Capitalise on e-commerce during the downturn

Over the past decade, e-commerce has changed the face of retail, helping firms to expand into new markets, engage more efficiently with customers, reduce costs and drive revenue growth. But the gains need not be stalled by the current recession.

In this gloomy economy, e-commerce will continue to be an integral retail sales channel ­ – and it can do so much more. By taking a strategic view of online presence, companies can ensure their e-commerce investment delivers the maximum possible value to the business.

First it is worth checking that you have got the basics right: order automation processes should help reduce support costs; feedback mechanisms should inform performance improvement initiatives; simplifying the shopping process should minimise the number of abandoned carts.

But e-commerce should go further. It should make it much easier to reach potential customers at the moment they have a need you can fulfil. Selling online also offers businesses the chance to respond more quickly to changes in market conditions or to tweak merchandising strategies based on sales performance.

Web 2.0 technologies offer a far richer experience, by using a range of tools – ­ including photo and video sharing, blogs, podcasts, wikis and other social media utilities. From a marketing perspective, tools that enable the creation and dissemination of user-generated content offer the potential to help marketing messages spread like wildfire.

Even if you are not doing it, you can be sure your competitors are. In the UK in 2007, online sales represented 15 per cent of total retail sales transactions. By the end of 2008, that number is estimated to have reached 20 per cent, growing to between 30 and 50 per cent within three years.

If your site does not have the capability to scale to your needs, it may be time to examine the new range of web-based offerings to see if there is a tool better suited to meet the increasing expectations of your customers in the cha llenging months ahead.

Craig Sullivan is a BCS contributor