has been constantly reinventing itself, and participants race to keep up with
what feels like a series of epic shifts in consumer preferences. To get a
clearer, more-complete picture, HBR studied actual decisions made by 1,500
apparel and footwear shoppers. Below are five of their most surprising
Myth: Shopping has become truly omnichannel.
Fact: Most journeys are still overwhelmingly single-channel, though this is changing.
The study suggests that 83% of shopping journeys still happen within a single channel — overwhelmingly in traditional stores, which account for almost 80% of apparel purchases today.
Myth: The sales channel doesn’t matter.
Fact: When consumers purchase online, they tend to buy more.
Shopping journeys concluding in online purchases have baskets that are 25% larger, on average. When someone first visits a physical store and then purchases online, the effect is even more pronounced: Baskets are 64% larger.
Myth: Online shopping is about instant gratification.
Fact: Online journeys tend to be longer than in-store.
57% of shopping journeys that conclude with an online purchase begin with a consumer either first looking at another website (29%), visiting a brick-and-mortar store (15%), or both (13%) before ultimately transacting online through any particular retailer. The other 43% of journeys that conclude with an online purchase are one-stop journeys that begin and end with the same online retailer.
Myth: The retailer doesn’t matter.
Fact: Spend is dramatically higher at brand stores and websites than in multi-brand stores.
Direct-to-consumer brand stores and websites generate revenues 86% higher than purchases of those same brands elsewhere — and, of course, better margins.
Myth: Consumers always want something new.
Fact: Very often, they are happy to buy the same or a similar item.
Fast fashion has become a buzzword for apparel makers, but many consumers are simply looking to replace an item they already have. This is especially true in intimates and basics, but also in fashion, where the aim of 83% of shopping journeys is repeat purchases, and athletic products (87%).
Eventually, brands and retailers should integrate their e-commerce units into the rest of their commercial organisations, replacing channels that compete for sales from the same customer with a structure that puts the customer first. In the future, customers will decide where and how they shop, and the apparel business must make this as smooth — and profitable — as possible.
Refer full article by Jeremy Sporn and Stephanie Tuttle for Harvard Business Review.
Businesses Stand to Lose Customers from Payment Friction at Check-out Posted on: 20-08-2018
According to a study by Payments Canada, 53% of Canadians who experience friction at the end of the path to purchase in store and online abandon a purchase.Read More
Why Startups Need to Make Payments Experience a Priority Posted on: 04-07-2018
Retail experienced the largest year to year growth and eCommerce represented 13% of total retail sales. That trend is only expected to grow. And if you’re a startup, it’s absolutely vital your payment experience is user-friendly.Read More
Australian Fintech Afterpay Touch Debuted in the US with 50 Retailers Posted on: 21-06-2018
Afterpay debuted in the US recently with 50 retailers which are in varying stages of integration. It was set to commence in the US as an online only platform with an intention to introduce in-store capability in due course.Read More
6 Reasons to Use Multiple Payment Service Providers Posted on: 20-06-2018
Many merchants choose a single Payment Service Provider and then find themselves at a disadvantage if they can’t dynamically keep up with changing customer preferences. This is one of the many compelling reasons to work with more than one PSP.Read More
Top 10 Business Advantages of Accepting Payments Online Posted on: 07-06-2018
If you have created a website for selling some products or services, then implementing an online payment solution could be a good idea to increase your business prospects.Read More
Four Trends In the Retail World and How to Utilise Them Posted on: 06-06-2018
There are many predictions about customer expectations and new trends. We always hear that online shopping affected the customer expectations highly and retailers have to improve their service according to the rapidly changing consumer habits.Read More
$260 Billion are Recoverable through Checkout Optimisations Posted on: 21-05-2018
Based on a recent study by Baymard Institute, 28% of US onlineshoppers have abandoned an order solely due to a “too long/complicated checkout process.”Read More