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Shop News
17 Feb 2010

New e-shops make you happier

One in four online retailers struggle with outdated technology

The check-out area is the most frequently neglected

Regular technical updates make shops more successful   
The newer the technology, the more successful the online retailer. Nine out of ten operators of Internet shops that went live in 2007 or later consider their shop sales successful or very successful. By comparison, e-shops that started before 2002 and which are still largely based on technology dating from that time satisfy only 72 of their managers. The continuous development of the e-shop platform and the use of new technologies therefore have a supporting effect on sales. These are the results of an e-shop survey conducted by novomind, who asked 200 decision makers in the e-commerce industry.

E-shop operators neglect potential sales    
More than one in four online retailers are battling with the burdens of outdated technology. The areas of potential modernisation that have been most neglected are the shopping basket and the payment process. Fifty-six per cent of e-shops, for example, do not offer any help with the tedious packing of gifts. Forty-two per cent do not give discounts on any particular methods of payment, so they miss the opportunity to motivate more visitors to buy by offering more services or different pricing models.
Secure shop technology, but no-one knows about it   
Even when online retailers do use modern technical facilities, they often fail to inform their customers about it. For instance, data privacy: customer data is almost always sent in encrypted form on today’s shopping platforms, but only 30 per cent of e-shop operators tell their customers that by including the encryption logo. Seventy-two per cent of e-shop operators who do not indicate secure encryption want things to stay that way too, which means they risk uncertain customers moving away from their shops and buying elsewhere.

Technical relaunch means potential savings   
Many decision makers also ignore the fact that modernising their e-shops can reduce costs. Smooth shopping processes and modern shop features can, for instance, reduce customer service expenditure. “A large proportion of customer enquiries come about because things don’t happen technically the way the customer expects them to,” explains Peter Wiedekamm, Director of novomind. “That means customer consultants spend most of their time dealing with queries and complaints, whereas they could be using it to advise customers about purchases,” says Wiedekamm.

Re-platforming on agenda at IT@COMMERCE congress   
Peter Wiedekamm, Director of novomind AG, and Stephan Rönn, Director of OTTO Europe, will be demonstrating how e-shops can improve their shopping experience and increase sales using new technologies at the IT@COMMERCE congress in Frankfurt on 23 and 24 February.
For more information:

novomind on show   
novomind will be present at other industry events in 2010:

  • 2 to 6 March: CeBIT (as an exhibitor at the community booth hamburg@work in hall 6, booth G08)
  • 13 to 14 April: Internet World (exhibiting at booth 146)
  • 27 to 28 April: ECOM Berlin 2010 (Director Peter Wiedekamm speaks about current IT strategies for successful multichannel/cross-channel solutions)

Background information   
The survey entitled “The technical and financial evolution of e-shops” is based on a CATI survey (Computer-Assisted Telephone Interview). On behalf of novomind AG, a total of 200 decision makers from the IT departments of e-shops were questioned in November 2009 about what features they use and plan to use in their e-shops, and the responses were analysed. The data was gathered between September and October 2009. Furthermore, 18 German-language e-shops were also examined whose shop systems have been relaunched within the past twelve months.

novomind AG:
innovative e-business solutions for the modern Internet world and for professional customer communication    Since 1999, Hamburg company novomind has been developing innovative e-business solutions for the modern Internet world in four e-business disciplines: e-commerce (e-shops and zoom server), ePDM (electronic product management), e-marketplace (marketplace integration) and e-communication (solutions for contact and service centres).

novomind is a European technology leader in every service segment and covers the whole digital value-adding chain in retail and electronic customer communication. The Hamburg-based software house is the fastest growing company in the fields of electronic customer communication and mail management.

novomind also provides comprehensive consultancy services for people choosing a suitable IT system for e-commerce. Established licence software like IBM WebSphere Commerce Server and INTERSHOP ENFINITY is considered, as are custom-made novomind solutions based on novomind iSHOP.

novomind AG is currently assisting more than 80 companies including Citibank, Der Club Bertelsmann, Deutsche Rentenversicherung Bund, Ernsting’s family, EnBW, gebrüder götz, OTTO and QVC.