This is page 2 of:

E-Commerce Is Riding-Out The Economic Storm, Says Forrester

April 22nd, 2009

Indeed, spending for E-Commerce IT projects is actually “picking-up steam” at some companies, Walker said, calling the survey’s findings a “pretty significant trend in comparison with other IT investments and what’s happening to retailers’ investments overall.”

The survey found that 72 percent of those queried said their companies were making no changes in E-Commerce technology spending despite the recession. The balance said they “were investigating alternative solutions or less-expensive alternatives” to their E-commerce IT spending plans but were still planning to invest, Walker said. Again, if these were “normal” economic times, a finding that 72 percent of retailers basically told their E-Commerce IT departments they weren’t seeing one extra penny in their new budgets would be construed as meaning E-Commerce Is Dead. But Walker said the opposite is clearly true nowadays.

“We’ve noted the continued strength of the E-Commerce technology market and that’s been backed up by lots of discussion with vendors who served that market,” Walker said. “When we surveyed the marketplace, we were struck by the continuing strength of the E-commerce market and that’s been backed-up by lots of discussion with vendors who served that market. What we are seeing overall is a continuing shift to E-Commerce and a commitment to the channel and that’s reflected in the investment in technologies that make it happen. Also, it is not exclusive to retail. It also applies to wholesale brands and companies that rely on retail distribution who have not gone direct to consumer but who are now embracing it.”

Forrester also asked retailer executives about the impact of the slowing economy and recession on their E-Commerce channel as a whole and about the investment in the channel.

Walker said 57 percent of those business leaders “talked about providing increased support for their channel” which could include capital expenditures (including IT), staffing and marketing budgets. “Only six percent talked about decreasing support for their channel,” Walker said.

“When I am talking to enterprise-class, multi-channel retailers, they’re not talking about a slowdown,” he noted. He stressed that no major retail decision-maker with any common sense believe they can fix major problems with their companies by relying solely on E-Commerce.

Walker said he and other Forrester analysts are also noticing that, while executives in charge of running brick-and-mortar operations are seeing their budgets slashed, those in charge of E-Commerce are finally finding themselves “getting a seat at the table” and being treated better at high-level company strategy sessions.”In large wholesale branded companies and multi-channel retailers, the E-Commerce leaders are being invited in to meetings. In the past, the online business was really a satellite to the main retail or wholesale business. Now the E-Commerce leader is bring brought in and being seen as more central to the business’ goals and more central to the whole business,” Walker said. “For some this brings channel conflict and technology challenges more into the forefront as well.”


Comments are closed.


StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.