We live in a digital age where it is easier to log on to
the web to browse the coolest new gear than it is to trek out to the mall. But
for the longest time the retail space on the web was dominated by large
companies which had invested heavily in brand image and real brick and mortar
stores. Often time’s smaller companies would struggle to gain a foothold on the
web since consumers would invariably choose to purchase from the larger retail
outfit.
The reason consumers choose larger retail outfits is
pretty easy to explain. When the web was fresh and new stores like BestBuy and Sears had already
built a reputation as being reliable merchants, an image which consumers
carried over when they shopped on the web. Consumers felt more comfortable
giving a credit card number to a large company they already knew and did
business with than a small internet retailer. Brands like Amazon and Ebay advertised
fairly heavily in traditional media to establish that brand image, giving them
credibility with consumers. This led to a few large online outlets for retail
sales but still left the smaller retailers fighting for scraps.
But the internet has changed and grown dramatically since
then. Services like PayPal
and Google
Checkout have given consumers peace of mind when dealing with online
merchants. Online merchants may not have a massive distribution network but
they don’t have to, they can use any number of shipping options. Online
merchants can also operate the cost of maintaining a physical retail store, increasing
margins.
To be fair, two years ago I would not have bought
anything online unless it came from a large brand which I knew. Now I have both
Google
Checkout and PayPal
accounts and I feel comfortable shopping anywhere on the web that offers
those forms of payment during the checkout process. Buying online is often cheaper for me than
actually traveling to the store to purchase a product. I never have to spend on
gas, I can compare various retailers side by side instantly, and I can do it
all while watching reruns of M*A*S*H.
