Electronic commerce versus physical purchases

Amazon’s 95,000,000 monthly visitors cannot be ignored. And you can’t ignore the fact that 95% of Americans shop or will shop at Walmart. E-commerce will grow 200% in the next five years. It’s grown 38% in the last three months in the US alone, compared to Walmart’s online rate of just 11%. Macys, Sears and Walmart are closing stores citing competition from Amazon as a major factor in declining sales. Yet Nordstrom has risen to the challenge, 25% of its business is online, and has set the benchmark for other traditional retailers to follow. Electronic commerce is an opportunity, not a threat, it is not a fad and it is here to stay. The number of people venturing into stores to touch and feel is shrinking. Transportation costs and parking fees continue to rise and access becomes slower. Anti-social behavior in and around cities and shopping malls continues to get worse, all of these factors are driving more and more customers online.

Amazon has taken another giant step by buying a chain of traditional supermarkets for an estimated value of 34 billion. The sole reason for this decision is to improve the online grocery service by guaranteeing delivery within two hours. Groceries will be delivered from the nearest store based on zip code. In addition to this brave move, they are testing a checkoutless supermarket in Seattle, after the technology has been tested and perfected, Amazon will roll this out to all stores. Rather than go against well-established competition, they have used innovation to propel them beyond any competition. Another example is Elon Musk; his fearless approach to the future through technology has opened new doors for the consumer. His electronic cars will have a dramatic effect on traditional gasoline vehicles. We need to break the shackles of the “if it ain’t broke, don’t fix it” mentality.

When it comes to e-commerce, Australia is behind by more than a decade and it will take them another decade to catch up. Many local brands have gone into administration in the last two years, Herringbone, Marcs, David Lawrence, Rhodes and Becket, Oroton. British retailers Giant, Top Shop and Top Man failed and, after two years of poor operations, closed their doors. The two and only department stores are struggling against online competition. Myer shares are down from $4.00 to 53 cents in four years and David Jones shares are down 45% in three years. Myer’s online business amounts to less than 1% and David Jones is currently at 2.6%. Both online stores are clunky, awkward to navigate, and out of date, and delivery times are longer than store delivery times in the US and UK. The general rule of thumb is that at least 10% of your retail business should be online. Both are focused on the competition and imitate each other. No signs of innovation, just one sale after another; they have become a bargain style. Textile Traders has recently announced that it will close all stores and trade exclusively online, similarly Airflex will close all stores except flagships and focus more attention online. And finally, let’s be honest, service standards in Australian department stores are well below average. Understaffed, poorly trained, poorly paid, and managed under an archaic hierarchy mentality. You can also put a big sign in the window that says buy online

A customer in Australia can buy $1,000 worth of Nordstrom items in the US and have it delivered to the door within 5 days; You pay no duties or taxes and you get much more for much less. Shop online at Amazon and the options are endless and the service is just amazing. The psychology behind online shopping is that there are no human barriers to face, you just pick, click and pay and wait for the surprise.

So what are your options? drive to the local mall, search thirty minutes for a parking space that will probably cost you around $25.00, argue with your wife, get service from some pushy salesman on commission with no product knowledge. More than half the day is gone and it has been a waste of time. We have all had this kind of unpleasant experience. Now, you can save a lot of time and money by shopping online and use the time and money you’ve saved to take your family out for lunch and enjoy some quality time together.