Why are more consumers going for online shopping rather than going to physical brick-and-mortar retail stores? Is it because they expect to find lower prices? Wrong. In a survey conducted to at least 1,000 consumers by Simon Partners, the result showed that shoppers did not cite “lower prices” to be the motivating factor why they shop for goods and services online.
This might sound surprising for most readers but this is fact. There are other factors at play why customers prefer to go online which is the reason why as a budding business you need to be felt online. As more people are getting online, more companies are also taking advantage of the online network. Websites like UglyChristmasSweater.com are taking advantage of this trend. Indeed, getting online will rake in more profits for the business.
Though having your own building might seem unglamorous these days, companies that invest in infrastructure will benefit from the long-term customer loyalty built through good relationships. You need only to look at the moves recently made by retailer giants along with the largest online retailers for guidance on the secret to catering the need of online shoppers.
Currently, Wal-Mart is building two centers in order to boost the delivery speed of the company. Amazon on the other hand is increasing the seasonal warehouse staffing of its company to a whopping 70,000 employees. This data is according the press release of Simon-Kucher.
The greatest lesson that one can learn from big retailers is that it is a big no-no to use pricing as a strategy to correct the weakness of a certain area like speed of delivery and product selection. You need to fix the root problem.
The price matters to shoppers but the importance of the pricing will vary by product category:
- At least 24 percent of the shoppers surveyed said that lower price is the primary motivating factor when purchasing products like books, entertainment stuffs and electronics.
On the other hand, 18 percent of the respondents say that lower prices were the reason why they buy other brands of beauty and health products and recreational merchandises.