Commerce, especially on a large scale, is the act of buying and selling goods and services. Now eCommerce is exactly the same with the only difference being that the trade is completed over the internet.
However, the concept can apply to many things such as peer-to-peer money transfers, auctions, digital entertainment, online ticketing, and banking services. Most individuals equate eCommerce with online shopping.
Broadly speaking, it is possible to break eCommerce into three sections: online shopping, electronic markets, and auctions.
Current Trends In Ecommerce
The Retail Shakeup: Customer behavior has been rapidly shifting, sending shockwaves that shook some of the major retail names such as Sears, Toys ‘R’ Us, and GAP. The message is loud and simple — innovate and adapt and be ignored, or get sidelined.
There are two ways to look at this, as in most things in life — as a crisis or an opportunity. There is good news for those who choose the latter, as there are plenty of technical solutions and programs such as omnichannel loyalty program, hyper-personalization.
Seamless Omnichannel Experience: In the retail glossary, the word omnichannel has become popular, however more than 60% of retailers still do not have a full understanding of the definition and sometimes confuse the term with ‘multichannel’; nevertheless, they are entirely different terms.
Hyper-Personalization: The idea of mass marketing doesn’t cut it anymore in the retail industry, where customer experience can make or break a brand. Retail giants such as Sephora, Costco, and Tesco have already begun to hyper personalize their interactions, but the need for the hour is to refine and broaden it to a multitude.
U.S. Ecommerce Growth: In the last 10 years, eCommerce has seen immense growth within the U.S. Statista data estimates that in 2024, U.S. online physical products retail sales are expected to hit up to $476.5 billion.
Global Ecommerce Growth: Global eCommerce is also developing rapidly. An increase in eCommerce sales is evident across the globe as more consumers search for goods across borders and from foreign markets.
Rise Of Augmented Reality: In recent years the interest in Virtual Reality, or Mixed Reality, has gone through the roof and the technology offers distributors exciting possibilities. Several major retailers have already hopped on the AR bandwagon, such as IKEA, Lowes, and Adidas.
For example, the Swedish furniture giant IKEA allows consumers to visualize how particular furniture or decoration would look in their living room through its app. In their retail stores, Adidas has partnered with Microsoft to fit a body scanner that will allow customers to digitally try on an infinite variety of sportswear.
Types of Ecommerce:
1. Business to Business (B2B): Goods and services are sold from one corporation to another. HubSpot, for instance, sells goods to other businesses that are looking to grow better.
2. Business to consumer (B2C): To a client, this is one of the most prevalent ways of electronic commerce. An example would be an online clothing store or a famous brick and mortar company’s online segment, like Walmart or Target.
3. Consumer to Consumer (C2C): Consumers sell directly to consumers via online marketplaces, as you might have guessed. Craigslist, eBay, and Amazon are all eCommerce examples of C2C.
Impact Of Ecommerce On Business
Ecommerce has had a far-reaching positive and negative effect on companies across the globe within a short period. On one side, at a fraction of the expense of conventional retail, eCommerce paved the way for companies to meet a massive audience.
Although the expense and effort that goes into building a website are significant, maintaining an expensive high street storefront pales compared to the rent and overheads involved. In remote warehouses, e-commerce allowed companies to store their inventory and still display their products instantly to millions of people.
Nevertheless, eCommerce has not been generous to the old school, vertically integrated companies that face fierce competition from agile, digital-focused rivals.
