Spending on retail internet technology and marketing increasing
Retailers are starting to pay attention to the fact that consumers are increasingly going on the internet to buy items and services, whether by using their computers or mobile devices, such as smartphones and tablets. One way that merchants are responding to this purchasing behavior is by increasing the amount of money they put into both the technology required to offer customers online options as well as marketing efforts to reach out to these target audiences. As businesses boost these aspects of their budgets, they can expect ecommerce to continue to grow as shoppers use the channel to stock up on products.
Ecommerce technology gets big focus
Perhaps one of the most important elements of online shopping is the technology that retailers need to maintain to provide internet purchasing applications and services. This is one of the main reasons why 70 percent of merchants are putting more money into these components, according to a recent survey by Internet Retailer. The research found that the bulk of this increase in funds will be going toward ecommerce platforms, but the majority of companies (86 percent) will outsource the development of these solutions as they do not have the in-house staffing abilities to do it themselves.
However, this is something that many retailers are hoping to change as online shopping becomes more prevalent, Internet Retailer notes. The source highlighted one business that is aiming to create their own web platforms soon to fit the needs of their customers.
"Next year we will spend more to ensure we have the systems expertise and personnel in-house that will allow us to stay flexible in our approach to constant changes in e-commerce technology and grow globally," said Michael Brady, chief technology officer for Market America, a cosmetic and health supply retailer.
Online marketing also getting attention
Retailers are also increasing their online marketing budgets, in the hopes of drawing in more customers to their websites. A recent study by Retail Systems Research revealed that more than one-fifth of merchants surveyed stated they will significantly increase their spending on social media, email and mobile advertising initiatives. These findings show that businesses are taking notice of the increasing importance of online shopping and how it impacts their operations.