E-commerce is a global industry with worldwide sales amounting to trillions of dollars in 2019. This only proves how lucrative this platform is for small to large-scale businesses, especially now in the time of coronavirus. E-commerce has proven to be a lifesaver for companies who have been shut down as a result of the mandated lockdowns in various countries all over the world.
With many physical stores unable to operate, businesses have turned to e-commerce to earn revenue. Nonetheless, even before the outbreak, e-commerce has already proven to be a huge industry. It has enjoyed an increase of 25.6% in sales between 2014 to 2017 which shows that this platform has been thriving for many years. One of the advantages of this industry is that can adapt to changing trends. At the same time, it can reach customers in every corner of the world. Thus, allowing businesses to significantly grow their market share. The digital platform creates plenty of opportunities for businesses.
Experts believe that we can expect to see more from this industry in the next coming years. In this article, we’ll discuss what makes e-commerce a thriving industry and what it’s future will look like. We’ll list down some of the trends in 2020 and how your business can adapt to these changes.
E-commerce as a Booming Industry
E-commerce is a significantly huge significant platform and continues to grow at a rapid rate. Many people resort to online shopping regardless of age, gender or location. It offers consumers a wide range of products that they can easily purchase in one click. People choose online shopping because it is convenient and you won’t even have to step out of your house.
Experts see huge growth in e-commerce in the coming years, especially with new and emerging technologies. This is good news for businesses that already have a strong digital presence. On the other hand, if you currently don’t have a digital platform, now is the most ideal time to set-up one.
What it Means for Businesses Based on a survey, the sales of online retail shopping will grow to a whopping 200% between 2014 to 2020. Hence, it is important for businesses to be updated on e-current trends. To build a strong presence online, businesses should consider both website and mobile app development. With the emergence of e-commerce, it has significantly changed consumer shopping behavior. We can expect this platform to be the future of many small to large-scale businesses. If you want to learn more about how to successfully grow your e-commerce business, don’t hesitate to reach us at Amazing Marketing Consultancy. With our expertise in the e-commerce platform, we can help you plan and implement an effective online presence to boost your online site.
Types of E-Commerce: It’s important to be aware that there are typically six types of e-commerce. Each has its own objectives and strategies when it comes to implementing an effective digital marketing platform. B2B (Business-to-Business) B2C (Business-to-Consumer) C2B (Consumer-to-Business) C2C (Consumer-to-Consumer) B2A (Business-to-Administration) C2A (Consumer-to-Administration) Why E-Commerce is a Necessary Tool for your Business Here are some of the reasons why e-commerce is a thriving industry. Wider reach – One of the major reasons that make e-commerce a successful tool for businesses is its ability to reach a wider market. With a physical store, you are solely limited to the area where you are operating your business.
Thus, you are missing out on potential clients that are outside your store’s vicinity. Building an online shop can help you reach a wider audience and therefore, generate more sales as you tap a new market. Location is not an issue.
Lower expenses – The costs of running an e-commerce website is relatively lower than operating a physical store. A physical store requires rent, overhead, and utility costs. With an e-commerce site, you don’t need to pay for expensive operational costs.
What you’ll need is to get an effective web developer to create and host the site for you. This will save you money that you can invest in other channels particularly in your digital marketing strategy.
Customers can buy at their own pace – One of the reasons why customers prefer to buy online is that they can select and buy products or services based on their convenience. Customers can shop whenever they like 24/7. They can choose to buy a certain item whenever they feel like it.
Gain new customers through SEO tools – E-commerce is driven by digital traffic from online search engines. Once a user types a certain set of keywords, Google drives up a number of hits and the first 10 search engine results often get the highest traffic to their website. Users often click on a link suggested by the search engine and often directs them to your e-commerce site. Thus, opening up more opportunities for businesses to be introduced to new potential customers who may have accidentally stumbled upon your site. SEO or search engine optimizations is an effective tool to get your business out there in the digital space. It brings your business closer to potential buyers. Before setting up your own e-commerce website, talk to one of our experts first at Amazing Marketing Consultancy. Our digital experts can advise you on the best way to create and manage your own e-commerce website and how to effectively target your audience to drive more traffic to your website. The Future of E-Commerce Here some of the trends we can expect from the e-commerce industry. New markets will emerge.
Experts project certain markets to play a huge role in the e-commerce industry in the coming years specifically in countries such as China, India, South Africa, Brazil, and Russia. Based on studies, an estimate of billions of users will have access to the internet by 2022.
This translates to billions of potential new customers. These markets are currently untapped which means that businesses will have plenty of opportunities to expand and for e-commerce stores to reach these new markets.
More people will use mobile phones to shop.
Devices will play an important role as it enables customers to purchase online. The ease and comfort of using mobile devices have a huge appeal to online shoppers. Most e-commerce stores were originally set-up for desktop PCs. However, with changing times, more online retail stores are developing apps to allow mobile users to shop.
With the upgrades of smartphones, businesses have developed mobile apps that now run faster compared to desktops. Most businesses are now prioritizing mobile users over desktop users.
In 2020, roughly 45% of e-commerce transactions are done via mobile phone which is equivalent to billions of dollars. Research shows that a little more than half of buyers are using their mobile phones when looking for products to shop even when they are at home. This simply shows that buyers want to experience online shopping in every means necessary.
Optimizing your site for mobile shopping will provide more flexibility for your customers. People use their mobile phones for various tasks and shopping will continue to be one of them.
Growth of B2B.
In the past, the industry of e-commerce relies on its B2C market. However, experts predict that B2B sales will significantly grow this year. This includes businesses that are buying services and products to set-up in their companies such as software among many others. Businesses are allocating more B2B purchases as technologies become more advanced.
Video marketing on the rise.
Nowadays, we’ve seen a surge in videos online. Thus, businesses will have to improve their sites and utilize more videos to attract consumers. Videos are expected to play a huge role in the growth of e-commerce.
Research shows that 60% of customers prefer watching videos over reading product descriptions. They buy a certain product after watching branded videos. The rise of social media platforms plays an important role as they continue to promote video content.
This trend has caused a change in consumer behavior as it affects their decision-making process. Adding video content to your e-commerce site can double the chances of getting revenues. Therefore, we encourage businesses to start engaging customers through video marketing.
Use of AI (Artificial Intelligence).
One trend is using AI to learn more about customers. This technology helps replace the convenience of talking to sales associates who recommend products as they guide you. AI is already used by some brands to help customers make informed choices when shopping online.
However, it is important to develop a more humanized AI to show that the brand cares about its customers. Many companies are starting to incorporate AI into their systems. Businesses can also use this technology to gather information about customers in order to customize their needs.
A more personalized experience can affect and lift your e-commerce site’s sales. The future of AI is to become more personalized and relevant to customers to create a more pleasant shopping experience.
More options to pay. With online shopping, customers want to be able to have a wide selection of choices when it comes to paying for their purchases. Most e-commerce sites are using an array of payment options to make it convenient for customers. One trend to look-out for is centralized payment. By assigning a unique ID for a centralized payment system, you can easily and securely input your payment details, address, and other important information. Subscriptions help maintain regular customers. Customer subscription is one of the ways to ensure customer loyalty. Businesses can use it to analyze the needs and wants of consumers. However, some experts believe that customers may become wary of the multiple subscriptions they have. This can affect their decision-making in the future as they become more selective. Optimization of digital strategy.
It’s crucial for businesses to stay ahead of the game. Every click of a customer to your site is equivalent to a potential buyer. Therefore, it’s not only important to lure people to check out your e-commerce site but to convert them as well.
Many businesses are creating ways to improve their sites to make sure that their product or service stands out from the rest. This includes building an effective digital marketing strategy and making your business available across various online channels.
It’s important to know how to capture your audience so that your site can drive conversions. Hence, a digital strategy can utilize the available channels to position your brand and make it stand out from your competitors.
If you want to know the future of e-commerce and what it will take for your business to succeed in the coming years, get in touch with us at Amazing Marketing Consultancy. As an expert in e-commerce business consultation, we can help optimize your digital presence and analyze the trends to help your business grow with the changing times.
With the boom of e-commerce sites in the time of coronavirus, we can expect to see more innovations related to this industry. Whether it be online shopping trends, consumer behavior, more social platforms or new technologies, it’s important that you adapt to the new trend and start building an effective online marketing strategy.
Now that we’ve mentioned a few of the e-commerce trends you can expect to see in the coming years, you can carefully curate a plan that will specifically cater to your business goals. Online time will tell what new technologies we’ll see in the next few years. Nonetheless, the one thing that will continue to flourish is online shopping.
With the continuous rise of mobile devices, people will continue to support the use of digital platforms. The convenience and functionality of using smartphones will create more opportunities for businesses in the digital field. E-commerce is expected to at least double in the next three years.
We at Amazing Marketing Consultancy can help you drive your business to success by crafting an effecting e-commerce marketing strategy to grow your sales and build a successful platform.