Monday, 4 February 2013

Unit 2: The Digital Economy - Clicks + Mortar

Internet shopping is now something which nearly everyone does, and is just as common as going to the local shopping centre. Sales have risen significantly over the last 6 years, and the highest revenue period is around christmas. Many companies have seen a drop in retail sales, but a boost in online sales. There are many advantages and disadvantages to online shopping, both for the retailer and consumer. These advantages include; time saving: you dont have to go to every shop to find what you are looking for, or find once you get there its not in stock, or do not have your size. With internet shopping you are able to quickly purchase your item and continue with other things. Price comparisons: when you have decided what item you wish to buy, it is very easy to open new tabs and see if the item is cheaper or a better deal on any website. Some websites have specifically been set up to help the consumer, such as www.comparethemarket.com which aim to compare prices once some vital information has been put in. These are mainly aimed at insurance shoppers. Saves money on travel: when you shop online, there is no need to travel anywhere, therefore you save money on travel expenses. Unlike when you go to shopping centres or towns, where you will most likely pay for petrol, trains or bus fares. 24/7 shopping: unlike retailers, online shopping is available constantly, with some retailers offering next day delivery when the item is ordered before a certain time. This is much more appealing than going to the retailer direct, and is more conveniant. Larger inventory: when shopping online, you are able to change the size, colour and style within a few clicks, and you are able to see whether its in stock or not. This is an advantage to the consumer as you dont have to waste time and money going to the retailer direct to find out they dont have the size, colour or style you want.
The disadvantages include; other costs: when you purchase items, there will nearly always be a delivery or shipping charge, unless you have spent a certain amount of money. This can add quite heavily to your bill, especially if its next day delivery. Most of the time you wont find out about these additional charges untill you finalise your payment, which can put many consumers off from buying items. Damaged/Unwanted items: when items have been brought online, its hard to judge whether they are the right one, therefore many items need to be returned to the retailer. This can be a very lengthy and costly process for the consumer, as it may include shipping costs, and after waiting for your product to arrive, you have to wait again for a refund or different product. Instant gratification: buying online means you cant see the item, or try it on to make sure it is the right one for you. This is very difficult to judge when shopping online, as you are trying to get the feel of the product by a photo. This is especially difficult when clothes shopping. You also have to wait for your product, which can be up to 7-5 working days, which requires some patience. Personal data: many consumers are worried about the potential risks of shopping online, with their personal information being stored or sold. There is also an added risk shopping online due to many viruses surrounding personal information, which can lead many people to steer away from online shopping.

Online Supermarkets
When looking at all of the online supermarkets, the first one that jumped out and made me want to look further into the website was Morrisons. Many of the other websites were quite plain, with a white background, or didnt have anything significant to engage the consumer.
The website includes information on the different sections of the stores, for example fresh meat, fishmonger and the bakery. Not only this but they have simple recipes, with the cost included for certain events, for example pancake day. This is an effective way to draw in customers, as they know the ingredients they need are available at the store.
One thing all the supermarkets had in common was that you are able to search stores in your area, with the opening times, and store details, this could be convenient for when people move into a new area, or go visiting different towns/cities.

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