What the eCommerce World Can Expect in 2011
Paul M. Gallagher
October 14, 2010
As the world climbs out of the global recession, eCommerce is projected to enter a period of strong growth in 2011. The hottest trends will be mobile phone marketing and sales, more widespread use of video advertising and the rising importance of social media sites. Top online products for 2011 are expected to include movies, books, clothing, household goods and jewelry.
Following a trend of the past few years, the number of new online shoppers and first-time Internet users is not expected to increase significantly in 2011. Instead, growth is expected to come from existing shoppers who buy more online. Over the next three years, online purchases, excluding ticket sales, travel packages and digital downloads, are expected to rise more than 50 percent to $201.4 billion in 2013, according to the U.S. Retail E-Commerce Report from eMarketer.
Besides actual online purchases, the Internet also influences a large percentage of in-store purchases by consumers who go online to research and choose products. Thatīs why strong links between online and in-store products are so important for retail businesses.
Due to booming sales of smart phones, these devices will become a more important shopping tool in 2011. While the percentage of consumers who have made mobile phone purchases is very small now, a consumer survey by Forrester Research shows that a majority would like to use their phones to check store locations and product availability. Using phones to scan and buy products and avoid checkout lines appeals to a two-thirds of the consumers surveyed and about 25 percent said it would be helpful to receive coupons or product promotions over their mobile phones while shopping.
Security of mobile phone shopping is a concern to some consumers, but it also was an issue when online shopping began in the 1990s and those security fears largely have been overcome. Other mobile phone shopping challenges include small screen sizes, using small keypads to enter information and eCommerce sites that load slowly.
The rising emphasis on mobile phone shopping in 2011 makes it imperative for all businesses small and large to integrate mobile phone platforms into their web sites. Businesses that have been slow to adapt to mobile phone users soon will be left behind their competitors. As with any effective eCommerce web site, the best sites targeted to mobile phones are functional, easy to use and focused on specific products that appeal to their potential customers.
More online video advertising also is on the way and an increase in the use of steaming video is another eCommerce marketing trend for 2011. The latest smart phones have improved their ability to display video and online video advertising, which already is used effectively on many web sites, will continue to grow in part because it is very inexpensive to produce. More videos that describe available products and services will be used because online video is a powerful tool for establishing consumer confidence in a product or a business.
A 60 percent increase in streaming video advertising is projected for 2011 by the marketing firm Borrell Associates. The firm also predicts more advertising delivered to mobile phones and by e-mail. Targeted and banner ads, local advertising and social media marketing are expected to be the fastest growing types of online advertising.
Social media sites will be more important in 2011 as the number of users of sites like Facebook and Twitter continues to grow. The number of daily visitors to Facebook surpassed Google in early 2010. Advertising on social media sites will increase in both paid ads and in business Facebook pages where consumers can use the "Like" button to become fans.
Movies and books will continue to be top online products in 2011 as they have for the past few years. More movies will be sold in digital form, but DVD sales also will be a strong retail segment. Print and digital books also will be best-selling products.
Clothing, perfume and jewelry are among the hottest items that women buy online. Like other online shopping, buying these products online allows consumers to compare quality and prices of a large number of retailers. Web programs continue to evolve that allow customers to choose appropriate sizes.
But clothing often is bought online for other reasons than price or the quantity of retailers. Some people, for example, are embarrassed to shop for lingerie in a store and prefer to browse privately online. They can spend as much time as they need seeing how the lingerie looks on various models before making their online purchases.
Besides travel, other popular online products are computer hardware and software, household goods, pet supplies and autos and parts.
With the global recession in the rear view mirror and emerging technologies on the horizon, 2011 promises to be the beginning of a strong period of growth for the eCommerce industry.
Following a trend of the past few years, the number of new online shoppers and first-time Internet users is not expected to increase significantly in 2011. Instead, growth is expected to come from existing shoppers who buy more online. Over the next three years, online purchases, excluding ticket sales, travel packages and digital downloads, are expected to rise more than 50 percent to $201.4 billion in 2013, according to the U.S. Retail E-Commerce Report from eMarketer.
Besides actual online purchases, the Internet also influences a large percentage of in-store purchases by consumers who go online to research and choose products. Thatīs why strong links between online and in-store products are so important for retail businesses.
Due to booming sales of smart phones, these devices will become a more important shopping tool in 2011. While the percentage of consumers who have made mobile phone purchases is very small now, a consumer survey by Forrester Research shows that a majority would like to use their phones to check store locations and product availability. Using phones to scan and buy products and avoid checkout lines appeals to a two-thirds of the consumers surveyed and about 25 percent said it would be helpful to receive coupons or product promotions over their mobile phones while shopping.
Security of mobile phone shopping is a concern to some consumers, but it also was an issue when online shopping began in the 1990s and those security fears largely have been overcome. Other mobile phone shopping challenges include small screen sizes, using small keypads to enter information and eCommerce sites that load slowly.
The rising emphasis on mobile phone shopping in 2011 makes it imperative for all businesses small and large to integrate mobile phone platforms into their web sites. Businesses that have been slow to adapt to mobile phone users soon will be left behind their competitors. As with any effective eCommerce web site, the best sites targeted to mobile phones are functional, easy to use and focused on specific products that appeal to their potential customers.
More online video advertising also is on the way and an increase in the use of steaming video is another eCommerce marketing trend for 2011. The latest smart phones have improved their ability to display video and online video advertising, which already is used effectively on many web sites, will continue to grow in part because it is very inexpensive to produce. More videos that describe available products and services will be used because online video is a powerful tool for establishing consumer confidence in a product or a business.
A 60 percent increase in streaming video advertising is projected for 2011 by the marketing firm Borrell Associates. The firm also predicts more advertising delivered to mobile phones and by e-mail. Targeted and banner ads, local advertising and social media marketing are expected to be the fastest growing types of online advertising.
Social media sites will be more important in 2011 as the number of users of sites like Facebook and Twitter continues to grow. The number of daily visitors to Facebook surpassed Google in early 2010. Advertising on social media sites will increase in both paid ads and in business Facebook pages where consumers can use the "Like" button to become fans.
Movies and books will continue to be top online products in 2011 as they have for the past few years. More movies will be sold in digital form, but DVD sales also will be a strong retail segment. Print and digital books also will be best-selling products.
Clothing, perfume and jewelry are among the hottest items that women buy online. Like other online shopping, buying these products online allows consumers to compare quality and prices of a large number of retailers. Web programs continue to evolve that allow customers to choose appropriate sizes.
But clothing often is bought online for other reasons than price or the quantity of retailers. Some people, for example, are embarrassed to shop for lingerie in a store and prefer to browse privately online. They can spend as much time as they need seeing how the lingerie looks on various models before making their online purchases.
Besides travel, other popular online products are computer hardware and software, household goods, pet supplies and autos and parts.
With the global recession in the rear view mirror and emerging technologies on the horizon, 2011 promises to be the beginning of a strong period of growth for the eCommerce industry.
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