The Future of Online

Shopping

&

7 E-Commerce Trends

in 2014

Online Shopping

• The process in which consumer purchase products or services over the internet.

• An online shop, e-shop, e-store, web shop, online store or virtual store evokes the physical analogy of buying products or services at a bricks and mortar retailer or in a shopping mall

The Future of Online Shopping

8% to13% of retail shopping in the USA is done alone.

• Features of Online Shopping

– Price – Companies offer competitive prices.

– Convenience – People are able to shop anytime

– Free Shipping – Many vendors are proving free shipping

– Daily Special Deal -

– Mobile Benefits

Needs Online Shopping Satisfies

• Customers can directly purchase goods or services from a seller without an intermediary services.

• Online store are available 24/7 days a year.

• Provides greater access to information.

• Consumers are able to comment and rate their while at the same time providing future buyers the choice of purchasing the item after the reviews

• Quickly seek out deals for items or services with many different vendors.

Needs Online Shopping Satisfies

• HELPING– Advance the public via technology

– Promoting the public to go green

– Quicker and occasionally cheaper

• HURTING– Local jobs will be in danger

– Brick and mortar retailers

– High street stores may decrease, especially small independent stores.

Faults of Online Shopping

• Online Shopping carries a risk for every transaction. Risk of data compromise, non delivery, damaged goods or even a product appearing much different on-screen than in a real life.

– Identity Theft

– Fake Sites

– Payment Fraud

7 E-Commerce Trends in 2014

1. Going Global while staying local

2. Mobile payments become easier

3. Utilizing multichannel selling

4. Multi-device redefines point of sale

5. Data + Analytics

6. Shopping gets social

7. Delivery

1. Going Global While Staying Local

• Actually it’s the key to your business being successful globally.

• Emerging markets are expected to experience huge growth in online spending.

• Impressively, in 2012 Chinese shoppers spent $213 billion online and are predicted to have outspent the US last year.

• In China, people are hungry for foreign goods. However, 60% is still

• being bought through domestic ecommerce platforms. While foreign goods are highly in demand, consumers still prefer a

localised shopping experience.

1. Going Global While Staying Local

“Asia will become the biggest contributor to B2C E-commerce, predicted to spend $502 billion

in 2014 - nearly a third of total spend worldwide.”

2. Mobile Payments Become Easier

• You can book & pay for a room online through your phone.

• Even buying your lunch becomes a breeze as you avoid rush-hour queues by pre-ordering and paying through your phone.

• In the last yea r alone, mobile payments totalled $235.4 billion worldwide. And it’s not slowing down yet, a further 38% increase to $325 billion is expected in mobile payments for 2014.

• “In the UK, mobile will account for approximately 24% of retail ecommerce sales this year.”

3. Utilizing Multichannel Selling

• As the shopping experience becomes more fragmented, it’s critical for businesses to adapt. Online retailing is about multichannel selling – individual websites, public marketplaces and shopping-comparison websites.

• Similarly to when a physical retailer will open new locations in order to increase their revenue, an online retailer can sell their products across multiple channels online.

• The greatest advantage of multichannel selling is ultimately it levels the playing field for small retailers. Instead of the customer going directly to the biggest retailer, small businesses can now reach the customer directly through a search engine, comparison site, or an online marketplace such as eBay. Even Tesco, the 2nd largest retailer in the world uses eBay UK as a sales channel!

4. Multi-device Redefines Point of Sale

• eBay and Amazon Marketplace are popular online channels that retailers choose to sell their products, but 2014 is all about optimising your options. Using integration tools such as ChannelAdvisor, you can manage and automate your product submissions and order processing.

• 89% of customers said it’s important for retailers to allow them to shop in the way that is most convenient for them.

5. Data + Analytics

• Data analysis is no longer just about segmenting email lists.

• companies analyze data to create useful consumer insights. Fashion retailers can use data to suggest products based on existing purchases, they can help the customer build a complimentary and customized wardrobe.

6. Shopping gets Social

• Customers expect a more multifaceted relationship with retailers – social media is not just for shopping, but also for retailers to post high-quality content.

• “The idea of content marketing is to attract and retain customers by creating and curating relevant and valuable content.

• Some experts predict that online shoppers will become more fickle in 2014. One possible way to counteract such an unfortunate situation is to be more than just a shop, and to provide useful or entertaining content that will keep shoppers coming back.

7. Delivery

• “72% of retailers offered next-day delivery, compared to 68% last year (2013)”

• People prefer retailers to deliver as soon as possibe.

• Amazon Prime registered 1 million new customers in December 2013. There are now 20 million Amazon users who are eligible to get next day or two day shipping.