Why E- Commerce is important in 2020
Is your business taking advantage of the E-Commerce trend that is taking place? If not, what are you waiting for?
In the ever evolving landscape of business, companies need to adapt to consumer preferences to be successful. In recent years, online purchases have been steadily increasing as customers enjoy the convenience of not having to drive to the store, but rather have all of their goods shipped right to their doorstep.
About 16.1% of all retail sales are expected to be online in 2020, which is a year over year increase. The E-Commerce trend has been accelerated by the revent COVID-19 Pandemic, which led many businesses to move operations online when having to close down their physical store locations.
Many traditional stores ended up having to close down permanently, as they could not keep up with the costs of running a brick and mortar during a pandemic such as rent and utility expenses. As a result, mature E-Commerce websites had an advantage as they were able to offer customers a safe shopping experience from their home with secure payment and delivery systems.
Much of the growth of the E-Commerce industry is due to the rapid growth of Amazon, the E-Commerce giant that has seemingly taken over the world, making up over 35% of all online sales largely due to its Prime shipping option.
In 2020 every business should be equipped to do business online in some way. In fact, in many industries the line between Physical and E-Commerce is blurring, as many businesses have shifted focus to moving their operations online.
As businesses around the world try to replicate the success of Amazon by cutting costs and optimizing their operations,they are shifting focus to online business to bypass retail partners to direct to customers (DTC). In addition to the reduction of costs, E-Commerce allows you to sell products or services to people regardless of their physical location via the ability to ship products and provide digital services.
After selling DTC, many businesses find themselves in a place to scale their online operations now that they have reduced costs. This is another benefit of selling products via E-Commerce, you are able to automate many of the tasks, allowing you to focus on other aspects of your business.
Scale E-Commerce Operations Using Automation
E-Commerce allows you to automate several tasks that free up time and reduce overall labor costs for your business. Using automation allows you to effortlessly scale your E-Commerce businesses without having to worry about cross-country sales, and managing multiple store fronts. Addition ways
- Additional examples how how automation can benefit your businesses E-Commerce operations include:
- Preparing promotional sales in advance, such as “flash sales” or product launches.
- the ability tag and segment your customers to target for advertising campaigns
- Prepare and preload-load storefront changes in advance.
- Schedule inventory alerts and updates
- Integrate third party apps for advanced customer insights.
As you can see, automating parts of your E-Commerce operations not only save you time and labor costs, but enables your business to take advantage of opportunities beyond the capabilities of your physical location.
E-Commerce Going forward
It's safe to say that E- Commerce is here to stay. The question now is will it replace physical shopping all together? The answer to this question depends on who you ask, with some experts making the case that shopping in store will be a thing of the past relatively soon.
However, the important thing for your business is that you are positioned to take advantage of online sales in the future because those that aren't equipped with E-Commerce functionality won't be able to survive the competition. To excel in the online retail space going forward, you must be able to meet the ever evolving expectations of customers. Two thirds of customers state that they will abandon a digital shopping cart before “checking out” if they see extensive delivery times or fees. As a result, going into 2020, 65% of retailers are offering same day delivery.
The customer experience is what will make or break the E-Commerce portion of your business. Your website should represent the same level of quality your in store experience offers customers and be convenient to place orders. If you are strictly an E-Commerce business, there should be even more emphasis on the customer experience.
As always, if you need help getting started on E-Commerce integration for your business, or just need some tips, feel free to contact us at Bumpit Marketing!