Larger ranges result in worsening user experiences and damage the
potential for retailers to grow revenues, according to the latest
report from Forrester Research. The company says on-line merchants
must return to basics.
Larger ranges result in worsening user experiences and damage
retailers' potential to grow revenues, according to the latest
UK-focused report from Forrester Research. The company says on-line
merchants must return to basics and adopt merchandising principles
that help customers make the best buying decisions.
Forrester analyst Mike Honor said of e-tailers with widening
product ranges:
"Large assortments in one place are less
attractive on-line than off. The concept of a one-stop shop is
rooted in the off-line world, but the web is poor for browsing
masses of products. Low on-line switching costs make the web the
perfect comparison destination."
The report cites average web site conversion rates of 2% to 3%,
observing that shoppers engage less with the retailer's offer
on-line than off. The report adds that “on-line, retailers need to
replicate the salesperson's ability to articulate customer needs
and provide comparative information.”
Honor concludes:
"Having become constructive merchandisers,
retailers can consider continuing with range expansion plans.
Having designed a site that can be easily navigated by all types of
shopper, retailers can begin introducing more sophisticated
merchandising techniques."
For more details, see www.forrester.com.
