While the economic slowdown has made the majority of us increasingly cost conscious, are UK consumers really cutting back as much as the media lead us to believe?

Although 2009 is said to be one of the worst years on record for the high street, with sales expected to decline each year until 2014*, there is some light at the end of the tunnel.

I for one have not made any significant cut backs, changing the way that I shop rather than what I buy.

In the past, the traditional brick and mortar store would have been my first port of call. Now I choose to buy online.

I do not think I am alone, my friends, family and colleagues are all doing the same. Could this be one reason why online retail is set to grow by 129 per cent over the next five years?

Not only can I find products cheaper, it is also convenient. I can buy online at my time and convenience, from the comfort of my own home with some biscuits and a cuppa. And everything is delivered straight to my door.

We’re not the only ones who are benefiting from the wonders of eCommerce. Many retailers are benefiting from consumers moving online. Those with an online presence can benefit from significant cost savings, increased customer reach and extra monthly revenues.

As we ride out the economic storm, this shift in consumer behaviour can only become more pronounced and is probably going to have a big impact on the bottom line for the major retailers.

With more than a third of Britons (36 per cent) intending to do more shopping online rather than on the high street this year, I do feel that those businesses without an online presence will suffer.
*2009

In the light of the recent financial woes it would appear that eCommerce remains one of the few relatively healthy and stable retail sectors. What is more, the majority of revenue (and the majority of profit) from most eCommerce retailers is generated over the festive season. In order to maximise this once a year opportunity it is essential to get planning and think around the potential issues. So here goes with a few hints and tips to help make your eCommerce winterval a cracker :

- If your eCommerce site has been running for more than one season get in touch now with the customers you did business with then. It is likely they will remember you and offering a promotional discount code or free shipping can often secure their loyalty. They may have forgotten you. But don’t forget them. Its always easier (and often less costly) to sell to your past and existing customers.

- Plan for the best : many sites report a 30-50 fold increase in business over the festive season so be prepared. Load test your entire system from the hosting through to payments and delivery. It can be costly to expand infrastructure for just a short period, so outsourcing elements on a temporary overflow basis, or shipping products direct from the manufacturer may be a useful option.

- Think about how your site is organised for the impatient Xmas shopper : persona-based gift finders can allow your customers to search what is on offer more easily and find the right product for their loved one. Typical gift finders search by price, age and sex, but also give help to your customers to find products for the characters you know – from Gadget Freaks to Fashion Divas.

- Many online vendors are so happy that the rush is over, that they forget the advantage that they have above the high-street retailer, which is the ability to start their sale as soon as their last Xmas shipping day is finished. So this year, online retailers that ship next day could start their sale up to 5 days earlier, without cannibalising their Christmas deliveries.

- Offer Gift Wrapping : its not just a profitable additional service but can increase the conversion on key products because. Remember there are a many customers who will not see their loved ones over the Christmas period and would much rather ship items direct rather than receive, wrap and then forward them.

- Get in the spirit : Make each customers experience special; from the ordering experience, to packaging, every aspect has to exceed the consumer’s expectations. Over the festive season, most people are meeting their friends and family so there is no better time to have consumers talk about how great you are. Advocates are the best way of marketing. Throw in a free gift or voucher with their order and they won’t stop shouting about you all Christmas.

So there it is. Get down to work to ensure you make the best of it; wishing you all a prosperous e-Christmas.

Back in 2001 Thomas Davenport wrote an article which sort of changed my world. He described a new economy driven not by the ability to manufacture or deliver goods and services better than ones competitors but by the ability to garner and maintain human attention. It took a while for this to sink in but as we sit in 2008 and look at the rise and rise of eBusiness and the (now 10 years old) ‘G’ business it all seems so obvious.

The practical implications of this for small businesses are profound. The Internet has always had a habit of being a great leveler. eCommerce gave the smallest of businesses access to the largest of markets thus allowing competition with the big boys. However the eyeconomy has tended to work against this. Google’s domination of search and the ability to ‘buy’ eyeballs for your brand has stunted many an entrepreneurial web start-up. Great ideas, products and services are nothing if you can’t get them seen.

Tom Pindar OBE, Chairman of the family owned printing business where i started my career used to recite a great Yorkshire saying when persuading his customers to spend more on their printed publications. It went thus :

He who whispers down the well
About the goods he has to sell
Will never make as many dollars
As he who stands aloft and hollers

In 2008 this stands equally true and I propose a ‘remix’ version. Here goes:

He who ventures on the net
May very well be quite upset
Unless he understands statistics
Pay per click and analytics

OK, so it’s not quite as succinct or snappy; but neither is building an online business compared to a brick-built counterpart.

I talk to lots of businesses with great ambitions and amazing ideas on the net. However, the ratio of their time and money spent on building online stores to that understanding online hollering is almost always far too low. Too few realize just how plentiful information has now become. Conversely, few realise just how scarce browsers’ attention is on the net.

Anybody can build an eCommerce site, but not everybody can attract attention to it.  Online businesses who understand and manage attention will forge ahead of their competitors; they must pay attention to attention if they are to remain differentiated and competitive.

Things you might be interested in: eStore