The ecommerce industry has been showing significant growth over the past few years, and new figures indicate that the popularity of ecommerce has now influenced stock market figures as well. Ecommerce opportunities have been expanding globally, but one undervalued ecommerce asset may be found in Latin America. As online shopping becomes more ingrained in consumer behavior, people over 50 have significantly increased their ecommerce spending, and Google will be redesigning their mobile ads to make it easier than ever before to locate and contact businesses in the area.
Redesigned Google Ads Estimated to Increase CTR by 100%
Google has redesigned the layout of their mobile product, according to new reports. The new layout is set to launch on Friday, and Google estimates that click through rates will increase by more than 100% after the new changes are released. The search results will now feature more prominent clickable buttons so that users can directly place calls or load directions with the map. This will eliminate the extra step of loading the browser page in order to access directions, and Google is also launching a new marker locater feature which will show the user’s distance from nearby businesses. According to research, 94% of smartphone users find local businesses through their mobile device, and 90% of those users make decisions based on the search results, which makes this switch an important one for retailers engaged in Internet marketing.
Online Shoppers Over 50 Increase Spend by 25%
New research indicates that there has been a marked increase in online shopping in consumers over the age of 50. Saga Platinum Credit Card conducted a study of ecommerce purchases in this age group and found that sales have soared by more than 25% since 2010. According to this study, the driving factor behind the increase is the popularity of downloadable music files through vendors such as iTunes. Consumers are also becoming more comfortable with the idea of online shopping and less fearful of the risks. “They are savvy and confident shoppers online and enjoy the convenience and ability to shop around at the click of a mouse,” Roger Ramsden, CEO of Saga Services, said.
Ecommerce Stocks Set to Outshine Broader Retail Market
The Internet Retailer Online Index showed that ecommerce stocks have gained significant value over the last few weeks, outshining the overall market. According to Internet Retailer, “The ecommerce index increased 0.4%, while the Dow Jones Industrial Average fell 1.0% and the Standard & Poor’s 500 lost 0.6% last week.” With companies such as Shutterfly and 1-800-Flowers.com leading the index, the remarkable shift in stock prices is a prime indicator of the market’s growth and resiliency despite economic woes in other industries. With prime ecommerce businesses’ stock performance soaring by more than 10%, the ecommerce index has outperformed many other markets and is set to continue the trend in the future.
Ecommerce Opportunities Exploding in Latin America
While China may have the largest population of online users in the world, Chile is offering a unique opportunity to ecommerce merchants according to A.T Kearney. Hana Ben-Shabat, partner of the firm that specializes in providing ecommerce consulting on overseas expansion for retailers, said, “While the absolute number of consumers is higher in China, from a behavioral perspective, online shopping is much more wide-spread among online users in Chile.” Global retailers, hovering on the brink of recession, are expanding into the ecommerce market to promote growth into these rapidly emerging retail markets. According to recent studies, the percentage of people that shop online is much higher in Chile than in countries like China.
Key to Ecommerce Success is Emotional Attachment
Success in the digital age is tied inextricably to the vendor’s ability to create an emotional attachment with the customer, Tesco CEO Phillip Clarke reveals. Since shoppers are offered an infinite number of choices online, the vendor’s main objective should be personalization to the level of forming an emotional attachment with customers. Mr. Clarke also indicated that online retailers need to seamlessly transition from one medium to the next to accommodate digital natives who “hardly differentiate between a store, a website, a tweet, or an advert.” By implementing a more unified approach on all fronts, shoppers find it easier to make purchases online, locate a nearby store, or perform a variety of other tasks while shopping.