The narrative that retail is dying is quite popular among many e-commerce players. But is the industry really collapsing? Despite the horror stories we hear in the media about retail bankruptcies and the dire consequences of the pandemic for many businesses, last year retail sales rebounded. Experts predict that by 2025, retail revenue worldwide will reach at least $30 trillion.
Despite the small uptick in retail success, it’s safe to say that retail is on the brink of disruption. High customer demands and the need for convenient digital services are forcing many businesses to adapt, which means moving to an electronic world. It’s undeniable that the role of the store is changing and shoppers are changing their habits fast.
This brings us to the ultimate question of whether retail is dying and how this will affect the future of e-commerce. Continue reading for more information on this topic.
Retail is changing, but not going away
Clearly, with the widespread use of technology, consumers have changed their habits. But does that mean they don’t spend? The answer is no. Pandemic restrictions may have crossed bridges, but since it’s not appropriate now, people are returning to stores and leaving their money there. From updating your wardrobe to upgrading your kitchen, retail is booming.
Naturally, some consumers see more gains in retail trade compared to online shopping, and when we think about it, it makes a lot of sense. You can touch and see the products in the real store. Seeing other customers face-to-face and interacting with staff is important, especially when you’re helping to decide if you want to buy that item. For this reason, some businesses remain open despite questionable profits. In this case, they see the store staff as a huge asset rather than an expensive expense. Oh, and not to mention the delivery drama. This is another factor that physical stores do not have to deal with.
What benefits do companies get from e-commerce
According to Statista, in 2024, e-commerce sales worldwide will reach the threshold of more than 1.3 billion dollars. Experts say that number will increase dramatically to 6.3 billion by 2024. Marketers say that with this type of expansion, it is difficult to maintain and keep your e-commerce business successful mainly because of the competition. In addition, as more companies go digital, it becomes more difficult to attract new customers. Advertising costs are huge and out of the budget for some e-commerce startups, experts say.
Despitea, new opportunities, e-commerce is attracting new investors. Of course, today’s e-commerce players must have a unique strategy and the right budget and aim for a segmented audience rather than talking to everyone. Smart and innovative e-commerce brands have insane odds of success. With all the benefits of digital, it’s no wonder why so many companies are switching to e-commerce:
It’s more convenient
The online store is open 24/7, which means you can shop anywhere, anytime. In addition, many e-commerce businesses provide a wide range of products or digital services in one place. You can filter and search for personalized offers, saving you time and money because you don’t have to cover travel expenses.
You can expand your brand
If you’re a business owner looking for new opportunities to grow your brand, e-commerce is a go-to strategy. Transition from a traditional brick and mortar store to an innovative brand can be drastic. Typically, e-commerce players focus on having a great online presence, including exceptional customer service, an informative blog, great advertising, influencers, and an overall presentable social media presence. With this in mind, these tools can help you expand your product range and get more customers at the same time.
It is easily scalable
As your eCommerce business grows, you’ll naturally want to add more items to your list and expand your target audience. Customers will dictate requirements that will require some changes. Everything is easier with an e-commerce website. You can easily scale your business accordingly. Analyzing customer behavior analytics, adding relevant payment methods, shipping options and more is easier when it’s online. You don’t have to think about moving to another premises, and you can focus your energy on increasing sales and perfecting your marketing strategy.
What’s next for e-commerce?
According to the latter expert ideas, rising e-commerce acquisition costs are pushing brands to focus on building long-term relationships with their customers. To achieve this goal, organizations will need to strengthen their connections with customers by exploring and defining a distinct brand voice in the near future. Generalized services without a sense of personal connection will not make for a successful e-commerce brand today. Of course, competition is once again putting pressure on the e-commerce sector.
This is why today’s e-commerce experts suggest investing more in branding. This way, you can increase your conversion rate and increase your customer lifetime value. Here are some tips to improve your eCommerce in 2022:
Collect more data about your customers
Have clear target goals and a detailed strategy to help you achieve them. There are many ways to analyze and collect data, but one of the easiest is through customer surveys. They easily help you measure your brand and allow you to learn more about your customers, which ultimately helps you build a better reputation and transparent relationship with your customers.
Use different channels
Do you think TV advertising is dead? Similar to retail, despite belief to the contrary, it is not. Having e-commerce allows you to experiment with different channels such as connected TV, voice shopping or even digital messaging apps. Standard advertising is great, but with rising costs, you may want to branch out and try new alternative channels. Also, don’t forget to think about your niche. Some brands today use Discord as a way to advertise their product. Perhaps this strategy will work for your brand as well.
Improve your security
Yes, we have come to the most interesting part. While people love e-commerce and being able to shop online at any time of the day, it also has a dark side. Sharing data and spending money is not safe on the Internet. Despite this, we have bad actors and fraudsters trying to use the digital arena to their advantage. This means that e-commerce businesses need to be extra careful when choosing payment providers. In addition, specific measures should be taken. For example, Identity verification is vital in attracting new customers to your e-commerce platform. This way you can prevent hackers and other suspicious users from logging in and accessing your important data.
It’s important to stress that the hype around retail being dead is a bit extreme, as post-pandemic retail sales figures have successfully disproved such a theory. Will we soon have even more e-commerce players? The answer is one big absolute yes. Despite the competition, e-commerce has not yet reached its peak, and due to high demand from customers, more and more services are likely to start selling their items online.