Ecommerce has been impacting lives for two decades. Are we pacing up with this ever-changing field? The way of doing business has changed since the boom in information technology. Every aspect evolved from product development to marketing, selling process to communication channels all have changed as marketers chose to sell online.
The world of ecommerce has undergone drastic changes in the way of buying and selling things, so far ways of doing business have been changed. Online shopping is perceived as being more comfortable than traditional brick-and-mortar retail.
Globally sales via ecommerce amounted to nearly 3.5 trillion dollars worldwide in 2019, which makes ecommerce a lucrative option for businesses. These figures are huge, but it is not a new trend. It is going to stay here now. Ecommerce sales increased by 25.6 percent on average between 2014 and 2017. Globally, it is predicted that online retail sales will be worth 8.5 trillion US dollars by 2025.
Ecommerce has been thriving for a while compared to traditional retail. It is a sector that is always evolving, with trends altering frequently to influence how consumers throughout the world make purchases. To put it bluntly, this is exciting for the future of e-commerce. Ecommerce is expected to experience several important changes in the years to come. We are here to discuss the future growth of ecommerce.
Easy to start
In this Ecommerce revolution era starting an online business is so easy. Anyone can start from anywhere for anything. Everchanging ecommerce made it possible for handicrafts and small businesses to earn their fair share, back in the days when they were dependent on the middle man who usually kept the main chunk of the profit—all thanks to ecommerce.
Ecommerce websites are so easy to form these days, a lot of self-hosted and self-managed stores are out there in the market. What made ecommerce dominate in this fast pacing world is that you can buy anything, from your favorite dresses to a piece of home furniture and even cars being sold online.
Low product prices
Ecommerce is expanding as a result of the affordability of high-quality goods. This is because of outrageous competition that brands want several loyal customers so they keep offering the best deals.
The prices are low, it can be a reason that to run an ecommerce business, just the running cost of a website is needed. Running costs are merely a few hundred dollars a year. Ecommerce made it possible to reach a global audience, so businesses have an enormous number of customers.
During pandemic times
During COVID 19 pandemic almost every physical business suffered but ecommerce got hugely popular. It made people enjoy shopping from the comfort of home. And now people are so habitual of this online shopping thing. That’s why we hope the coming years would be more exciting for ecommerce.
Personalized shopping experiences
Ecommerce introduced personalized shopping experiences. Many big brands integrated augmented reality and virtual reality so customers enjoy a wholesome personalized experience. Now you can go to the store and even watch the 3D reality of the product.
For example, many stores have this feature that you can see how your favorite couch will look in your room even if you have not purchased it yet.
The variety of products
We have entered this era of enormous variety for each product. Multiple brands, multiple prices, and multiple colors on different websites are just common now. You can check tens of websites and purchase from one that offers the best deals. Isn’t it good? Compared to traditional brick-and-mortar stores where you have very limited options.
In 2022, the global ecommerce market is estimated to be $5.55 trillion. This figure will grow in the coming few years, as borderless ecommerce has huge profits for online retailers. In the year 2020, 17.8% of sales were from online purchases, this number can shoot to 21% by the end of 2022. It is predicted that this percentage can increase to 24.5% by the year 2025.
Emerging markets and their Share
The emerging economies of China, India, Brazil, South Africa, and Russia will be extremely important to this new economy. It is estimated that there are potential 3 Billion internet users by 2022. And 20% retail profit is estimated from these relatively untapped emerging markets.
We can say that tons of opportunities are here for brands in these markets. And millions of new ecommerce businesses are about to make an impact in this new ecommerce era.
Automation is the key to the exponential growth of any business. And when it comes to ecommerce automation it is something we can rely on. Ecommerce automation can do good for employees and let them focus on more valuable tasks.
A company with a large warehouse can invest in robotics and let its staff add more value to the fulfillment process. The sky is the limit, you can think and you can have it. With a little research, you can find the exact software that will fall perfect for your ecommerce business to grow in the next 5 years.
More Mobile-friendly Ecommerce Interfaces
The future of ecommerce depends on the devices consumers prefer to use while shopping online. In the past businesses used to make their interface for desktops only, but now things are different. Ecommerce businesses are building a way to keep mobile phone users in mind.
It might sound unreal, but the fact is an estimated 45% of the ecommerce decisions were made on mobile last year. And all these mobile phone decisions contributed to $284 billion in revenue. Another intriguing finding is that 56% of consumers had previously utilized their mobile devices while at home to do product research.
Video Content is Changing the Game
Videography skills are a must to hone in this ever-changing ecommerce world. Because it is going to play a massive role in closing more sales. A conducted research has shown that 60% of shoppers chose to watch a product video than read a description.
64% of Purchasers purchase after watching some branded social video. This is because of Facebook, Instagram, TikTok, and Pinterest byte-size video content, that customers love to watch and interact with. Or famous YouTubers who record videos of unboxing, reviews, and critiques about products.
Whatever the case, You don’t need to look too far to see ecommerce businesses adapting to this change too. So, adding video elements to your product listings, and making a video marketing strategy is a must if you want to succeed with ecommerce in 2022 and beyond.
You have asked your phones for directions and addresses to nearby restaurants. Can you think that you will ask your phone or device to place an order for you and make a purchase? Well, this is the technology about to come to us in the coming years.
Ecommerce has opened the door to voice commerce. With this innovation in ecommerce, you will be able to ask your digital assistant to make a purchase for you and within a few seconds, your order is placed. Amazon Alexa, Google phones, and Microsoft Cortana are very well known in this matter. We will have more innovations like these in the coming years.
You cannot win customers alone with good products. You need to make them purchase from you. That’s exactly why great marketing is super important for ecommerce businesses.
Well, we’ve talked about how important mobile is going to be in the future, and this is also true when it comes to marketing for ecommerce. As buyers are getting smarter day by day when it comes to browsing and making a purchase decision on the phone, it becomes essential for businesses to optimize their marketing campaigns for mobile too.
Content marketing is even more effective at capturing the audience’s attention, with 78 percent of buyers claiming that relevant content increases their purchase intent. Essentially, great content helps brands convince potential customers of what their business stands for, and that’s one of the biggest marketing wins that brands can hope for.
Customers tend to research online when buying a particularly expensive product. Even if they end up buying a product in-store, shoppers are more inclined to do research beforehand.
A research study showed that 81 percent of shoppers conduct online research before buying. This is a huge figure, showing the importance of making sure that you are being found on Social Media, on Google Search, and anywhere else that your customers may be.
To be in all these places is important now, because if your customers are researching a product and you give them all the right information, at the right time, they may choose to buy from you, instead of in-store. Gaining their trust and expanding your clientele can be accomplished by knowing your target market and how they purchase goods.
New Employment Areas to be Generated
Ecommerce employment increased by 32% in 2022, and 28% growth was documented in 2021. Statistical research claims that computer jobs will increase by 13.4% over the 2020-30 decade, which is 5.7 percentage points faster than the 7.7% average for all occupations.
The buy Now Pay later Adoption
The buy now pays later trend is slowly picking speed. Few well-known brands in Europe have begun their move into various markets. J.P Morgan reported that “mobile, cross-border and buy now, pay later are on the rise as consumers show a willingness to adopt new shopping and payment methods.”
Quick facts to let you know the importance.
- 30% of all payments are taken in Germany because of the popularity of BNPL, and this percentage is expected to grow to 33% by 2024.
- In Vietnam, this number can exceed 36% from 2021 to 2028.
- 1.6 million users of the Czech Republic and Poland on a BNPL brand.
- A fintech company NELO run by former Uber executives, raised $3 million to expand BNPL services into LATAM.
BNPL brands, digital wallets, and banks are doing partnerships with BNPL global method. BNPL will take the loin’s share of payments globally.
About 67% of the global customers bought things through ecommerce purchases. Merely one in five respondents answered that absence of translation of language was a substantial hurdle to buying things. For purchasers who spoke English, one in three responded that they would not buy anything from any website that is not translated into English.
In a Survey of 8709 global purchasers anticipation from 29 countries, according to research, 65% of customers chose their language for content on-site and 40% will not shop from those websites which do not have a translation to the local language. This localization can cause a huge impact on sales just like an all-or-nothing aim.
Virtual Reality in Shopping
Not only can you purchase items online while you’re out, but more and more companies are also looking to shift the digital landscape by offering virtual reality shopping. Businesses are attempting to provide highly customized and immersive shopping experiences using virtual reality technologies. In the future, customers will be able to use a virtual reality headset to browse products, add items to their carts, and even finish the checkout process.
There is no doubt that ecommerce is the future, yet it is a rapidly changing field. To keep up with its pace, businesses need to understand what is best for their customers and market in a way that customers get enough value. For this, technological innovations are a must to adopt thing to create a unique identity for your business.