A recent study from Internet Retailer indicates that merchants are willing to spend big bucks to keep up with changing technology. This trend is very different from just a few years ago when a bad economy kept many merchants from upgrading their software systems.
The top items on e-tailers’ shopping lists include updated e-commerce platforms, web analytics, site search, and customer management systems. New e-commerce platforms will integrate with the emerging multi-channel trends and offer personalized shopping and interactive content. About a quarter of all merchants expect to implement a new platform with six months, spending as much as $400,000.
What does this all mean? Here are my predictions.
1) The cart-driven shopping experience as we know it is on its way out. It is been useful but it is time for it to die. If you asked me to be more specific, I would have to admit I am not sure exactly what is going to happen other than that the online shopping process will get simpler.
2) CPC costs will drop. As companies spend money on analytics, they are going to finally start to figure out how bad they have been overpaying for advertising. This will be bad for Google and Yahoo but great for the online retailers.
3) Interactive tools are the future. As I have discussed many times at Marketing Pilgrim, more and more large companies are leading the industry in the direction of helping customers find what they need by offering slick interfaces and technology.
In terms of innovation, internet retail has been pretty stagnant for the past few years. It looks like things are about to start moving forward quickly.