What is holding E-commerce back?
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As E-commerce has changed the B2C landscape over the past several years, some experts predicted that online shopping would make over 15% of total consumer purchases by 2014. However, the actual number has been revealed to be as closer to 5% today, so what has been holding E-commerce back from living up to its expectations?
According to market research company eMarketer, approximately 15% of all online shopping was done through some sort of mobile device in 2013. (eMarketer.com) A study done by the Online Publishers Association (OPA) found that tablet users accounted for 31% of users online in 2012. The study also found that 74% of these tablet users use their tablets at least once a day. (“A Portrait of Today's Tablet User Wave II” 6, 15)
As technology changes, Businesses must keep up with technology trends to be able to reach customers effectively. Given the increase in mobile device users, many retail websites still struggle to optimize their mobile shopping experience for users which ultimately frustrate them. Targeting users on portable devices such as mobile and tablets successfully require online retailers to make the shopping experience user friendly- that means making sure the visual layout of the site, product selection, order placement, ease of payment and order tracking is made to be as smooth as possible for the customer by concentrating on what the customer needs to do next to move forward with the order. Complicated checkout processes and other issues such as slow load times and required user registration will eventually lead to shopping cart abandonment by impatient users.
Another major factor keeping consumers hesitant from shopping online are security concerns involving financial transactions. According to a survey done by Kaspersky Lab and B2B International, “49% of Internet users worldwide felt vulnerable while shopping online or making online transactions, and 42% of users would utilize online payment systems more often if they felt they were protected from cyber fraud.” (Kaspersky.com) The report shed light on justified fears, as it also found that 43% of respondents had come across some kind of financial threat, users of Apple products being the most affected. (Kaspersky.com) While the online marketplace is still evolving, cyber data protection and safety continues to be a real concern for consumers, especially in the wake of events like retail giant Target managing to lose 40 million shopper credit and debit cards in December 2013. (Reuters)
For products such as clothing, high-end jewelry and handbags, a physical inspection is necessary to complete the sale. Consumers need to try on clothes to make sure the size, fit and feel of the product is adequate before making these types of purchases. Wearable luxury items also require close inspection by the customer to ensure the quality of the good being sold is up to the standard of the customer and no defects are found within the product. Many retailers have begun to include highly detailed images of their products on their websites which allow users to zoom in to examine the product closely; however there is currently no system that can replace physical inspection of actual items being sold to a customer at the point of purchase.
Luxury goods shopping in a brick and mortar store also include a highly personalized customer service experience- which is difficult to replicate in an online environment, especially since there is no human interaction in most e-stores. Many online stores offer customer service in the form of online chat support or 1-800 help lines, yet this still does not measure up to the level of personalized service offered by staff in brick and mortar stores. At the end of the day, customers will end up choosing to go to a physical store to make these kinds of purchases if not for the service, then to see, hold and inspect the product before buying.
Works Cited
Digital image. YouTube. N.p., n.d. Web. <http://img.youtube.com/vi/uOdcn6Q8cVA/0.jpg>.
"Smartphones, Tablets Drive Faster Growth in Ecommerce Sales - EMarketer." Smartphones, Tablets Drive Faster Growth in Ecommerce Sales - EMarketer. EMarketer, 24 Apr. 2014. Web. 24 Sept. 2014.
A Portrait of Today's Tablet User Wave II. N.p.: Online Publishers Association, June 2012. PDF.
"Security Concerns Holding Back Usage of Online Payment Services, Kaspersky Lab Study Shows." Security Concerns Holding Back Usage of Online Payment Services, Kaspersky Lab. B2B International in Conjunction with Kaspersky Lab, 25 Aug. 2014. Web. 25 Sept. 2014.
Reuters. "Target Inevitably Loses Shoppers In Wake Of Data Breach." The Huffington Post. TheHuffingtonPost.com, 23 Dec. 2013. Web. 25 Sept. 2014.













