The ever-upgrading digital world has revolutionized the retail environment. Through all the transformation, one facet of the marketplace is unaltered. The integral role that the in-person shopping experience plays a crucial role in qualifying a customer’s purchase decision. People are happier when they get the real look and feel of the item they intend to buy.
Despite the convenience of online shopping, there is something about traditional shopping methods, that makes it better. However, big data support the popularity of brick-and-mortar shopping experience.
According to 2013 US stats, eCommerce spending continues to grow. Buying consumer goods and products online represent 6.5% of all retail sales. However, the stats for traditional methods own 93% of the retail marketplace. Traditional in-store retail sales account for $4.5 trillion in income, versus $273 billion for eCommerce sales for 2013.
Currently, traditional barriers to online purchasing are reducing to a large extent. It is making e-markets accessible to every kind of user. The reduction in the shipping charges is one of the prime steps that is promoting the online shopping experience. The increasing confidence of the users in the online purchases YOY is creating inflation in eCommerce performance.
The mobile app development technology is increasing and is one of the prime reasons for the upliftment of the eCommerce platform. 74% of the users purchase a mobile. Mobile plays a vital role in merging shopper behavior and choices between the physical and online streams. Eight out of ten online shoppers are trusting the smartphones of their shopping decisions and engagement.
The resurrection of eCommerce is happening all around us. What dies in the traditional marketplace is reborn online. Commerce is raising from the dead online, offline, and somewhere in between.
Here are some future trends 2020 & beyond that justifies eCommerce is dominating local stores.
eCommerce takes share but growth cools
The overall retail market was expected to reach $25 trillion in 2019. However, the growth has slowed down. On the other hand, Worldwide eCommerce sales topped USD 3.5 trillion, an 18% increase since the last year. It is assumed to double by 2023 to more than $6.5 Billion. eCommerce is growing much faster than retail, but it is still a small piece in the cake.
Direct to consumer sales
Manufacturers and traditional brands are increasingly bypassing the retail partners and selling directly to customers. Selling directly to consumers yields three benefits:
You own the customer relationship
With a direct relationship with the consumer’s brands no longer relies on retail partners to promote and protect the brand’s name. The DTC sales help in creating a relationship with the user and continues to give support after the sale.
Collect and use customer data
Selling direct lets you collect the data of the user that you can use to personalize the customer experience, and exactly know how to monetize that relationship.
Offer personalized products
Brands are increasingly allowing shoppers to design custom packing, mix, and match custom items.
PWAs and AMPs drive mobile commerce
Analysts estimate 53.9% of all eCommerce sales will happen on mobile devices by the end of 2021. It is necessary to know that your site or app must be responsive and fast. To offer an optimal mobile experience, some brands opt for a progressive web application that can reside on a smartphone’s home screen and can entice users to purchase with luring offers. AMPs AKA accelerated mobile pages are mobile-first HTML copies of webpages with very little loading time. AMP’s are known as the foundation of the Google SERPs. The combination of PWA and AMP yields better results, more top-of-funnel traffic, and improved conversion rates onsite.
Automation powers productivity
Automation is beneficial to brand expanding internationally which requires operating multiple stores with a large inventory and greater networks. Brands are using automation to scale faster and efficiently. Ecommerce automation eliminates manual, consistent, and time-consuming tasks that reduce productivity.
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Brands operating their warehouse will consider robotics to cut costs and become more efficient. 48% of the businesses are using new technology like automation to help reduce their workforce.
Sustainable eCommerce goes mainstream
Consumers want brands to lead with their values and act as good citizens by using green manufacturing practices, eco-friendly supply chain, and waste packaging.
Organizations are cutting waste to more efficient. Automated routing orders in rule-based ordering save time, expedites fulfillment, and reduces shipping costs.
The eCommerce is dominating the local store, but it will never overtake it unless, with the help of AR, a user gets to see how that product will look or work with the user. It needs years of commitment and great minds at work with advanced technology to deliver such kind of experience. Until then, eCommerce sales are rapidly increasing over the years and are expected to rise more than the retail market soon.