Simplicity is the key. Well, you might have heard this saying in a number of situations over the years, but recent...
India is emerging as the second-largest internet usage country and one of the prominent markets in the world. 2020 was a massive game-changer for market change. Due to pandemic, there are many changes across the verticals. The Work from Home trend had triggered the lifestyle change. Being at home and a desire to make work-life easier had triggered the more online shopping trend. Regular groceries and essentials turned to the E-commerce platform. Not only in metro cities but now online shopping became a trend in tier 2 and tier 3 cities also.
E-commerce became a popular platform to get doorstep delivery of groceries, medicines, clothes, and all daily essentials. Previously only bigger market players used to invest in e-commerce and online shopping platforms. However, now a small corner shop proprietor is also looking for options to go online. The year 2020 accelerated the online business and e-commerce industry exponentially.
The first online item was ordered online at Amazon in 1995, and it was a book.
Amazon-US was one of the first e-commerce sites to start an online business. Over the decade, the e-commerce sector has been improved drastically and today, the e-commerce industry makes around 2 trillion dollars (US) sales in the global market.
Mobile e-commerce became the most popular and widely used e-commerce platform in the past 2 decades. At the starting phase of e-commerce, it was limited for online buying and selling of the product, but it evolved to meet customers' needs with enhanced return policies and customized experience.
The e-commerce sector has undergone rapid changes after an increase in the usage of the internet. In 2021, Omnichannel selling, digital marketing, and personalization are the major focus points. To understand the trends in e-commerce, let us focus on some notable changes in the market.
The retail industry is aware of the immense benefits of going online. Online selling gave a great ability to reach out to a broader audience without compromising the quality of the product. Online selling covers a wide range of products of all types, sizes, and patterns. Retailers can also cover a diverse set of products ranging from clothes, vehicle parts, paints, shoes, personal hygiene, groceries, and so on. Manufacturers, suppliers, and customers all parties are equally getting benefitted from online shopping. However, an increase in the competition with a large customer base may make it tedious to manage an online shop. There are many e-commerce solution providers in India like Ambab to offer the best e-commerce solutions for your business.
The rise in mobile shopping is a notable change in the upcoming e-commerce trend. There is an almost 15 % increase in mobile e-commerce in 2021. A survey says, 70 % plus sales will be from mobile sales in all e-commerce sales. These statistics clearly say that mobile shopping is more important in the coming years. Mobile devices are flooding the market for the past year and due to pandemic and online learning, there is a spike in mobile users in 2020. People use mobile for online search for products, check the product features, understand customer's feedback, and reviews about the product, and other factors for deciding on the purchase. Mobile has become a new normal for 2021.
Customers' trust in online shopping is increasing and they feel more comfortable while shopping on mobiles. Generation Z and Millenials are grown up with computers and the internet. This generation is more comfortable with online shopping and digital payments. When compared to old generations, these generation users are using electronic gadgets and digital payments easily and confidently. In-fact Gen Z is more likely to rely on the internet and the online world.
Social media is no longer just an entertainment channel or networking channel for friends. The role of social media is evolving as a marketing channel with broader target audiences. Today, social media platforms such as Facebook or Instagram are well equipped with all marketing tools like the Buy button, the marketplace, etc. You can embed establishing links to drive customers towards your brand. Retailers can generate leads using social media channels and sell through such platforms. Social media platforms are more focusing on online shoppers and offer good branding exposure. You can reach out to more customers within a short period through social media channels. Also, it is a 24*7 marketing channel. Retailers can now sell through social media easily and reach potential target customers.
Social media is playing an important in the E-commerce world. Customers are spending more time on social media channels, it is a good opportunity for retailers to start branding on social media and engage with a large audience group. Instagram influencers can drive more traffic and help you to get in touch with a potential audience.
E-commerce platforms like Shopify or can directly link online stores with social media channels. Customers can directly buy through social media. Facebook and Instagram are continuously updating their features to meet online shopping demands. Attractive Product images and videos are impactful factors in driving more traffic for a retailer's brand.
Retailers can get more exposure to customer feedback sharing and review sharing via social media channels. Feedbacks and ratings are trust-building factors for any brand. Positive feedback influences the customer's shopping choice.
Today e-commerce is the most famous online activity and it is increasing rapidly. A survey says that online sales may reach 4.5 trillion US- dollars by the end of 2021. Ease of shopping, more comfortable options and personalization are major attractive factors in online shopping. Pandemic also changed people's priority and choice. Now instead of visiting crowded malls, customers are more inclined towards online shopping. Suddenly, people's online shopping trend has been changed from fashion and gadgets to groceries, furniture even food items and vehicles part also.
Retailers are also now taking online store seriously and creating their online presence. With advanced technology, retailers can develop user-friendly websites and give a best in class online store experience to their customers. A good online store allows the customer to find the items, check the buyer's reviews/ratings, and pay using digital payment or offline payment options.
Now manufacturers, B2B and D2C can also use an online platform for selling their items. You can start a separate wholesale online store for bulk item buyers.
Omnichannel shopping is nothing but offering a seamless and consistent shopping experience to customers across a range of retail channels. A customer can search for the product or service using smartphones but buy it on desktop/laptop is an example of Omnichannel shopping. Another example of Omnichannel shopping is, a customer order the product online but pick up it from a nearby store. Retailers need to identify customer shopping patterns, purchase cycles, and behavior.
Omnichannel selling is expected to gain hype in 2021 with inventory integration and customer shopping pattern. Retailers are entering into new markets to reach potential audiences with great market exposure.
After the pandemic, Omnichannel selling will be a new normal. More brands are discovering innovative ideas to attract the target audience with many customer engagement ideas. Mobile phones and laptops are now everyday essentials, so retailers are finding some unique ideas to sell the product. Customers are expecting a cohesive shopping experience across various channels. Retailers need to understand shopping behavior and develop a strong e-commerce architecture to deliver products and content to any device with the help of advanced technology.
In the past, artificial intelligence benefits for e-commerce were limited and not much exposed. However, in 2021 artificial intelligence usage will be increased in e-commerce dramatically. Today brands are using chatbots and machine learning in the mainstream. Brands are using AI to make a recommended list for customers based on customer purchase history. Voice search is the most popular technic among smartphone users. Retailers are using AI for predictions and which can be very effective in inventory management.
Most of the brands are using AI for process and workflows improvements. By 2022, e-commerce companies may spend around 7.3 billion on AI and ML. Retailers can improve pricing and forecasting by using AI and ML. Brands can focus on personalized consumer experience through effective usage of AI. One of the popular AI applications in eCommerce includes sales and marketing, customer support, and services. AI is giving very promising results in the sales process and forecasting.
Retailers in the e-commerce industry can use AI tools to streamline marketing, perform critical activities, and improve the business speed. To create a good customer experience retailers are using AI from operations to customer service areas.
Second-hand commerce is also known as recommence will be a new trend in 2021. People focus more on sustainability than price, so second-hand sales for expensive and luxurious items will be booming in the market. It will offer an exciting opportunity for companies to open the Recommerce market and make it interesting shopping.
Online shopping always got a remark of not having products real-time experience. Buyers cant physically inspect the product. But augmented reality will give a 360-degree product preview and graphics to customers. Especially in the clothing and fashion segment, the buyer is interested to know how this dress will look on them. Augmented reality and virtual reality will give a high-resolution graphics experience. Which will offer a better customer experience.
The young generation is mainly responsible for the E-commerce trend in the market. During a pandemic, online shopping was seen across all age groups, however, more than 67 % of e-commerce customers are youngsters with age 18 to 40. So while developing marketing strategies, brands need to consider young customers' shopping behavior and their likings. The customer engagement activities should focus on youngster's lifestyle changes.
The payment option is one of the prominent purchase drivers in online shopping. A trusted and verified payment option is a must for customer conversion. If your payment method is tedious or not suitable as per customer need then there is a chance that he/she may leave the shopping cart without purchase. Due to increased hacking activities, payment security and privacy is a major concern for the customer.
Payment processing is an integral part of every customer's shopping journey. A last-minute cancellation is possible if the customer is not happy with payment processing. Retailers may have a very effective campaign to drive customers, invested so much amount in attracting customers. However actual purchase will be done only if payment processing is smooth. If the product or service check-out process is not up to the mark or has some loopholes then the probability of last-minute cancellation of the order is more.
Every customer is unique with its typical demands. Customers are more happy and likely to do more purchases if they get a personalized experience in online shopping. In a survey, more than 50% of customers said that a personalized online shopping experience is very important. Tailor-made online shopping experience drives more customer satisfaction. Previously, personalization was limited to SMS and email marketing; but today technology advancements had changed the capabilities and customer engagement patterns. Retailers can improve customer satisfaction through personalized communication, better discounts. Improved shopping experience may strengthen the bond with the customer.
Covid -19 pandemic was a major lifestyle-changing factor across the globe. Due to lifestyle and work habits change, there is also a change in customers' shopping behavior, priorities, and choices. In 2021, the e-commerce trend will evaluate to the next level with many drastic changes. As a brand, you need to keep an eye on e-commerce trends in 2021 and change your marketing strategy accordingly. Take the maximum advantages of these emerging trends. If you are looking for the best e-commerce solution provider in India, contact us.
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