eCommerce 2.0 : The Multi-channel shift

Introduction
In the eCommerce 2.0 world a Multi-channel strategy is even more critical than it has been in previous years. The revolution in the internet caused by Web 2.0 has dramatically increased the level and quality of information and services customers can find online, and has resulted in a greater level of internet based research before purchase. This inevitably fuels a growth in online commerce, but to succeed in the new world, the eCommerce services provided online must evolve.

Customers demand a higher level of shopping experience with richer information and services available "on-demand" to support their buying decisions. Yet more than this, eCommerce 2.0 recognises that the online channel is now a multi-channel marketplace within itself. Customers want to have the choice not only of using a retailers own site, but purchasing where it is convenient for them - in a marketplace such as eBay or Amazon; via a mobile phone or multi-media device at home or on the move; or via online communities such as MySpace or SecondLife.

For this multi-channel approach to eCommerce to succeed it is critical that it is considered as a part of a broader multi-channel strategy. Bricks and Mortar stores are still important, but now the relationship between them and other channels becomes even more significant. As research and purchase decisions are made online or through paper catalogues, consistency of information and price and promotions across these multiple channels are more critical than ever.

Supporting the richer customer experience demands a higher level of information and the IVIS Commerce platform coupled with the Sonetto applications can provide this.

eCommerce 2.0 - the multi-channel shift
The behaviour of consumers online has shifted and their expectations have shifted with them. Trust in online stores has grown dramatically and consumers are not only buying more online, they are buying a far wider range of products and services. At the same time they have a higher expectation on the sites they visit to deliver a rich and fulfilling experience whilst making a selection and a fast and smooth execution on purchase and delivery.

Online multi-channel
Where the focus for multi-channel was previously limited to direct or in-store sales, call centres and possibly an online store, eCommerce 2.0 has built on this and consumers now have multiple online channels available to them. These can include retailer specific eCommerce sites, online marketplaces such as eBay or Amazon and price comparison engines such as Pricerunner or Kelkoo. Yet demand for more of a holistic view across retailers has brought with it the need for a new online channel in the form of Hyper online stores such as MyDeco, MySupermarket and MyFave, where customers can view products from multiple retailers and compare basket prices.

More recently the expansion of online channels has been further diversified, driven by the utilisation of devices such as mobile phones and PDA's as well as home entertainment systems such as Apple TV^TM, Sky© and BT Fusion^TM. This trend will continue and businesses need to have solutions and technologies in place that adapt to this changing nested multi-channel landscape.

Community consumers
With Web 2.0 online communities, forums, social networks and blogs are a daily reality of the web. Information on products and services come from the consumers themselves; indeed, one of the most respected opinions and influencers of consumer spending online are peer reviews.

This is being taken one step further as the concept of "social commerce" emerges where eCommerce sites can show you based on your network of friends items that your friends have viewed or purchased. Making this a more interactive process is the next logical step.

For the online retailer to be successful in the eCommerce 2.0 world, embracing these new forums and finding ways to utilise the relationships within them will be critical for success. The ability to manage this as a part of the sales cycle will be one of the differentiators between winning and losing in the new market.

Personalisation
A lot of hype surrounds personalisation within Web 2.0 and to a certain extent it remains the "holy grail" for a lot of businesses. However, in eCommerce 2.0 a lot of lessons can be learned from the bricks-and-mortar retailers in regards to personalised services. At a basic level, the experience the customer has in your store online and the speed with which they are able to find what they are looking for, checkout and take delivery are critical.

Moreover, personalised shoppers are starting to become more prevalent in stores and this trend can be replicated online. In the first instance this has taken the form of online chat which addresses shopper's questions on the spot. In the future of eCommerce 2.0 expect a trend towards automated assistants that search the internet for the best offerings and present a choice back to the customer.

Integration
Integration is not a new concept, but eCommerce 2.0 brings increasing demands on businesses for a high level of flexibility and agility in integration. The new commerce platforms often comprise components from various different sources and must integrate with a high number of back-end applications. These hybrid pages are often referred to as Mashups, and are part of an ongoing shift in Web 2.0, toward a more interactive use of the Internet with more user-defined content and services.

According to research firm Gartner Group, by 2013, 40% of ecommerce deployments will use a complete SaaS ecommerce solution while 90% of ecommerce sites will subscribe to at least one SaaS-based service.

With more and more functionality being pushed out to the cloud, "Integration as a service" becomes and reality, providing for interfacing and data management between the enterprise and SaaS applications/components or third parties.

Information Management
At the heart of any online business is still the information. Historically this has been the information delivered to the consumer which continues to be significant. However, the shift for eCommerce 2.0 is the information collected from the consumer. Storing and operationalising information from sources such as analytics engines and customer databases allows for greater customer insights, marketing spend ROI as well as conversion optimisation, and can directly impact the bottom line.

Providing an agile response to customer demands and shifts in the market requires integration and utilisation of analytical information.

Conclusions
Today, a flexible and dynamic approach to eCommerce is emerging as the most viable means for building the kind of sites necessary for true multi-channel retailing. The ability to make use of a component based architecture that allows for best practice modules to be utilised seamlessly in conjunction with internal legacy, or back office applications provides the right blend of control and flexibility.

Utilising IVIS solutions, retailers can benefit from the improved user experience, manage more effective and targeted promotions, and keep their online stores in line with the latest developments, without making major changes to their core systems. The total cost of ownership is lower, complexity can be offloaded from the business, but control over the brand image and merchandising process are retained.