What’s Driving Online Retail Innovation? – By DealDash
Believe it or not, finding the lowest prices doesn’t seem to be the number one driving force behind consumer’s online shopping habits.
While many online shoppers agree that lower prices are their primary motivation for shopping on the Internet, according to a survey from Simon-Kucher & Partners, more than 1,000 online shoppers surveyed say there are other driving factors that compel them to spend their dollars online. What’s more, retailers that make winning the price war be the end all of their competitive marketing strategy often live to regret it in the long-term.
So, What’s Driving Online Retail Motivation?
While it may sound rather dull, retailers who are investing in infrastructure are the ones reaping long-term customer loyalty in terms of online retail.
Let’s take the nation’s largest land-based retailer and biggest online retailer as examples of what’s driving online consumers.
Walmart is building two brand new fulfillment centers in order to speed up delivery. Amazon has increased its seasonal warehouse staff by tens of thousands of employees to boost productivity and delivery, too. But, here’s the thing: Walmart’s competitive issue doesn’t lie with Amazon’s price points, it’s more about fulfillment and service. The lesson we can learn here is that retailers should not be using pricing to correct a weakness in other areas, such as the speed of delivery or production. Rather, they should be working to fix the problem. If a product is great, online consumers are going to buy it, but they are not going to stand for slow delivery. One way to check how online shoppers find sites, particularly those like DealDash where penny auctions are the name of the game and shoppers can get new products at great prices, is to see what other shoppers are saying. The DealDash Trust Pilot is a good example where online shoppers can review companies and online stores, uncensored, and companies may not delete any reviews, so it motivates shoppers’ decisions.
Is That It? Pricing Doesn’t Matter?
All that being said, the price is still going to play a role in online retail motivation, but its importance seems to vary. The Simon-Kucher & Partners survey found that:
- 24% of shoppers surveyed reported that lower prices are their main motivation for making a purchase in terms of electronics, books, and entertainment.
- When it comes to purchasing food and beverages, shoppers who were surveyed report that better selection is their driving factor to spend money.
- 18% of people surveyed reported that lower prices were the main reason for shopping online for new frontier items like hobby and sports-related merchandise, health and beauty products, and also furniture and clothing.
- Free shipping, like DealDash offers, is also a leading motivator
Either Way, Shoppers Need the Motivation to Buy
Offering savings to a motivated online shopper tends to result in higher performance, but it’s not going to have much effect on unmotivated shoppers. So, the key seems to be to inspire motivated shoppers. Here are a few tips:
Being able to browse quickly to save time can also motivate customers to shop online. It’s a highly influential motivator, enabling customers to reduce the time and effort it takes to make a purchase. Going back to an earlier point, there are those that argue that online retailers can eliminate the time-saving factor by speeding up delivery.
Ease of Buying and Convenience
This refers to the flexibility of the online shopper. Online purchases tend to empower customers to make price comparisons and browse through category upon category of products from the comfort of their armchair. A site like Trust Pilot makes comparisons even easier, and the ease of use of an auction site like DealDash, where customers can pick up new products at good prices, means convenience and ease are big motivators.
Ensure Privacy and Security of Data
One of the biggest dilemmas for online shoppers is security and privacy concerns. Secure and safe transactions increase trust and help reduce transaction risks at the same time. To avoid such issues, more online shoppers are turning towards authentic and secure sources for online shopping that can guarantee their privacy and security. What’s more, alternatives like money back guarantees, like DealDash’s 90-day money back guarantee on the purchase of the first bid pack, along with cash on delivery options some sites offer, also motivate customers.
Website Design and Usability
While the saying goes that a good face makes the sale, we can apply this to shopper’s motivation to spend money online, too. A website that is well-designed and easy to use, or even an app that is super-user-friendly, motivates customers to make purchases. Arguably, this is one of the leading reasons that more businesses are developing innovative and interactive ideas that are attention-grabbing. Think along the lines of 3D stimulation of products, high-res graphics, and easy and safe payments mechanisms, along with easy-to-use interfaces and designs. Then, splash a few colors around to make the online content lively and capture interest, all working together to motivate customers to at least take a look at the site.
Online shopping continues to flourish day in and day out, as the use of the Internet increases around the globe. Being able to analyze and understand what motivates online shoppers is crucial for advertisers, marketers, and app developers alike. Particularly, understanding the consumer’s attitude towards online retail shopping, making the necessary improvements in the factors that influence their motivation and then working on those factors can help online stores gain the competitive edge.
With the saturation of online retailers, a site like Trustpilot can help with better online shopping experiences, and especially if you’re keen to check out DealDash, you can get a good idea of how shoppers are finding their experience on the auction site. Sites who have the edge when it comes to online retail motivation are the ones that can look forward to shoppers returning time and again.
We hope you enjoyed the promoted piece as much as we did!