Why e-commerce is the best answer for your business in 2020?eCommerce
In today’s fast paced world very few people have the time and patience to hit the high street to buy items. Most of us just prefer to shop online. A lot of start up and even major corporations do almost the entire business online. E-commerce is a flexible solution for businesses, as well as buyers.
If you’re in any kind of retail or thinking of it, or if that’s where your clients are, there’s never a better time to gain an understanding of when it takes to sustain an e-commerce business.
Drivers of Growth
There are plenty of reasons why e-commerce has continued to grow and brought about change in the fashion industry. There has been a definite shift in consumer spending habits, and in this way, established brands are forced to find ways to innovate and keep up. Among some of the drivers of growth for e-commerce, the following are just some of the major to take note of:
1. A rise of technology
From artificial intelligence to AR/AV, there are so many ways technology is affecting how we shop. There are already several retailers hopping onto augmented reality to change the way consumers can find, purchase, and talk about their products.
Moreover, many fashion retailers are realizing that their old methods are not improving sales. Thus, to stay ahead of the competition, more and more fashion retailers are looking to artificially intelligence to help predict demand.
2. The expansion of global markets
From the economic boom of China to the cultural prevalence of Korean pop, there is no denying that Asia continues to bloom and every year, there are more opportunities than ever before to build and create something.
3. The emergence of worldwide middle class
Due to the rising political and economic power of emerging markets, the overall worldwide middle class has also grown. As an OECD states, “A number of developing countries have become centers of strong growth, raising their shares of global income significantly, which has made them major players in regional and global affairs.”
4. Increasing smartphone penetration
The cost of smartphones has drastically increased compared to ten years ago. And with the aforementioned rise of the middle class, as well as expanding global markets, the number of consumers that can shop online is continuously increasing. According to reports, there are currently 5.11 billion unique mobile users in the world today, a 2% increase from the past year. On top of that, there are now 4.39 billion internet users in 2019, a 9% increase from January 2018. This number will only continue to increase, leaving room for more opportunities.
Why e-commerce is the best market for your business to grow in 2020?
E-commerce is a goliath industry. So it is no wonder that people are always asking about the future of e-commerce.
E-commerce is the best option available for the people to build a better business world for ensuring success in future rather than doing a traditional mode of business. For any business person, to have an e-commerce business is an added advantage for their business. Several factors for the importance of e-commerce business.
Sometimes, the question arises why do you use e-commerce for online shopping? The most prominent answer to this question is convenience. One person can shop, buy and sell products while sitting at home at any time.
Purchasing options are quick and convenient. You can pay for almost anything with a credit card these days, and if not use services like Paypal to make swift transactions. Consumers save time and money by purchasing online, rather than going out into a physical store.
2. Round the clock service
E-commerce provides us round the clock services at all times even at midnight. So the customers do not require visiting a physical market if they need something during the night. It is the most convenient option for the people who are usually busy with their working schedules. So it helps you to be available for your customers 24/7.
3. Help you reduce your costs
To have an online store it is not necessary that you have all your products presented in a physical space. In fact, there are different companies that operate online where they only show all their inventory through their electronic e-commerce.
This implies not only saving by not needing a rental or purchase of premises, but also everything that involves electricity, the Internet, etc,… Or if you want to have one so that customers have a physical space, it does not have to be as large as everything you offer. In either case, you will be reducing your costs.
4. Help business go global
Directly related to the previous point, this fact allows you to put your products for sale anywhere in the world. They will not have the explicit need to travel to where you are to see what you have to offer.
If you are running a physical store, it will be limited by the geographical area that you can service, but owing an e-commerce website will give you the opportunity to increase your outreach. It’ll offer your product & services to customers around the whole world, regardless of the distance and time zone.
Furthermore, this eliminates all kinds of geographical and linguistic barriers. Your e-commerce translated into different languages will allow them to buy from different countries.
With e-commerce and mobile e-commerce as well, the entire world is your playground. Your products or services are within reach for a lot of customers who might be sitting in another corner of the world.
So if you want to grow your online business worldwide, it is a great opportunity and idea to start creating your own online store and localize it in different languages.
5. E-commerce can be done with fewer overheads & fewer risks
Starting an online business can mean significantly lower start-up costs compared to a brick and mortar retailer. The retailer or the online business owner doesn’t have to take into consideration the high expenses of shop rental, hiring a salesperson to woo the customer, utility bills, security measures, etc… This, in turn, will enable you to sell your products at competitive prices. Also, having an online store enables you to enjoy increased profitability with less risk.
6. E-commerce offers better marketing opportunities
Your e-commerce site is the best marketing tool that you would ever have. Thanks to the internet, now anyone can market through online tools like social media marketing, email marketing, search engine optimization, pay per click ads, and SEO help you build useful links and contacts.
For example, with good SEO, your online store will appear in the top results of SERPs. Also, social media networks will provide you with a platform to engage and build trust with your customers through reviews and ratings, as well as keeping them informed with regular posts about your products and offers.
7. Personalize your shopping experience
If there is one of the clear advantages of having an online store, that is to be able to know (and monitor) what your consumers are. Physically, it would be very uncomfortable for a potential buyer to enter your store and you were all the time behind him asking what they want or why they do not buy your product.
In addition, this can help you to improve your shopping experience for another occasion: shortening the steps to complete the order or offering those buyer products with similar characteristics.
8. Improve the image of your business
Among the advantages of having an online store, there is no doubt that it also includes improving the image of your business. Offering a good online sales platform to users will give your company a great corporate appearance.
Not only will it prove to be up-to-date, but it will also show interest in facilitating consumer purchases. For example, it prevents you from travelling to the physical place of sale and allows you to compare prices from home. In addition, thanks to what we have mentioned as loyalty or feedback, you can even implement improvements in your products that customers will value positively.
9. Easily receive feedback from customers on products
Have you always wanted to know what consumers think of what you sell in order to offer more or improve it? Well, the online store will allow you to receive that feedback so you can implement improvements in your business. Through star ratings, with the possibility of leaving comments.
In addition, the customer will feel heard after their purchase. There is no better way to thank you for your confidence in purchasing your company’s product. What’s more, if you offer the quality you will have nothing to worry about. Enabling a direct channel where others see what they can expect from a given asset is a great public exercise of trust in your business.
10. Security of transaction
Today, operating over the Internet is almost safer and more reliable than doing it in a physical store. From your home, without anyone spying on your secret number or your credit card. Of course, the e-commerce website must have an SSL certificate.
This certificate not only allows safe browsing on the web. In addition, it keeps the data encrypted, in such a way that it is totally safe to enter keys and passwords. This will not only be necessary for the customer’s business account but to use even more sensitive data such as credit card information with complete peace of mind.
It’s worth mentioning that 33% of e-commerce experts identified security, mobile payments, and mobile apps as the most important investments in 2019. Security will continue to be one of the greatest focuses on e-commerce.
With changes in technology, users behaviors, and shopping patterns, sellers will have to provide solutions ensuring the trust and safety of the shopping process.
11. Ready for the trade in the future
This is another important detail thinking about the long term of your business. Search patterns and consumer spending the advancement of technology and the latest statistics estimate that by 2040, 95% of purchases will be made through the internet.
Therefore, we are not only talking about a trend of the present but also about what the commercial relations of the future will be. And just as if you are not on the Internet you do not exist and your business does not sell on the Internet, it is limiting its sales in a massive way.
12. Increase in sales
Everything seen above is focused on one thing: being able to increase your sales. At the end of the day, your business is based on being able to sell more and therefore this is what it is aimed at.
All the previous points contribute to the fact that the tenth and last advantages is that there is an increase in the purchases of your product. Reaching more customers, improving your products by comments, or being available 24 hours a day will undoubtedly contribute to all of this.
Top trending driving online retail in 2020
“Online retail grows twice as fast as the rest of the e-commerce sector and 5 times higher than the global retail sector”.
More online shoppers means more e-commerce platforms, which has created a competitive and fierce marketplace. To stand out from the competition, you need new ways to promote your products and services – and that requires you to stay on top of the latest e-commerce trends.
1. The explosion of social e-commerce
“Social e-commerce is the use of networking websites such as Facebook, Instagram, etc,… as vehicles to to promote and sell products and services.”
Campaign metrics include user engagement such as liking, sharing and retweeting. According to eMarketer, social commerce rose from 23% in December 2018 to 31% in October 2019 among U.S.
Popular platforms like Instagram, Facebook, and Pinterest are perfect venues because they deliver rich visual content which helps buyers discover research and shop for different products online.
Social referrals to retail websites have risen 110% in just two years. This out spaces every other referral channel, and with good reason: users prefer a social environment over external websites when searching for or purchasing something.
2. The rise of mobile shopping
According to Ramsy, there are 167 million people in America who regularly purchase products using their mobile devices, comprising 84% of all e-commerce buyers.
“Mobile is by far the fastest growing retail commerce channel”, adding that mobile shopping reigned supreme during the 2019 holiday shopping, claiming 25.1% of sales, compared to 4.3% on desktop and 2.5% in brick and mortar stores. “Those phones are really active buying machines”.
3. Chatbots will empower revenue maximization
According to Business Insider, 80% of enterprises will use chatbots by 2020. This Artificial Intelligence software is more than a new channel for consumers to find e-commerce deals and buy products – consumers can use chatbots to identify products they need.
The big question is: Are chatbots worth investing in for your e-commerce site? Of course, yes!
Here’s how you can take advantage of chatbots:
- Use chatbots to engage customers on the landing page itself. Help them find the right products because quick navigation increases conversion possibility and saves time.
- 94% of online shoppers base purchasing decisions on product information, so program your chatbot to answer common product questions. Even if it does not resolve the full query, the technology can handle initial discovery. This will save your employees time.
- Allow chatbots to direct customers to customer service professionals for highly specialized products.
- The average bounce rate for e-commerce stores is up to 45%. Leverage chatbots to reduce bounce rates by following up with buyers. Get actionable insights on how to improve your e-commerce platforms and their shopping experience.
4. Voice commerce will become mainstream
Voice search is growing rapidly, thanks to the popularity of digital assistants.
According to marketing analyst firm Canalys, there were about 100 million smart speakers in use last year, a number that is predicted to hit 225 million by 2020. In the U.S, 22% of smart speaker owners have already bought something through devices.
In fact, 60% of virtual assistant owners have made voice command purchases. Because of the immense popularity of this technology, it’s expected that by 2021 many brands will redesign their websites to support voice search features – and that voice search will increase digital commerce revenue by 30%.
5. Business should optimize digital strategy for conversion
No matter what you sell, chances are you have some competitors. Staying ahead of them means not only getting more potential customers to your site but also converting them once they’re there.
Conversion optimization is a growing concern in 2020 as businesses look to finetune their product pages and make sure their products stand out across their multi-channel marketing avenues. This might include dynamic ads on Facebook, shopping ads on Google, or on-site digital marketing efforts.
There’s a lot of 2020 remaining, so we’re excited to see what new ideas will pop up in e-commerce retail as the year progresses.
With these are the top e-commerce trends we see impacting the industry, there are plenty more waiting in the wings for their moment. Will delivery drones turn the skies into a whizzing buzz of constant e-commerce? Will facial recognition in stores connect to customer shopping online? Will one-day shipping become the new expectation?
E-commerce may not be right for everyone, or it may not even be the right time for you, but it’s important to consider an e-commerce based strategy. If you have a retail operation or even an idea, you want to put it into action over the next several years.