Statista reports that retail e-commerce sales worldwide reached 4.28 trillion dollars in 2020, with e-retail revenues expected to reach 5.4 trillion dollars in 2022. One of the most popular internet activities in the world is online shopping.
Even as the COVID-19 pandemic fades, businesses across the United States are increasing their e-commerce investments as part of a strategy to lock in revenue from customers who have switched to online shopping in the last year. More and more entrepreneurs are embracing online trends to execute their small business ideas. This includes already established businesses and entrepreneurs starting a business.
E-Commerce in America
According to the Voice of the Enterprise: Customer Experience & Commerce: Merchant Study performed by 451 Research, an offering of S&P Global Market Intelligence, eight out of ten polled firms are prioritizing expenditures in e-commerce operations equally, or ahead of, in-store experiences.
More than half of those polled (54%) indicated their companies aim to prioritize e-commerce experiences in areas including mobile payments and online services like buying online, pick-up in-store, and curbside pickup. This is an increase from 31% in the second quarter of 2020.
Meanwhile, 26% of poll respondents indicated they are equally investing in in-store and e-commerce experiences, while 20% said in-store experiences are their top priority. The poll, which was conducted from March 16 to March 31, is based on responses from over 250 firms across the United States, including those in the retail, hotel, home improvement, and consumer packaged goods industries.
According to Jordan McKee, lead analyst at 451 Research, U.S. companies are prioritizing e-commerce operations to “future proof” themselves in preparation for the next epidemic or another increase in online sales volumes.
Despite the fact that analysts predict a slowdown in e-commerce sales and retailers like Target Corp. and Walmart Inc. saw digital sales decline in the first quarter, companies are planning to invest more, dollar for dollar, to strengthen their e-commerce operations and provide a seamless online customer experience.
“There were a lot of holes in terms of an e-commerce strategy across 2020,” McKee said, “whether it was not having robust enough fraud prevention or not offering the correct payment method mix, like digital wallets.” “People are simply preparing for the future with those crucial learnings.”
According to Sheryl Kingstone, head of Customer Experience & Commerce at 451, the efforts are part of a bigger strategy to lock in e-commerce purchases from consumers who were accustomed to internet shopping during the pandemic.
Current e-commerce trends
This year has been no exception to the e-commerce industry’s constant evolution, according to The Really Useful Information Company (TRUiC). Merchants are building and/or enhancing their e-commerce businesses more than ever before to meet customers where they are. While everything in e-commerce appears to be changing, we’ve reduced it down to the most important trends that will impact businesses in the coming months and years.
1. The use of AR technology
For e-commerce, augmented reality (AR) has been a game-changer. This type of technology allows shoppers to see the thing they’re looking for up close, which aids in their purchasing decision. In certain areas, such as fashion and home decor, AR has a significant impact on the purchasing experience since it allows customers to get a better feel for an item without having to see it in person.
2. Chatbots to improve shopping experiences
Chatbots communicate with online shoppers in the same way that a human salesperson would. Today’s shopper expects to be able to identify and purchase a product in only a few clicks, and they become frustrated if they are unable to do so. A chatbot can help save the deal in this situation. Experts anticipate that in the near future, 80% of businesses will use chatbots.
3. More ways to pay
Customers have different payment preferences, but if they can’t pay how they want on an e-commerce site, they may cancel a possible sale. Providing a range of payment options is a fantastic method to boost mobile conversion rates. Customers will be able to checkout even faster the next time they make a purchase if they can save their payment information on your site.
Final Thought
In the world of e-commerce, a lot of new things are happening. Technology and people are continually changing, and because e-commerce connects them all, we’ll always be looking to the future. One thing is certain: it’s never too late to dive right in, learn something new, and see if it’s a good fit for your company. Consumers are in charge for the time being, and e-commerce businesses will tailor the journey ahead for them.
