Ecommerce Is Taking Over The World: Here's Why
Online shopping has changed the way we live. It’s made buying things so much easier than it used to be when we had to go out and physically visit brick-and-mortar stores to do our shopping. Thanks to the Internet, we can purchase things from almost anywhere in the world with just a few clicks of our mouse, whether they’re books, groceries, or plane tickets. This ease of use has led to an increase in ecommerce and will continue to do so in the future, making it the fastest growing industry on Earth
How ecommerce is changing retail
Have you noticed that more and more people are buying things online? If so, you’re not alone. Ecommerce is growing rapidly, and many experts predict it will soon dominate traditional retail channels. In fact, there’s even a movement of consumers who are ditching traditional shopping entirely in favor of ecommerce—the so-called digital nomad or frenchee. What’s driving these trends? Read on to find out! Why ecommerce isn't just for big brands anymore: If you have an established brand with loyal customers, then you might be able to grow your business through brick-and-mortar stores. But if your brand is still relatively new, you may want to consider using ecommerce instead. This is especially true if your product appeals primarily to techies or other early adopters; those folks tend to prefer doing business online because they don't like waiting for physical products and they love being able to research multiple options at once before making a purchase decision. How we're evolving our buying behavior: As ecommerce grows, we're changing how we shop. We're increasingly comfortable purchasing expensive items sight unseen (think furniture) and returning them later if they don't work out. We're also willing to pay extra for convenience (shipping costs), speed (same-day delivery), and privacy (online payments). Even our definition of buying has changed; now we'll often buy something by watching a video ad or reading an editorial review rather than spending money directly. How to win in ecommerce: So what does all of this mean for retailers? It means that you need to keep up with changing consumer expectations if you want your business to succeed over time.
How ecommerce is impacting other industries
With ecommerce continuing to grow in popularity and businesses of all sizes continuing to take advantage of it, it’s time we look at how online shopping is changing not only retail but other industries as well. In fact, new companies are formed around ecommerce almost every day. And small business owners who have successfully made their brands into household names have even created multiple revenue streams that make more money than their traditional brick-and-mortar counterparts ever could. While online shopping isn’t for everyone, there are certainly some benefits to consider before you write off ecommerce altogether. We don’t want you to just take our word for it; here are some stats and examples of how ecommerce has changed other industries over time.
When looking at how ecommerce impacts other industries, it’s important to note that most people don’t see why they should shop anywhere except online. After all, it doesn't really matter where you buy something if you get it quickly and conveniently while saving money. As a result, many brick-and-mortar establishments are beginning to see fewer customers walking through their doors—which impacts their bottom line. For example, when San Francisco based Macy's saw comparable sales drop 2 percent during its second quarter , part of the blame was placed on foot traffic dropping 11 percent year over year . But does declining foot traffic impact more than just clothing stores? Absolutely!
What will be the next trend in ecommerce?
Whatever you do, make sure it can be easily replicated by other people—and make sure you know how to scale it. By doing so, you set yourself up for success. (After all, there’s a reason successful businesspeople are often so successful.) We’re seeing lots of opportunities in ecommerce. One big trend is that more and more businesses are realizing that they don’t need to sell physical products to make money from ecommerce—they can just sell their own services instead. And because these types of businesses don’t have to keep large amounts of inventory on hand, they can offer those services at lower prices than if they were operating out of brick-and-mortar stores. That’s why many startups are choosing to focus solely on delivering services rather than trying to get into traditional ecommerce. And since they don’t need physical storefronts or warehouses, they can save money while also growing faster and reaching new customers. This has been especially true with companies like Uber and Airbnb, which have done huge numbers without ever needing to invest in real estate or deal with sales tax issues. Another hot area right now is mobile commerce; mobile shopping has grown quickly over the past few years as smartphones become increasingly popular among consumers around the world. As phones continue getting better, we expect that growth will continue accelerating—especially as more people start using their phones not only for online shopping but also for payments.
A look at how companies are investing in ecommerce
A survey conducted by Shopify revealed that companies are planning to increase ecommerce-specific investments in 2017. In fact, retail giant Walmart announced that it plans to spend $2 billion annually on ecommerce by 2018. Clearly, businesses are interested in growing their online sales presence and they’re willing to invest time and money into achieving that goal. So what’s driving these decisions? A clear trend is emerging — consumers are moving towards online shopping and businesses must keep up. With all of that growth happening online, it’s easy to see why some businesses prefer to move forward with an ecommerce solution rather than adding physical storefronts or opening additional stores. There are many reasons for that, but one of them certainly seems to be money. Ecommerce has been shown to cost less per transaction than brick-and-mortar establishments do, which means you can sell more goods at a lower price point while still turning a profit. This makes it easier for companies to reach new customers while also retaining old ones who want convenience and efficiency when making purchases. Of course, choosing ecommerce as your primary method of selling isn’t right for every business model — not everyone wants a digital storefront — but it does seem like an excellent choice for many enterprises.
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