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Five Online Retail Trends Shaping The Way Americans Shop & Save
Guest Post by Andrea Woroch
Fueled by new technology and an evolving social media shopping sphere, e-commerce reported record sales last year with an anticipated double-digit growth in 2011 — even despite the sluggish economy. With daily deals delivered via Twitter feeds and mobile-friendly sale sites, the retail industry is expanding in directions it would have been difficult to predict even five years ago, but consumers are happily accepting the changing sales strategies.
This new breed of brand deals and coupons is changing the way consumers shop and save money. Here’s a look at five online retail trends that are shaping a new type of consumer — those who expect special rates and lower prices.
1. Daily Deals
With the explosion of limited-time daily deals via group-buying (more than 23 million in the last year) and flash-sale sites like Gilt Group & Jetsetter.com, it’s no surprise other retailers have adopted this successful sales strategy. In fact, online retailers like Target & Overstock now offer Deal-of-the-Day sales that bode well for sales. Even Facebook and Amazon have added daily deal services.
2. Name Your Own Price
Gap has recently taken the daily deal concept a step further with the launch of its new Gap My Price program, which allows customers to bid for clothing and accessories. The process is similar to Priceline’s, which targets cost-conscious travelers: You extend a sales offer for a particular item; the brand then makes a final offer you can either accept or reject.
3. Free Shipping Both Ways
Originating in Australia, retailers are talking about charging shoppers for using their changing rooms. The move is designed to discourage consumers from trying items on in-store, then buying them online at a discount price instead of at the store. Fortunately, retailers have shifted marketing efforts to target online shoppers by creating a more accessible e-shopping experience and offering free shipping both ways as well as site to store free shipping. Online stores like Zappos & Piperlime now offer free shipping both ways, and merchants like Walmart and REI offer site to store free shipping. More merchants that offer free shipping both ways are listed at LearnVest.
4. Mobile Commerce
The busier we become, the more we rely on our smartphones to shop, compare prices and look for deals while on-the-go. Savvy retailers see this need as a new opportunity for capturing and engaging customers. For example, the CouponSherpa iPhone app allows shoppers to research mobile coupons for specific items, then use those same coupons at checkout.
Foursquare has become increasingly popular as a way for retailers and restaurants to provide special offers when you “check in.” For example, Ann Taylor in NYC may provide a 15-percent off deal on full-priced merchandise for a shopper who has used Foursquare to check in.
Amazon’s iPhone app allows you to scan a bar code or take a photo of a product seen while window shopping and, at the your later convenience, purchase that item with just one click.
5. Social Media Sales
As Gen Xers move into their peak spending years and become entranced by social media fueled shopping, more retailers are jumping on the bandwagon to engage their customers via Twitter and Facebook. In fact, the Facebook store, referred to as “F-Commerce,” is an increasingly popular outlet for retailers to target such social media shoppers.
Also known as social shopping, the process allows consumers and retailers to aggregate and share information in real time about special offers, products, prices and purchases. The big advantage to consumers is they needn’t leave a social media site to shop and can immediately share their purchase with friends and other fans. This helps reduce the solitary feeling of online shopping. Via social media, merchants also provide information about special offers and, increasingly, coupon codes and downloadable coupons.
About the Author: Andrea Woroch is a consumer savings expert who is passionate about helping individuals discover financial freedom through smart shopping strategies. She travels the country sharing her savvy savings tips to help everyday consumers break bad buying habits and start spending wisely. Woroch dissects retail and savings related trends for the media and has worked with NBC Today Show, MSNBC, FOX & Friends, CNN.com, Forbes and other reputable companies. You can visit her website AndreaWoroch.com and follow @AndreaWoroch on Twitter.
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Great post! I think you covered all the big trends this year – I wonder how long before Social Media sales trend turns into FB Credit sales???