As an e-commerce insider, I reacted to the NYT article proclaiming that the “dot calm” had begun with a range of emotions; from defense (well, of course you can’t sustain 40% growth rates indefinitely) to justification (they need to view the full effect of the web regardless of purchase location) and finally to introspection (have we created web fatigue?). Over the past couple of days, I have watched the retail blogs with interest. And, they did not disappoint, the reactions were plentiful. And while I saw some similar thoughts and some new, I was struck by the lack of energy and excitement around the possibilities before us.
We are at a crossroads. We have figured out the basics, built the infrastructure and enticed consumers to visit, shop and share. But, while we have made great strides, our creativity is far from tapped. We have taken a careful approach to the web and have related it to established channels. We have replaced the print catalog with the web catalog, we have shifted marketing mailboxes from the driveway to the web and we have built a shopping process that assumes that you pull a cart through the store and checkout by the exit. This approach has successfully established the channel. It eased customer adoption and enabled us to learn the operations and to gain credibility. But has it optimized the shopping experience? Have we added more than convenience?
The credibility that we have built and the proclamation of slowing growth offer us the opportunity to forge a whole new path. We have the opportunity to truly change retailing, to provide shoppers with more than just access to more shopping hours and checkout channels. We have the opportunity to engage consumers more directly, to provide better information directly to them and to help them accomplish their goals more effectively. We have the opportunity to assess both the web experience itself and its role within the full customer life cycle.
One company that’s changing the shopping paradigm is a new client of ours, Nau.
They have flipped the retail concept on its head. In their model, the physical stores are “webfronts”, the CAPEX is limited, the customer savings are increased and the world gets a philanthropic benefit to boot. While I greatly admire their business, I realize that they had the luxury of building from scratch. However, while their approach is likely beyond the reach of most established retailers today, I’m confident that their creativity is not.
The warning has been issued, the opportunity is before us, who’s ready to play?
Great post. It’s great to have the challenge of improving the shopping experience so it’s not a chore but something fun. It’s an exciting time to be in the business.
Comment by Ben — June 20, 2007 @ 8:34 pm
[…] eCommerceInsights.com - “Online Sales Lose Steam”…let the games begin! […]
Pingback by Online Sales Slowing: Shoppers Influenced Online, Buying Offline - Read eCopt, Sell More - eCommerce Optimization — June 22, 2007 @ 5:01 am
The NYT is a great example of making numbers misleading through creative graphing. The chart shows a decline, but not a decline in revenue just a decline in the rate of growth of revenue.
Calling this “losing steam” is like saying a hurricane is losing steam because it didn’t get to a category 5 as fast as it got to a category 4. It’s still getting bigger and you had better be ready for it.
Let’s also not overlook that 5 out of the 8 bars in that graph are projections - not real data. This chart and this story are more drama than fact.
Comment by bmccarthy — June 22, 2007 @ 5:29 pm