How to find a perfect job online
In 2016, the online sales market was worth $2.3 billion.
It’s estimated that by 2020, it will have reached $20 billion.
For many people, the lure of that kind of money is what gets them to the checkout counter.
But a new study says that’s not the whole story.
And that’s the big challenge for the tech industry.
As the number of online shoppers grows, the industry needs to find new ways to differentiate and deliver value to consumers.
“If we don’t make the effort to build that value proposition, people won’t come to our sites,” says Michael Tappin, a senior partner at Deloitte.
He believes the online retail market is ripe for disruption and the tech companies need to be ready to take advantage.
He’s also a big believer in the need for a more streamlined process for online purchases.
The online shopping industry is expected to reach $2 trillion in sales in 2020.
For companies that are struggling to keep pace, that’s a lot of money.
“It’s going to be difficult for the companies that aren’t at the forefront of the ecosystem to stay ahead,” Tappinsays.
“But the ones that are, they have to be smarter about how they’re delivering and making sure they’re optimizing the product.”
Tapps is among the many people who’ve been trying to change the industry by trying to create more value through their own channels.
For example, he launched the ecommerce company MyPay.
It lets people buy products from Amazon and other sellers on their behalf without having to wait for an order from a third party.
He has also helped create ecommerce sites for small businesses that sell products through their websites.
Tapp has found success selling the same products to more than 50,000 small businesses in just five months.
He says the growth of the online shopping market has been the biggest driver of his business.
But he believes more needs to be done.
“The problem is that we have a very fragmented ecosystem,” he says.
“That’s why you see so many companies that have to try to innovate to make a difference.
We need to take a more holistic approach to delivering value.”
The study, which was done by consulting firm E-CommerceScore, surveyed more than 2,000 people across the U.S. They looked at the number and quality of online shopping sites, as well as the customer experience and product features.
It found that online retailers like Amazon, Walmart and eBay are making significant progress in delivering value to their consumers.
Tapps thinks these sites are also trying to compete with traditional retailers like Target, Best Buy, and Best Buy’s own website, Target Express.
“Amazon is taking a step forward in terms of making sure that its customer experience is more consistent across all of their sites,” Tapps says.
And in terms to making sure it delivers value to people, he says online retailers should focus on offering a wide range of products.
Toppin says that the challenge for companies is that there is no single solution to deliver value.
“There are a lot more pieces that need to work together to make sure that customers get what they want, rather than having to go into one site to get that information,” he adds.
For Tapp, one of the big changes to be seen in the industry is the shift toward customer loyalty programs.
“Loyalty programs have been a huge part of the marketplace for years and years,” he notes.
“Now they are becoming a really important part of what we do.”
Tippins says that he’s hopeful that these loyalty programs will help drive a better experience for consumers.
But there is one issue that Tapp and Tappini agree on.
“We’re going to see more of this sort of thing as the number increases,” Toppins says.
That is, while it’s easy to make changes to an online shopping site, it’s hard to make those changes in a way that doesn’t impact the customers who use that site.
“I’m really excited about the opportunity of customer loyalty and the way it’s being used, but I’m also a little nervous about the impact it’s going be having on the way we deliver value,” Tippin says.
But for Tappi, there’s a silver lining in the data.
“This is just the tip of the iceberg,” he said.
“For me personally, I don’t think it’s a bad thing to have a little bit of customer feedback.
It just takes a little time to build a really strong relationship with customers.
That’s what I think is missing in this space.”
Read more about the study, and learn more about Tapp’s company, here.