Take me to Crowdstorm.com

New Generation of Recession Shoppers turn to The Internet to Research Products

Philip Wilkinson on May 03, 2009, in E-Commerce, Entrepreneurship, Social Media

You’ve got to love these surveys that get published that demonstrate, with stats, that your initial hypothesis all those years ago is now starting to manifest. The trick is all about the timing and riding the wave, launching to market at exactly the right point. Imagine you’re a surfer - catch the wave (trend) and go for it!

The spot in question came via InternetRetailing.net who spotted the survey from LinkShare (no they’re not getting a link as I can’t see where they published the survey!), whose findings indicated that 81% of people are now doing research online before buying a product!. That’s a phenomenal amount of individuals who want validation before making any purchase.

92% of people said they have more confidence in the information online than they do in high-street store assistants. Not unexpected considering the average person giving advice has always had to read the brochure in front of me when I asked about anything more than what was on the label. It also mentions that more people expect to shop online generally as they tighten their purse strings and seek out the best deal for that heavily researched products.

So how are people currently doing this online? Good question damn it!

• 75% price comparison engines
• 69% user review sites
• 66% professional review sites
• 55% loyalty / voucher sites

Of course, most people probably start with Google in the first place.

People like Bazaarvoice are leading the way in implementing user reviews on merchants’ own websites, which adds to the massive pile of general user review and expert review sites out there on the web. Add the wealth of conversation taking place in twitter, facebook, and friendfeed around what products to buy - and you’ve got an immensely fragmented marketplace for this behaviour.

Now if only Crowdstorm can do what it set out to do… is it time to ride the wave yet?

Crowdstorm rated 5 Stars in WebUser Magazine

Philip Wilkinson on Mar 11, 2009, in E-Commerce, Products, Social Media

Hurray!

CrowdstormRatedFiveStars_WebuserMagazine_2008

State of the US Online Retail Economy

Philip Wilkinson on Feb 20, 2009, in E-Commerce

Some great data coming in from Comscore about how the online retail space has fared in the US over the past few months and what they expect might happen in the first half of 2009.

Click on the images to see them full-size

First up, online ecommerce has slowed down in terms of growth to 7% in 2008 from 17% in 2007. Note it’s still growing!

Secondly, this is actually due to a category skew whereby consumer electronics, video games and consoles, and sports and fitness categories have continued to increase in sales. Perhaps more people staying in and/or doing active things near them.

Thirdly, early 2009 has seen some growth pickup again after a drop in Q4 of 2008 - possibly predicting a bounce, but personally it shows this is mostly sentiment rather than 100% actuals.

Lastly, eCommerce is still taking market share away from high street stores and that’s always a good thing

Rise of the Info Shopper

Philip Wilkinson on Jan 23, 2009, in E-Commerce, Social Media

According to a recent piece in the Wall Street Journal, one of the most neglected trends out there is around information-based shopping and purchasing - giving rise to the Info Shopper.

They are suspicious of advertising and search online for virtually everything to get the information they need. 92% of the people surveyed said that they have more confidence in the information they found this way then being spoon fed it. Even for products like vacuum cleaner, 58% of people said they would research it online first and are asking questions such as “how much does this hold before empyting it?” or “is this light enough for someone small to carry it up the stairs?” 70% say they consult reviews and ratings before making any buying decisions.

Looking at this data, you can see that brands and websites need to think of different ways to get people the information and the confidence they need to make their own buying decisions. The WSJ goes on to say that information aggregation sites will become increasingly more important and especially so for helping weave the story and fit into the customer buying decision process.

This is a huge shift going on… think where it could lead!

Mobile Phone Reviews - a waste of time?

Philip Wilkinson on Jan 21, 2009, in E-Commerce, Products, Social Media

I’ve just been reading an article in AdAge about how Sephora is simplifying the product review process by letting people read reviews on their mobile phones. In some retailers in the US, they are actively encouraging people to look at products in the store then actively read the reviews about them on their phones. Our old friends BazaarVoice are powering the platform.

So, I completely agree that product reviews from people like you and expert reviews and advice are increasingly more important in making a buying decision, but I’m not convinced this behaviour can be adapted easily for a mobile phone setting. For a start, they have to get our their basic handset and browse to a “mobile” site to enter the product name / code, then filter through the crap results to hopefully find what they wanted, then click it and read some tiny reviews on a small screen - all in a matter of hours!

I’ve seen this try and work before back in 2002, and yes, times have advanced but people couldn’t be bothered then so what makes us think can they be bothered now? Even scanning the barcode of an item is probably not as straightforward as it seems. The only light on the horizon for mobile phone reviews might be through the smart phones like the iphone - but honestly answer me this:

Are there really any downsides to writing down the name of the product you like on a piece of paper then researching and buying it online back at a computer?

iPhone Security Disabling

Philip Wilkinson on Jan 12, 2009, in Products

So, anyone tried out the security feature on the iphone to get it to lock you out if you enter too many incorrect pin numbers? I got to 7 before it locked me out for 5 mins, but didn’t have the guts to get all the way to 10 and see if it really did wipe itself… any takers?

Does VC have a future?

Philip Wilkinson on Jan 05, 2009, in Entrepreneurship

I’ve just been reading a post by Nic Brisbourne on the Future of Venture Capital who posts some interesting thoughts on what may happen with VC investments over the coming year.

Nic has a nice optimistic view on this - but I have to disagree. In this kind of market, the good businesses are those that understand how to cut their cost bases and strive for profitability as quickly as possible. They are the entrepreneurs and companies who won’t actually need to raise any VC once they are on this path and will instead seek out Angel investments and smaller amounts of cash to tide them over for any cashflow dark spots.

Any company that has raised VC all ready should have enough to see them through to profitability or the VC’s who originally invested will sink a bit more cash into it if it’s going the right way. I don’t see any VC’s making any new investments in new companies for a long time now as they hardly did this when times were good anyway!

Let’s face it - VC’s need to be become smaller, more dynamic in levels of investment, and stop being scared of risk. In fact - 2009 / 2010 are the years of the angel investors!

Jeff Pulver backs me up on this argument too, stating that the smart entrepreneurs are those that know how to bootstrap and utilise the vast range of free infrastructure resources that now currently exist to make this even easier.

Tweetmas covered in the New York Times

Philip Wilkinson on Dec 22, 2008, in Uncategorized

Our @tweetmas project has been a storming success and we’re really proud of our little experiment. It was really to see how well people can interact via twitter to discuss things they want and we’ve had over 2000 tweets so far with people asking for a variety of things such as “a nintendo wii” or “for chocolate not to appear on my hips”! All good fun.

It’s been picked up in a couple of places, including the New York Times - yeh baby! I’m also assured Jemima Kiss is also going to cover it in her Guardian blog which we can link to when she does it In fact, here it is.

The State of eCommerce 2008 - 2014

Philip Wilkinson on Dec 09, 2008, in E-Commerce

Lots of very useful data coming out about the offline and online retail markets at the moment. In particular, InternetRetailing and some Hitwise seminars. So what’s the status in a nutshell?

• Sales on the high street have been declining and will continue to do so until 2014, by around -2.5% year on year
• Online eCommerce is still growing but has slowed down
• Monday 8th Dec has been the biggest day online so far this year but some pundits are predicting next monday to be even bigger as e-tailers are now offering later and later deliveries. Christmas day and boxing day will also be big days.
• Biggest growth areas online are low frequency items (which includes groceries and clothing)
• 0.5% of all e-commerce traffic is through voucher code sites!
• 2008 is showing a similar shopping trend to 2007 in terms of the biggest days online, although volumes are 10% higher.

What does all this mean? Basically we’re still shopping but we’re shopping slightly less than before and moving from the high street to online to look for products and deals. I wouldn’t want to be a high street retailer right now!

Yahoo sells Kelkoo to private equity firm Jamplant

Philip Wilkinson on Nov 21, 2008, in E-Commerce

Information just in: Kelkoo has just completed it’s sale to a newly formed private equity company “Jamplant” as of last night, meaning that Kelkoo will no longer be a subsidiary of Yahoo and will continue to trade as an independent entity.

Well this one came out of nowhere! That’s twice it’s been sold. I’m looking into more information about who Jamplant is and who is behind it - I wonder if it’s some old Kelkoo shareholders buying it back…

Rumour has it that Kelkoo has been suffering over the last year or so with declining margins from loss of organic traffic and that disagreements between Kelkoo and Yahoo staff over how to improve things were rife. Is a turn-around possible?

UPDATE:

Mike Arrington has a good post with more information and the actual update email from Kelkoo MD Glen Drury to the team
• Pierre Chappaz also announced this on his Kelblog (I ran it through google translator)
• Profile information on the new mysterious Jamplant
• It’s also worth looking at my previous post on this topic and Kelkoo’s challenges which are part of the reason for them being sold on.