Online retailers are doing it wrong

There’s been a load of cheering recently for the success of online shopping. At Christmas, for instance, many High Street stores in the UK reported lower than usual sales with less footflow than the previous year. But their online counterparts reported record sales. So everyone was happy. What tosh. The average conversion rate of the top retailers online is a mere 2.5% – and they are ecstatic about that..! If only 2.5% of the people who walked into their bricks and mortar stores bought anything they would be out of business pretty sharpish. One of the reasons is that customers online are “cheap”. It costs almost nothing to attract them; you can get millions passing by every day. The result is that the top retailers themselves perceive their online customers as ten a penny and treat them as such. Is it any wonder they don’t form great relationships and therefore don’t buy very much? A typical top retailer will tell you that their online store is worth about the same as one of their bricks and mortar stores. And, remarkably they think that’s great. Cloud cuckoo land I say. They are happy with the profit in an online store that generates ten times the amount of footflow as a High Street store? Again, this is an attitude problem. It’s highlighted today by a report on the way retailers use emails. This shows that few online retailers even personalise their emails to their customers. They don’t even use the proven methods of getting returns on emails and the vast majority don’t even promote their products in emails they send to customers. What? Say that again…! Yes, 77% of retailers who send emails to customers do not promote their products in those emails. Once again, this is evidence of major companies failing to understand the true nature of the Internet and how they can profit from it.


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Graham Jones
Graham Jones is an Internet Psychologist who studies the way people use the online world, in particular how people engage with businesses. He uses this knowledge to help companies improve their online connections to their customers and potential customers and offers consultancy, workshops, masterclasses and webinars. He also speaks regularly at conferences and business events. Graham is an award-winning writer and the author of 32 books, several of which are about various aspects of the Internet. For more information connect with me on Google+
Graham Jones


Graham Jones is an Internet Psychologist, professional speaker and author of 32 books who helps businesses understand the online behaviour of their customers
RT @SteveHeadSpeaks: Thanks to @GuidesForBrides for having @ChrisHeadMagic at #ukwedconf @MiltonHillhotel learning from the best @grahamjon - 22 hours ago
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