What are the new online business trends? Why has online shopping become more popular, etc?
By: JTB Custom
Online shopping is a growing trend in today’s retail climate as more brands take note of the opportunities to capitalize on price premiums by adding cutting-edge personalization initiatives.
JTB Customs is leading the way in creating a collaborative platform with brands to create cutting-edge personalization alternatives. In a new age of online shopping, brands are constantly asking questions; how can we improve margins, reduce discounting, cut down on wasteful overstocks, mitigate costly returns, etc.? JTB recently conducted a customization insight survey to understand customization price points, define segments within the customization market, and evaluate the retail climate to develop insights for brand targeting.
Online shopping can improve average order value. A differentiated custom offering gives brands the opportunity to increase sales of popular products, sometimes dramatically. JTB has seen clients increase their sales by 10X, from $300 per day to $3,000 per day, especially during holidays, and then settle in at a much higher average order volume of $1,000 per day. Manufacturers can capture additional market share during holidays by promoting custom goods during Christmas, Mother’s Day, Father’s Day, etc.
For brands, avoiding double marginalization all depends on the industry. Selling direct to consumers is usually twice as profitable as selling through retailers, like online. Customized products can sell at full retail price plus a customization charge, allowing the brand to capture more margin. The same accessories brand’s use for direct-to-consumer business increased by 300 percent year-over-year.
Online shopping will continue to increase by capitalizing on the price premium. Consumers are willing to pay a higher price for a customized product. There’s real value to having your initials embroidered on a bag, adding a personalized decoration to your backpack, or changing the colors on different parts of a sandal to express your unique style!
Online shopping continues to grow into the next decade as brands shift to creating more personalization experiences in the evolving retail climate.