The Future of eCommerce
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> Industry Trends
by
Riyaj Shaik
According to
a recent report by Jupiter Media Metrix, customers this holiday season are expected
to shop more at online retailers with brick-and-mortar origins than at pure-play
Internet sites. This trend would be a reversal from last year, when 55 percent
of online consumers shopped at pure-play Internet sites, compared with 45 percent
who shopped at sites connected to brick-and-mortar stores.
Pure-play
e-commerce sites such as Amazon.com, CDNow and SmarterKids.com are expected to
spend less money on advertising this year as investors put on the pressure for
profitability. This decreased advertising budget could cause pure-play sites to
lose some market share.
Consumers new to online shopping tend
to be less Internet-savvy and more comfortable with Web sites connected to brick-and-mortar
stores.
Mail-order companies have superior database-marketing
and customer-intimacy practices. Brick-and-mortar retailers boast huge customer
bases and powerful brands. Pure-play Net retailers, however, can't match that
kind of retail experience. They want it, but they can't afford it in today's venture
capital environment.
Jupiter estimates that a total of 35 million
people in the United States will purchase gifts online this holiday season, compared
with the 20 million who shopped online last year. This will likely translate into
$11.6 billion being spent this season, compared with $7 billion during the same
period last year.
More shoppers are also expected to buy clothes
and shoes online this year, in addition to safer online purchases such as books,
CDs and computer gear. This shows that consumers are becoming increasingly comfortable
buying online.
