Monthly Archives: January 2012

Why E Tailing will outshine brick and mortar Retailing in 2012

Steve Burns Posted On - January 30, 2012

Why E Tailing will outshine brick and mortar Retailing in 2012
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(Caveat: Of course, there are many challenges to overcome before this happens.)

In the war between the brick and click, the click will win in 2012!

There I said it, or I should say actually the survey of 94 retailers by Retail Systems LLC said it. This seminal research concluded that 63% of the multichannel retailers expect their online sales to soar as a percentage of their total (brick and click) sales by the year 2015. On the flip side, a mere 10% of these retailers expect online sales to decline. The jury has pronounced its judgment with an overwhelming majority!

To quote RSR in the study, “eCommerce 2012: Back to the Future.” “We find the number of retailers committed to stores as a major growth strategy declining and the need to do a good job integrating the customer experience across all channels more and more of an imperative,”

Currently 19% of the retailers earn between 10 to 24 % of their total sale from clicks. This number is expected to go up to 41% by the year 2015. This means an increasing number of multichannel retailers will start earning more from the online channel as against the brick and mortar stores.

Today only 3% of the multichannel retailers earn between 25 and 75% of their revenues directly from online sales. While this number may seem small, indications are that this number will increase to 22%! During this time, (by 2015) it is also expected that the numbers of multichannel retailers earning more than 75% of their sales revenue from online sources will increase from 10% to 11%.

If one looks at the trends for retailers who are presently clocking less than 10% of their sales from the online channels, this category is set to shrink from 68% of the total to 26% – indicting that there will be fewer retailers who earn only a minor percentage of their income online.

The point that is to be understood is that online retail is trending to become a dominant part of the multichannel sales mix of retailers.

Now let’s take a look at what the winners in this group of 94 retailers (typically those whose turnovers grew by 4%+ in 2009-2010) have to say about challenges they face in sustaining their growth momentum in the future.

According to this group that comprises of 54% of the respondents that RSR categorizes as winners, their main challenges included:

• Keeping pace and adapting to changing shopping patterns such as social networks and mobile commerce.

• Getting customers to engage with them online.

• Maintaining historic growth rates in the coming years.

Challenges that were spoken about by others included:

• Managing ever increasing online assortments of products and brands

• Planning for online sales with uncertain demand

• Dealing with the increasing transparency and knowledge of prices thanks to Comparison Shopping Engines

• Addressing the issue of shopping cart abandonment

The respondents that RSR classifies as winners (due to their ability to grow their online sales by 4%+ year on year) also cite many lucrative opportunities to increase their share of the online pie. These opportunities include (in descending order of relevance based on the number of people opting for the choice strategy.)

• 65% stated that improving the standards of online merchandising and assortment would contribute to improved sales.

• 61% believed that there was a need for providing richer product information online

• 59% stated that they would seek investing in cross channel shopping capabilities.

• 43% believed there was a case for improving search and browsing capabilities.

• 43% identified targeted direct e mail campaigns as a big opportunity

• 38% felt that an improvement in the payment process would contribute to increased sales and an enhanced user experience.

• 19% identified embedding more social networking capabilities in their website as an area of opportunity.

• 24% believed that a more sophisticated paid search campaign would deliver great value and response.

• 14% stated that special offers and branded deal of the day type promotions were an area of opportunity.

• 9% felt that third party deal offers could enhance their numbers (Groupon, living social type deals)

E-tailing has brought a definite go to market strategy that is far beyond what the brick and mortar ever did. It has made retail more complex, and it has empowered the customer to the extent that was unimaginable earlier. Those who successfully navigate this new market channel will be the winners in the great retail revolution.

ChannelSale assists online retailers to manage their campaigns across multiple marketplaces and comparison shopping engines. To understand the capability of this powerful e-tailing engine, click herefor a demo.

Talk to us on our toll-free number 1-866-709-9495
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Introduction: 2012 Online Retailer Sales Primer

Steve Burns Posted On - January 24, 2012

Introduction: 2012 Online Retailer Sales Primer
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Enhance the impact of your sales with the 2012 Online Retailer Sales Primer!


It is famously said that those who don’t learn from history are condemned to repeat it. There is no time like now to learn the lessons of the 2011 Festival season sales and implement those learnings to the benefit of your marketing campaigns. The campaign is fresh in your mind, the results are visible and so are your missed opportunities. ChannelSale is amongst the first off the block to help you learn from the campaigns you created and suggest ways to boost your performance, both during the year and more specifically during the peak festival season. Last year the festival season sale (Nov to Dec 31st) peaked with a total sale of US$ 37.176 billion – which represented a 15% increase over the previous year season.
Did your sales reflect this trend?Remember this increased sale represents the expansion of the season’s online buying. Did your sales reflect this increase? If not, then your market share has not increased in a proportion commensurate to the market. What went wrong, and what went right? Download our  2012 Online Retailer Sales Primer to learn and implement the best practices to your benefit this year.
Download the FREE  2012 Online Retailer Sales Primer by clicking here!
The primer includes:

  • The top shopping days during the past season with the total sales, and their year on year increase.
  • The important days to prepare your campaigns for in the year 2012.
  • Top Tips for ensuring record sales in Festive season 2012
  • Checklist of sales strategies for season 2012

Extend your reach with ChannelSale

  • ChannelSale platform is your gateway to 200+ Online Major Shopping Channels –  Marketplaces, Comparison Shopping Engines and Affiliate networks
  • ChannelSale offers you managed services to professionally manage your campaigns.
  • Update latest changes in your Marketplaces, Comparison Shopping Engines and Affiliate networks even as they happen.
  • Save Time and Money by reducing your marketing costs.
Ready to expand the reach of your campaigns and save time and money at the same time?
Click here to view the ChannelSale demo and get to know how to save your costs and increase your revenues.
Talk to us on our toll-free number 1-866-709-9495
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