is ecommerce? And what trends are shaping it’s future? //

It is difficult, if certainly impossible, to find an older person who can use a digital device and hasn’t used it at least once in the last couple of years.

You’ve probably engaged in ecommerce if you have ever bought a regular shipment of laundry detergent, bidded on vintage sunglasses through an online auction, downloaded an ebook to your tablet, or read it on your reader.

Online shopping is possible for almost anything. Anyone can open an online shopfront and engage in ecommerce. Online retailers must be agile and able attract and retain customers through seamless, high-quality shopping experiences.

This article will discuss the basics of ecommerce, the trends that are shaping it, and the rise in mobile commerce, where customers can make purchases using mobile apps instead of links that take them to websites.

What is ecommerce?

Ecommerce can be described as the selling and buying of goods and services via the internet. Any type of transaction (B2B or B2C, C2C etc.) is covered by ecommerce. Ecommerce covers all transactions that are done online. Ecommerce allows businesses of all sizes, from small businesses to large corporations, to connect online with buyers and reach them anytime and anywhere.

Ecommerce has its roots in the 1970s. However, online trading of goods and services as we know them today dates back at least to the mid-1990s when the websites of Amazon and Ebay were launched. Nearly 30 years later, global retail ecommerce sales reached an astonishing $5.2 trillion in 2021. This figure is expected to grow another 56 per cent over five years according to Statista, a research firm. Amazon alone will make more than $1 trillion online by 2027.

Ecommerce is growing for many reasons. One of the main reasons ecommerce continues to grow is its convenience. Online shoppers are not bound by brick-and-mortar store restrictions — the internet is available 24 hours a days, seven days a semaine — and they can shop whenever they like. Tack on popular draws like free shipping, or the benefits and perks that come with online membership programs like Amazon Prime, and it’s not difficult to envision a future in which ecommerce dominates; by 2026, it will make up close to a third (31%) of all US sales.

Platform vs. Marketplace

Ecommerce is a way for business owners to sell their products online. Ecommerce platforms simply allow sellers and consumers to interact online through software applications. Marketplaces are, however, exactly what they sound like: a type ecommerce site that allows sellers to connect with buyers.

Online marketplaces offer a better alternative to traditional models. There are few startup costs and no website maintenance. However, online marketplaces face greater competition and are more difficult to distinguish yourself from the rest. Although platforms can be more expensive to set up and maintain, business owners have direct insights into the behavior of their customers, which makes it easier to build brand awareness and loyalty.

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Trends impacting ecommerce

It is impossible to overlook the impact the COVID-19 pandemic had upon ecommerce sales. In the United States, they were $870billion in 2021. This represents a 50% increase over 2019. The pandemic forced shoppers to make drastic changes to their shopping habits (online grocery shopping boomed), and it also forced businesses into a new era of ecommerce.

The world will adjust to COVID and all the disruptions it brings (supply chain problems; illnesses at distribution centers that cause shipping delays, etc.). Online businesses need to be ready for change and understand that customers are returning to brick-and mortar stores even though they shop online in record numbers.

Industry watchers believe that omnichannel sales is the future of ecommerce. It allows customers to shop online, in stores, and on mobile apps. It allows shoppers to have seamless communication across channels. The omnichannel approach allows customers to make purchases online and call customer service for return information.

Machine learning and artificial intelligence (AI), are, as you might expect, a major part of the future evolution of ecommerce. Ecommerce is becoming more efficient by leveraging data to understand how shoppers shop and then using that information to personalize the buying experience, as well as to help with business and inventory decisions.

Mobile and social commerce are on the rise

The rise of mobile or mcommerce, perhaps the most important trend in ecommerce, is perhaps unsurpassed. By 2025, retail sales via m-commerce — where shoppers make purchases using their smartphones or tablets through apps — will reach $710 million.

This is a great opportunity but sellers must be prepared to capitalize on it. Mobile websites must be simple to use and allow shoppers to quickly find what they are looking for. Another challenge is getting customers to make their purchases. Cart abandonment occurs when payment forms are complicated, filled with clicks, and aren’t intuitive. Apple Pay, Android Pay and Amazon Pay are mobile payment options that allow shoppers to purchase with just one click. Amazon’s “Buy Now” button also allows them to bypass the lengthy process.

The ongoing impact of social media on e- and m-commerce must be understood by sellers. Customers want to shop and buy items on their preferred social media platform. For brands, Instagram makes it easy to connect with customers. However, creating content that stands out and leads to sales is key. It is a highly competitive market, so sellers need to make an effort to engage customers.

Future of ecommerce

The future of ecommerce will be dominated by tech-savvy, sophisticated consumers who demand enhanced shopping experiences. Video shopping, where brands show products in action, is growing in popularity and could be a major trend in 2023. You shouldn’t underestimate the impact that social/video platforms such as TikTok have on large swathes of the purchasing population.

Cutting-edge ecommerce sellers are exploring virtual reality beyond traditional video. This allows potential customers to try out a product before they buy.

Another popular trend is the buy-now-pay later phenomenon. Customers love the option to divide large purchases into interest-free payments with Afterpay and Klarna.

Inflation’s impact on consumer purchasing habits can be offset by payment flexibility. Sellers are well advised to offer generous returns policies. This will increase the likelihood of consumers purchasing again from sellers that have easy returns. Flexibility in fulfillment (buy online, pick up in store) is another trend worth watching. Although it is not a new trend, convenience is the key to customers’ lives. Sellers must find ways to make this easier.

Ecommerce sellers must be prepared to serve the needs of the emerging market. Retailers face a formidable challenge and opportunity due to their buying power combined with their high tech skills.

Information about ecommerce

We have a lot of resources that will help you to learn more about ecommerce. These include how to build your e-commerce company and tracking how inventory pressures sales both in-stores and online.

You can find us anywhere on the internet:

• Shopify is a highly rated ecommerce platform and has a blog that contains step-by-step basics, case studies, examples, and much more.
• BigCommerce is another ecommerce platform . It discusses the pros and disadvantages of ecommerce, and provides a historical timeline.
• Amazon offers a detailed explanation about the subject.
• Practical eCommerce assists new online sellers to improve their marketing skills and general knowledge.
• Sprout Social is a social media management platform that helps e-commerce businesses harness the power and potential of social commerce.

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