Wednesday, July 1, 2015

BRotD - Entry 0224 Retailers Crushing Pure eCommerce

Best Reading of the Day

This excellent little story over on Mobile Commerce Daily speaks the same language I've been using around here for a year or more.  The internet based companies of the 90's have had their day but retailers, with the help of mobile, are striking back.

http://www.mobilecommercedaily.com/traditional-retailers-crush-ecommerce-giants-in-omnichannel-shopping

Here is a snippet from that piece:

Ecommerce retailers such as Amazon and eBay are doubling down on mobile-driven omnichannel shopping experiences, but struggle to deliver the same level of convenience that traditional retailers can harness and which smartphone-equipped shoppers are demanding.

For years, traditional retailers took a drubbing at the hands of ecommerce pure-plays as online shopping grew, providing efficiencies that helped keep prices low. However, with the growth in mobile, the scales are evening out – and even tipping back in favor of retailers – as shopper interest grows in being able to shop anywhere, anytime, from a device of choice.

...

“Retailers like Best Buy and Walmart are dramatically reducing their shipping costs by shipping orders from stores, while Amazon is seeing shipping expenses double every year,” Razorfish’s Mr. Goldberg said. “Best Buy went from its average delivery being a day slower than Amazon, to a day faster when it begun shipping from stores.

I believe we will continue to see a blurring of the lines between traditional brick & mortar stores and pure eCommerce players.  The amazon companies of the world will open stores and the traditional retailers will create an online presence with shipping. That will be the new paradigm as customers sort out what they prefer to buy in what way, online or in person.

Happy Reading,

J.W. Gant

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