Marketing costs multiply in competitive e-tail sector

An article in the retail gazette last week spoke about online retail, aka e-tail and how marketing costs within the sector are multiplying as it continues to grow at a rapid speed.

Last week the IMRG-Capgemini e-Retail Sales index showed that £5.2 billion was spent online in April – a year-on-year increase of 20 per cent. That is the equivalent of £84 per person in the UK.

Research shows that initially consumers were wary of shopping online, this was mainly down to stories of internet fraud. This has changed dramatically in recent years, transactions have been made much more secure, and consumers now have confidence in e-tail sector. Even clothing, one of those sectors that isn’t supposed to be suited to e-tail – was up 32 per cent in April.
This change in consumer behaviour is having a big impact on high street stores.

While it can be easy to set up an e-tail business and there are now very few product categories that do not prosper online, businesses need to understand online marketing. Although the size of the UK e-tail industry continues to expand rapidly, the cost of entry increases by a proportional amount. New entrants to the e-tail sector will need to prepare a large budget for online marketing costs.

To read the full article mentioned above please click here.

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