Before the dawn of giant marketplaces and eCommerce websites, though, everyone had to include shopping in their list of tasks, whilst nowadays you can just plop on the couch, swipe the screen of your device, and click on a button to make a purchase.

However, despite loving its convenience, majority of consumers would still drive to bricks-and-mortar shops to buy big-ticket items, according to a new study.

Nearly half of consumers polled by digital marketing firm PushOn said they prefer to buy expensive products like a new kitchen or bathroom in-store.

The reason being is that they can see and examine the products before deciding to buy it.

The report reveals 47% of 1,000 consumers actually research online, and once they have their heart set on a product, they go buy it in a physical store. On the other hand, 70% said they have bought expensive items online but only after seeing it in-store.

That only goes to show that despite the ease and convenience of online shopping, most people still want to see and feel a product, especially an expensive one like a car, to be certain that they’re not throwing money away.

However, they’re not close-minded at all; 45% of consumers said they’re willing to make expensive purchases online if websites offered a technology that allows them to experience a product so that they can make informed decisions.

Is AR the future of eCommerce?

PushOn obtained various opinions from their survey respondents regarding which tools eCommerce sites must consider to persuade them to buy pricey items online.

40% said they would love to use Augmented Reality (AR) to test a product before buying it. Because this technology merges digital images into the real world, online shoppers will be able to see and experience a product by placing an image of it over their view of reality.

On the other hand, 41% of the respondents said implementing a tighter online security will make them feel secure when buying expensive item, hence their confidence to spend more.

Here are the other items included on their wish list:

52% think retailers should invest in technology that enables a better omnichannel experience – so the shopping journey is seamless in-store and online.
32% would like to use online services so they can get instant answers to their questions.
17% are calling for retailers to use AI and digital chatbots that bring up purchase recommendations based on their buying habits, and can answer questions about products.
17% want to see one-click online shopping to make checking out easier.
16% would like to use mobile payments more to make buying online quicker.
Aside from great products and speedy delivery, industry experts urge online businesses to choose the best technology that will aid shoppers in visualising their products.

As Sam Rutley, managing director at PushOn, puts it:

“By utilising technology, such as digital chatbots that can act as online customer service assistants or AR apps to help visualise products, retailers will be able to create a more seamless omnichannel experience where customers can access the same level of service and information as they would if they were shopping in-store. This will go a long way towards increasing consumer buying confidence through the higher levels of security and assurance this technology can offer, meaning they’ll feel comfortable spending more online.”

What kind of technology have you recently adopted in your online business?

You view the first as you would a TV while the second on your mobile through IGTV, a standalone app on the Instagram platform that allows users to watch and upload hour-long videos.

Instagram’s answer to YouTube was designed with mobiles in mind, as practically everybody these days rely on their mobile phones for everything-from shopping and bill payments to following friends and celebrities on social sites-so every single video that is played on it is in vertical format.

After all, who doesn’t naturally hold their phone upright? Everybody does unless, of course, they’re on a platform where videos are designed to look like typical TV programs.

Although Kevin Systrom, co-founder and CEO of the popular photo-sharing platform, did not directly hit out at YouTube during the launch of IGTV, he remarked:

“The tools we use to watch videos are old and out of date. Think about it. Today we still watch videos formatted for a TV on a vertical screen, which means we either have to rotate our phone awkwardly or watch a tiny version. And that doesn’t make a lot of sense, does it?”

Who would’ve thought 10 years ago that we’d be treating our cell phones like television sets if not more.

Built on three principles-namely, mobile first, simple and quality-the new video platform addresses how people consume video content these days.

“Everything is made for how you naturally hold your phone. Videos play on full screen and there’s no wasted space and they aren’t restricted to the same one-minute limit that you’re used to on Instagram,” said Ashley Yuki, the company’s product manager.

Target One Billion Users

It seems that Instagram have the best interests of eCommerce businesses at heart with their latest undertakings.

First, they introduced ‘shoppable posts’, which allows online sellers to tag their products and direct users to their online store, and now IGTV which can potentially turn one’s followers into paying customers and increase their sales.

At least the company is aware that theirs is a platform leveraged by businesses of varied interests and markets.

Traditional media may still be effective in increasing your customer base, but only to a certain extent.

There’s no denying the strong influence of videos; teens are watching 40% less TV now than they did five years ago because they’re glued to online videos, according to Systrom.

Although YouTube is a more established platform for video content, Instagram said that their new offering focuses on not only what and how people watch on the Internet these days, but basically how they manipulate their mobile devices.

According to the Facebook-owned company, Interneters are relying less on desktop computers as they can keep up with their favourite social media influencers even while on the go.

Systrom said the public has been watching 60% more video over the last year, so video marketing is no doubt a route worth taking to expand your market reach.

What with Instagram hitting 1 billion monthly users, you definitely want to consider it as a vital aspect of your business strategy.

Do you think IGTV is worth a try, or you’d rather stick with YouTube?

Even more startling: 10% of advice was found to leave investors in an even worse financial position.

Through a “vertically integrated business model”, Commonwealth Bank, National Australia Bank, Westpac, ANZ and AMP offer ‘in house’ financial advice, and collectively, control more than half of Australia’s financial planners.

It’s no surprise ASIC’s review found advisers at these banks favoured financial products that connected to their parent company, with 68% of client’s funds invested in ‘in house’ products as oppose to external products that may have been on the firms list.

Why the banks integrated financial advice model is flawed

It’s hard to believe the banks can keep a straight face and say they can abide by the duty for advisers to act absolutely in the best interests of a client.

Under the integrated financial advice model, there are layers of different fees including adviser fees, platform fees and investment management fees adding up to 2.5-3.5%

The typical breakdown of fees is usually as follows: an adviser charge of 0.8% to 1.1%, a platform fee of between 0.4% and 0.8%, and a managed fund fee of between 0.7% and 2.1%. These fees are not only opaque, but are sufficiently high to limit the ability of the client to quickly earn real rates of return.

Layers of fees placed into the business model used by the banks means there is not necessarily an incentive for the financial advice arm to make a profit, because the profits can be made in the upstream parts of the supply chain through the banks promoting their own products.

This business model, however, is flawed, and cannot survive in a world where people are demanding greater accountability for their investments, increased transparency in relation to fees and increased control over their investments.

It is noteworthy that the truly independent financial advisory firms in Australia that offer separately managed accounts have done everything in their power to avoid using managed funds and keep fee’s competitive.

The banks have refused to admit their integrated approach to advice is fatally flawed. When the Australian Financial Review approached the Financial Services Council (FSC), a peak body that represents the ‘for-profit’ wealth managers, for a defence if the layered fee arrangements, a spokesman said no generalisations could be made.

There are fundamental flaws in the advice model, and it will be interesting to see what the upcoming royal commission into banking will do to change some of the contentious issues surround integrated financial advice.

Many financial commentators are calling for a separation of financial advice attached to banks, with obvious bias and failure to meet the best interests of clients becoming more apparent.

Chris Brycki, CEO of Stockspot, says “investors should receive fair and unbiased financial advice from experts who will act in the best interests of their client. What Australians currently get is product pushing from salespeople who are paid by the banks.”

Brycki is calling for structural reform to fix the problems caused by the dominant market power of the banks to ensure that consumers are protected, advisers are better educated and incentives are aligned.

1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!

2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?

3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!

4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!

5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!

6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!

Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!