According to a recent report by Forrester Research, Web retailers have survived, and in some cases thrived, during the economic downturn by developing and implementing best practices to ensure market share and viability.

The report titled, The State Of Retailing Online 2009: Profitability, Economy, And Multichannel, is based on a Shop.org study conducted by Forrester. What the report indicates is that among the Web retailers who participated in the study, the economic downturn forced a culture of frugality and self-preservation which in turn helped them to run their e-commerce operations more efficiently.

The study indicates that an estimated 3 in 5 Web retailers were profitable in 2008, and were able to increase conversions from January to June 2009 while cutting costs in areas such as marketing, fulfillment and customer service.

Some of this success can be attributed to key changes in how these Web retailers do business. They made their e-business a strategic part of the entire organization making the the Web channel less siloed. This includes the sharing of marketing and advertising activities and tactics across channels as well as using the Web channel to promote in-store events.

Attitudes towards social commerce are also promising. Social commerce tactics implemented include social network pages, customer ratings and reviews, and blogs and microblogs.

Overall, Web retailers:

• See social commerce tactics as an opportunity to learn
• Find the primary benefit of social commerce is in listening to and better understanding customers
• Monitor social marketing ROI by tracking:
  
  
  • click-throughs to the retail website from the social tool
  • the growth of followers, and
  • total subscribers/followers

34% of Web retailers surveyed indicated that participating in social commerce tactics helped grow their business. The study also indicates that success with social commerce was directly correlated to following social marketing best practices.

What's next for these businesses? Continue implementing operational efficiencies that have helped them through the economic downturn, embrace social media tactics that make sense for their business and find opportunities to drive traffic and sales at brick and mortar stores.

What I find interesting from this report is how these companies are succeeding with social commerce tactics to reach customers and build revenue opportunities. Studies of online customer behaviour are showing that social media influences online transactions and that consumers are directly influenced by the positive or negative reviews they read on social media sites. By actively communicating with consumers through social media, these Web retailers have been able to positively influence consumer brand experience and drive sales for their businesses.

As well, the interplay between the Web channel and other channels indicates a shift in thinking. Instead of seeing each channel as a competing business line, retailers now seek opportunities to support sales across channels. This approach increases revenue opportunities by making it possible to connect with customers anytime, anywhere.

The full report is available for purchase from Forrester Research.