Summer is coming quick and we’re all looking ahead. In our industry, looking ahead means examining e-commerce trends internationally and identifying how they can help boost your business.
We took the pulse of the industry to determine some of the key statistics you should know. Here’s what we learned and what it might mean for your online enterprise.
1. Know when to grow
To know whether it is time to invest and grow, or to just coast along, it is important to understand the state of the industry. Fortunately, when it comes to e-commerce, the industry is always growing, meaning there are always opportunities to invest and prosper. According to a poll of 100 senior executives from global retail chains, conducted by The World Retail Congress in September 2011, online sales are expected to deliver almost a quarter of their global retail sales by 2015. This trend applies to almost any retail enterprise operating in today’s marketplace. Online entrepreneurs can benefit from the boost in online sales by understanding how to adapt their business’ to meet consumers’ wants and needs.
2. Find out where your customers are
In order to maximize sales, it is essential to know where your customers are located and to target those areas. According to a study by Pitney Bowes and ORC International*, 98% of consumers in Germany, South Korea and the U.K., report having made an online purchase. Other regions where online shopping is popular include China (94%), Australia (92%), Brazil (91%) and the U.S (91%). To increase global sales, online merchants should consider making their products available in some of these countries.
3. Keep track of the hottest products online
Another key factor to keep in mind is whether your product is in high demand, and whether you are reaching your target market. According to Pitney Bowes and ORC International’s study, products most frequently purchased online are: books, videos and music; computer hardware and software; and consumer electronics. However, the popularity of each product category varies by country. While books, videos and music are most popular with online shoppers in the U.K., Australia and Germany, computers (etc.) are most popular with online shoppers in Brazil. Apparel and footwear are most in demand in China. Online entrepreneurs should keep these trends in mind when selecting the target market for their product offering.
4. Find out which factors close the deal
To improve your close rate, you need to be aware of what prevents customers from completing an online purchase. The most common causes for abandonment of a transaction at checkout are high shipping costs, additional fees at time of delivery such as duties and taxes, and lengthy delivery time, according to Pitney Bowes and ORC International. To mitigate these factors’ impact on your close rate, ensure total purchase costs are clearly communicated on your website and ensure you have a reliable delivery service partner.
Learn more about how Payza can help you sell online and integrate your business with our platform to boost your success in e-commerce.
* “E-commerce provides roadmap to help U.S. retailers reach consumers around the globe”, Pitney Bowes and ORC International, 2011