Online retail offers 'increased value for money'

The internet has allowed users to get more for less from retailers, because they can now compare the price of products from different providers, says an industry expert

The internet is becoming more important for retailers because it can offer more value for money for their customers, according to an industry expert.

Matthew Cushen, senior manager at Kurt Salmon Associates, pointed out that some online retailers are now attempting cross media optimisation too, such as online grocery retailer Ocado which has its own mobile application in the Apple App Store.

Last week, Ocado announced that purchases through this application account for two per cent of its total sales.

But Mr Cushen highlighted the importance of the web as a conduit for price transparency, as customers can get more for less by comparing the cost of products across a range of providers.

He said: "Price is increasingly important but retailers will need to continue to focus on other factors - that's product quality, shelf life, and timely delivery on their online offers."

People are no longer just comparing individual products on the internet, but entire shopping baskets to see which retailer will offer the best deal, Mr Cushen also noted.

01/10/2009