Customers preference has changed due to e-commerce and many of them are now choosing to order products over online through smart devices that can be delivered at their doorstep. Traditional retailers are investing in digital commerce because of this change. Amazon and Alibaba are considered to be highly successful because of their early implementation and accurate knowledge of their customer demands and needs.
Individual sellers have their own websites or they get into digital marketplaces such as eBay or Etsy where potential buyers or sellers can carry on their business with a bigger market.
The year 2021 has been the breakthrough for the e-commerce sector. Technology is referred to as the backbone of e-commerce and now it is evolving to be more human, preparing this industry for a better experience than ever before.
Prior to 2016, it was common to come across websites that were not mobile responsive, mostly static. Many e-commerce sites were making enough money simply by being desktop-friendly. However, in 2022 consumers value convenience even more. Mobile shopping allows consumers to place orders while on the go, and its popularity is reflected in the numbers.
The fundamental reasons for E-commerce to be well liked and accepted among consumers because of free shipping and extensive range of products.
Trends in E- commerce:
- Social Commerce And Live Shopping Gained More Traction
- Green Delivery & Sustainable Packaging
- Greater Flexibility
Convenience of market place and wide range of choices for customers is a strength for the e- commerce industry in certain stores exclusive merchants are been sold only through online channels which clearly is a huge triumph for the retailers.
The products displayed on the screen can’t be touched and for certain products such as electronic goods, the instructions even though stated in manual becomes difficult for a customer to understand without proper customer service and this becomes an hurdle. The duplication of products is very easy and the safety of certain products endorsed by influencers without prior knowledge about the adverse effects is still an ongoing obstacle.
Challenges faced by the retailers:
- Customer Experience
- Cyber security And Data Security
- Customer Loyalty
- Online Identity Verification
The United States has one of the world’s largest e-commerce markets. Among the top ten e-commerce companies, five are headquartered in the US. Amazon, Home Depot, Walmart, Alibaba, Prosus, Costco, Reliance Industries, Meituan Dianping, Shopify and Target are among the key players of the industry.
In 2021, the global retail e-commerce sales amounted $4.9tn and it is expected to grow to ~$5.545tn worldwide in 2022.This number is expected to continue growing over the next few years, proving that e-commerce is becoming an increasingly lucrative option for businesses.
For details on Regional analysis and business models please feel free to refer to the following E -commerce Industry report from CrispIdea: