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Retailers Avoid Buying from Brands that Sell Direct

Posted on 6.23.2013

Retailers are turning away from selling brands that sell directly to consumers online, according to a new study from e-commerce solutions provider Shopatron.

The 2013 Retailer eCommerce Study shows that 71 percent of respondents would either stop or reduce spending with brands that compete with them by selling online. That said, when retailers are a designated pickup location for brands selling online, they are likely to purchase more from that brand. In fact, 65 percent of respondents claim that they would like to be a pickup location for orders placed online at brand websites, and 59 percent say that they would purchase more from brands that send them in-store pickup orders.

In addition to in-store pickup, retailers have put a greater emphasis on mobile and marketplace commerce. For instance, 86 percent of retailers have observed their customers using mobile phones while shopping in stores, typically to compare prices (58%), obtain product information (38%) and/or check product reviews (22%). Plus, the study found that 44 percent of respondents are now selling in online marketplaces like eBay and Amazon, and of those, 45 percent saw a year-over-year sales increase.

It is also important to note that the study shows that Shopatron’s Allied Commerce model, which allows manufacturers and retailers to leverage the available inventory of every retail storefront and distribution center when fulfilling online orders, has resulted in 57 percent of respondents increasing their spend with brands that send them orders via this platform – which is more than a 10 percent increase compared to the 2011 study. This increase in spend could be attributed to the fact that 51 percent of respondents say that fulfilling Shopatron orders has either increased store sales or improved customer acquisition.

“The eCommerce world is changing rapidly, and brands are faced with the challenge of finding ways to sell direct while remaining strong partners with their valued retailers,” said Shopatron founder and CEO Ed Stevens. “Shopatron was founded with the goal of providing brands and retailers with the tools that will allow them to work collaboratively and create amazing new experiences for shoppers; this survey shows that we’ve done just that.”

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