How much will ecommerce grow?
Consumers left purchases in physical stores and preferred to connect online due to Covid-19 pandemic.But while there was a radical change and the figures are impressive, the growth of ecommerce is actually less than many people think.
In the US, for example, the current penetration of the total market of groceries and durable products for the consumer is around 13 percent and, according to experts, will grow to about 17 percent by the year 2025. inOther words, traditional companies still dominate 83 percent of the market.
Moreover, the way in which the trajectory is emerging is interesting.Unlike many other technological revolutions, behavioral changes are produced linearly.Consumers are not accelerating at all the adoption of online purchase habits.Instead, it is more a straight drip that seems to take many more decades to develop.
Ecommerce, therefore, will probably not be as great as it is believed.Yes, it is an opportunity for several billion dollars.But compared to the size of the retail economy in general, it is still small.Real action is still happening in physical stores.
That does not mean that there have been no heartbreaking changes in the market in recent years.After the advent of the pandemic, the online shopping volumes shot up.Specialists compare it with having a large sale of Black Friday due to the large increase in online orders.
Naturally, things calmed down a little after that, but the impulse of the sector is not something that can last.There are indications that consumers prefer stores.Around a third of the people now feel more comfortable by going to stores than in mid -2020, when the initial waves of the pandemic were reaching their maximum point.
Next, we look at some of the implications of these facts for companies.If the ecommerce will not grow exponentially as many expected in the sector, what does that mean for today's online stores?
Being 100 percent online may not be the best strategy
Amazon bought the healthy food chain Whole Foods almost 10 years ago.It was an intelligent movement.The brand had cult followers and is certainly moving with the times by offering consumers delicious and healthy foods they love.
But there was another motivation.Amazon seemed to know (even then) that the exponential growth rate of online purchases would probably not last.The behavior analysis suggested that it would probably come to an end and continue slowly from that moment.
The need to enter the physical space was, therefore, fundamental.Amazon saw that, although online purchases would grow, they would probably not be particularly fast, which would differentiate them from most of the experiences of technology companies.
However, being Amazon, the brand did not stop there.He began to create a store concept called Just Walk Out that would allow consumers to literally collect items on the shelf and then charge them when they left the store, without the need for a cashier.
When the brand discussed the concept for the first time, it seemed science fiction.But now, in 2022, there is technology for this to happen and is operational.In addition, Amazon is now selling the solution to external retailers.This means that any store, whether digital or physical, can now implement the same world solutions in your company.
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Amazon has developed a kind of holy grail, eliminating the need for ATMs and replacing them with cameras, sensors and applications.Of course, it offers alternative boxes and self -service kiosks for people who want to use them, but they are a minor part of the attractiveness of their Fresh and Whole Food stores.
The main benefit to consumers is that they can enter and leave without having to line up.For your business, there is also a clear attraction.Having a physical store, you can diversify its operation and avoid depending on the seemingly slow rhythm of change in the ecommerce sector.
Waiting for change is not an option
While changes are being produced and more people buy online, it is a process that will probably be carried out for decades, not in the coming years.For that reason, online retailers must abandon the idea that paradise is just around the corner.It probably is not.Instead, they need to discover how to increase online sales through other channels.
The best ecommerce companies find a way to give consumers what they want differently.For example, there are millions of people who want to buy artisanal products of high quality artisans, in particular clothing and jewels.However, finding these options in the traditional market was always a challenge.Unless I knew where to look and who to commission, was lost.
SEO will become even more important
Naturally, with all the competition in the ecommerce sector, SEO will collect more importance.Moreover, it is increasingly difficult to take advantage.Many platforms now integrate SEO into the tools they offer to their sponsors, leveling the playing field.
However, the way in which Ecommerce companies address SEO is changing.For example, the industry is seeing an increase in detailed content in product pages.Companies are realizing that they can generate more interest from Google if they essentially place a blog under their product listings.
Interestingly, this is only partly for SEO purposes.Much is content that buyers want to consume.In many cases, it helps to promote them to make purchase decisions when explaining the benefits and sensations they will get if they continue and click on the purchase button.
Subscriptions will be the best way to earn money
From 2022, we are likely to see many other ecommerce stores following Amazon's example in terms of subscriptions.The reason for this is simple: subscriptions make customers return again and again.It is an intelligent psychological tactic, particularly among those who want to feel that they are obtaining a "good value" of any service they buy.
Just remember, if you decide to follow this route, you must offer consumers an additional value.It is likely that simply giving them free delivery is not enough.
Sustainability will be a primary concern
Amazon took measures recently to ensure that all its containers are totally recyclable and, in this sense, the brand is doing well.However, other companies are a little slower in adoption, partly because they have not yet had time to change their packaging and distribution methods.
Consumers care about sustainability more than ever.There is a growing awareness that the current mode of operation is not supporting the planet.People want to put their grain of sand to combat this and at the same time consume the things they want.
Survey after survey, for example, find that the interviewees want to see evidence that online stores are adopting sustainability measures and using less packaging.Companies that are able to do this will demonstrate their worth in the eyes of consumers and can attract more businesses.
B2B electronic commerce will expand
Finally, there is significant evidence that companies are changing their purchase behavior, even if consumers are a little slower in acceptance.The B2B digital market of global companies now has an estimated value of 1.1 billion dollars and grows approximately twice the rate of the ordinary consumer market.
The reasons for this are complicated, but it has a lot to do with the desire to reduce costs.Companies know that it is cheaper to ask for what they need online instead of calling or going to a physical deposit.In addition, telephone calls and seem irremediably outdated.Why not simply click on a button and then essentially automate the order task?
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