E-commerce is a growing platform that lets businesses display products online. But how does that happen? Is it online website creation and small warehouses that help businesses to increase their sales?
Did you like the shoes you bought from that website last week? Of course, you are glad that you can buy products online without much hassle but you don’t understand how it is rising so fast? Worry not! We are here to break it down for you.
Oops, we ended up asking you questions instead of answering yours, didn’t we.
But it’s given that these questions would have crossed your mind multiple times, one way or the other. We are here to provide you answers to these everyday questions you have, which you are often afraid to ask others often.
What is eCommerce and how vast is it?
You would be thinking “Really? Are we talking about this?”
Well, we are. You would already know that e-commerce encompasses all the transactions which are conducted electronically. There is very little possibility that a business doesn’t have any presence on the internet these days.
Startups, big enterprises, and everything in between have an e-commerce presence. The rise in e-commerce is happening at an exponential rate.
The global market was valued at $ 9.09 trillion in 2019. Blown away? Not only this, but it is also expected to grow at a compound annual growth rate of 14.7% between 2020-2027.
We don’t need to go into the details about what constitutes e-commerce, but you definitely would have heard of terms such as B2C or B2B. Uhm, Shark Tank says hello!
Transactions take place not only between consumers and businesses but also between consumers and customers as well as between businesses.
The rise of e-commerce has been swift, to an extent that you wouldn’t find a single large retailer who doesn’t have an online presence.
More than that, many new businesses have come up that connect the seller directly to the customers, which in today’s world is called D2C.
So where does new-age technology come in? Yes, you are right. It comes everywhere. Technology is nearly inseparable when we talk about e-commerce as it helps the business with various tools such as marketing insights, analytics, e-commerce logistics, etc.
How did it rise in demand and supply?
Let’s say you want to buy a few vegetables. You can go to that store which is over 4 km away from your house or you can order it online from your phone. With the likes of Blinkit and Zepto it has become easier.
What will you choose? That’s right, You’ll order it online. e-Commerce has made daily transactions in life very easy and manageable.
We can understand the rise in a better way if we break down the demand and supply aspect of it.
- Consumer Demand
- Producer Supply
If we look at the demand side of this whole scenario, the customers know what they want and where they can get it. Why would you want to buy stuff online?
- Increase in your utility.
- Reduced transportation costs for you, along with discounts and offers reducing your total bill.
- Reduced time spent shopping for your desired item.
- Gives you an incentive to use that time elsewhere.
- Increase in knowledge about products with detailed explanations.
- Varied choices suiting varied expectations.
Understanding the demand aspect sort of begins with understanding the reason why there is a rapid rise in e-commerce demand. This can be attributed to the following aspects:
- Marketing strategies are devised by the business to suit consumer preferences almost perfectly.
- Affordable prices and an increase in consumer engagement.
- Increase in the accessibility of electronic devices and an increase in internet penetration.
- Easy to use and quick results.
Easy? Absolutely. With one click, you can make the payment and buy the product without stressing out about how you will bring that product back home.
Similarly, when we see the supply side of this scenario, the increase in supply can be mostly attributed to the rise in demand for e-commerce.
It has become increasingly necessary for a business to be aware of the rush they might face due to increased customer demand.
Good quality products, timely delivery, product customization, hassle-free search options, etc. help a lot to maintain customer loyalty.
Not to mention, with improved resources for businesses, they have become more capable to meet the increasing demands of consumers.
Yes, it works like a loop.
Businesses have started looking to expand their distribution chain and warehouses to accommodate the rise in demand.
E-commerce logistic models have made this work easier, to say the least. So “let’s dive deeper into this. Why has the supply increased?”
- Better e-commerce logistics are used by businesses which has made procurement of raw materials and delivery to customers easier.
- Having a country wise presence, moving forward to a global presence.
- FinTech companies enable faster and more secure payment methods.
- E-commerce solutions for businesses to help maintain an online storefront.
Demand and supply forces have strengthened the presence of e-commerce widely.
What will be in the future?
Oh no, you don’t have to worry about e-commerce platforms shutting down. You will still be able to buy your favorite stuff online, and maybe do more than that, in upcoming times.
In the next four years, e-Commerce platforms are expected to have growth in trillions of dollars. Can you believe that?
Let’s find out why will this happen:
- Long term relationships with customers
With rising acquisition costs on the part of businesses, long-term relationships are encouraged with customers. By keeping the brand identity at the forefront, consumer trust is built, which leads to better relations between the business and its customers.
2. Increase in online retailers
There are very few barriers to enter in e-commerce. This has generated a large influx of online retailers, from small businesses to large enterprises. By following the pattern in consumer demand, it isn’t much difficult for businesses to deliver exactly what the customers want.
3. The rise in e-commerce marketplaces
Apart from personal websites, e-commerce marketplaces such as Amazon, Flipkart, etc. have increased the basket of selection, along with customer ease. They have managed to get on-board many brands that enable purchases to be hassle-free for the consumers.
4. New marketing strategies
Oh, this should be very interesting. While the paid advertisement has been increasing in cost, attributed to the rise in online retailers, social media has come in to fill in this void. Businesses create their online presence and directly connect with customers. With trendy posts, reels, and celebrities on board for promotion, maintaining a good brand image has become very easy.
5. User-friendly experiences
E-commerce ensures that consumers don’t have to worry about physically going to the store while purchasing online. Newer technologies such as voice and image search further make it easier for customers to make hands-free payments.
While it may seem unbelievable, the rise in e-commerce is so swift and engaging that it will be very difficult to go back to a model which doesn’t have an online presence involved.
Do you have a business model you want to start with but are not sure how to go about it? This is where e-commerce logistics comes in.
How do we leverage e-commerce technologies?
At present, it isn’t uncommon to see new-age technologies leading digital transformation. Remember the chatbot you saw on the Xyz website? Most of the new companies are integrating this tech assistance to have improved revenue and profit.
Here are a few technology trends that are in circulation at present which will make your brand reach even better than before:
- eWallet technology
- It helps in storing money for future online transactions.
- It eliminates the need to carry a physical wallet around to make payments.
- They are a fast mode of payment.
- They are easier to keep a track of.
You don’t have to worry about COD or the blockages which come with that. eWallet technology will ensure that your e-commerce business reaches people everywhere and payments are never a hindrance for them.
2. Voice and Image search
- Helps with a better comprehension of the search query.
- Gets results quicker.
- It’s easier for your customers to make search queries without placing restrictions.
With voice and image search, your customers will be happy to place orders anytime, anywhere.
3. AI Chatbots – Enhancing Customer Communications
· Boosts the brand image and helps in improvised results for online shopping.
· Helps the customer to match their interest.
· They ensure security which helps in the enhancement of customer communications.
You don’t have enough funds to have large customer care to answer all the small questions that your consumers have? AI chatbots will effectively solve this problem for you!
4. Augmented Reality (AR) and Virtual Reality (VR)
- AR helps customers to visualize products from online stores.
- VR will help to provide exact and up-to-date details for consumers to make good buying decisions.
- Your customers will be more inclined to buy a product if they are allowed to try it out virtually.
With technologies of AR and VR, your brand will not only become more visible but will also increase your customer’s inclination to buy a product.
5. Product Customization
· It makes purchases more convenient for your customers.
· With product customization, a consumer’s choices are well matched.
· It will increase customer loyalty and bring up sales.
· Your customers are likely to visit your site again if you offer product customization.
Your customers will be glad to be on your websites if you show them personalized products. It will save their valuable time and make the purchases swift!
Artificial Intelligence along with extensive data analysis is helping companies to meet consumer demands as well as delivery deadlines. With this, it isn’t difficult to see the rise in e-commerce logistics companies.
The rise of e-commerce has led logistic companies to provide high-end solutions. They even provide the analysis of the risk percentage of orders in case the consumer “returns” the product. Resolving COD defaults by using cashless payments is also another way through which e-commerce brands are moving forward.
Why is this important though? What’s the big deal about it?
1. Increase in Customer Loyalty
Placing customers first is the most important thing. By adopting new-age technologies, companies can be assured that most of the consumers will get their products. Real-time updates about shipments will further enhance the trust of the customer in the brand.
2. Maintaining a balance between sales and return orders
These days, customers prefer to have a choice to return their online packages if they do not like the product. But what if the chances of return are so high that you end up making huge losses? Analytics for the same need to be used so that you can make the best out of consumer demands.
3. Resolving to ship of products
Cost reduction is very important to make good sales. AI logistics which help in assigning cheapest as well as fastest couriers that will reduce your shipping costs and increase your profits.
4. Handling all different aspects of logistics
We understand how overwhelming taking care of everything is. By outsourcing your needs from different channels, platform integration fees are charged. Hence to make the best use of logistics, combining them all into one global shipping platform is essential.
iThink logistics provides you with this and more! We understand that keeping up with the rise of e-commerce is not easy, especially when you have to deal with other challenges apart from shipping.
By having a good logistics team by your side, you can ensure that your company and the future of e-commerce are highly aligned.
Evaluating services, distribution techniques, consumer demand, etc. will help you to conduct your business more efficiently.
iThink offers the following latest technologies which will help your brand keep up with the rise of e-commerce:
- AI-driven recommendation engine
- Patented 6 Step NDR
- Real Time Tracking updates
- White label tracking page
Amongst these broad categories, many tools are being offered to our dear businesses such as delivery tracking, 4-step verification, automated reattempt, multifunctional dashboards, and auto-generated reports.
We understand how important it is to keep up with the latest technology to ensure that you are one of the best players in the market, to whom consumers refer.
With improved e-commerce logistics by your side, you’ll find out that you don’t have to spend too much time on solving short problems. You can put your complete focus to business expansion and customer satisfaction, with better results.
All in all, it is truly important to engage with new-age technologies if you want to keep up with the rise of e-commerce. Getting together with e-commerce logistics companies is one step in this direction.