The e-commerce opportunity
In this digital age, entering the domain of e-commerce is unavoidable. Not only that, but any business which is not looking to capitalise on the extensive opportunities on offer in the electronic domain may as well be steering their Titanic operations straight for the nearest iceberg. In this day and age - it's not just a matter of keeping up - it's a case of staying in business.
In a nutshell, e-commerce or 'electronic commerce' is the method of doing business using the internet. Many would instantly think about buying and selling goods online, but the e-commerce opportunity goes much deeper than that. Selling services, receiving electronic payments and online marketing are all examples of e-commerce at work. Play the game right and you could be enjoying increased profits, boosted sales and a worldwide reputation.
As well as the ability to reach the world's biggest market base 24/7, e-commerce offers businesses a range of other benefits, most notably in the reduced costs associated with marketing in this way. As an online retailer you are instantly cutting the cost of employing in-store staff, running a building and keeping the store's image up to date. Indeed, while professionally producing an e-commerce website and keeping it maintained may cost a few thousand pounds each year, these costs pale into insignificance when compared to the cost of running and maintaining a customer facing store.
Now 2011 has drawn to a close, e-commerce marketers are beginning to look towards what the next 12 months will bring in terms of opportunities. Looking back over the last decade, online retailing has changed the face of the retail market and has seen companies like Amazon, eBay and Play.com appear from nowhere to become retail giants and household names in a very short space of time. However, even these internet monsters are beginning to feel the pinch, with Amazon reporting sales down in the second quarter of 2011 and other operators such as Overstock.com reporting drops in profits in the same period.
There may be a number of reasons for these reported drops in sales. With the current economic climate leading to pretty much stagnant incomes in most of the Western world, it is hardly surprising that this is starting to have an impact on online growth. In addition to this, with so many new businesses moving into e-commerce every day, online retailers are constantly battling with their peers for the lion's share of the market. In order to stay afloat you not only need to miss that iceberg, you also need to do it at -50% RRP.
New business models As well as the constant price wars squeezing the profits of online retailers, there are also new business models evolving which are changing the way consumers buy. Group buying sites like Groupon and Wowcher are offering consumers the chance to secure unbeatable deals through the power of mass purchase.
Private buying clubs for expensive items are seeing direct deals being brokered with manufacturers, which retailers cannot be expected to compete with. As well as this, the online consumer is smarter than ever before. With people looking to work with cash-back sites, trawling for online voucher codes and making the most of price comparison tools, there is much more to be considered than just how much you price your product at. Online consumers are also prepared to pay for more products that are delivered to them by a reputable retailer, so getting those good reviews from existing clients is invaluable.
With all this in mind, it is becoming clear that an attractive website with a good range of products and a useful search function is not enough. Consumers no longer just want to browse and inspire their own purchase decisions, they want to be inspired by you, be led by you and wowed by you. For most online retailers, the cost of a new customer will be set in the amount it needs to discount its products to achieve the original traffic flow to its site. In order to compensate for this squeeze to their profits, they need to maximise the opportunity that new customer presents, both now and in the future. Intelligent cross selling, attractive visual display and sophisticated personalisation are key to ensuring the customer feels inspired - not forced - to buy more than they came for and that they will come back again.
M-commerce just as important As well as reinventing an online presence, e-commerce businesses should be looking at their m-commerce facilities too. For smartphone and tablet users, the interaction and mobile experience should be just as impressive on a smaller screen as it is on a PC. The improved search functionality needs to translate well to the mobile app and the checkout process should be as simple as possible to let those impulse purchases go ahead.
Retail experts recommend avoiding the 'app' market, as you present yourself with all manner of challenges by doing so, not least to develop three or four platform specific apps to work with consumers' various devices. The advent of HTML5 has given businesses the ability to develop mobile sites with video and flash capabilities, so why restrict yourself to the functionality of Android or OSX?
Alongside HTML5, there are a number of other new web technologies set to come into their own over the forthcoming year; many are already referring to these technologies as the 'Web 2.0'. They include tools for video and photo sharing, improved social media utilities, tools for podcasts and blogs as well as an exciting new range of user generated marketing content, letting your customers market your business for you. Keeping up to date with these changes is going to be a key challenge for any business next year, as a misunderstood technology could mean a missed opportunity.
One final word on 2012 - don't forget the basics. It's no good having the latest video marketing software and the trendiest marketing team at your back if your checkout process is archaic. Make sure you have the foundations well cemented before you attempt to put the bells and whistles on the roof and you'll be sailing off into the sunset in no time.






Today, in 2011, we know the Internet as a digital juggernaut that has revolutionised how we approach communications, media, marketing and even shopping. But whilst the Internet phenomenon has its earliest roots in the 19th century and has developed gradually since then, it was only as recently as 1977 when it first truly appeared in the form we know now and only 1989 when it first became commercial. The Internet's expansion and transformation since then has been dramatic.
Social media is unavoidable these days. Whether it is celebrities tweeting on Twitter, your friends posting pictures on Facebook or professionals networking on LinkedIn, social media has made a massive impact on how we use the internet. Crucially though, it's also becoming a major factor in how businesses operate and when it comes to marketing, you're ill advised to forget that social media is now a large part of the marketing mix.
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Levi’s Jeans have postponed the premiere of their “Go Forth” ad because it features a young man confronting riot police. Click on this link to see the
Google is to launch a business version of Google+ later this year, and in the mean time is asking businesses not to use the consumer version for commercial purposes.
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The Telegraph has reported that advanced talks between Twitter and TweetDeck value the application at around $50million.