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BizReport : E-commerce : August 21, 2008


Multi-channel retailers holding back online

Multi-channel retailers are holding back on investing in online technology, finds a new report from Retail Systems Research (RSR). “Playing well with others: E-commerce’s evolving role in the customer experience” found that store-based retailers have little understanding of how consumers use e-commerce.

by Helen Leggatt

The holiday season is looming and online retail is expected to be a ray of light in a gloomy economy. While online pure-play retailers are honing their social, viral and product strategies, RSR Research’s research found that many multi-channel retailers aren’t investing as much as they should be in the online experience.

Instead of committing to Web 2.0 features they are focusing on product and delivery aspects, said the report. Meanwhile web-only retailers are concentrating on enriching consumer interaction and experience.

“Given that eCommerce is starting to have a better reputation for customer service than stores, we were surprised to see that the business challenges driving retailers' strategies today focus more on product-related issues," said Steve Rowen, Partner at RSR Research and co-author of the report. "What's not surprising, however, is that online pure-play e-tailers are at the forefront of innovation in online shopping."

Tags: e-commerce, multi-channel, online retailers, online shopping

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