How is E-commerce influencing traditional retail

Published on — Written by Wonderflow

how is e-commerce influencing traditional retail - wonderflow

It’s proven that more or less 90% of customers read online reviews before making the final decision on what product or service to buy. This is directly affecting how customers are making decisions, and so it is essential for traditional retailers to be aware of it, in order to make more strategical decisions.

As you can see in this video, nowadays e-commerce is actually winning the battle against retail, precisely because the last ones still couldn’t find ways to benefit from this new trend.

It does not matter anymore if a product is sold online or offline, online reviews are playing an essential role in this play.

Watch our video, and subscribe to our channel to receive more information about the importance of the voice of the customer for every single business.



In this video, I will tell you how big is the impact of online e-commerce on the tradition offline retail market.

When Ebay started its operations… we are talking about 25 years ago, e-commerce was at its very beginning. Big retail chains were laughing at online shops, but then they understood that while it would take them millions to open a new store, it would just take online shops minutes to open up a new server and reach the same amount of new potential clients.

Today we can say that e-commerce not only has become a very important sales channel for almost all industries but also plays a vital role from an education standpoint on the customer perspective.

The most important role in this educational game is played by online product reviews, which are literally everywhere, they are large in number and have a huge impact on sales.

In fact, it’s proven that more or less 90% of customers read online reviews before making the final decision on what product or service to buy.

Online reviews are so important that 84% of customers trust them as much as they trust their friends’ advice! Can you believe it?

The cool thing is that it doesn’t really matter if you buy online or offline, because almost 100% of customers read reviews online even when they end up buying offline!   

So let’s try to have a higher view on the power of online over offline: we can say that online holds the richest education material, which is out there in the form of reviews.  Reviews drive sales, both online and offline. Reviews are great for social proof when we see that others bought the same product you kind of feel safer, right? Online reviews are also a great source of information to improve products, services, and their communication.

Lastly, but most importantly…reviews are becoming a benchmarking tool for offline shops that want to identify the right products to put on their shelves. On e-commerce, brands can have almost unlimited space to sell their products, but offline the slots that retail offers to manufacturers is limited, and usually very expensive.   Retailers don’t want to waste any more physical space trying to sell products that won’t sell fast…and to identify the top performing ones, they use online reviews.

Amazon is opening some offline stores where they would only sell products that online got 4 stars or above. It’s not a secret that Home Depot will remove from the shelves products that don’t get enough online reviews with good star ratings.

So…if you were still wondering how big is the impact of online over offline, now you know that this impact is so massive that traditional retailers will only sell products that perform well in the digital world.


About Wonderflow

Wonderflow empowers businesses with quick and impactful decision-making because it helps automate and deliver in-depth consumer and competitor insights. All within one place, results are simplified for professionals across any high-UGC organization, and department to access, understand, and share easily. Compared to hiring more analysts, Wonderflow’s AI eliminates the need for human-led setup and analysis, resulting in thousands of structured and unstructured reviews analyzed within a matter of weeks and with up to 50% or more accurate data. The system sources relevant private and public consumer feedback from over 200 channels, including emails, forums, call center logs, chat rooms, social media, and e-commerce. What’s most unique is that its AI is the first ever to help recommend personalized business actions and predict the impact of those actions on key outcomes. Wonderflow is leveraged by high-grade customers like Philips, DHL, Beko, Lavazza, Colgate-Palmolive, GSK, Delonghi, and more.

Start making winning decisions based on customer feedback todayGet a free demo

Other articles you might like:

wonderflow image

Product Development · Sep 12, 2022

Proper Review Analysis: How to Analyze Customer Reviews (+ Examples)

It’s pretty difficult to imagine a world without reviews. Not many of us walk into a shop and make a purchase without browsing at least a handful of online reviews beforehand.  In fact, a study from TrustPilot found that almost 9 out of 10 customers consult online reviews before buying.  Though these reviews are incredibly helpful to consumers, for business owners, trying to use reviews to guide the product development process or improve the customer…

utility cx

Utility & Energy · Aug 09, 2022

More Than Another Bill: Why VoC Programs Improve Utility CX

When did your utility provider last ask you to rate your customer experience (CX) with them? With rising competition, energy costs, customer demands, and regulatory and stakeholder pressure to improve customer services, these key factors drive service providers of water, electricity, and gas to engage deeply with their customers. Old traditional business models must be changed to adapt to the times, and utility brands must prioritize CX more than ever before.  The Utility Customer Experience …

Ron Jacobs Philips Brand Licensing

Interview · Aug 03, 2022

Customer-Centricity in Consumer Electronics: VoC Interview with Ron Jacobs, Philips Brand Licensing product professional

As part of our Voice of the Customer (VoC) interview series, Stefano Pecorari, Client Success Director at Wonderflow, welcomes Ron Jacobs, Brand Licensing product professional at Philips. Philips is a Dutch multinational founded in 1891 as a lighting company and later expanded to medical equipment, consumer electronics, and domestic appliances. The company is headquartered in Eindhoven. Later, it moved to Amsterdam in 1997. Nowadays, Philips is focused mainly on the health tech continuum. Its mission is…