This situation is favouring the traditional companies who can call on cash generated by already profitable businesses to subsidise their shopping sites. When running websites they have other advantages too. And they know what to do when what's bought does not fit and they know a cost effective method of getting goods back to the company. The traditional retailers also know all the marketing and selling tricks that can boost online sales and help them to know more about their customers. This knowledge of shopping habits and how to make people spend more could be crucial, because people tend to act differently when shopping online.
Most people come in and know they want to buy something.
Mr Bentley said many web retailers do a good job of making their sites easy to buy single items from, but few are able to exploit the information they are gathering about customers to drive sales. By contrast many traditional retailers have years of experience in analysing buying trends as well as remaking shops and shelves to boost sales. According to Mr Bentley, many websites are now being re-worked, so that they can easily be tuned and changed to bolster marketing drives and advertise special offers. Sites are now build so that they can be relaunched quickly with new features that ensure shoppers stay longer and buy more. Jim Hadwin who runs the Mansergh Hall Farm that sells organic lamb and pork, including Gloucester old spot bacon, said his company has been on the net for a few months but is already seeing the result.