Ecommerce is largely about execution. If you get the maths right, the rest should follow, given enough traffic and time for your site to establish. But for anyone involved in the ecommerce game, it is an environment that is constantly changing and upgrading as technologies improve and companies battle against each other to win a greater share of the pie.
Ecommerce sales continue to grow on a yearly basis, yet despite this, only 7.7% of all retail sales took place online in the US in the first quarter of 2016.1 That means ecommerce has a lot of room to grow if it is to catch up with non-digital retail sales. In order to determine what direction this growth will take, we investigated the current ecommerce trends and their impact on the market.
Perhaps one of the most exciting developments in ecommerce is one we are already starting to see in testing – drone delivery. Drones will in the future allow companies to deliver packages much more efficiently and quickly, with delivery times of just 60 or even 30 minutes from order entirely plausible. Drones will be sent out from distribution centres and travel directly to the delivery addresses provided, at significantly lower cost and logistical hassle than at present. Amazon, among others, are already seriously close to making this a reality across the entirety of their business, and it seems that others will be clambering to follow suit as quickly as possible.
Pop Up Shops
Customers are already shopping in new, alternative ways to before. “Showrooming” and “webrooming”, where customers visit a local shop then buy online for a cheaper price, or vice versa, present new challenges for retailers, in bridging the gap between the online and offline. As an online-only ecommerce retailer, you miss out on the webrooming aspect, because any sales made in a physical retail environment off the back of research on your site will be lost on you and your business.
We predict that the biggest growth will take place in the food and beverage space since only 1% of this massive market is online yet and other categories, such as consumer electronics, are reaching their limits.
We predict that China will continue to grow at the highest rate, since the Chinese market is still relatively new to ecommerce and retail giant Alibaba will dominate in the Asia-Pacific market.
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