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The off side of online retail

By John Ginsberg, Product & Marketing Director, ENVENT
Johannesburg, 30 Nov 1999

With over 30-million people expected to hit the Web this festive season, it seems surprising that online retailers have failed to gear themselves up for the single most important aspect of online shopping -- return visitors.

Many online retailers are focused on the first time customer. And understandibly so, considering that in an attempt to capture their fair share of an ever-growing online consumer market, many have put aside a large marketing budget for the holiday season.

However, in the process, they have forgotten that in many cases, sales are not made on the first attempt. The ability of e-tailers to offer impulse buys has been translated into the assumption that all customers are impulse buyers. And they decorate the front page of their web site with 1-click offers and promises of same-day delivery.

But in their haste to reach the masses, they have ignored the large number of careful shoppers taking to the net this year - many for the first time.

These individuals are careful about putting the credit cards where their mouth is. They evaluate every negative factor of online shopping before deciding to take the plunge. Will the gifts arrive on time? What if I need to return an item? Will QueueHere.com still be around after Christmas, or are they a fly by night web site?

These issues often plague the consumer until they experience the inevitable, "Oh hell, why not!" syndrome that all net shoppers have experienced at some point in time. And even then, they limit their testing to the gift for their 3rd cousin twice removed on their mother`s side.

But even experienced net shoppers are hesitant, though perhaps for different reasons. The web is a price-shopper`s haven with shopping bots constantly scouring the net for specials and bargains. The convenience of comparison shopping is merely a mouse click away. It is therefore not surprising that consumers are hesitant to put their money on the table, because there might always be a better deal somewhere across the globe.

Add that to the fact that a web surfer`s loyalty to an online store is relative to the cost of their Internet connection - the more it costs, the less time they spend with each store.

And web shoppers are unlikely to be as forgiving in the online world as they would be in the real world. Slow download times and uncooperative web sites all help to convince them that the trip to the local mall, despite the inconvenience, might be less frustrating.

So how is an online retailer to compete in an offline-dominated world? It`s actually not as difficult as it seems.

1.       Build trust - clearly a forgotten aspect of commerce, whether online or off. Since online retailers operate in an untrusted environment, their number one priority is to build trust amongst customers.

2.       Cater for the browser and the buyer - for those who know what they want, help them to find it with ease. Offer a search facility and a call center number in case they can`t find an item. For those who just want to browse around, give them a convenient starting point and guide them through a tour of your various departments.

3.       Save customer profiles - many customers will return twice or even three times before making a purchasing decision. Allow them to save a profile up front which they can recall when returning. Don`t ask for personal details until they are ready to buy.

4.       Follow up - comparison shopping has never been easier, so make sure your site stands out from the rest. Once a customer has saved a profile, send them an e-mail reminding them about their selection. And because shoppers tend to visit many web sites at a time, you`ll need to constantly remind them of your web site address. Don`t forget to include the URL of your site in all e-mail correspondence. Be careful not to overdo it though, because it could be considered spam.

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Net Brothers

John Ginsberg is a senior consultant for Net Brothers, an e-business strategy consulting firm. He is also the editor of NB! Live Internet Update, a popular Internet strategy publication. Net Brothers Web site is at http://www.netbrothers.co.za.

Editorial contacts

John Ginsberg
Net Brothers
john@netbrothers.com