Development Has Slowed But Positive Still

Development Has Slowed But Positive Still

E-commerce websites have been growing by double digits during the last few years. The economic recession has slowed down the growth, but sales are still rising, unlike the falling sales of offline stores. The projected online sales rates for this holiday season are projected to be slightly greater than last year’s sales, partly due to easing of the recession.

Slow growth is here to stay, due mainly to the maturing of e-commerce businesses. In 2008, overall sales across retail stores hit a low during the holidays, the first time within the last 23 years. It was a good enough reason for businesses to focus on their e-commerce stores and they did rightly so.

E-commerce businesses were using on a wave of fast development till 2007 when the sales grew 18% YoY. Sales growth slowed to 13% in 2008 and it is expected to slow down further to about 10% in 2009 2009. This development has come in spite of the global economic crisis, and it is a clear sign of the strength of e-commerce. One thing is clear though, it is going to be harder for online businesses to sustain the heady growth rates of days gone by ten years. It might be time to work hard at website design and marketing ways to continue growth and stay abreast with the competition.

All e-commerce companies that have experienced the one-time saturated in online sales after releasing the web site know that this phase needs to be adopted up with a lot of effort. Constant marketing and improvisation of the web site are required. In the current recession, this strategy becomes even more important.

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E-commerce websites must adopt latest technology, marketing and design strategies to improve the customer experience and increase sales. Businesses are deferring the launch of new projects during the economic slowdown, however, not e-commerce websites. As stated above, online sales are growing regardless of the tough economy even though traditional brick and mortar retailers have observed a decline in their sales. E-commerce websites should integrate website design elements that enhance the customer experience. Minimize the clicks involved with a deal.

Generate add-on sales recommendations. Higher return on investment (ROI) is exactly what differentiates an e-commerce wall plug from a normal departmental store. E-commerce stores do not have the same overheads as mortar and brick stores and should focus more on business aspects that will increase ROI. Retail owners would prosper to provide offers and bonuses to divert their customers with their web outlets.

E-commerce websites have lower overheads and the profit margin is higher. Customers have restricted costs and e-commerce website design should emphasize the discounts and offers and make sure they are easily accessible. This encourages more buying. E-commerce websites may be experiencing a slower development rate than previous years, however the fact that they are growing in the recessionary environment speaks quantities for his or her success still. E-commerce businesses should keep the website dynamic and market it aggressively to retain their market share and increase ROI.

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