April 10, 2020
How is E-commerce influencing traditional retail

How is E-commerce influencing traditional retail

Hello everyone, I am Riccardo Osti and on
a daily basis I help the worlds best brands become more profitable by investing in the
consumer experience In this video, I will tell you how big is
the impact of online e-commerce on the traditional offline retail market. When Ebay started its operations… we are
talking about twentifive years ago, ecommerce was at its very beginning. Big retail chains were laughing at online
shops, but then they understood that while it would take them millions to open a new
store, it would just take online shops minutes to open up a new server and reach the same
amount of new potential clients. Today we can say that ecommerce not only has
become a very important sales channel for almost all industries but also plays a vital
role from an education standpoint on the customer perspective. The most important role in this educational
game is played by online product reviews, which are literally everywhere, they are large
in number and have a huge impact on sales. In fact, it’s proven that more or less 90%
of customers read online reviews before making the final decision on what product or service
to buy. Online reviews are so important that 84% of
customers trust them as much as they trust their friends’ advice! Can you believe it? The cool thing is that it doesn’t really
matter if you buy online or offline, because almost 100% of customers read reviews online
even when they end up buying offline! So let’s try to have a higher view on the
power of online over offline: we can say that online holds the richest education material,
which is out there in the form of reviews. Reviews drive sales, both online and offline. Reviews are great for social proof when we
see that others bought the same product you kind of feel safer, right? Online reviews are also a great source of
information to improve products, services, and their communication. Lastly, but most importantly…reviews are
becoming a benchmarking tool for offline shops that want to identify the right products to
put on their shelves. On e-commerce, brands can have almost unlimited
space to sell their products, but offline the slots that retail offers to manufacturers
is limited, and usually very expensive. Retailers don’t want to waste any more physical
space trying to sell products that won’t sell fast…and to identify the top performing
ones, they use online reviews. Amazon is opening some offline stores where
they would only sell products that online got 4 stars or above. It’s not a secret that Home Depot will remove
from the shelves products that don’t get enough online reviews with good star ratings. So…if you were still wondering how big is
the impact of online over offline, now you know that this impact is so massive that traditional
retailers will only sell products that perform well in the digital world. I hope you liked this video. If so, please subscribe to my channel! Remember that new videos will drop every monday
and thursday! Ciao

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