The products that fueled first generation e-commerce—books, software and music to name a few—are all simple to understand items that can be easily shipped to consumers. Today, we are at the tipping point of a second wave of online growth, as consumers push beyond these simple transactions to research and purchase more complex products online. This second wave of growth will be driven by big ticket retail, and it represents a seismic opportunity for those big ticket retail chains that are prepared to catch it.
But, profiting from big ticket e-commerce growth presents a new set of challenges for retailers. That these categories are some of the last to move online is not coincidental - big-ticket products like home furnishings and appliances are inherently challenging to sell online and many retailers in these markets have faced barriers to bringing their offerings online in the past.
Consumers must be made comfortable transacting “big-ticket” purchases. Their decision process is much longer. Shoppers may not know brand or model numbers for these items (know the manufacturer brand of the last sofa you bought?), making it imperative that product information presented online be compelling in its own right. Shoppers are likely to want to see products in a store or consult with a sales representative, meaning store, online, phone, chat and email experiences must be seamless. And, if all this is done perfectly and a consumer makes a purchase, these products often have complex shipping and installation requirements that can quickly become a nightmare for any retailer.
Nonetheless, retail chains, with their local presence, trusted brands and quick, inexpensive delivery have significant advantages pursuing this new e-commerce opportunity. While pure-play internet companies will likely continue to dominate small ticket markets online, retail chains can win in big ticket – which represents a whopping 45% of US retail.
Customers are looking for big ticket online – certainly to research products and, increasingly, to buy them. Retailers can profit by meeting them there.
Copyright 2010, Official Blog of Blueport Commerce
But, profiting from big ticket e-commerce growth presents a new set of challenges for retailers. That these categories are some of the last to move online is not coincidental - big-ticket products like home furnishings and appliances are inherently challenging to sell online and many retailers in these markets have faced barriers to bringing their offerings online in the past.
Consumers must be made comfortable transacting “big-ticket” purchases. Their decision process is much longer. Shoppers may not know brand or model numbers for these items (know the manufacturer brand of the last sofa you bought?), making it imperative that product information presented online be compelling in its own right. Shoppers are likely to want to see products in a store or consult with a sales representative, meaning store, online, phone, chat and email experiences must be seamless. And, if all this is done perfectly and a consumer makes a purchase, these products often have complex shipping and installation requirements that can quickly become a nightmare for any retailer.
Nonetheless, retail chains, with their local presence, trusted brands and quick, inexpensive delivery have significant advantages pursuing this new e-commerce opportunity. While pure-play internet companies will likely continue to dominate small ticket markets online, retail chains can win in big ticket – which represents a whopping 45% of US retail.
Customers are looking for big ticket online – certainly to research products and, increasingly, to buy them. Retailers can profit by meeting them there.
Copyright 2010, Official Blog of Blueport Commerce
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