E-commerce is a dominating force and it’s dramatically changing the consumer experience. Not only can you shop at any time, but you can browse through unlimited products from any location, check the best prices and learn about the products through online reviews. Also, when buying online you can pay instantly and enjoy almost immediate delivery.
Statista reports show that in 2018 e-commerce reached 11.9% of retail sales globally and that it will exceed the 13% mark in 2019, growing towards 17% by 2021.
During 2019, the global number of digital buyers is forecasted to reach 1.92 billion, while in 2021 more than 2.14 billion consumers will purchase their goods from online stores. So, the numbers speak for themselves.
But why is e-commerce booming? Let’s look at the 5 reasons why e-commerce is dominating the market.
1. Traceability & Trackability
Big Data Analytics (BDA) plays an important role in e-commerce because it allows online shops to offer better customer service, dynamic pricing, customized offering, and real-time service.
Online technologies empower the use of large amounts of important data in e-commerce across 4 dimensions: volume, variety, velocity, and veracity. Although all dimensions add value to e-commerce, veracity is the measure which accounts for data reliability and accuracy for forecasting.
2. Online Shopping Is Convenient
Convenience is the main reason why e-commerce is growing at a fast rate. Consumers can browse through unlimited online stores worldwide from wherever they are. You can check for your favourite product at all hours.
Also, you can easily compare prices, and find the lowest price without losing time visiting brick and mortar stores. Online shops are continuously making the process simpler and more intuitive to improve customer experience.
3. Online Consumers Drive Innovation
When you understand how your consumers relate to your brand, it’s easier to innovate. Building trust will become the focus for online stores in 2019 which must often ask for feedback, deliver surveys and use their consumers’ voice for brand innovation.
4. The Increase of D2C Trends
The direct-to-consumer (D2C) fulfillment model brings significant benefits to online retailers. It allows the building of a deeper and closer relationship with consumers and helps with offerings’ customization.
Also, online stores can market products quickly and capitalize on up-and-coming trends. But, D2C also provides you with full control over your products and your brand’s reputation. By waving the need for wholesalers, distributors and brick and mortar shops, online stores rapidly meet their customers’ needs. Middlemen are losing the race.
5. E-Commerce Logistics
E-commerce logistics are focusing on innovating their technologies to strengthen delivery fulfillment. As e-commerce brings challenges to traditional logistics, shippers are using new technologies and better supply chain practices. Automation and digitization throughout the supply chain help shippers move more products at cheaper costs. Also, shippers are relocating closer to e-commerce buyers because of the demand for quicker delivery fulfillment. And, to overcome fraud, identity theft, and counterfeit products, shippers are using blockchain technology to improve tracking systems.
The Key Takeaways
Business owners can enjoy the great opportunities brought to them by the trends of e-commerce’s growth worldwide. Business as usual is outdated and it’s been replaced with the direct and close connections between online retailers and consumers. It’s about going beyond the products and reaching out to your customers.
