E-Commerce refers to electronic commerce which allows retailers to sell anything virtually. According to Statista reports, eCommerce sales grew from $1.3 trillion in 2014 to $4.9 trillion in 2021 which is an almost 276.9% increase in eCommerce sales globally. With the increasing accessibility of the internet and the liberty to buy anything from anywhere, more people can buy and sell online. This led to the massive explosion of eCommerce stores worldwide. Shown below are some major reasons that led to the tremendous eCommerce success in a very short duration.
- Personalized services
- Customers seek more options
- Integration with social media
- Omnichannel selling
- Mobile-friendly shopping
- Data-driven approach
- Increased investments in logistics and warehouses
- Enhanced cashless transactions
Ecommerce is gaining huge popularity due to its user-friendliness in selling products. Having an online store makes it easy for customers to order the products they desire, anytime from anywhere. It eliminates the need to visit a physical store, thus saving a lot of traveling time and money. People compromise on most of the things in life. Shopping is one such activity that lets them buy or reject according to their wish without any compromise. Providing personalized experiences with additional discounts through your products will make them turn into your customers almost instantly.
Shoppers seek multiple choices for each product. They like to explore different colors, styles, and brands for the product they desire to buy. While the traditional physical store has a limited range of stock, eCommerce makes all of the options possible. Through an eCommerce store, every option is virtually displayed before the customers. It lets the customers pick whatever they want and purchase them. The availability of multiple options is a crucial driver of eCommerce growth now and also in the future.
According to the survey, 81% of people said that Instagram helped them to buy products or services. With the increasing number of social media users each day, it is obvious that people use social media to find answers to their questions or discover new products according to their requirements. Integrating social media into our store lets the customers ask their queries, and share their experiences with the world. Engaging in the comments section increases your brand credibility.
E-commerce growth has been exponential due to its ability to let sellers go omnichannel for creating a unique customer experience. According to the reports, around 73% of online shoppers use multiple channels for purchasing. Omnichannel presence lets the consumers buy your products across multiple channels with unified shopping experiences. Better customer experiences imply higher eCommerce success.
The millennials and Gen Z customers are inclined more toward mobile shopping. If your website isn’t mobile-friendly, our business might lose a large share of such customers. They can get real-time updates of the product launches, promotional events, etc right from their mobile phones. Also, the smartphones provide location-specific product recommendations and give better internet connectivity and voice-activated shopping leading to exponential eCommerce growth in the market.
Data and statistics reveal consumer behavior, changes in buyer preferences, what they like, and what no longer interests them, etc. Consumer behavior and demands change with time. Data serves as an excellent metric to keep retailers informed about the current market demands and allows them to make calculative decisions in the future.
Due to the extensive growth of the eCommerce industry, the demand for logistics and warehouses has also increased. The ability to buy from any corner of the country and the need for faster deliveries have enhanced the demand for the setup of warehouses. Some of the eCommerce stores have tied up with the local postal services and others have outsourced the delivery services. The customer's expectations for faster and safe deliveries are rising each day. Thus, to witness the further expansion of eCommerce, larger investments in logistics and warehouses are required.
Cashless transactions are found to be a major driver of eCommerce growth. Digital, cashless transactions are faster, secure, and efficient. It allows the customers to transact anytime from anywhere without being physically present. Also, a few stores offer discounts or rewards if purchases are made through digital wallets. The payments through UPI provide the fastest and simplest way of purchasing products. They can transfer either from a bank account or digital wallets within one or two clicks. The two-step authentication for secure transactions, effective management of finances using digital wallets, etc. is enhancing the customer experiences. Thus it serves as the biggest contributor to eCommerce success.
Conclusion
The above-shown factors are the current contributors to eCommerce success. With the changing demands of consumers and the evolution of smart technology, these contributors are not fixed and may change from time to time. If you feel like we have missed anything, please let us know in the comments.