This week in eCommerce, expect some exciting news from our partner Magento. In an email sent out this week Magento announced that their latest release of Enterprise Edition (1.14.1) is the fastest and most efficient yet. Along with the forthcoming details of this report, Magento will be releasing testing guidelines and toolkits for merchants to help optimize their performance. Art Peck, Gap’s newly appointed CEO, is implementing what he calls “Retail 3.0” to boost sales. This new strategy for the retailer will include initiatives to bring mobile to the forefront of Gap’s customer experience – so by Retail 3.0 he means omnichannel, right? Speaking of omnichannel, Google’s latest Think article covers the new retail reality that merchants must cater to. Google’s experts report on the latest mobile shopping statistics, and urge retailers to provide consumers with seamless experiences across channels to increase sales. EU Antitrust Regulators are launching an investigation into eCommerce trade-blocking that is occurring between countries, with the aim to revise high delivery costs, improve language barriers, and resolve price discrepancies. For all the details from this week’s newsmakers, read-on below!
New Magento Performance Results!
Enterprise Edition 1.14.1: Our fastest, most efficient version yet
Zynovo, a third party Magento system integrator, will be releasing exciting data next week on Magento’s performance! In an email that went out to Magento partners and merchants this week the company announced reports will be shared with news and resources. Test results have shown that Magento 1.14.1 is the fastest and most CPU efficient version of Enterprise Edition yet, with 27% to 48% faster application server response times. Additionally 1.14.1 provides 37% to 44% lower application server CPU utilization versus previous versions, and PHP 5.5 has significantly better application server response times and CPU utilization rates on Enterprise Edition 1.14.1. Look forward to new performance resources, including testing guidelines and toolkits that will help merchants optimize their performance. The results and resources will be available for download via the Partner Portal.
Recently Gap hired a new CEO, a man with a plan and a background in digital to bring the American clothing retailer up to speed with current customer expectations to revive the brand. Peck calls his new strategies “Retail 3.0”, which includes ideas to sell clothing in vending machines and start radio-tagging clothing to boost sales. Peck’s Retail 3.0 is based upon the new omnichannel ideals, and supports the usage of mobile devices as a major component of the shopping experience. All this has come about through the understanding that Gap’s 40 year old business model will not carry the company into the future, and in his new role is seeking the help of Silicon Valley to figure out how Gap can best synthesize digital and physical for future growth after years of stagnating.
The Importance of Omnichannel
Omnichannel is the future of retail, we’ve been covering this for a while, but Google is now reporting that merchants need to develop the appropriate strategy to ensure the omni-shopper is catered to. Omnichannel retail is our new reality! For the 2014 Holiday shopping season, Google reports that mobile clicks for the first time surpassed that of desktop. This means that digital doesn’t just drive eCommerce, it still is getting them in-store. So while you may think that that eCommerce killed the bricks-and-mortar star, it’s actually helping to drive traffic to physical locations. Omnichannel shoppers have a 30% higher customer lifetime value than those that only shop using a single channel, according to a 2015 study by IDC. Now is the time to upgrade your marketing strategies to appeal to customers across channels, but first ensure a deep understand of their behaviour to leverage omni-shoppers accordingly, provide them with relevant local information, and build out a system that support said strategies. For more on how you can create a seamless shopping experience for omni-shoppers click here for Google’s Rundown.
eCommerce hampered by EU Countries
Antitrust regulators are looking intro eCommerce transactions between countries in the European Union, specifically to investigate whether particular countries are hampering trade between countries, which in turn affects online sales. This investigation will help to remove barriers between the 28 countries that make-up the Union, and end the trade-blocking that these countries have implemented. Despite a high volume of EU consumers doing their shopping online, only about 15% bought merchandise from other countries, raising the eyebrows of regulators. By mid-2016 the European Competition Commissioner hope her investigation to this trade-blocking will show results, after highlighting a number of changes that need to be made including high-delivery costs, price discrepancies, and language barriers. The US is a major eCommerce, however the investigation will only focus on those countries in the European Union.