- Posted September 21, 2013 by
Online Shopping – A Rapidly Growing Medium
Online Shopping is a rapidly growing trend in today’s global business environment. According to Forrester Research, as of 2009, the global online population was 1.63 billion. This figure is expected to increase to 2.3 billion by 2014. 81% of internet users research products online and approximately 66% of users have purchased an online product.
Research indicates that Americans spent approximately $186 billion in online transactions in 2010. It is being forecasted that by 2017, 10% of all sales in the US will be made online and mobile devices will account for 25% of those retail sales. Capitalizing on the online sales sphere is thus an important element for any successful product's marketing strategy.
Online sales will continue to grow. ToysRUs has recently announced a new 300,000 sq. distribution center that will help support internet sales. Wal-Mart has also recently purchased Kosmix, a social media platform for $300 million and has opened up @Walmartlabs to increase its online presence. Retail communities can also play an important role in providing useful information to consumers about products and services.
Picsity is an online community of product lovers who love to discover, collect, share and buy products. Picsity can prove to be an important resource to make an informed purchase decision. Since the feedback about products is coming directly from consumers, they are more believable. According to eMarketer, consumer reviews are trusted nearly 12 times more than descriptions that come directly from manufacturers. Forrester Consulting also reports that 90% of online shoppers research or browse two or more non-retailer websites before deciding to make an online purchase. This again indicates the level of confidence consumers place on unbiased and objective feedback and product recommendations as compared to those that come directly from the merchant and manufacturers.
Picsity is not just for customers but in fact provides a platform that enables merchants to promote their products to the end-users. Since ecommerce is such a critical part of any business model today, such portals provide additional support to merchants by creating a medium to promote and market their products and services.
Overall, consumers today believe in making informed purchase decisions and are utilizing the Internet as an important medium to buy products. Online platforms are an important resource for consumers to obtain relevant and accurate information about the numerous brands that are available out there and to improve their product selection.