Thread Intelligence Article

January 1, 2004
By Dirk Knemeyer

We have only barely begun to take advantage of the opportunity presented by eCommerce. This is despite the power of broadband connection and the seemingly ubiquitous presence of personal web-enabled devices. Despite visionary and innovative eCommerce companies. Despite the best efforts of traditional companies to best leverage and even transition over to an eCommerce-centered model. Indeed, given those factors, eCommerce should be enjoying a period of wild and sustained growth. And, even though there are signs of progress - such as a cnnmoney.com article that states that the 2003 holiday season reflected a 31 percent increase in eCommerce purchasing - the vast potential of digital commerce remains untapped. What can we do to bridge that divide, to help move purchasers and companies away from brick and over to click?

It begins with people. In order to successfully build eCommerce distribution models and, ultimately, solutions, we must thoroughly understand why people buy products, and how they make purchase decisions. After all, it is not a question of technology; it is a question of identifying the essence of the problem. In this case, the problem is changing the behavior of people. There are some very good reasons why people purchase online, but even more barriers that prevent them from doing so.

Let's start by analyzing some advantages that eCommerce has, compared to physical storefronts. Here is my top-level list:

• Convenience
• Shopping immediacy/impulse buying
• Broader/unique selection
• Comparison shopping/best price

Convenience speaks to a number of different factors: It enables spontaneous browsing, 24/7 access, and the ability for different people to come in and out of the shopping experience (such as a father doing the primary shopping and periodically calling his daughters in from the other room to get their feedback/input). The other points are self-explanatory and easy to concede, with the exception of best price, which, in some select cases of special sales at brick-and-mortar stores, would not be accurate.

Even more importantly, we must understand why people still make purchases at traditional stores:

• Assistance/advice/direction from salespeople
• Desire for physical inspection
• Presumption of greater accuracy/satisfaction, simpler returns and more reliable customer service
• Immediate gratification - go out and get it now
• Lack of comfort with digital purchasing (security and/or technophobia)

Each of these reasons present unique challenges. While some may seem easier to address than others, the reality is that each and every one of those potential barriers to making purchases online are navigable. And many of those solutions have little to do with current eCommerce applications or processes. They involve innovation, fresh thinking and a laser focus on the people who will make the purchases - as opposed to the technology and applications. Indeed, many of the solutions have nothing to do with technology. They happen through the lens of experience design, marketing, various web design disciplines and business strategy - as well as technology.

Join me in a thorough and systematic exploration of factors to help companies, industries and perhaps even broad sales and distribution transition from traditional models into the virtual realm.

Author - Dirk Knemeyer

Editor -

Part 1 of 7: Understanding eCommerce
Part 2 of 7: Effective Virtual Salespeople
Part 3 of 7: eCommerce and Experience Design
Part 4 of 7: Mastering Virtual Customer Service
Part 5 of 7: Providing Immediate Gratification
Part 6 of 7: Overcoming Technology Barriers
Part 7 of 7: Next Generation eCommerce

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