart abandonment (source). Cart abandonment occurs when a customer does not complete a purchase process despite initially clicking to buy. Excuses range from a complicated check out process, website glitches or the inability to determine the total order cost. (source).
Reassure customers by featuring feedback:
Reviews provide customers with something digital marketers rarely give- honesty. If a customer reads that others have had great experiences on the website, they will place more trust in the website and their operations.
Amazon allows consumers to review all their products
and summarises these.
Source: Amazon, 2017
The growing trend of e-commerce is a revolution for digital marketers, whom now have additional opportunities to attract, inform or persuade consumers. Will consumers eventually prefer e-commerce to traditional retailers? Do you shop more online than in stores?
Contribute to the sound of digital marketing by commenting your thoughts below.
The Sound of Marketing 
I enjoy online shopping but i am one of those consumers who abandon my cart every time. I don’t know if E-commerce could overtake traditional retailers. Online shopping has a degree of uncertainty that most are not willing to engage with, so unless this is overcome, traditional retailers will stay my preference.
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Me too! I always abandon my cart! I know I want it and click that I want it… but definitely always back out from fear it won’t look nice or fit properly.
I agree. However worrying online is much cheaper than traditional retailers. As many are price conscious (myself included) traditional retailers do need to acknowledge this
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I didn’t know that 70% of customers abandon their cart! (I’m that 70%). But yeah, usually I check out the cart to check if there’s any additional fees incurred with my transaction as well, because sometimes the website doesn’t say explicitly if you needed to spend a certain amount or not for free delivery (they’re usually hidden in T&C).
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It’s a high number hey! And exactly those hidden fees are a big reason why there is such a high cart abandonment rate. Marketers need to respond to that
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I don’t think that traditional retailers will completely fade out. But, that being said, I think that traditional retailers must create a multichannel experience that their consumers crave. They need to accept the fact that the e-commerce is growing and if they do not act fast, they will suffer in sales.
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Agreed. In fact traditional retailers already are suffering!
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I am a massive shopper, both online and in store!! There are so any options online, greater range, free delivery and not even having to leave the house!!! However, there are some things that I prefer buying in store and think there will always be a place for traditional shopping! trying on the fit and understand the fabric is something you cant just find online. Great post !
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Thanks!
Yeah the two channels both offer pros and cons. Just a matter of what you’re looking for I think!
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It is no surprise that consumers place greater trust in traditional retailers than they do in online only retailers. This is particularly the case for stores that cater to the older demographic as their target market. This demographic may fall behind its younger competitors in technological capacity, and issues navigating online payment systems are more likely to arise.
I believe the shift from traditional retail outlets to e-commerce will become more and more striking in coming years, however I do not predict a complete transformation in shopping and purchasing practices.
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I agree! I think it definitely differs for each demographic. My mum would never shop online however I would definitely consider it. True, there will always be customers whom at the end of the day want to touch and feel the clothes they are buying
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LMFAO! The post title is awesome. Very well pointed out! For the habitual online shopper the aspects that you outlined are key to succeed. Personally I buy novelty items online, such as seasonal sports equipment branded with the competition logos, and the firm which I buy from has a lot to learn about making the payment service more convienient
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Why thank you! 🙂
Credit to this novelty store for having a poor payment service and still achieving your money!
Usually a poor payment service often results in cart abandonment! Kudos to them
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