The Future of Online Banking
Online shopping is here to stay. Just ask Amazon, the largest Internet-based retailer in the United States, which celebrated its twentieth anniversary in 2014. These days, online shopping may even be close to replacing shopping in stores. Mobile devices such as phones and tablets have revolutionized this industry, making purchasing any item online as simple as the click of a button. Read on to find out how the online marketplace is changing the future of shopping.
Statistics
In 2012, retail sales from online venues totaled $231 billion. That figure is expected to continue to grow, with a predicted total of $370 billion from online shopping retail sales in 2017. Among the demographic groups participating in the online marketplace, Millennials lead the way, with 25- to 34-year-olds more likely to read product reviews, compare prices, buy products, and discuss brands online. And even if they don’t end up buying online, most Millennials visit a company website before they head to the store. However, just because the Millennials lead the way when it comes to online shopping, doesn’t mean other demographics aren’t present on the scene. Approximately 75% of American adults had ordered either services or products online. Americans between the ages of 33 and 46 spent the most. But the level of satisfaction of online customers serves as proof that online shopping is here to stay: 83% of all customers surveyed indicated that they were satisfied with their purchases.
Predictions
The online retail sector continues to grow at a pace of approximately 14% per year, making it a force to reckon with. In the future, online retailers will gather more and more data about their customers – tracking their location, age, products, and how they land on the page. This information is then used to help make product suggestions tailored to each individual customer. In the clothing sector, personal information is even more valuable. Programs such as True Fit and True & Co. are used to help customers input their size information in order to find garments that fit. Technology that uses personal avatars to virtually “try on” clothing also exists. Finally, automated purchasing is a growing trend used for purchases that are made continuously, such as groceries or cleaning supplies. The customer sets up a subscription and purchases are made automatically according to the time interval specified.
Pros
Shopping online has a lot of serious advantages over going to retail stores. Not only can you do it from the comfort of your own home, but it’s a lot more convenient. Stores are always open and you don’t have to travel from store to store to compare prices. You save on gas and headaches like crowds, aggressive salespeople, and parking. Moreover, you don’t have to travel long distances to find a highly specific product.
Cons
One of the biggest concern that most customers have with online shopping is that it’s impossible to actually see what you’re buying. You may be able to look at a picture, but it’s never quite the same as physically seeing the item. Moreover, some people worry about scam sites and illegitimate sellers on sites like eBay. While security in the online sector has improved recently, it’s important to always look for a secure connection when using a credit card to make purchases online.
