E-commerce is the buying and selling of goods and/or services via the internet. E-commerce was first introduced in 1991 and has become increasingly popular in today’s society. According to Statista, worldwide e-commerce sales were over 2.8 trillion US dollars in the year 2018, and are projected to reach over 4.88 trillion US dollars by the year 2021. As you can see, e-commerce is continuing to grow each and every year. What this means is that businesses must have a successful e-commerce strategy to not miss out on the massive amounts of potential revenue.
The best way to make sure that your e-commerce strategy is successful is to plan ahead. More specifically, you need to be able to accurately predict how e-commerce will change each year. It is entirely possible that an e-commerce strategy that worked for you in 2018 will not work for you in 2019. The most successful companies in the world are constantly changing their business strategies in order to keep up with the times, and your e-commerce strategy is no exception. However, understanding the direction that e-commerce will move to in the future is no easy task. If you are a business owner who struggles to understand the future of e-commerce, you have found the right post. In this article, we will be discussing three ways in which e-commerce is changing so that you don’t get left behind.
The Amazon Effect
The Amazon effect refers to the challenges that other stores, particularly brick-and-mortar ones, have to face when competing with Amazon. The reason why Amazon’s e-commerce strategy is so successful is because they offer a vast selection of items, fast shipping, free returns, and low prices. The fact that Amazon offers all of these perks for their customers creates high customer expectations for every other e-commerce retailer that is hoping to compete. For example, since Amazon offers fast shipping, this means that other retailers wishing to compete must offer fast shipping as well. If not, consumers will choose to shop at Amazon over other options. The reason why the Amazon effect is important for all players in the e-commerce game to understand is because it is the biggest reason why the e-commerce industry as a whole is constantly changing. Amazon is the undisputed leader in the retail e-commerce field, and that means that every other player in the game needs to pay close attention to the things that they are doing in order to keep up. For example, it is estimated that sometime in the near future, Amazon is going to start using more AI to increase their already very fast delivery speeds. This means that you need to start thinking about using more AI and increasing your delivery speeds right now. Otherwise, you could be out of business in the near future.
More Mobile Usage
When e-commerce was first introduced into society in the year 1991, the majority of online sales were made on a computer. However, this is no longer the case. According to Statista, in 2018, 39.6% of all retail e-commerce sales in the United States came from a mobile device. Furthermore, this number is projected to increase every single year from here on out, and by the year 2021, approximately 54% of all retail e-commerce sales will be made on a mobile device. As you can see, it is only a matter of time until the overwhelming majority of retail e-commerce sales will be made on mobile devices. Therefore, you need to make sure that you optimize your e-commerce strategy for mobile usage.
There are two ways in which you can make sure that your e-commerce strategy is optimized for mobile usage. You can develop a mobile app for your business, and make sure that your website is mobile friendly. Taking both of these steps in the year 2019 will not only help you immediately, but it will help you in the future as well.
Increased Product Videos
Studies show that 60% of shoppers would rather watch a product video than read a product description. Based on this statistic, it is reasonable to conclude that the more product videos you have on your webpage or mobile app, the higher the chances are that you make a sale. Most retail e-commerce companies already know this, and as the years go by, you will start to notice more and more videos on retail e-commerce websites.
In summary, retail e-commerce is a massive industry and is only getting bigger as the years go by. That is why it is important to not only understand what e-commerce is, but to also understand how it will change in the future.