Insight from our experts

Virtually there? Making the most of your online retail channel.

Claudia Donovan
Quick Facts Name: Claudia Donovan
Company: Barclays Commercial Bank
Position: Relationship Director specialising in online retail
warren barrett design

Claudia Donovan, Relationship Director specialising in online retailing at Barclays Commercial Bank, and Mike Barrett, IT Director, Warren Barrett Design discuss the business development opportunities and top tips associated with maximising your online channel.

The rise in online retail has been widely celebrated over recent years with online development and capabilities accelerating at such a pace consumers regard websites as the new in-store experience. The facts don't lie - internet shopper numbers are at an all time high, online spending is growing at its fastest rate for 6 years and more people are accessing and purchasing on the internet more frequently.

As retailers feel the impact of changing consumer purchasing patterns and decreased footfall on the high street, e-retail continues to stand out, defying consumer demand and bucking the current economic downturn. And the future looks rosy for this sector - forecasts suggest that such trends are set to continue with online spending rising to £44.9billion by 2012.

Retailers are telling us that their online sales have remained buoyant, partly driven by youth spending but also the convenience and value offered by the channel.

Although there is no doubt that physical locations are still necessary, having an internet presence aligned to the in-store environment is becoming increasingly vital for business success. A multi channel approach not only gives the consumer increased choice but through the development of innovative online strategies - such as utilising social networking sites to promote your business - you can reduce costs, stand out against your competitors and penetrate new (global) markets. Indeed even if your website is not transactional, website design is key for Bricks and Mortar, not just Bricks and Clicks – helping when consumers are information gathering via their computers or via their mobiles or Personal Digital Assistants (PDAs).

Mike Barrett, IT Director of Warren Barrett Designs highlights that by having an online channel full of functionality, tracking capabilities and well-designed sales promotions, your website, or virtual web assistant, can be your best sales and marketing tool.

According to Barrett, design is key. If you are selling to consumers there are strict rules for web design – customers have to go through a standard journey of ‘click-throughs’ from drilling through categories and thumbnails to ‘adding to your basket’ and confirming delivery details.

Such a journey is an unwritten rule, if you like, that customers understand as the way to purchase online. But how can you keep your customer engaged right up until that final screen, the confirmation of sale? If all sites have the same navigational routes what can you do to make your site more compelling and enticing to order from?

Warren Barrett Designs have the below top tips to help you think like a buyer and give your website the edge on your competitors:

  • Good photography – would you buy from a website where the item is not clearly visible?
  • Multiple item views – having multiple images of the same product will fill consumers with confidence about the item’s quality and design
  • Ease of checkout – make this as straightforward and as fast as possible to avoid drop outs mid-sale
  • A professional design – consumers take 3-7 seconds on entering a site to make up their mind about whether they will make a purchase. A poorly designed website can be an instant killer
  • Item availability – despite consumers researching online to save a few pounds, item availability can still be make or break for a purchase decision. If the product can arrive next day you are more likely to buy than when delivery can take 5-7 days
  • Delivery price of a single item – delivery price can impact on whether a purchase is made – too high and consumers may simply go elsewhere
  • Is it an experience – the journey created on your site should be an enjoyable one to the final details of getting the goods nicely packaged.

It's clear that developing your online channel is a long term commitment and does require a strategy for marketing, merchandising and support functions such as logistics, packaging, fraud and payment compliance. However, the associated opportunities are vast: winners in the current environment will be those retailers who can harness the power of the new e-frontier as well as deliver the more traditional, physical model.

With an expert online team at Barclays Commercial Bank we can help with advice from currency management to trade and payment services. For more information visit: www.barclayscommercial.com.