Online shopping isn't a new phenomenon, but high speed Internet access combined with increased consumer confidence in online shopping has translated into significant increases in online spending. When the high cost of gasoline for trips to brick-and-mortar stores is factored in, it's no wonder that consumers are doing more shopping online and are buying a greater variety of goods and services over the Internet.
To meet consumer demand, there are more online shopping venues than ever before. The increased competition among e-tailers bodes well for consumers, who can more easily comparison shop and find what they need at bargain prices. Demand from consumers also serves to level the playing field, as small e-tailers can compete with the behemoths in terms of both product offerings and services. Indeed, innovations in online shopping both serve the consumer and position the smaller business for success.
For example, until recently the online giants had a monopoly on one-stop shopping. It took years for the leader in the field to carry more than just books, and amass agreements with brick-and-mortar stores to carry everything from video games and DVD players to watches and clothing. Today, however, small e-tailers use the power of wholesale buying and collective buying to offer consumers virtually everything they might need, such as home video systems, computers, colognes, clothing, watches, the Xbox and other gaming systems, video games, and DVD players.
Smaller e-tailers use other innovative techniques to lure consumers away from the online giants. Because they have smaller operations, their quality customer service gives them an edge over companies that generate auto-responses to customer inquiries. Likewise, smaller companies can be more nimble in their marketing efforts and in modifying their websites to fit the needs of their customers.
As online shopping inevitably continues to grow, smaller companies will take a larger slice of the consumer pie. Whether working collectively or alone, they have proven that their innovative approaches, low overhead, and excellent customer service position them to compete with the leaders of the pack.
As for consumers, there is no doubt that they will continue to benefit from increased competition. They can forget fueling up the SUV and heading out to the mall; instead, they can stay at home and let their fingers do the clicking.
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