As large and small retailers alike brace themselves for the impact of the financial downturn, some are finding unexpected success through their internet strategy.

In the lead up to Christmas last year, online traffic nearly doubled over the previous year as customers carried out research, sourced suppliers and made purchases online. Traffic to pricing comparison site, GetPrice.com.au almost tripled from November 2007 to November 2008, while eWay, Australia’s major payment gateway, recorded a 69 percent increase in transaction volumes.

While the internet offers clear benefits when it comes to shopping for gifts, who would have thought so many people would shop online for fresh food?

The Domino Effect

Take the case of fast food retailer, Domino’s Pizza, which floored financial analysts in the UK by reporting healthy growth in both revenues and profits – despite the economic downturn and a reduction in spending on luxuries by cash-strapped consumers.
Last year the UK operation of Domino’s sold £25.3 million worth of pizza via its web activities which now account for over a fifth of delivered pizzas sold in the UK and typically generate an above-average order value.

This should be food for thought for any retailer or service provider not currently harnessing the internet to display or sell its wares, no matter how small the business.

There are two main reasons for this. One is consumer power. The internet generation has grown up and the average consumer certainly aged 40 or below, will turn to the web before making a new purchase – even if the actual purchase is then made in a traditional shop or over the phone. The second important driver is that establishing a professional web presence has never been easier or more affordable.

If you do not have a fully functioning website, your nearest rival probably soon will. Need some help with your website? We’d love to hear from you.