Growth in e-commerce increases competition

Use packaging and inventiveness to make your brand stand out

Catching the trends

At Bong, we watch the trends that will alter the way our customers do business. And the biggest change by far is the growth in online retailing. Here are some of the statistics that caught our eye.

 

E-commerce is still new: 45% of online retailers have only been operating online within the past three years. New online businesses are starting every day. Competition is increasing fast.

 

Customers are increasingly comfortable with buying online - especially since mobile apps are turning online shopping into a 24-hour-a-day leisure activity.

 

  • In Germany, e-Commerce turnover increased by 78% between 2006 and 2010*.
  • This coming Christmas, one in four Danes** will, shop online.
  • Sales growth will average 9,5% a year between
    now and 2014***

Plenty of loyalty to online retailers

The frequency of online shopping is increasing too.

 

• Roughly 75% of online shoppers buy online between one and four times a month**.


• Younger people (aged 18 to 34) shop more frequently than those over 55, while higher earners also

   have a slight tendency to shop more often.

 

• Online purchases are high value and need good protection in transit: half of all online sales are

   worth €65 or more**.

 

Online shoppers tend to be loyal. In a recent survey, two thirds of them had made a recent purchase from an online retailer that they'd bought from before**. Two thirds of them also said that they would be likely to recommend an e-commerce site to a friend**.

Offer better service to avoid competing on price

The message is that price is not the key driver for online customers. Despite being able to make instant price comparisons, customers are willing to show brand loyalty and pay premium prices.

So how do you differentiate your brand online? As always, it's service and attention to detail that help maintain retailing margins. Even when your transactions are entirely digital, you can offer exceptional customer service – and you don't have to put in a lot of effort to do it. Imaginative packaging turns a commodity into a surprise for the buyer, or a gift for someone special. Which is why Amazon now offers a gift-wrapping option.

The first rule of packaging is that the container should be strong and lightweight. Weight keeps costs down, while strength ensures that the goods come out of the packaging exactly as they went in.

Here are a few ideas

Clothing:

Co-Ex Pockets (strong, tear-resistant polythene bags that seal in an instant) and Tyvek.
Co-Ex Pockets
Tyvek

Books:

Book and Binder Wraps are the popular choice of leading retailers - fast and robust.
Book Wraps
Binder Wraps

Electronics:

Flexpac and Tray Kits hold delicate items safe.
Flexpac
Tray Kits

General use:

Padded Bags and Bubble Bags are strong and effortless. Do exactly what they say.
Boxes with Fillings are extremely robust. 
Padded Bags
Bubble Bags
Boxes
Box Fillings

Special occasions, special value:

Be an outstanding and market-leading retailer by offering your own gift wrapping service. Retail Gift Bags and Wrapping Papers put the delight back into online shopping.
Retail Gift Bags
Wrapping Papers
But if you really want to stand out, you should customise your packaging in any way that's unique to your brand. Then your customers will spot your package the moment the delivery driver takes it out of the van.

    * BVH (German Association of Online Retailers)
  ** Dansk e-handelsanalyse
*** Forrester Research

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