When you're used to chalking up annual percentage sales gains of 20, 30, 40 percent or higher, it can be understood how you might take a more jaded view when revenues only increase by say 10 percent. That's become the case today as retailers, analysts and others ponder the meaning behind the large number of online product categories that have seen growth percentages begin to taper off.
In a report in The New York Times, there was a suggestion that some consumers have begun to tire somewhat of the online purchasing environment while at the same time feeling better about shopping in stores that have learned (out of necessity) to become more responsive to the needs of customers.
John Johnson, a consumer who lives in San Francisco, told The Times why he shops in stores to buy books these days. "They're working a lot harder," he said. "They're not as stuffy. The lighting is better. You don't get someone behind the counter who's been there 40 years. They're younger and hipper and much more with it."
Still, many see the slowing growth of online as simply an indication that retailers today are multi-channel merchants that have found the means to balance their offerings based on what consumers want. Ultimately, it has to be understood, that dollars, whether captured online, in stores or by other means, all drop to the same bottom line.
Dell Computer is among those that have broadened their approach to meet consumers where they want to shop. The company that built its business on a direct to consumer model recently announced it would make select desktop and laptop models available for sale through Wal-Mart stores and Sam's Club locations.
"There's a recognition that some customers like a more interactive experience," said Alex Gruzen, senior vice president for consumer products at Dell. "They like shopping and they want to go retail."
Nancy F. Koehn, a professor at Harvard Business School, believes consumers do not experience the excitement of shopping when buying products online. This leaves them wanting more that can only be obtained in stores.
"It's not like you go onto Amazon and think: 'I'm a little depressed. I'll go onto this site and get transported,'" she said.
Many retailers are looking to offer consumers the best of both the online and in-store environment with services that allow orders to be placed on a website and picked up a location.
"You don't realize how powerful of a phenomenon this new strategy has become," said Dan Whaley, the founder of the online travel site GetThere. "Nearly every big box retailer is opening it up."
Discussion Questions: What do you make of slower annual sales growth for products sold online? What does it mean for pure e-tail operators such as Amazon and eBay? What does it mean for multi-channel merchants?