Opinions expressed by entrepreneur Contributors are their own.
E-commerce is a growing force in the modern economy. While online shopping grew in popularity prior to 2020, the recent pandemic accelerated that growth exponentially. It is estimated that by 2020-2021, an additional $218.53 billion will be added to e-commerce sales in the United States alone due to the pandemic.
In 2021 alone, e-commerce sales by sellers in the United States totaled $870.78 billion. Economists predicted that number would not be possible until 2023. In total, nearly $4.9 trillion was spent on e-commerce globally in 2021.
E-commerce continues to prove to be a lucrative and important part of the future economy, but sectors are already being impacted by the juggernaut in different ways. By understanding today’s trends and where they’re going, you can better prepare yourself and your business for future ecommerce success.
See also: Why you should bet on the future of e-commerce
E-commerce, m-commerce and analytical AI
The most important trend in e-commerce today is the increasing number of people engaged in online shopping. More engagement means more potential customers and a more diverse customer base with unique interests and needs. This creates a lot of opportunities for brands and businesses that are new to e-commerce or want to reinvigorate their endeavors.
Brand loyalty has declined since the pandemic, in part due to product shortages, and consumers are now more willing than before to try new products and services. This is particularly the case in the consumer goods market, where customers are more willing to buy fresh food and beverage brands. However, this is supported by an overall increase in the number of people using e-commerce to shop for groceries, with some of the industry seeing five-year growth in five months.
The use of artificial intelligence (AI) to improve the shopping experience for users has also become an integral part of smart e-commerce strategies. By purchasing and collecting data, companies can tailor the shopping experience to individual users and provide them with product suggestions based on their preferences and shopping history. AI’s ever-improving analytical capabilities, as well as its growing ubiquity, have made this task even more manageable and accessible for companies willing to invest in the technology.
In addition, m-commerce is another important trend that companies should embrace. Referred to as mobile commerce or social commerce, m-commerce is the use of social media platforms to promote and sell products. This is a subset of e-commerce and is growing in popularity alongside social media itself.
Facebook and Twitter both have built-in ways for businesses to sell their products. In the United States, it was reported that nearly 40% of e-commerce sales in 2020 were generated from mobile purchases.
See also: A Beginner’s Guide to Building a Profitable Ecommerce Business
Despite setbacks in the upward trend
As mentioned above, the grocery sector has been one of the main beneficiaries of the growing popularity of e-commerce. Alongside this, sales of leisure items and home furnishings also increased during the pandemic, receiving a welcome boost from e-commerce transactions. Still, there are some doubts these sectors will continue to trend higher after the pandemic. However, these companies could still benefit from e-commerce in surprising ways. Home Depot, a popular hardware store chain, has seen success with its “rent online, collect in store” program.
The medical sector also benefits from e-commerce. The popularity of mobile applications and websites has transformed telemedicine and medical consultations. Companies that offer medical products with fast delivery times are also finding success in using e-commerce to reach and care for people with mobility challenges. In some cases, patients no longer have to leave their homes to receive medication or medical devices.
However, one of the biggest beneficiaries of e-commerce growth has been small businesses. As the cost and technical expertise of maintaining online stores decreases, startups and small businesses can effectively run a web store with a global reach.
See also: 5 practical tips for small businesses taking their first steps towards e-commerce
Competition from small beginnings
The importance of e-commerce to the global economy is undeniable, as is the need for businesses to adapt to its trends in order to maintain customer support and reach new heights of success. While large companies benefit from new technologies, one benefit of modern e-commerce is its power as a leveler. Startups, small businesses, online mom and pop shops — they’re all gaining a competitive advantage that just wasn’t feasible a decade ago.
The low barriers to entry and affordable running costs make online stores and the tools of e-commerce accessible to almost everyone. If you understand the market and its trends, you might have a winning formula.
