According to Forrester, online retail sales will hit $370 billion by 2017, that's up from $231 billion in 2013 (10% CAGR). The interesting part of this is that the majority people who are spending the money online aren't new to online shopping. Forrester reports that there will only be 4 million people who shop for the first time online in 2013. Existing e-commerce shoppers are just getting used to spending money online-- this includes more than just clothing. More and more online shoppers are getting comfortable with making big purchases over the web.
I'm not really the one making these big purchases online, but I have recently been purchasing more and more clothing online. I never thought I'd see the day, but my roommate introduced me to a website called Tobi and it's been feeding my shopping addiction ever since.
Here's why Tobi works as an online fashion retailer:
1. They rope you in with 50% off your first order, BUT the only way you can get that 50% off is by connecting with Facebook and liking their page.
2. The interactive aspects of the website and the integration with Facebook. On the Tobi website, you can like the products and see how many other people like each item. I've noticed that products with a lot of likes tend to be sold out-- people like the reassurance that other people like what they are about to spend money on. These likes are then posted on Facebook for your friends to see (unless you change your privacy settings). Tobi also posts on Facebook when you've added something to your shopping cart. 98 of my Facebook friends like Tobi on Facebook, meaning i'm getting Tobi shows up on my news feed quite a bit. One of my friends says she is constantly driven to the Tobi site from these posts on Facebook.
3. 30% off new arrivals with new arrivals 6 days a week. The new arrivals stay on sale for 7 days and then they go to regular price. Man, do these people know how to get me to go to their website. Once I'm there, my bank account cries. I'm much more likely to purchase something if it's 30% off and because I know that it's only 30% off for 7 days there is a sense of urgency for me to buy it NOW.
4. Their emails.
My roommate gets the Tobi emails and says:
"I don't usually click through to the website from emails. Sometimes I don't even open them up, but the deal is in the subject and I can see it and then I'll go look."
Lesson learned from this: it's all about the subject line. Just that little reminder that there is 30% off makes people wanna just take a peak. This little peak turns into filling up your shopping cart.
5. Get 5 friends to sign up, get 50% off your next order. The catch? Your friends have to connect with Facebook for it to count towards your 5 people. Because Tobi is always getting people to connect with Facebook, the more the brand shows up on people's Facebook homepage. Tobi is building brand awareness using social media in the right way and making Tobi a brand worth sharing with your friends.
6. Free shipping on orders over $75. As I said, no one wants to spend that extra $5 on shipping, so just spend $75 instead and you don't have to. This entices people to reach that $75 and spend more money-- great for Tobi, not great for my bank account.
7. Trendy clothes that are affordable. The world of online shopping has made it easy to keep your closet updated. I'll admit, I do have a few shirts in my closet from high school, but with more and more websites like Tobi popping up online I might need to learn to let go of some of my old clothes and make way for the new ones.
Online retail is a growing market and Tobi has done a great job of integrating with Facebook and reaching their audience in a meaningful way. They're definitely playing psychological mind games with consumers with all of their discounts, but who doesn't love feeling like they got a great deal?
Where do you do your online shopping?
