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Online Shopping to Online Buying

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#23
ispekhov said:
I'm afraid the diagram is incorrect :) the point professor is making is that offline shopping is on decrease because online shopping/buying is much more sustainable model for a business - no costs associated with running a store, rent, staff etc. And because of that, all stores becoming just showrooms - # of offline transactions is decreasing. $$$ spent online is increasing. Books are a great example. For electronics for example, People find a product online, go see it at a store, buy it online for cheaper.
Click to expand...

No Ilya, you've described the OLD model. Look again. Fast Forward to 1:50


"Amazon will buy a chain of stores like Radio Shack, or die..."
"like wise, stores will go digital or die"
 
#25
Very entertaining and interesting video.

I don't know if everything he said is true or not, and quite honestly don't have the desire to research all of it.

When I am shopping for something, I do my research online. I then find out what brick and mortar retailer offers the product. Then I drive over there and buy it. I do this with everything from groceries to iPhone covers. I do my shopping and research online and pick the retailer that has the product I land on at a competitive price. If I have a list (groceries), I will go to the store that has the majority of my list in their weekly ad.

My own behavior backs up what he is saying.

With this in mind, stocking parameters will certainly become more important. I will need to make darn sure that I am stocking what customers are wanting......and at a competitive price. I personally believe that this is the area that I fall short in. I don't believe that I have my finger on the pulse of the market as well as I need to. I believe that many of my transactions are the result of simply having what people are after. Based upon this video, I need to do a better job of this.

Thanks for posting that @JoePistell
 
#26
JoePistell said:
Craig,

This may sound really really weird, but your lagging the new trend on internet. The hot new internet shopping experience is bringing the net into the store. Best Buy is the poster child of webrooming

showrooming-vs-reverse-showrooming-cover.png



Before you call me out, consider this data science presentation
The Four Horsemen: Amazon/Apple/Facebook & Google--Who Wins/Loses

Very insightful.

(for those that are attention challenged, fast fwd to 1:50 ;-)
Click to expand...

I can see how there could be a confusion. Warby Parker, Frank&Oak and others who started online and then opened stores are e-commerce businesses first. Then offline. They opened stores to complement their online businesses. Their core and DNA is still online.
 
#27
Tallcool1 said:
...When I am shopping for something, I do my research online. I then find out what brick and mortar retailer offers the product. Then I drive over there and buy it...[/USER]
Click to expand...

#BAM.
This is called "web-rooming". Shopper steps are:
  1. Drive to the store,
  2. Look over merchandise
  3. use your smart phone to
    • validate your pick
    • validate the price
  4. Then buy it at the store.
Benefit: Richer shopping experience with the benefits of instant Internet reviews and fair price validation.

Car shoppers web-room like this but with a twist. They shop on the internet to:
  1. Learn product & prices
  2. Learn "where to buy"
  3. Go to Dealer
    • Look over merchandise
    • use your smart phone to
    • validate your pick
    • validate the price
    • Then buy it at the store.

.
 
#28
ispekhov said:
... They opened stores to complement their online businesses. Their core and DNA is still online.
Click to expand...

IMO, No online retailer opens a store because they want to. They do it because they feel they have to to remain relevant (i.e. brand differentiation). Likewize, no car dealer want's to sell on the Internet. They sell on the Internet because they have to (or die).

Summary: The Smart phone is blurring the digital divide between internet and store front.

Retailer success of the future is:
-The Internet workflow comes into the store (e.g. AuctionDirectUSA.com)
-The store's back office goes out to the internet ("what's my vehicle service history & current market value"?)
 
#29
JoePistell said:
IMO, No online retailer opens a store because they want to. They do it because they feel they have to to remain relevant (i.e. brand differentiation). Likewize, no car dealer want's to sell on the Internet. They sell on the Internet because they have to (or die).

Summary: The Smart phone is blurring the digital divide between internet and store front.

Retailer success of the future is:
-The Internet workflow comes into the store (e.g. AuctionDirectUSA.com)
-The store's back office goes out to the internet ("what's my vehicle service history & current market value"?)
Click to expand...

"They have to" applies mostly to cases where there is no choice. For example, autotrader in Canada. Dealers have to list on autotrader because there is no choice.

In other cases, businesses follow the demands of customer. Customers vote with their wallet. Enough people wanted to buy books online, biz followed.

And those who opened online store, wanted to do so because they wanted to succeed in business tomorrow.

Cars have a long way to go, you are right about mobile, in terms of sales, I think some kind of a hybrid model of online+offline will evolve.
 
#30
Dale Pollak said this, in a blog post yesterday, 3-24-15, about shopping, "...these informational efforts online fall short for dealers. They do not help consumers initiate, let alone iron out, the terms of a vehicle purchase deal while they’re online—especially when they look repeatedly at a vehicle details page (VDP) for a specific car. This shortfall will become more profound as vehicle shoppers expect dealers to offer the same kind of click-to-purchase options they use on any other retail website.

Now, to be clear, I’m not suggesting that most consumers will want an Amazon-like vehicle purchase experience, where they click to buy and the car gets delivered to their front door.

I do, however, believe that consumers increasingly expect to find a more convenient and efficient way to know the ins/outs of a vehicle deal before they go to a dealership. This expectation, which is fed by consumers’ increasing use of the Internet to buy goods and services, will require dealers’ online efforts to become more “transactional” than they have been in the past."

It's a pretty powerful post - if interested, read it all -
A “Connection Commerce” Challenge For Dealers - DalePollak.com
 
Dominion DMS
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