There is an ever-changing landscape in eCommerce today, which can be both exciting and scary. Each year these changes help us grow businesses through various challenges, which you can keep up with if you have a strong business perspective. Whatever ups and downs we may encounter, the market is expanding at a rapid pace, and the future is bright, as we sneak a peek at the growth trends of eCommerce today and beyond.
Why The Trend For Online Shopping Is Growing
The rapid adoption of technology and subsequent access to the internet are the major global forces that pushed the growth of eCommerce in both emerging and established markets. Quite clearly, the lower average spending power in more than 80% of all countries has enabled emerging markets to get the benefits of online shopping and retail. This, in conjunction with the total population sizes in these markets, has catapulted the emergence of eCommerce among most economies. Other factors affecting it include urbanization, which coincides with the great propensity to shop online. This is because the population density helps ease the logistical challenges that companies are faced with when developing their products.
Presently, online shopping is dominated by price-elastic items such as electronics, apparel, and books. In the future, we expect stronger growth to be generated by fast-moving consumer goods. This will be helped by the urbanization, which will continue to lower logistical challenges. Given the dominance of traditional retailers, few of these companies have been quick to realize the potential of eCommerce business and still rely on traditional models. As a result, companies such as Amazon have reaped huge rewards by grabbing the majority of the market share, leaving traditional retailers under pressure to catch up.
Will eCommerce Dominate Physical Stores?
There are many factors to consider when gauging if online shopping will dominate physical stores. As the eCommerce platforms bring more features, like deliveries and same-day shipping, many physical stores will feel the effects if they do not adapt and join in the fray of online shopping. The only real advantage a physical store has above eCommerce stores is the ability for the customer to touch and try the products physically. Physical stores also enable owners to have stronger customer relations when compared to online shopping. At present, the factors which affect both an eCommerce business and a physical store tally equally. Most of these physical stores are also slowly adapting and integrating with the eCommerce sector.
eCommerce Is Changing
In recent years we have seen an increase in eCommerce sales compared to previous years. This increase is huge, but it is not a new trend. It also demonstrates that this industry is changing and shifting in an attempt to shape how people across the globe buy products. The future is certainly exciting in eCommerce, and a lot of things are expected to change over the coming years. Some of these changes are that there will be an importance placed on mobile device use when shopping online. This is because the technology is shifting to mobile, unlike in previous years where importance was placed on desktop first. This complements statistics which indicate that 56% of buyers use mobile devices to research a product while at home. Today, buyers want the full shopping experience on all their devices.
Another factor which is a great influence in the changing spectrum is that emerging markets will play a major role in the shift. Markets such as India, China, South Africa, Brazil, and Russia will impact eCommerce’s future. It is also expected that most of the future growth in sales will come from these emerging markets. This means that the untapped and potential sales will exist from these markets when the change is at its peak. eCommerce will then branch out and reach new audiences. The shift indicates that there will be a lot of opportunities for new brands that are likely to pop up in emerging markets. But, they will need to tailor their businesses towards local or international markets. Most of the physical stores which offer online shopping have also shifted their business model to offering customers unique shopping experiences.
How Big Will eCommerce Get?
The narrative has always been that we live in a time of constant change. This is particularly true when talking about eCommerce and online shopping. However, there is a current lull in eCommerce as things are not changing that much. The penetration rates have been edging, but the dominant players are the ones reaping the benefits. By far, the majority of industry players are changing their business models to readjust to the emerging business platform, even when running physical stores. The debate will always be online vs offline, but this debate is quickly fading away, as most companies shift to online business practices, including marketing and advertising. Brands are also getting serious about their products and services. They are shifting to offering customers seamless and unique customer shopping experiences. They are switching to the best online shopping practices, too, enticing their customers to return and continue shopping with them. By buyers becoming more and more technologically advanced, more companies will try to adapt to survive the oncoming online shopping onslaught. So, yes, expect e-Commerce to be huge in the coming years.
The speed of change in e-Commerce correlates with a cashless payment system, and people accept it as safe and convenient. All these factors will greatly influence the future of eCommerce. These very factors have enabled consumers in developing nations to leapfrog through the various developmental stages of online shopping. Shopping platforms have also shifted their practices to ensure that you get the best shopping experience, including same-day shipping. eCommerce is on the rise for sure!