Why is Ecommerce Growing?
Ecommerce is growing at a rapid pace. In the United States alone, eCommerce sales are projected to reach 735 billion dollars by 2023. Big players like Amazon and eBay continue to grab a larger share of the eCommerce market. By adopting best practices, your eCommerce store can remain competitive. The following are a few reasons why eCommerce is growing. But they are not the only factors driving the growth of eCommerce. Read on to discover the other factors that are driving growth in eCommerce.
Technology isn’t the only reason eCommerce is growing
A combination of factors is driving global eCommerce growth. Increasing internet usage and connectivity are key factors. Additionally, consumers in developing markets spend more time online than their counterparts in developed economies. In Colombia and Brazil, for example, consumers spend more than five hours online a day, a significant share of their total time.
The rise of social media platforms like YouTube and other video-based social networks has changed the way consumers shop. In fact, 64 percent o shoppers make a purchase after watching branded social videos. The evolution of popular social media apps, including Snapchat, has also contributed to changing consumer shopping habits. Successful YouTube channels often feature unboxing and review videos, and eCommerce businesses are now adapting their business strategies to meet this new consumer demand.
Accessibility
Accessibility has become a critical part of eCommerce. Whether it’s in the form of creating a more inclusive website or providing assistive technology, an accessible site will give shoppers a better experience. Additionally, it shows that equality matters and it also helps improve the brand reputation of an eCommerce company.
As more consumers make the shift online, accessibility is becoming more important. The goal of achieving accessibility on an eCommerce website is to provide a user experience that is as seamless as possible. Fortunately, there are a number of standards that can help make eCommerce websites more user-friendly. One of these standards is the contrast ratio. Contrast ratios can affect readability.
Product reviews
Online reviews play a huge role in influencing eCommerce sales. Studies have shown that consumers are increasingly looking to reviews to decide if a product is right for them. According to a study by Salsify, up to 30% of consumers look for reviews online before they buy a product. This is because online reviews may provide more information about a product than its own description.
Product reviews are also helpful for retailers because they increase conversions. One study showed that consumers are more likely to purchase a product when they can see a video or a picture of previous customers. And, if a product is presented with a photo, 75% of shoppers prefer to see it instead of just a product description.
Low overhead costs
One way to make your online business more profitable is to reduce overhead costs. This may not seem like a big deal at first, but in the long run, it will pay off in the form of profits. A successful online business relies on low overhead costs to build a platform and connect with its target audience. But out control overhead costs can make it difficult for an entrepreneur to gain these benefits. By reducing these costs, an entrepreneur can improve profits and better serve customers.
Another factor contributing to e-commerce’s low overhead costs is the fact that e-commerce firms are more flexible than traditional firms. As a result, they respond to decreases in activity by cutting operating costs more than traditional firms. Similarly, they have lower employee and asset intensity ratios than traditional firms.
COVID-19 e-commerce pandemic
As the COVID-19 e-commerce pandemonium spreads worldwide, the pressure on postal services is escalating. As a result, many countries are slowing down their postal services. The new COVID-19 safety guidelines have also put many postal services on hold. These services were previously considered critical sectors but have now been slowed considerably.
In response to the COVID-19 e-commerce pandemonium, some governments have tried to encourage e-commerce. However, regulations not tailored to the changing nature of online sales can impede firms’ growth. Many of these challenges existed even before COVID-19, but the growing importance of e-commerce has increased the need for policy action.
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