Perhaps none other than when we match the kings of ecommerce vs. the kings of brick-and-mortar can we see more clearly the future of retail. Walmart still outpaces Amazon by about $11 billion in sales, but the pace of Amazon’s growth at 28% annually is way ahead of Walmart’s 3%. Does it mean ecommerce will lord it over physical retail soon? Not quite. Alibaba’s buying physical supermarkets and Target’s purchase of an online delivery platform seems to point at two opposing directions in a collision course towards a future center: omnichannel retail, both physical and online. These industry tectonic shifts matter to you, whether you’re a startup or a big-box online business.
Knowing where the industry is heading will help you make the most out of ecommerce. To help you out, we will be discussing some of the recent trends in the industry. Hopefully, this will give you a better grasp about how other companies are using ecommerce software and what kind of experience consumers expect from online shopping so that you can adjust your strategies accordingly.
eCommerce is one of the most profitable industries in the modern age. It requires fewer staff members and has minimal overhead costs as it doesn’t require you to have a physical location. You just need a good website builder and integrate it with top payment gateway solutions and you’re good to go. Plus, even if you already have a brick-and-mortar shop, adding ecommerce as part of your business model will allow you to reach more customers at the fraction of the price that you’ll spend on paid advertisements. This is why it comes as no surprise that this industry has enjoyed rapid growth in the past few years and it seems like it isn’t stopping any time soon.
Another reason why the ecommerce industry is booming is because of consumer demand. With 51% of the world having access to the internet, customers simply feel that online shopping is a more convenient option than going outside to purchase from a store.
Smartphones are becoming more versatile and it is shaking up industries that go beyond communication device manufacturing—ecommerce is not an exception. The increasing mobile phone usage has had a massive impact on the growth of ecommerce as it allows consumers to instantly make purchases wherever they may be. In addition to that, with plenty of downtime being spent on mobile browsing, businesses are able to reach their target market as effortlessly as possible.
Source: eMarketerDesigned by
eCommerce may be a surefire way to grow your business but it is best to note that it isn’t a magic bullet. You’ll have to put some effort into creating and designing your ecommerce site as well as finding out how it will best serve your customers. As you can see on from the statistics provided, consumers have certain expectations when it comes to their online shopping experience that you might want to consider to optimize your website:
Online store optimization is only one step of the process when it comes to succeeding in the ecommerce industry. If you really want to reap the benefits that this business model has to offer, you also have to consider the kind of perks you give to your clientele. This may come in the form of free shipping, good return policies, or more convenient payment options.
It is also good to note that your use of display ads and retargeting techniques also play a huge role in improving conversions. One such way you can make the most out of each interaction you have with customers is by using a good ecommerce analytics tool such as the ones we have listed in our compilation of leading ecommerce analytics software.
Extra costs too high (tax, fees, and shipping)%
Website prompted to create account%
Checkout process is too long or complicated%
Could not see or calculate total order cost up-front%
Does not trust the site with credit card information%
Website has errors / crashed%
Delivery was too slow%
Not satisfied with returns policy%
Not enough payment methods%
Credit card was declined%
Source: BaymardDesigned by
eCommerce is enough to kickstart your business’ online presence, but why stop there when you can further improve it using social media? With over 2.77 billion people on social media, it would be much easier for you to get your brand out there as well as interact with your customers. Fortunately, there are plenty of ecommerce software solutions that can integrate with social media platforms to streamline your workflow.
While ecommerce has undoubtedly become one of the most popular ways to sell products and services, it is still what we consider to be a growing industry. It still has quite a few kinks to work out before it can reach its full potential. For instance, many consumers are still hesitant about shopping online due to security reasons or because they can’t see the product they are purchasing in person. On the other hand, businesses have yet to perfect how they use their ecommerce software or ecommerce website.
Here, we have compiled a few of the challenges in the industry that you might encounter as you pursue your ecommerce efforts. There are ways to overcome ecommerce challenges especially when it comes to implementation.
have pages with only one internal link
do not have HTTP Strict Transport Security (HSTS) support
have broken internal links (hard for search engines to scan)
are tagged as insecure because they link to old versions of their sites and pages with mixed content
Source: SemrushDesigned by
The statistics speak for themselves: ecommerce is slowly reshaping what it means to have a business in the 21st century. This business model has the capability to position your business for local and international growth. It also allows you to improve the shopping experience for consumers as it provides them with the option to purchase whatever they want, whenever they want with just a few clicks of a button.
Another takeaway from the data that we’ve compiled is that while ecommerce is growing in popularity, it is not meant to replace brick-and-mortar shops. After all, these two selling approaches provide different experiences for shoppers. Instead, businesses should see this as a stepping stone on their journey towards expanding their company and improving the competitiveness of their brand.
But, of course, for you to be able to reap the full benefits of ecommerce, it is best to study the lay of the land and know what kinds of challenges you might encounter as you enter the industry. Moreover, you should have a clear understanding of how you can use ecommerce platforms to optimize your operations. You can take a look at our guide to ecommerce software features for more information on how these programs work.
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