How the internet is changing retailing: The world’s best deals
- by admin
NEW YORK (Reuters) – With no traditional stores or brick and mortar retailing, a growing number of companies are starting to take advantage of the internet’s ability to sell their goods and services online.
For years, most retail outlets were based in brick-and-mortar stores and the majority of their sales were in cash, with online sales mostly carried out by payment processors.
But as internet commerce has grown in popularity, more and more people are taking the plunge and looking for bargains online.
Some of the companies that are doing well online are:The new trend in online shopping is selling on the internet with no brick- and-mortlars.
As more people use smartphones and tablets, there is less need for brick-n-mortars.
In the last two years, retailers such as Walmart (WMT.
N), Best Buy (BBY.
N) and Toys R Us (TWX.
N)(https://www.businessinsider.com/toys-r-us-shoppers-are-starting-to-buy-online-with-free-internet-deals-83903), have seen sales skyrocket.
But that’s not the case for traditional retailers.
They are often closed for maintenance or simply have not had a presence in the marketplace for a while.
For example, Costco has closed stores since 2013, as well as many of its big-box department stores in the United States.
In 2015, Costco announced plans to phase out all of its physical stores in 2018, but it has not yet released an official list of its locations.
This is the trend that will be increasingly popular in the coming years.
Companies such as Amazon Prime and Costco are already offering deals that will allow people to shop online without going through a brick- or mortar store.
Others, such as Wal-Mart (WME.
N ), are expanding into the mobile space.
In the past year, it has opened two stores in Japan, and has announced plans for an additional seven in the next year.
While some companies have struggled to maintain a presence online, others have found success.
In 2017, Amazon (AMZN.
O) said it had a 100 percent return rate on its Amazon Prime memberships.
Its membership growth in the past 12 months has more than tripled, and its average spend on products has increased nearly 40 percent.
“There is a huge opportunity for all of these companies, and I think they are doing really well,” said Peter Diamandis, a professor at the Wharton School of the University of Pennsylvania.
“The problem is that these companies are still in the retail space, they are still dependent on cash and credit cards.
And they are struggling to attract customers,” he added.
In some cases, those struggling with their digital stores have turned to a less conventional model.
Walmart ( WMT.
N ) recently opened its first online store in the U.S. It has a 10 percent customer acquisition rate, compared to 30 percent for traditional stores.
“I think we are going to see more of this in the future,” said Matt Cramer, chief digital officer at e-commerce analytics company eMarketer.
“I think there are a lot of companies that have been around for a long time and have had a very good experience with the brick- store model, but they haven’t really had the opportunity to really experiment with the new digital store model,” he said.
Amazon’s decision to open an online store was likely influenced by customer feedback on the store.
Some customers had expressed frustration that Amazon’s online shopping experience was not as seamless as it could be.
Amazon also is offering free shipping to members who order through its website, but most of its sales are still sold through traditional retailers, which may make it hard for online shoppers to find bargains.
“You want to see an opportunity to be able to be competitive with other brick-store stores and be able do the same kind of price competition as other retail outlets,” said Diamanis.
“And so that’s what you’re going to find is a lot more people choosing to go online to shop,” he continued.
“If you look at the trend for Amazon, and Amazon is not the only one, but if you look for it, it’s going to be an even bigger opportunity to do it.”
Amazon has a huge presence online.
Its online sales are more than double what it had in 2016, according to EMarketer’s latest report.
And its online sales have grown faster than its retail sales, according a Reuters review of its financial statements.
In 2017, it earned $2.35 billion from Amazon’s Prime business, and it was worth $1.96 billion in 2019.
That’s a profit margin of more than 30 percent.
The company has said it expects that figure to increase by nearly 30 percent this year and more than 40 percent in 2020.
NEW YORK (Reuters) – With no traditional stores or brick and mortar retailing, a growing number of companies are starting…