opinion

Shoppers Shift Supply Chains

For e-commerce website operators, consumer preferences, technology and economics combine to create a challenging playing field — but an arena which still has competitive advantages over many of their brick-and-mortar bound brethren.

Into this chaotic mix of factors come persistent warnings of an impending double-dip recession, which although an ill wind that blows no good, may be of some benefit to e-tailers and online adult merchants — at the expense of their physical world competitors.

The reasons for this shift in fortunes are myriad and include the often lower prices and wider selection offered online, along with the lower costs of shopping online as gas prices continue to soar; but the equation isn’t as simple as “online shopping is cheaper.”

Indeed, “adequate information” may be as important as “lower prices,” with today’s consumers using their Smartphones and other mobile Internet access devices to directly compare prices, products and online offers, even while examining the same or similar items inside of a physical retail location.

“The more price-sensitive consumers become, the more they’ll rely on online research for any considered purchase,” Mercent CEO Eric Best stated, pointing to this severe complication in traditional retail marketing and sales circles.

While it’s unlikely that many adult consumers will do such price-comparisons on DVDs or novelties while at a retail shop, the message that things have changed is clear.

But what can be done to turn back time — or to at least adapt to these new factors?

Even if primarily brick-and-mortar businesses choose to go the e-commerce route, it remains to be seen if they are even able and willing to do so, especially across the newer areas of online opportunity.

For example, a recent study by e-commerce solutions provider Ability Commerce reveals that only 10 percent of the top 500 Internet retailers sell directly on Facebook — despite the social networking site’s claimed audience of 750 million active users. Another surprising finding is that 20 percent of those top companies do not even have a Facebook presence at all.

“Facebook shopping provides a great opportunity for companies to market products and reach consumers through the ever-growing world of social networking,” states the CEO of Ability Commerce, Diane Buzzeo. “Companies should be more aggressive in pursuing the latest that Facebook commerce has to offer.”

Ability Commerce says that social buying is the cutting edge of e-commerce, tying online shopping with the social media revolution — although most companies currently settle for a simple brand awareness page.

The Ability Commerce report also revealed that while few mass merchants or luxury item retailers used Facebook to its full advantage, the majority (66 percent) of computer and electronics retailers employed Facebook pages. A further indication of the somewhat slow uptake of technology on Facebook is that only eight of the top 500 companies in the survey offered live chat support on their Facebook pages.

That is a bigger issue than you may imagine, because Ability Commerce says that sites using live chat support enjoy 55 percent higher per-sale amounts and are three times more likely to convince a prospect to become a paying customer. This situation is ripe for upheaval and is just one way that the little guy can still compete with the biggest players.

Some analysts look to the recession of 2008-2009 as an indicator of things to come, when larger e-tailers gained market share by maintaining their marketing spend during the downturn; however, the intervening years have seen smaller merchants become much more adept at marketing, including via the leveraging of social media initiatives.

“The lesson for e-retailers seems to be not to pull back too sharply on marketing during any recession that may develop, as many consumers still will be shopping online, especially those who are most price-sensitive,” says Internet Retailer editor Don Davis, adding that “if you don’t have a mobile commerce site, you should seriously consider building one.”

Wise words for any merchant, adult or otherwise — and a glimpse at a clear path to online success, as today’s shoppers continue to shift their supply chains; choosing online outlets to research their purchases, even if the actual sale occurs in the real world.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Why Cyber Insurance Is Crucial for Adult Businesses

From streaming services and interactive platforms to ecommerce and virtual reality experiences, the adult industry has long stood at the forefront of online innovation. However, the same technology-forward approach that has enabled adult businesses to deliver unique and personalized content to consumers worldwide also exposes them to myriad risks.

Corey D. Silverstein ·
opinion

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Keep Meta From Derailing Your Social Media Campaign

The heavy hand of Meta can be both unforgiving and unpredictable. Profiles that Meta decides have violated its platforms’ terms may find themselves on the receiving end of punishments — including the dreaded “shadow ban,” which can be damaging for a brand’s social media campaign and strategy.

Scarlett Ward ·
opinion

Ben Rush, Alter Sin Deliver 7-Scene 'Spain in the Ass' Extravaganza

Alter Sin, Ben Rush and executive producer Tim Valenti invite fans to tag along on a steamy trip to Barcelona in “Spain in the Ass,” starring Falcon exclusive Sir Peter, Paddy O’Brian, Dean Young, Seth Peterson, Eros Manos, Jolian and featuring the debut of Tom Storm.

Alejandro Freixes ·
trends

Pleasure Biz Mainstays Reflect on Decades-Long Careers, Share Advice for Up-and-Comers

“If you do what you love, you’ll never work a day in your life.” That saying definitely holds true in the pleasure industry, where many executives build careers that exceed a quarter century.

opinion

Managing Online Safety Risk as an Adult Content Creator

Online safety is important for everyone, but poses particular challenges for adult creators, who are unfortunately often perceived as commodities rather than individuals. This can lead to entitlement and harassment, as some clients may feel they have the right to dictate a creator’s behavior or content.

Eve Batelle ·
profile

WIA Profile: Melissa Fite

Though she works behind the scenes, Melissa Fite has a bird’s-eye view of the pleasure products industry. As the marketing coordinator and junior graphic designer at XR Brands, Fite gets an intriguing overview of the latest consumer trends, plus an exciting sneak peek at XR’s newest sex toys before they hit the shelves.

Women In Adult ·
profile

Distribuciones-BES Spreads Pleasure Brands' Reach Across Mexico

It’s time to brush up on your Spanish, sex toy manufacturers. The Mexican market is thriving, and the country’s distribution and retail businesses are eager to forge new connections with brands from around the world.

Colleen Godin ·
profile

YCosmetics Founder Tess Finkle Talks Messaging Behind 'If I Say Yes' Brand

Over the past few years, sexual wellness brands have gained much prominence in the digital space. YCosmetics, which released its flagship If I Say Yes collection earlier this year, is vying to become the next intimacy and skin care brand to gain a dedicated online following.

Nishka Dhawan ·
Show More