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BizReport : Ecommerce archives : July 20, 2007

E-tailers hope better technology will raise profits

Tech marketers can look for increased product awareness and spending from online retailers, catalog companies and web stores in the coming months. According to a new survey from Internet Retailer, e-merchants will increase their technology buys to better serve customers.

by Kristina Knight

Mike Brinker, e-commerce and web channel solutions leader for Deloitte Consulting, a unit of Deloitte & Touche LLP said, “An e-commerce site needs to do more than just process a transaction. The merchants using updated technology today and getting ready for anything, anytime and anywhere Internet retailing tomorrow are the ones that will remain the most competitive.”

The survey found that more than 40% of the e-tailers surveyed will increase technology spending between 11% and 25% in the coming months and just over 10% plan to increase technology spending by at least 50% in the coming months. Another 9% will increase spending by at least 25% to 50%.

What will they buy? Software, first and foremost. New order management systems are tops on the list. E-tailers are also considering upgrading their analytics program, adding site search features and customer reviews.

Why the upgrades now? Because online shopping is growing by leaps and bounds. As more households become connected to the Internet, and many of those connections being broadband, merchants have to stay up to date with their online infrastructure. A slowly running site will turn online shoppers away as quickly as seeing long lines at the checkout counters in a local grocery store. By staying even with or one step ahead of the other e-tailers out there, merchants have a better chance of attracting and keeping new users.

Tags: e-commerce, e-tailing, online shopping

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