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The multichannel e-commerce path out of the recession

17 Jun 2009

USA: Retailers caught in the downward spiral of declining sales resulting from the weak economy need not wring their hands helplessly. Online sales are burgeoning, despite the downturn. A strong multichannel e-commerce strategy offers benefits that can extend beyond Internet sales themselves to streamlining in-store ordering processes and increasing sales through cross-selling and upselling.

In the midst of the economic crisis, cautious spending and downsizing have left the retail industry in dire straits. The Commerce department recently reported that retail sales continued to fall in March - down 1.1% from February's sales figures. March 2009 saw a 9% decline compared with March 2008.

Even as retail numbers drop, however, online shopping and total online sales continue to show steady growth in the face of adverse economic conditions.

46% of the 117 online retailers that participated in a recent Forrester survey claimed they intended to spend as planned on their Web businesses. A quarter of respondents expected to spend more than they had originally planned. In January, Forrester forecast online sales would grow 11% to US$156.1 billion in 2009, following a 13% increase in 2008.

Given cautious consumer spending and tight credit, why is online retail continuing to surge while overall retail numbers drop? Retailers need look no further than the tremendous benefits and savings of selling via a multichannel e-commerce platform. As in-store retailers that haven't embraced online shopping go out of business, orphaned shoppers are turning to the retailers that have.

Read the full article here.