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Abstract
Undeniably, e-Commerce can be labeled as the most used digital commerce where millions of transactions are being placed online. But no one can deny the fact that e-commerce has so many channels working behind the door. Despite being a part of only 10% of the total commerce industry, the value of eCommerce cannot be underestimated. With ongoing superstores and same-day delivery facilities, customers have higher expectations from e-commerce than ever.
“Convenience is king”, this only adopted maxim by the eCommerce sector has all the capabilities to acquire the future. The need of the decade is to provide more convenience to the user with new and updated functionalities.
eCommerce Industry: The Overwhelming Future
Despite running a slow race and facing lots of challenges. The eCommerce business has managed to become an economic sweet spot for consumers and retailers around the world. Even during the pandemic, Nearly 150 million people choose to shop online for different products and services. The exponential and highly satisfied service provided by online retailers made online purchasing more reliable and hassle-free.
Global eCommerce Sales Growth
Keeping a view with The oberlo report. The worldwide total eCommerce sales are all set to become a market of USD $6.5 trillion.
B2C eCommerce Markets
“Mobile shopping is becoming a preferred tool for customers to spend money on retail goods”. The data of mobile customers will surpass the PC user by 23% which currently stood at 14% worldwide.
According to Ystats: Currently, China, USA, Japan, Germany, and the United kingdom are witnessing the highest CAGR in the eCommerce sector.
If you consider the figures of the USA alone, then there will be a minimum CAGR of 12% and a maximum CAGR of 15% by the end of the year 2021.
Retail & eCommerce Sales
Retail eCommerce sales compound annual growth rate forecast (CAGR), 2020–2024
Major Challenges Faced by the eCommerce Industry
Despite growing at a frantic pace, the eCommerce industry has to face stiff competition in order to survive the headwinds of the industry. The flip side of this eCommerce growth is that competition is increasing. With each passing day, the eCommerce sector is being flooded with thousands of New online retailers and E-com aspirants that make the industry harder to survive. Many new challenges are posed in front of the eCommerce industry that is necessary to tackle for the betterment of this sector.
The Myriad of problems are listed below:
- The brand new online to offline (O2O) commerce can play a significant role in lowering the value of the complete online purchases. The Brick and mortar stores are highly praising the O2O commerce business model.
- The significant growth of mobile shopping has made the idea of responsiveness more sustainable and reliable. Now Businesses need to make their website and apps to be responsive to different screen sizes. Creating your own mobile app has become a mandatory thing to target a large audience on the web.
- The ever-growing customer expectation is showing no signs of stopping. They are expecting more than before from online sellers. This includes:
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- Free shipping and return.
- Try and buy experience.
- 24/7 customer support.
- Low-cost product with better quality.
- Reduced shipping time.
- Easy mode of payments.
- Concerned about the security of their data.
- The use of social media has shown a significant effect on the eCommerce industry. The way a product or service is shown on social media, shoppers are perceiving the same without doing any offline research. Online reputation management has become an extremely necessary task for eCommerce store owners.
- Creating a loyal customer base has become a tough task. Competitors are working round the clock to provide a better product than yours, which has made the entire journey of creating a loyal fan base difficult.
- Customers are no longer loyal to one seller. They want better quality and shopping experience. Hence, they shift to another seller easily without any single thought.
- The customer acquisition cost has increased. In 2021 and the years beyond seems to be harder to attract new customer without spending budget on social media management and PPC Pay-per-Click Ad campaigns.
- Voice commerce is projected to become a new normal to the shopper around the globe. Almost 75% Of US Households will have smart speakers e.g, Amazon Alexa, Google Assistant at home by the year 2025. Optimizing your existing eCommerce channel to be voice-friendly is a time gaining and costly thing.
- Omnichannel shopping will still have a significant effect on E-commerce.
- The augmented reality and virtual reality are most likely to be used heavily in the product shopping experience.
Boost your Business with Customized eCommerce Solutions
Tekki Web Solutions Inc. team will assist you in implementing eCommerce solutions to deliver high-quality eCom experience to your customers.
Solutions: How to Upscale your Business?
Every challenge has solutions. Perhaps, the eCommerce business also has many complexities but there are solutions too. These solutions can be adapted to be future-proof and make the online business less vulnerable to future threats.
- Online and offline (O2O) commerce is only being praised by the shopper due to the convenience they found. O2O commerce provides better convenience with faster delivery and try and buy experience. The same can be provided with the eCommerce business if proper measures are taken.
- The growth of mobile shopping cannot be neglected. Online eCommerce stores need to be mobile-friendly in order to acquire more customers and business. Making your existing store responsive to all electronic devices and creating an entirely new mobile app is the fitting way to provide a better shopping experience to users.
- Fulfilling reasonable customer expectations will definitely help in creating a loyal customer base.
- Online ratings and reviews work wonders in labeling a product “Most Selling”.Hire a social media manager to maintain your online presence and keep your customers engaged with your store. This will not only keep your existing customer fascinated with your business but will also help in getting new customers.
- Making the customer journey more easy and convenient is necessary. Funnels are a great way to land a user on your product and made them purchase the products without forcing a bit. Introduce a funnel system to your online store and see the rapid change in customer behavior.
- Providing better quality products, at the lowest possible cost is the most preferred way to stand out from the competition. Using psychological tricks such as a discount, coupon, loyalty points, etc can be used to lure customers.
- For better customer acquisition search engine marketing is crucial. Now, when half of the world’s population is on their phone, then it becomes extremely worthy to target them rather than doing traditional Ads.
- Augmented reality and virtual reality is the new way to provide a seamless try and buy experience to the users. Introduce your customer to the AR/VR on your eCommerce platform.
- Optimizing your existing eCommerce store for voice commerce is necessary to be future-proof.
Conclusion
Without beating about the bush, E-commerce has a bring future ahead. The only way to make your online business more lucrative to the customer is to provide them new shopping experience with technological Advancements. Nowadays customers are more exposed to technology and they are longing for the same in the e-com sector too.
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