G-COMMERCE: LOOP COMMERCE Disrupts the Gifting Industry

Executive Summary

• Retailers (and the industry as a whole) seem to view consumers through a single lens, effectively with the mindset that there is only one customer involved during a transaction. Loop Commerce disagrees, as consumers have one of two mind-sets while they shop – depending on whether they are buying for themselves or shopping for others.  This distinction is not captured or accommodated in today’s single shopping flow and checkout, and therefore a massive opportunity is gone uncaptured.
• Thanks to Loop’s unique and sophisticated platform, retailers can offer a new service and experience to their consumers to shop, buy and deliver any product as a thoughtful gift from their online store, without the anxiety and guesswork that is traditionally associated with gift purchasing. This anxiety ultimately results in loss of transactions and sales, a problem that Loop solves for the merchants. Virtually all products are now easily giftable and new possibilities are opened up, such as true last minute gift purchases and delivery (previously limited by cut-offs due to supply chain and ship-time constraints) for those last minute gifting needs. Recipients of the gifts are able to unbox their chosen gift virtually through a beautiful experience online, and select the size, color, style they want (all before anything has shipped), and enter the shipping address of their choice. They can even elect to exchange their gift altogether for something else, before it ships.
• Top issues retailers face today include a shrinking customer base and fewer transactions per customer, which result in fewer sales. Through this new paradigm and capabilities, Loop Commerce helps merchants grow their business, customer base and number of transactions by providing incremental sales opportunities, a higher gift checkout conversion, and acquiring new customers.
• Loop Commerce works closely with Professor Dan Ariely from Duke University, one of the top worldwide experts in Behavioral Economics. Many studies on consumer psychology and behavioral economics have shown that gifting is an emotional process. It’s about elevating the connection between human beings, and should be an exciting experience. Though in today’s commerce world consumers face the feelings of anxiety and stress when shopping for a gift, that in many cases ends up with a loss of business for merchants. Loop Commerce wants to bring happiness and thoughtfulness back into gifting, which ties directly into sales and dollars for the industry as a whole.
• Loop Commerce’s data indicate that at least 40% of gifts are purchased the day of an occasion or the day before, as people either procrastinated or forget they needed to buy a gift. This is observed across all major occasions as well as year-round with events such as birthdays. Consider receiving a Facebook reminder of your friend’s birthday, today… These last minute gifting needs are not easily accommodated by retailers that require a lead time typically longer than a few hours and even a few days, forcing consumers to look for alternative gifts and even stores (for example, Amazon with its same day delivery in some markets).
• Loop’s solution is being quickly adopted by some of the largest retailers in the country because of the unique expertise of the company, the sophistication of the technology and service, and the benefit of joining the Loop ecosystem of partners and network of top retailers. The implementation of the right solution will help the merchants tap into the $200-300 billion market of consumers looking to buy products online as gifts.