Online sales can positively impact retailers' bottom line
August 21, 2013

Investing in electronic payment systems is essential for today's retailers, as more consumers browse virtual stores. When in-store sales trend downward, e-commerce can help fill the gap and maintain a viable business. Many small and medium-sized businesses may not understand the importance of creating a virtual store or investing in payment integration. Large, well-known retailers are driving their online shopping environments to maintain sales and stay in business. Smaller enterprises can do the same.

Large retailers know the value of electronic payment systems
According to Multichannel Merchant, a retail site, J.C. Penney's brick-and-mortar-store sales declined last quarter, but its strong online sales saw double-digit growth during the same time period. The site reported while net sales dropped 11.9 percent in the fiscal second quarter of 2013 compared to last year, online sales were up from this year's first quarter. Despite J.C. Penney's low customer satisfaction in recent years, the retail giant has made great bounds to once again become a shopping destination - thanks to its virtual store.

Another retail chain, Kohl's, also shows SMBs how crucial e-commerce sales are. According to Internet Retailer, a merchant news site, the company saw sales in its virtual store increase by 28 percent in its fiscal second quarter, while its in-store sales only rose 0.9 percent. The site reported retail giant Wal-Mart also saw e-commerce growth of 30 percent as its net sales remained below expectations. 

Having a virtual store and accepting plastic on the site is essential for SMBs to drive sales in the digital age. When consumers have the option between an online or in-store shopping experience - where, in both locations, they can not only browse products, but purchase goods on the spot - customer satisfaction can increase and SMBs can see greater revenue growth. For large retail chains, accepting payments in virtual stores for products is important for their bottom lines and may help make up for low in-store sales. 

Investing in payment systems for online credit card acceptance is an important way for SMBs to achieve steady business growth and keep customer satisfaction high. SMBs can follow the lead of larger retail chains to drive online sales by offering consumers multiple transaction platforms to ensure customers can use their preferred purchasing method. 

Nexus: G-WEBCD1