Opinion: Getting a slice of the £20 billion online retail pie

You may be surprised at what makes customers shop online. And what makes them choose you as an online retailer. It’s not all about advertising and fancy website features. Find out what makes your customers tick. 

Report after report shows the increase of online spending with online Christmas shopping alone set to reach £20 billion in 2007. With this in mind, your website has never been so important.

Our research revealed key online buying habits of UK shoppers over Christmas last year. Now it’s time to make sure your website is up to the 2007 Christmas challenge, ensuring you get a slice of the £20 billion pie.

Over two thirds of GB shoppers state 24 hour opening hours, avoidance of Christmas shopping crowds and home delivery as being the primary reasons for shopping online.  Price is also a major factor, but essentially, convenience is the major driver for online Christmas sales.

Getting them to YOUR website

One of the most interesting findings of our research is that it is word of mouth, both offline through family and friend recommendations, and online via user review sites and blog posts, that is driving demand to online retailer’s websites. 

Search engine results were the next highest driver, followed distantly by traditional methods such as catalogues in the post and emails from the company.  Online advertising trailed behind at a collective 9% for banner ads, broadcast and print ads. 

Once your customers are on your site, the trick is getting them from the home page to the product they need and through the checkout process in a quick and simple process.

Getting them to the checkout

When it comes to online retailing, it’s all about conversion.  It’s all very well if people can get to your website, but if they can’t find the product they’re looking for, then what’s the point?

Search function is critical to online conversion. Only half of those who search for products on company websites actually find the product they are looking for - this mean that 50% of potential customers are lost instantly!  

Online product descriptions are also critical.  Good copy helps to change consumers buying habits, and gets them to buy online rather than instore. 

Our research revealed the key features shoppers value most in a website.

• A good site search function
• Well written copy and high quality product images
• Clear and convenient delivery options
• Easy navigation
• Clearly visible product availability

More advanced features such as product comparison tools, company recommendations and gift finders were not highly sought after.

My advice is to keep it simple. Make sure your customers can find the product before you start adding additional features to your website.

Matthew Tod
CEO, Logan Tod & Co.