Part One

Retail spending on the internet has increased consistently over the years, and continues to grow. In the past decade online purchases have grown to represent around 8% of the total of all retail transactions. This represents a growth rate of 700% or more, and the trend continues upward, despite the continuing economic difficulties.

RevenFlo believes there are several reasons for this continued growth:

Industry Maturation: The dot-com bust of the early 2000’s was highly instructive. Back then, investors showered capital onto any business with an “e-” at the front or a “.com” at the end of its name. Fundamentals like a solid business plan, marketing strategy or an attractive, reliable product mattered less than simply being online.  In the brick-and-mortar retail world, this would be analogous to simply leasing a space and paying rent – and expecting to succeed based on those factors alone. This naivete on the part of the retailers, investors and consumers is long gone.

Consumer Choice: Web retailers have grown more proficient and aggressive. There are more retailers online than ever before, and far more products available for purchase.  As the number of vendors and products online has increased, so has competition to make the online buying experience better, easier, and more satisfying.

Internet Security:  Consumers have grown steadily more comfortable entering personal information and credit card information. Continuous improvements in online security, and tireless efforts to promote the same, have led to a much higher degree of consumer comfort. Occasional, well-publicized security breaches occur, but consumers increasingly see such episodes as the exception.

Consumer Comfort: Online shopping has also become a very predictable way to make purchases. Consumers know which sites to visit, and they know how much their order will cost. Also, with stated delivery times from the retailer, and real-time tracking from carriers like UPS, the consumers know with a high degree of certainty when their shipment will reach them. This type of predictability is greatly appealing to the consumer, and tends to mitigate the “inconvenience” of waiting five business days for their item to arrive.

The Stage is Set for Future Growth in e-Commerce

As they say, past is prologue. Many of the same conditions that have fueled the growth e-commerce up to the present day are the same ones that lead online retailers to believe that their market remains strong, with more room to grow. In fact, a recent estimate suggests that the American online retail industry will continue to grow at a rate of 10% annually, perhaps reaching 250 billion dollars in the next five years.

As a service to retailers considering a move into the world of e-commerce, RevenFlo would like to explore different facets of this business, including:

• Entering the business by way of focused, niche marketing;
• The types of technology required to successfully manage ordering, billing and inventory; and
• The potential benefits to your business, in terms of cost and efficiency.

RevenFlo invites you to visit this space again in the coming weeks to learn how an effective e-commerce website – properly designed, launched, managed and marketed – can set the stage for dynamic business growth. In the meantime, if you have any questions about web design, web marketing or web strategy, please contact RevenFlo! Share your e-Commerce experiences in the comment area below!