Changes in consumer behavior have led to a revolution in the retail market. The rise of eCommerce, or online retailing, has had a major impact on the way consumers shop and has led to a decline in physical store sales. But does this mean that eCommerce is the future of retail?
First, it is important to recognize that physical retail still has great importance. Many people enjoy the experience of going to a store, touching and trying a product before buying it, and talking to a salesperson for additional information. In addition, physical stores may offer additional services, such as the ability to pick up an online order in-store or return a product at no additional cost.
However, eCommerce is here to stay and is expected to continue to grow in the future. The convenience of shopping anytime, from anywhere and the ability to compare prices and products from different online stores is something consumers value highly. In addition, pandemic and social distancing measures have led to a significant increase in online shopping.
One of the advantages of eCommerce is the vast amount of data that can be collected about customers and their shopping preferences. This allows companies to personalize the shopping experience for each customer and offer product recommendations that really matter to them. Emerging technologies such as artificial intelligence and augmented reality also have the potential to further enhance the online consumer experience.
In terms of cost, eCommerce can be more cost-effective for some companies than physical retail due to savings on rent and other operating costs. In addition, companies can leverage online marketplaces, such as Amazon or eBay, to reach a wider audience and expand their global reach.
In conclusion, while physical retail still has an important place in the marketplace, eCommerce is undoubtedly the future of retail. The companies that best adapt to new trends and technologies will have a clear competitive advantage in the retail market.
eCommerce has experienced steady growth in recent years and is expected to continue to grow in the future. According to Statista, worldwide online retail sales reached $3.53 trillion in 2019, and are expected to reach $6.54 trillion by 2022.
Mobile shopping is on the rise. More and more consumers prefer to do their online shopping via their mobile devices. In fact, according to Statista, in 2019, 67% of eCommerce sales worldwide were made from mobile devices.
Consumers expect brands to be on multiple channels. Omnichannel allows consumers to shop online, pick up products in physical stores, and many other options. According to a Harvard Business Review study, companies with omnichannel strategies achieve a 5% increase in short-term sales and a 10% increase in long-term sales.
Personalization is key for eCommerce. Most consumers want personalized experiences. According to a study by Epsilon, 80% of consumers are more likely to make a purchase when offered a personalized experience. This includes product recommendations, offer personalization and customized content.
VR will become an important tool for eCommerce by allowing customers to view and experience online products in a completely new and interactive way. This will allow customers to "visit" online stores and view products in 3D, resulting in a more immersive and engaging shopping experience.
AI is increasingly being used in eCommerce to further personalize the customer experience and improve customer service. AI will enable companies to recommend products and services based on customer purchase history and preferences, as well as provide real-time customer support.
The focus on sustainability and the shift toward green production and delivery will also affect eCommerce and traditional retail. Businesses and consumers are becoming increasingly aware of the impact that products and services have on the environment, which will further drive demand for sustainable and environmentally friendly production and delivery.
Voice assistant devices, such as Amazon Echo and Google Home, are gaining ground in online shopping. Customers can use voice commands to search for products and make purchases without having to interact with a screen
Automation and chatbots are transforming online customer service. Chatbots can help customers find the products they are looking for, provide detailed information about products and services, and answer common questions. This can save time and improve the customer experience.
Instant delivery is increasingly becoming a necessity for customers. Companies are working hard to provide faster deliveries, and same-day or one-hour delivery is expected to become the norm in the future.