Online retail companies could benefit from the massive popularity of social media networks in the future, provided firms are able to develop ways to harness the medium's opportunities.

Thursday, May 21 2009 by Mark Richards

Online retail companies could benefit from the massive popularity of social media networks in the future, provided firms are able to develop ways to harness the medium's opportunities.

That is the view of Don Davis, editor of online retailing publication Internet Retailer, who has claimed the rise of social networking, as well as the increased use of mobile technology, will push forward the online retail sector.

"Consumer behaviour is changing dramatically in that people are becoming accustomed to the idea they can interact with their friends pretty much any time and any place," he said.

"Retailers will go where consumers are, and that’s to the social networks and video sites," Mr Davis added.

However, he concluded that such a move would not translate into significant changes in online retail over the coming year or so, as e-commerce businesses have yet to develop ways to turn social media technology into sales.

"Twitter, video websites, social networks and mobile commerce - I think they are all going to be important but I don't think any will have a big impact on online sales in the next year or so," Mr Davis explained.

The e-commerce sector is being forced to change its marketing tactics as the global recession take effect, according to research carried out earlier this month on behalf of Shop.org, the digital division of the National Retail Federation.

Nonetheless, most e-commerce firms polled said they believe the online retail sector is well-positioned to beat the recession.
Researchers: Internet Retailer: Social media and mobile commerce will be important to e-retailing but are unlikely to "have a big impact on online sales" for another few years