Due to the enhanced growth of the e-commerce sector, the whole retail landscape is rapidly changing. In 2017 e-commerce generated $2.3 trillion in sales and by the time of 2021, it is forecasted to double. Numbers speak for themselves, which makes it clear that e-commerce is the next big thing in the retails market. With more companies abandoning traditional shops and moving to online commerce, it is essential to know what encourages trends like that. In this article, we present five ways how is e-commerce transforming the retail landscape.
Implementation of New Technologies
E-commerce is an innovative sector because most of its operations are made online using new technologies. It accelerates an implementation process of other more advanced technologies, such as AI, IoT, blockchain and related digital achievements. For instance, by using AI (artificial intelligence), it becomes easier to provide real-time consultations and solve many issues that buyers face during an ordering process. Commonly, AI is used as live chatbots where customers can consult with digital assistants. The technology eliminates problems such as shopping cart abandonment or hiring additional employees.
Online shops are more advanced than traditional ones because they can offer customized service. By registering, customers give their details, by doing that they usually have an option to provide the shop with permission to use their data for advertising purposes. With the agreement, online retailers can use the information to customize promotions, email campaigns and invites. The best thing is that customers love it, for instance, 78% of e-shops visitors won’t consider opening an email if it’s not customized. Sounds interesting? Then find out more related statistics on ecommerce statistics 2018.
Easy Way to Start a Business
E-commerce is not only transforming the ways people shop but also encourages entrepreneurs to start companies. It is easier than ever to open an e-shop and sell your products online. More than a half of millennial generation in the U.S. consider opening their own business, which makes them the most entrepreneurial generation. However, we can assume that this process is impacted by a simplified start of an enterprise, especially, an online one. An e-commerce business is appealing for younger people as it doesn’t need big investments or strict location and time requirements. Due to more people are getting involved in online business it enhances the world’s economy and solves many social issues, such as unemployment, homelessness, and emigration.
With the more people using mobile phones and a rapidly expanding usage time, the ability to shop via mobile phone is a significant turn in the online retail sector. It made shopping even more accessible to consumers and increased online sales. In 2017 mobile shopping accounted for 66% of traffic to e-shops and by that, it outruns desktop shopping. Even the times when people shop in physical stores, they use mobile phones to find information and evaluate products. Therefore e-commerce is way more beneficial than traditional retail due to an easy mobile implementation in the sector.
Open Global Market
E-commerce opened borders for shoppers from all around the world. Now in case you want to buy an item from China or the U.S., it takes just a few minutes to search for it and make a purchase. China alone accounts for more than 23% of e-commerce sales, the second is the UK with 19.1%, and the third one is South Korea with 16% in retail sales. It helps consumers to choose better prices, preferred countries, and brands. Online shopping benefits people who are located in rural territories where is hard to find and buy certain goods. Additionally, it does not only make shopping more accessible but also guarantees a more significant profit as your audience doesn’t have to be based in one location. It facilitates shopping and enhances the experience and the possible outcome.
E-commerce is not a new way of distributing and shopping for goods. However, the sector is rapidly growing and along its way implementing the latest technologies. With the enhancement in innovations and furthermore sales, online retail is changing traditional shopping habits. As we still need physical shops for a different kind of experience, more and more purchases are made online. With the advantages as globalizing the market, encouraging people to take on a business, and mobile adoption, e-commerce is concurring the world.