23 December 2022
5 min read
The future of Retail is Online
E-commerce platforms have made it just as easy as shopping in physical stores. In recent years, retail e-commerce has seen significant growth due to the convenience and ease it offers consumers. Many people prefer to shop online because they can easily compare prices and products without leaving their homes. The Covid-19 pandemic has also played a role in the increase of online shopping, but this trend shows no signs of slowing down. Aren’t you shopping online yet? Take advantage of the convenience and ease of e-commerce platforms today.
Where are we now?
In 2022, Asia is expected to generate the highest total retail e-commerce revenue, with over $2 trillion in sales. The US and Europe are also major players in the e-commerce industry, with $1.1 trillion and $828 billion in revenue, respectively. Even the African market, which has the smallest e-commerce revenue worldwide at around $44 billion, is expected to see significant growth in the coming years. In fact, global retail e-commerce sales are forecast to increase by 56% by 2026, reaching a staggering $8.1 trillion.
It is estimated that e-commerce will account for 19% of total retail sales by 2022, which translates to almost $5.5 billion. And this high percentage is predicted to continue to grow, representing 25% in the near future. This shows that online stores are now essential growth vectors for the retail sector, and businesses must take great care of the reputation of their online sales channels and strategy. In fact, investment in media advertising in the retail sector worldwide will exceed $100 billion in 2022 – an increase of more than 15% compared to the $88 billion spent in the retail sector last year.
The retail sector is complex, and it’s important to remember that shopping habits are not single-channel. While there is currently a higher conversion factor in the same channel, consumers use both online and offline channels interchangeably as complementary information sources, regardless of the channel through which they decide to make their purchases. This trend is on the rise, as the widespread use of technology is increasingly present in every home. By selling through e-commerce, you benefit from the possibility of reaching a wider customer base through the internet, and you can use various digital marketing techniques to attract and retain customers.
E-commerce trends in the retail industry
There are several e-commerce trends in the retail industry that have emerged in recent years:
- Mobile commerce: With the increasing use of smartphones, more and more people are shopping online using their mobile devices. This has led to an increase in m-commerce as more retailers optimize their websites for mobile and offer mobile apps for shopping.
- Social media commerce: Social media platforms such as Instagram and Facebook have become popular channels for e-commerce, with many retailers using these platforms to showcase and sell their products.
- Subscription-based models: Many retailers are now offering subscription-based models, where customers can sign up to receive regular deliveries of certain products. This model has become particularly popular for products such as groceries, beauty products, and pet supplies.
- Personalization: Retailers are using data to personalize the shopping experience for their customers, such as by offering personalized product recommendations or customized email campaigns.
- Omnichannel retail: Omnichannel retail refers to the combination of online and offline channels, such as physical stores and e-commerce websites. Retailers are using omnichannel strategies to provide a seamless shopping experience across all channels.
- Artificial intelligence and machine learning: Retailers are using artificial intelligence and machine learning to improve the shopping experience, such as by using chatbots to answer customer questions or by using algorithms to personalize product recommendations.
- Voice commerce: The increasing popularity of smart speakers and voice assistants has led to the emergence of voice commerce, where customers can make purchases using voice commands.
- Augmented reality and virtual reality: Retailers are using augmented reality and virtual reality to enhance the shopping experience, such as by allowing customers to visualize how a piece of furniture would look in their home before making a purchase.
When you join the e-commerce world, you’ll face a number of challenges as a retailer, including competition, the need to effectively manage inventory and logistics, and the need to provide a positive customer experience. As a result, the most successful retailers tend to have exceptionally well-thought-out online marketing strategies, efficient processes, and impeccable customer service.
Stand out from your competitors
There are some tools to use as an e-commerce retailer to sell more:
- Email marketing: Use email marketing to send newsletters, promotional offers, and other content to your subscribers. This can help you build relationships with your customers and drive sales.
- Social media marketing: Use social media platforms such as Facebook, Instagram, and Twitter to promote your products and interact with your customers.
- Paid advertising: Use paid advertising platforms such as Google AdWords and Facebook Ads to reach a wider audience and drive traffic to your store.
- Customer reviews and ratings: Encourage your customers to leave reviews and ratings on your products. Positive reviews can help build trust and credibility, and can also influence the purchasing decisions of other customers.
- Personalization: Use data about your customers to personalize the shopping experience, such as by offering personalized product recommendations or tailored email campaigns.
- Testing and tracking: Use A/B testing to compare different versions of your website or marketing campaigns to track them and see which ones perform the best.
- Customer service: Provide excellent customer service to build customer loyalty and encourage repeat purchases. This can include live chat support, email support, or phone support.
- Mobile optimization: Make sure your store is optimized for mobile devices, as more and more people are shopping online using their phones.
- Search engine optimization (SEO): Use SEO techniques to improve the visibility of your store in search engine results, such as by optimizing your product descriptions and website content for relevant keywords.
- Retargeting: Use retargeting to show ads to people who have visited your store but have not yet made a purchase. This can help bring them back to your store and increase the likelihood of a sale.
To wrap up, E-commerce has seen consistent growth in recent years and is expected to continue growing in the future. This growth is driven by the convenience and ease of shopping online, as well as the ability to reach a wider audience and offer a wider selection of products and services. It is important for businesses to adapt their strategies to new trends and meet the changing needs of their customers.