Despite online selling being around for almost 20 years now and the internet reaching 2 billion plus people, online sales still account for less than 15% of global sales. In the USA, UK and India online sales are 7% , 10% and 6% of the total respectively. This is surprising given that these economies have almost 100% internet penetration and a computer savvy populace.
With the rapid advancement and absorption of the internet, doom was predicted for brick and mortar stores. This is yet to happen even in economies where ecommerce was quickly adopted. As the data has shown, online sales are still below what one would expect in light of the fast spread of the internet.
The biggest reason why people are reluctant to shop online is the need for assurance that whatever they are buying works and those they are getting the best price. Shoppers still feel the need to make a physical bargain. They also want to compare brands, models, and warranties among other things. This is limited when shopping online.
Online retailers have long struggled with this challenge of showing their products as being more affordable. Which has led to coming up with tactics such as discounts, offers, coupons and online cashback.
This method of pulling customers involves giving incentives for shopping through partner sites that are pulling a lot of traffic. Big online stores like Amazon, Best Buy and Macy’s pull in a lot of traffic on their own but still use cashback to attract more sales.
These incentives have been successful in some instances but have not shown tremendous growth in online sales to be in a position of cannibalizing offline sales.
According to ShopperTrak which tracks shopping data worldwide, the total spending during Thanksgiving and Black Friday in offline purchases totaled 12.1 billion. This represented a 2.4% increase in brick and mortar sales from the previous year.
In the past, a report in 2013 by global consultants Pwc showed that many shoppers will research a product online then go and buy it offline at the store. This survey included 110,000 shoppers from 11 countries. This shows a complementary relationship rather than cannibalization.
This data is encouraging if you are a retailer, mall owner or small business selling offline. You just have to implement a mix of offline and online tactics to pull in more customers.
Do It The Freedom Way !
Retailers will have to mix online and offline tactics to attract more customers. By using Freedom Desi Ecosystem you can make better loyalty programs and rewards system. Try out this robust system for more sales and revenue.
Just download the Freedom Desi & share your experience. We will be happy to listen you… https://goo.gl/FPpOi1
Founder & CEO
Freedom Smart Labs Ltd