#23 - New Study Shows Slow Sales On The Web

Study Shows Slow Sales On The Web

By Chris Maher

If your online art sales have been slow, take heart. A survey published by the Centre for the Study of Commercial Activity at Ryerson Polytechnical University reports that slow sales are a fairly common retail experience on the Internet.

Dr. Ken Jones, center's director, said that of the 160 surveys that were sent to web retailers, 40 responses were tabulated. Most respondents reported little return on their online investment, at least so far.

The study found that of every 1,000 visits to retailer's Web site, only two to five result in purchases.

Compared to conventional retail stores, that's extremely low. But the respondents remained very positive. They cited the lower cost of doing business online, and many expected to continually improve their sales.

Morgan Stanley, in their 250+ page Internet Retailing Report is another source of optimistic forecasts of future online retail success.

So, what's keeping your sales down? Of course, many factors come into play. Conventional wisdom says that people are worried about security issues. Will their credit card number be stolen, is the online shop really what it seems? I think it goes beyond that. In order for online sales to compete with conventional retail, you must satisfy consumers in three things. Better selection, better service, and better prices.

I want you to try an experiment. Go shopping on the web yourself. Really, you buy things at retail stores all the time, so now try to buy a few of the same things on the web.

The first hurdle is finding the item. Think of they way you look, do you use a search engine? What terms did you use? How long did it take?

Next, go to the sites, and look at the range of goods offered. Is it a better selection than you could find locally, or through regular mail order channels?

Now, how about convenience? Actually place the order. You may be amazed at how tough it is to actually order at some sites. How long did it take to get the item? Were you pleased?

If your experiences are like the ones I've had you will find shopping online is still not easy.

Now, look at your own site. Do you have great selection, are you easy to contact, quick to return e-mail or phone calls, and is your ordering procedure convenient, secure, and simple?

Write me and tell me how you online shopping experiences have been, where you loved to shop, and where you had problems. And if your haven't actually made an online purchase yet, let me know what has been stopping you.

This page last updated: 09/02/04

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