FUTURE OF ECOMMERCE: WHAT YOU NEED TO KNOW

As Ecommerce is becoming saturated, what do you need to know about its future? Is it bright or blinking? We will get to know all of that in this article. From data gathered recently showed that; we are in for an Ecommerce boom. The future will be better, if all predictions become reality.

Most retail stores will pack brick-and mortar stores and leverage on electronic commerce.

Because customer’s data will become more and more needed by the day.

Spiteful edge digital brands are integrating the latest technology like voice search into Ecommerce. Some are enabling online-to-offline (O2O) strategies. Heritage manufacturing industries are beginning to sell direct-to-consumer (DTC) to boost revenue. The future of Ecommerce you need to know is that the world is becoming storefront by the use of smart mirrors, webinar and live TVs.

With estimated growth of $4.2 trillion USD in sales is expected this year and will rise to $6.5 trillion USD by 2023.

It is predicted that 2.1 billion people will patronize online shopping in 2021. In fact, the future of Ecommerce is massively transforming. This is just a slice of pie we are seeing. By 2040, about 90 to 95 % of transactions will be done online. That means, Ecommerce will substitute traditional retail business.

Ecommerce pop-up stores, called eShop will rise here and there: to establish more customer relationships and distribution chains. This will give room to online storefront present on Smartphones to enable quick and smart transactions. Speed, fast and easy buying is going to reach far unexpected heights. Drone’s delivery could shortchange delivery personnel. Ecommerce and mobile Ecommerce (Mcommerce) will grow revenue tremendously in future.

Already, reborn is taking place from retail stores by moving online that’s causing predicted shutting down of 12,000 retail stores. From offline to online (O2O), business owners are seeing a gradual exodus of customers into online purchase.

Progressive web application also supports the Ecommerce growth. There’re major perspectives to Ecommerce growth and trends in the future. We will stay to see all of this happen before our nose.

As Ecommerce keeps growing what areas these increases will likely affect.

PROGRESSIVE WEB APPLICATION(PWAs) WILL DRIVE Mcommerce

Web applications that have mobile features will grow business higher than others. Because 53.9% purchase from 2021 may occur through mobile phones. Presently, 60% of internet activities are done with Smartphones. Don’t expect that to happen without looking at it from this perspective. Only mobile responsive sites can experience huge patronage. Because only smartphone friendly web pages will see front pages of search engines.

About 53% online shoppers may abandon unresponsive sites, lazy loading and user unfriendly sites. To go for something better, then websites should consider Progressive Web Application (PWAs). This kind of application can stay on the user screen either online or offline. Critical analysis shows that headless commerce is coming through PWA.

Virtual Assistance (VA) and Artificial Intelligence (AI), even making things better. Google new indexing priority is Accelerated Mobile Pages (AMP) , making it appear first on the front page with uptime loading. Fast loading will be considered too.

PRODUCTIVITY THROUGH AUTOMATION

Many Ecommerce outlets will most likely automate operations due to rise in demand. Ecommerce future is bright with automation because those seeking to expand beyond locales to wider reach will do so easily. To open a large warehouse, inventory, delivery outside their main branch. It will eliminate time wasting human tasks by far.

With mcommerce, personal experience will become popular.

Gradually, shopping will be less intimate and focuses more on distance shopping. Human contact buying like retail shopping is not going to be achievable. Recommendation and suggestion apps will be most likely to be pronounced.

LOGISTICS COST WILL RISE

As the future of logistics in ecommerce changes to elogistics, technology behind it becomes expensive. Considering the fact that elogistics requires automation. Customers demand fast delivery, easy shipping and tracking. It’s now left for logistics companies to put in place every necessary gadget. Though these softwares are so expensive for ordinary logistics and startups. But it’ll become mandatory. That means only big brands will afford it.

Accompany automated logistics needs client’s database, computer gadget and staff training. To study market trends and client behavior with tracking applications. These are strategies that will take money off the pocket.

As eShop openings rise, it will give room for more demand and supply. Customers will want fast delivery and quality goods.

A satisfied customer, trusted logistics company that delivers at prompt, speed and reliability will be deployed. This means a company with high cost and standard delivery service is expected to make more money.

For instance, Amazon announced the use of drones for its delivery services soon. We know that this will be very costly. We know that creative innovations company that will maximize opportunity and revenue in future. Not every elogistics company can afford this. Big Titans will mostly adopt this advanced tech but startups will struggle or may likely crash or back out.

Among shippers, differentiation in the supply chain rests at the crossroads of digital transformation and applied data.

Logistics industry is growing along side Ecommerce because logistics moves together with Ecommerce industry. Most logistics company I know in developing country like mine. Charges in USD and price is often determine by exchange rate. Goods are weight by size of package, and sometimes exaggerated.

VOICE SEARCH EFFECT PURCHASE POWER

Following the integration of voice search into smartphones it becomes necessary to use this technology for buying. The Ecommerce industry is experiencing dynamic change at the moment because of consumer buying behavior. One of these voice search purchases.

How buyers search for products is faster compared to past years. Google said it has upgraded its voice search accuracy from 80% to 90%.

Other companies are doing similar things to approve voice recognition into search platform programs in a unique way for users. Like Nestle cookbook interface in falling in line to voice search to meet user’s demand. This internet cookbook is preparing its brand for future chefs and caterers. At any time queries, instructions are searched, information will be provided accurately.

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Report from Comscore predicted 50% over all online searches to be voice enabled by 2020.

The user base voice search is gradually growing. Some eShop brands are experiencing a purchasing order of 20% in grocery through voice search. Statistics said voice search purchase is expected to increase further to $40 billion USD by 2020.

Future of ecommerce may move buyers into becoming tech savvy. Because the Ecommerce future will be masterminded by high power technology to serve purchasers.

Domino has introduced voice customer search feature, making purchase orders with it.
Johnnie walker took it to a whole new level to allow virtual assistants suggesting products to customers based on interaction.
Nestle cookbook voice search integration brings instruction to users and also helps provide solutions to cooking related queries.

Amazon own Alexa has also profited greatly in this voice search market. What about Google Home that is gaining more and more growth in its voice search features from customer’s query. Some Ecommerce platforms are working to upgrade their portals to embed voice search by preparing for the future opportunity.

ECOMMERCE BOOM GLOBALLY

It is estimated that 1.4 billion people throughout the world will rise to the middle class from Ecommerce. According to one report, Ecommerce may shift from the US to Asia in some other places. Going by what China Ecommerce market share. Maybe 85% of this can emerge from Asian. If 2.1 billion shoppers will migrate from offline to online (O2O), which is a business boom to the Ecommerce sector.

Looking at the record of the fastest growing Ecommerce country, above half are from Asian, Latin America, and now the fastest growing Ecommerce country- Mexico.

Localisation is beginning to see expansion beyond national borders.

LISA Which is Localization Standard Association, discovered $1 spent on any investment brings with it $25 in ROI. Translation of Ecommerce into the local language is bringing remarkable success.

Since one of the advantages of Ecommerce is global reach. And low entry points. This created an opportunity for SMEs to start small and reach a bigger audience. This transforms to a big brand and optimizes for a bigger audience and higher RIO.

Rising Cargo and traffic infrastructure enables Ecommerce growth in Asia and North American, especially Mexico.

Read about: Advantage of Ecommerce over brick and mortar now

RISE IN ECOMMERCE SHARE

Going by present reality, retail store market still has big market share against Ecommerce from 2019 record it gain about $25 trillion USD. During the Pandemic things have changed drastically. The fall of offline purchase gives rise to Ecommerce growth. More shoppers now order from home. Global Ecommerce sale increase by 18% to reach $3.5 trillion USD now. This figure is predicted to double in 2023.

Ecommerce will be increasing by 2% consistently on yearly basis till 2023. Also, Amazon stock has risen by 2% and Bezos’s income has risen far above any other person in business. Alibaba, China biggest Ecommerce; fired up to about 62% in fiscal year recently. From 2018 till now, its stock goes up by 40%.

Conclusion:

This promising future of Ecommerce and what you have known. It becomes more important to leverage on this opportunity by channel your business towards this course. Before big competitors will over dominate the process. Get a Virtual assistant to introduce every feature you demand. Do your analysis, survey and findings. Test run to see how it works.

Most importantly, as an entrepreneur it is better to focus on the area best match for you and optimize. In order to be part of this ecommerce boom. We are waiting to see you at the peak of the Ecommerce industry succeeding.

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Humphrey Udoh

Elivechat Team