Internet retailing growth has been driven by price and product range, but as store based retailers learn to leverage their multichannel capabilities and smartphones blur the lines between in-store and online, e-tailers must raise their offer in order to compete. Euromonitor International investigates how the online world can harness a key in-store sales driver, impulse buying, by adapting new technologies and reinventing old retail strategies.
As the competitive environment within internet retailing becomes fiercer, e-tailers are having to work harder for sales. Impulse has traditionally been weaker online than in-store, but could drive sales growth if harnessed.
Consumers prefer shopping in-store because of immediacy, convenience, easier returns of unsuitable purchases and being able to try before buying – which are also all key elements of an impulse buy.
M-commerce is more than just internet retailing via a different gadget; mobile online access has made it possible to find and buy products almost instantly and almost anywhere.
Browsing no longer just happens on a screen – any object can be a potential purchase with new finding apps, while virtual stores create shelves full of products in two dimensions.
Further development is needed before apps become virtual replacements for the fitting room or tester pot, but the process has begun. In-home body scanning could be a major change to hit apparel internet retail.
Consumers are being freed from the requirement to enter a credit card number to pay online, or even have a card at all. Contact payments have potential for speedy collection, while instant credit will boost big-ticket buys.
Immediate gratification is a key driver of impulse buys, but same day delivery, 90 minute delivery and convenient collection points are all making order fulfilment issues less of a barrier to online impulse sales.
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