Edmonton - 6th November, 2011
What is E-Commerce? When trying to understand E-Commerce, it's important to look at growth rates and statistics. Some noteworthy information to start with is the growth of Canadian internet use, online shopping expansion and who E-Commerce marketing targets.
Canada leads E-Commerce because of its high percentage of internet usage per capita. According to Comscore Inc; an online data compiling firm, Canadians spend an average of 2500 minutes or more online per month totaling nearly 42 hours. ComScores research determined that with 68% per capita, Canada has the largest number of internet users in the world. Isreal was a close second averaging around 2300 minutes.
It is interesting to see that Canadians spend most of their time on social networking sites. ComScore reports that a whopping 71% of Canadian online users visit YouTube every month. Chris O'Neil, Canada's country director for Google states 'In Canada,YouTube per capita consumption of video is No. 1 in the world.' Canadians are also heavy Facebook users as 83% have accounts on The Social Network.
Compared to the US, growth rates of E-Commerce in Canada are slower but are expected to increase over the next couple of years. Canadians can expect E-Commerce to nearly double by 2015 reaching $30.9 billion CAD. Recently, as of 2010, Canadians spend approximately $16.5 billion CAD online. As consumers become more comfortable purchasing high deliberation items online, E-Commerce activity is expected to increase. Some examples of such purchases would be high-end electronics, trips and jewellery.
E-Commerce growth rates are slow due to online buying reservations. Many Canadians are wary of purchasing products they cannot touch or try and are hesitant to pay high shipping rates. While current market conditions have led many small retailers to avoid E- Commerce, some niche businesses that offer unique products are succeeding online because the geographic location of the store is not a concern. For example, a baseball card that is rare in Toronto can be purchased from the website of a store located in California where that card may not be as rare.
Now that we see how E-Commerce is growing, it's important to uncover why consumers choose to purchase from one site over another. One way to insure consumers buy from a particular site is to offer niche products. This will bring specific clientele to the business. At times, buyers can feel frustrated searching for their favorite product to purchase. Niche business can retain these customers.
The article 'Exploring Why Consumers Leave Websites before Buying' written by Chuleepor Changchit & Robert Cutshall provides facts as to why consumers are more comfortable purchasing products from some websites over others. Although limited to functionality, these examples are important to understand.
The following are some reasons why consumers buy from particular websites and not others:
1. Consumers are not sure if a particular price is the best one. Many shoppers will research competitive sites to find the best value for the product they want to purchase.
2. Shoppers might be discouraged by shipping fees.
3. Many buyers do not want to spend time registering online to purchase products.
4. Fear of receiving the wrong product.
5. Lengthy checkout process.
6. Concern about whether the website will ship the purchase on time.
7. Many shoppers are not willing to provide personal credit card information.
8. Confusion when searching for a product can deter shoppers from the site.
9. Wait times for images and content can result in the loss of a sale.
10. The product the consumer is searching for may simply be unavailable online.
One of the biggest advantages of shopping on the internet is that consumers can visit different online retailers in an effort to find the best price for the same product. On the other hand, some shoppers are not aware of competitive retailers and purchase from one particular online retailer simply because it is the only one they know about.
Those are a few reasons why consumers buy from particular websites. Another important factor relating to E-Commerce is looking at the thought process that drives consumers to add an item to their cart and purchase it. When customers want to purchase a product, it is important to uncover what drives them to purchase the product online and what final thoughts influence their decision to click 'add to cart.' There are many reasons why a consumer resolves to purchase a product online. One of the main reasons is the product/service is limited and not available locally. Quite often, consumers go online to purchase limited or rare collectible items including entertainment tickets, travel packages, clothing or memorabilia. Often small retailers will go online to purchase bulk products at discounted rates. Others shop online to receive discounts. For example, eBay enables the consumer to purchase products through an auction allowing the shopper the chance to buy at a reduced price. Online shopping also offers competitive pricing. Consumers can track product prices to see when they are lowest and compare them to other leading competitors.
When examining the consumers thought process during the final 'add to cart' moment there are a couple different responses that can be expected. The first response represents impulse buyers.These buyers have not planned the purchase. The acquisition is spontaneous and is influenced by what they are currently viewing online. This type of buyer is drawn to online advertising, recent trends and the popularity of the product. They are usually compulsive; only considering how they are going to pay for the product after adding it to the cart.
The second response represents planned purchasers. These buyers have weighed out the pros and cons of purchasing online. They are aware of additional shipping rates and have reviewed consumer comments. They have also compared prices with other online retailers and have determined the most reasonable price for the product. They are meticulous and organized in their purchasing methods and have invested hours of research into the purchasing process. As you can see there are two different types of buyers; the impulse buyer and the planned purchaser. Each buyer examines the online purchasing experience differently and companies must provide websites that appeal to both types of buyers.
You now have a better understanding of various E-Commerce components including statistics, current and expected growth rates, reasons why consumers buy from one particular website over others and what actually drives the consumer to click 'Add to Cart.' Understanding these components will provide a new appreciation for E-Commerce and enhance the online shopping experience.
What is E-Commerce? When trying to understand E-Commerce, it's important to look at growth rates and statistics. Some noteworthy information to start with is the growth of Canadian internet use, online shopping expansion and who E-Commerce marketing targets.
Canada leads E-Commerce because of its high percentage of internet usage per capita. According to Comscore Inc; an online data compiling firm, Canadians spend an average of 2500 minutes or more online per month totaling nearly 42 hours. ComScores research determined that with 68% per capita, Canada has the largest number of internet users in the world. Isreal was a close second averaging around 2300 minutes.
It is interesting to see that Canadians spend most of their time on social networking sites. ComScore reports that a whopping 71% of Canadian online users visit YouTube every month. Chris O'Neil, Canada's country director for Google states 'In Canada,YouTube per capita consumption of video is No. 1 in the world.' Canadians are also heavy Facebook users as 83% have accounts on The Social Network.
Compared to the US, growth rates of E-Commerce in Canada are slower but are expected to increase over the next couple of years. Canadians can expect E-Commerce to nearly double by 2015 reaching $30.9 billion CAD. Recently, as of 2010, Canadians spend approximately $16.5 billion CAD online. As consumers become more comfortable purchasing high deliberation items online, E-Commerce activity is expected to increase. Some examples of such purchases would be high-end electronics, trips and jewellery.
E-Commerce growth rates are slow due to online buying reservations. Many Canadians are wary of purchasing products they cannot touch or try and are hesitant to pay high shipping rates. While current market conditions have led many small retailers to avoid E- Commerce, some niche businesses that offer unique products are succeeding online because the geographic location of the store is not a concern. For example, a baseball card that is rare in Toronto can be purchased from the website of a store located in California where that card may not be as rare.
Now that we see how E-Commerce is growing, it's important to uncover why consumers choose to purchase from one site over another. One way to insure consumers buy from a particular site is to offer niche products. This will bring specific clientele to the business. At times, buyers can feel frustrated searching for their favorite product to purchase. Niche business can retain these customers.
The article 'Exploring Why Consumers Leave Websites before Buying' written by Chuleepor Changchit & Robert Cutshall provides facts as to why consumers are more comfortable purchasing products from some websites over others. Although limited to functionality, these examples are important to understand.
The following are some reasons why consumers buy from particular websites and not others:
1. Consumers are not sure if a particular price is the best one. Many shoppers will research competitive sites to find the best value for the product they want to purchase.
2. Shoppers might be discouraged by shipping fees.
3. Many buyers do not want to spend time registering online to purchase products.
4. Fear of receiving the wrong product.
5. Lengthy checkout process.
6. Concern about whether the website will ship the purchase on time.
7. Many shoppers are not willing to provide personal credit card information.
8. Confusion when searching for a product can deter shoppers from the site.
9. Wait times for images and content can result in the loss of a sale.
10. The product the consumer is searching for may simply be unavailable online.
One of the biggest advantages of shopping on the internet is that consumers can visit different online retailers in an effort to find the best price for the same product. On the other hand, some shoppers are not aware of competitive retailers and purchase from one particular online retailer simply because it is the only one they know about.
Those are a few reasons why consumers buy from particular websites. Another important factor relating to E-Commerce is looking at the thought process that drives consumers to add an item to their cart and purchase it. When customers want to purchase a product, it is important to uncover what drives them to purchase the product online and what final thoughts influence their decision to click 'add to cart.' There are many reasons why a consumer resolves to purchase a product online. One of the main reasons is the product/service is limited and not available locally. Quite often, consumers go online to purchase limited or rare collectible items including entertainment tickets, travel packages, clothing or memorabilia. Often small retailers will go online to purchase bulk products at discounted rates. Others shop online to receive discounts. For example, eBay enables the consumer to purchase products through an auction allowing the shopper the chance to buy at a reduced price. Online shopping also offers competitive pricing. Consumers can track product prices to see when they are lowest and compare them to other leading competitors.
When examining the consumers thought process during the final 'add to cart' moment there are a couple different responses that can be expected. The first response represents impulse buyers.These buyers have not planned the purchase. The acquisition is spontaneous and is influenced by what they are currently viewing online. This type of buyer is drawn to online advertising, recent trends and the popularity of the product. They are usually compulsive; only considering how they are going to pay for the product after adding it to the cart.
The second response represents planned purchasers. These buyers have weighed out the pros and cons of purchasing online. They are aware of additional shipping rates and have reviewed consumer comments. They have also compared prices with other online retailers and have determined the most reasonable price for the product. They are meticulous and organized in their purchasing methods and have invested hours of research into the purchasing process. As you can see there are two different types of buyers; the impulse buyer and the planned purchaser. Each buyer examines the online purchasing experience differently and companies must provide websites that appeal to both types of buyers.
You now have a better understanding of various E-Commerce components including statistics, current and expected growth rates, reasons why consumers buy from one particular website over others and what actually drives the consumer to click 'Add to Cart.' Understanding these components will provide a new appreciation for E-Commerce and enhance the online shopping experience.
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