“Ecommerce sales have continued to rise despite the economic slowdown. “

In spite of the global economic turmoil, e-commerce has continue to grow at an exponential rate.  While retail sales are declining, e-commerce sales continue to rise. We  are shopping online as never before . The U.S. Market alone is forecasted to grow to over a Quarter of a Trillion dollars by 2014.

E-Commerce and Small Business

All in all small businesses in particular have been slowest adopters of e-commerce so far. In spite of all small businesses realising the potential e-commerce has to offer, a survey conducted by Discover credit cards found that almost 50% of small businesses did not have a website.  The rest of this year as well as 2012 is expected to see more and more small businesses get online amidst poor traditional offline sales.

Trends Favour Those Into E-Commerce

Despite economic slowdown and recession hitting the UK, 2010 e-commerce sales were recorded to be over 60 billion. By 2012 It is estimate that 10% of every pound spend will be online.  Similar increases are predicted in US where Online retail sales are anticipated to grow 10 percent annually for the next five years, accounting for 53 percent of all U.S. retail sales by 2014. Forrester Research.

Consumer Behaviour Patterns

• 71% Of UK shopper believe the best deals are Online

• An EConsultancy report suggests that 55 percent of consumers prefer to shop on the traditional high street, with 34 percent choosing to purchase online.

• Latest figures show that online buyers in UK spent an equivalent of £79 per person per month (Source: Capgemini).

• Some of the most popular items purchased in 2011 are Clothes/sporting goods, with nearly 46% of internet users buying these items followed by films/music at 40%.

• The e-consultancy report also found that free delivery is the most important consideration for consumers, with more than 8 of 10 shoppers having this as the most important factor when making a decision.

New Retailers Venturing Into E-Commerce – Key Factors to consider

New retailers venturing into e-commerce for the first time need to consider a number of factors. A well thought out strategy along with well defined goals and objectives are essential to ensure long term growth and success of  any business on the internet.  A sophisticated e-commerce platform will be helpful to meet the growing needs and expectations of customers. However an effective marketing strategy is equally important.  To attract more customers e-commerce retailers also need to pay more attention to elements like usability, visual appeal and quality of content or information that is offered. Search engine optimisation and social media strategy are other areas to consider.

Top 5 E-Commerce Trends for 2011/12

1. M-Commerce

M-commerce is the natural progression from e-commerce. Of the seven most common business models useD to monetise applications, mobile commerce showed the most gains year over year, according to a study by Appcelerator and IDC. Publishers are expecting a significant boost to their revenues in 2011/12 via apps on the iPad, IPhone, Android and other platforms.

Launch of innovative tools and third party applications will provide consumers with an even greater choice and features. The number of mobile internet users will continue to grow exponentially. Use of hand-held and mobile devices for shopping will continue to increase. Major brands will invest heavily to offer new and improved services over mobile platform.

2. Social Commerce

• According to Mark Zuckerberg, Founder of Facebook, Social Commerce is the next big thing to blow up on the internet.

• A study by Wire Magazine UK has found that 90% of all purchases are influenced subject to social influence

• Predicted revenues for social commerce in 2015 is $30 Billion according to booz & company

• Consumers will spend an estimated £19.3 billion on mobile devices by 2021, up from £1.3bn today, new research from Barclays Corporate suggests.

Research into consumer behaviour patterns has already shown the positive impact of peer reviews on purchase decision of customers. Peer reviews, ratings and other forms of user generated content will continue to influence conversions in 2011/12. It has become a common practice for E-commerce websites to integrate social networking with customers shopping experience. The use of social networking tools will continue in 2012 as new innovative tools and services are introduced.

User-generated content will play an increasingly important role in e-commerce. Brands will continue to work on integrating social media into the online shopping experience as a tool to increase customer loyalty.

3. Videos and Streaming Media

2011 has seen an exponential increase in the use of video. Video commerce will be integrated further into the online shopping  experience in 2012. As customer expectations increase, brands will respond accordingly. Internet TV as well as use of general multimedia content on mobile devices will continue to grow rapidly. The use of interactive videos to promote products as well as to offer general information will continue to offer an engaging online experience to users.

4. Personalisation

Personalised services will remain popular. Due to the ever increasing role of e-commerce in the day to day lives of consumers, businesses will focus on delivering personalised service to customers. Websites will offer a more personalised user experience to shoppers. Websites and portals will deliver tailored content and options to customers in order to offer a more enriching and faster shopping experience.

5. Increased Online Presence for Small Business

2012 will see a rapid increase in online presence of small businesses that have been relatively slow adopters until now. The benefits of Social media in particular have it possible for smaller businesses to develop strong brands on the web and compete effectively. More and more smaller businesses will take advantage of this. Smaller businesses will invest an increasing amount of time and effort into running a blog successfully and will rely increasingly on social bookmarking and social media in order to build a strong online profile.

How to Succeed in E-Commerce – Related Posts

How to Engage With Customers Using Social Media

Social Media for Business – 10 Ways to Avoid Failure

How to Blog for Business – 21 Ways to Be Successful

Top 15 Blogs You Should Follow to Succeed on The Internet

Services for Building a Successful Web Presence:

If you are a small business  wanting to develop a successful web presence, the following services will be of interest to you:

Web Design in London

Joomla Development

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