The impact of E-Commerce

Black Friday's impact on E-Commerce

This concept of ‘Black Friday’ started in the UK in 2012 with a focus on ‘High Street Sales’ however, the digital boom has impacted on a transition of a high proportion of our shopping completed via the internet. Online spending in the UK during the Black Friday period has risen from £17bn in 2012 to an estimated £28bn in 2015. Online retail transactions made from Black Friday through to Cyber Monday 2015 were up 43 percent over 2014 and a whopping 143 percent over 2013. In addition, iovation’s data showed that on Cyber Monday 2015 there were approximately 50 percent more online retail transactions than a typical recent Monday. The stats could carry on all day…. The stats replicate the impact that E-Commerce now has on our daily lives. Ultimately, the advantages of E-Commerce significantly outweigh the madness of shopping in retail parks.

However, interestingly there is some evidence that suggests that shoppers tend to slow down their shopping ahead of the discount period. To retailers this is known as the ‘online tsunami’, last year it had a significant impact on major retailer’s customer service and led to lots of disgruntled online customers. Research from the BBC shows how major investments have been introduced by delivery companies to cope with the online rush. The logistics industry has warned that it needs up to 60,000 more drivers than are currently available to fulfil orders, according to the Daily Express.

Mobile Apps impact on E-Commerce

The data would suggest that top retail apps are gaining more traction year-on-year in the run up to Black Friday, does this mean that it is the end for brick and mortar sales? IAB stats shows that 57% of showroomers- (consumers who compare prices on mobile devices compared to in retail stores) end up purchasing a product in a physical store. Therefore for App publishers using deals and incentives to drive online purchases this has also impacted on supporting offline sales which is created through mobile experiences. In terms of App downloads, According to the stats by App Annie, in the US, Amazon had a short dip in overall iPhone downloads at the start of the month but quickly ramped up in the two weeks before Black Friday, peaking on Cyber Monday.

The future of E-Commerce

A clear recipe of success for mobile commerce platforms seems to be delivering a holistic solution. The value of mobile experience for users is made through innovative ways of providing product information and discoverability. Companies such as Amazon have a clear focus on loyalty services and convenient payment approaches. According to a recent report by LTP on mobile commerce, they highlighted that mobile commerce was growing due to factors such as:

Smartphone penetration
Growing tablet ownership
Increase in mobile internet penetration,
Consumer adoption
Better apps and browser-based solutions

It is clear that in terms of mobile commerce it is moving ahead with a more central approach in terms of technology and priortisising user experience. The question is what impact will the future of E-Commerce have on high street retailers? It is clear that online shopping will never completely eliminate its physical counterpart but if online spending continues to grow does this mean that high street revenue will suffer?