Ecommerce is a powerful force that is rapidly changing the contours of our economy. Ecommerce has made the act of purchasing virtually anything as simple as a quick search and click (as long as your payment data is already saved). The item arrives on your doorstep just days later. Ecommerce platforms allow purchases of virtual goods, large and small tangible items, and just about anything that is available offline. However, the variety of choices and ease to sell means that margins are incredibly tight and profitability is low. The user experience suffers and some Ecommerce concepts are getting stale. In the future, there will need to be changed to incorporate new technologies and new demands. There are 5 key e-commerce needs to change in the future.
How E-commerce needs to change in the future
From the beginning, E-commerce platforms have been seeking ways to identify ways to better recommend purchases. Amazon started out by recommending books its customers would like. In the future, all Ecommerce sites will incorporate this type of technology. In addition, there may be recommendation engines that aggregate information across platforms and recommend things to you over the entire web.
Incorporating Virtual Reality
Virtual Reality technology is growing by leaps and bounds. Facebook, Samsung, Sony, and other major players all have VR technology platforms. In the future, these can be applied to E-commerce so that the consumer can literally visualize what the product will look like in a different place. Imagine literally picturing your new couch in your living room or shoes on your feet. VR technology has the power the revolutionize many industries and also reduce the return rate substantially.
Online – Offline Integration
While online sales are growing rapidly, they still only represent about 7% of the total consumer market. The inevitable progression of E-commerce will continue to chip into this percentage. As online sales takeover offline sales, integrating the two will become even more important. That means that online purchases can be picked up at the store or the store have a computer that provides additional options for every purchase.
Consumer micro-targeting is another emerging trend that Ecommerce players are beginning to pick up on. They are developing products not just in several different product categories but in hundreds or thousands of categories that are made for thousands of different sub-group specifications. For example, a company may produce a purple dress for moms that are size 4 – 8 and live in the Midwest. These specific products are then micro-targeted to the exact demographic group which produce a huge conversion rate based on the dollars spent. Helping companies reach this level of specificity is an emerging trend.
No longer can companies feel free to focus on their home market. From the beginning, they have to be ready, willing, and able to tap an international market. As the battlefield for growth goes global, all Ecommerce players should understand how to market and win in different countries around the world. Obviously, that means incorporating different language, payment, and localization options. More than that, the experience and marketing efforts must be geared to local populations to help the company really take off.
Overall, Ecommerce continues to grow and evolve and new players and new technologies emerge. Companies will have to continually adapt and integrate the concepts above in order to compete and win.
The future of e-commerce
Since the past years, we saw an important growth in the number of e-commerce and the sales made by those. Indeed, the sales made by the global e-commerce retail sales is expected to hit 4.9 trillion $ by 2021. If this number is exact, this will be a growth of about 265% from 2014 when the global sales were 1.3 billion $. As we can see, e-commerce is becoming the new trend and many big businesses are turning to the internet to sell their products. There are many reasons that can explain why online stores will continue to grow in the next years and even far beyond that.
Giving access to products from all over the world
The e-commerce industry takes down all the barriers. Indeed, now it’s possible to buy products from other countries and they will arrive directly at our places. As we can see, this gives the opportunity to the customer to choose between hundreds of different products and stores.
By offering worldwide competition, e-commerce will make product prices lower. But, not only the product prices will decrease the competition in the shipping sector will also reduce the prices of shipping. Also, online shopping is less consuming than having to go to the store look for a product, buy it and get back home that is also why it becomes more and more popular.
It’s a lot easier for store owners to scale their store if they have an online store than if they have a physical store. Indeed, owning an online store has almost no expenses, this means that they can generate more profit by being way more competitive since they have no other expenses besides the expenses of the products that they bought for reselling. This means that it’s a lot easier for those stores to scale from one niche to a lot of others.
In nowadays, it’s possible to create and own a brand directly from our home. It’s possible to have access to multiple suppliers and products all over the world. Not only we can create a brand but it can become a really huge brand without even having a single real store. Indeed, all sales can come directly from the online store, and even with no live store, the online brand can become a leader in its field.
As it’s possible to see, the online business model is the future and all the businesses that will not adapt to it will simply go out of business. All this is due to the fact that the internet is taking a huge place in our lives especially in our shopping habits.