The dependence on E-commerce has definitely risen at the time of lockdown. The closing of physical stores during the time of pandemic has urged businesses and people to resort to an online platform to shop for both essential and luxury goods. Today, more people are using e-commerce apps and e-banking facilities than before. The industries such as Medicine and drugs, food, and media and news have seen the highest amount of visitors in the last two months.
The business pundits expect the trend to rise, along with the growth of e-commerce firms, platforms, and digital payment services.
The last three months have definitely changed the outlook of online transactions. We are getting good at understanding the trends and acting on them. Digital transformation was upon us even before COVID-19 and now, more firms will take it seriously. For a better future, businesses must seek ways to capture the gains of e-commerce and digital trade the most.
What’s next in line for E-commerce?
E-commerce firms will likely see a surge in online customers after lockdown completely ends. The fear of pandemic and infection has made people realize that shopping online is a lot safer than exchanging cash. More people will look to avoid crowds while shopping.
Here is how we have pictured the future of e-commerce.
A. E-commerce will see an innovation
A recent Morning Consult study found that 24% of consumers said they wouldn't feel comfortable shopping in a mall for more than six months, 16% said they would feel comfortable in the next three months.
With a great challenge to cater to different kinds of customers, business firms are increasing their effort to innovate. A restaurant innovated their service-line by offering online cooking classes in addition to shipping the required ingredients to the customers. This has encouraged businesses to adopt different digital platform with the sole reason to connect to the customers.
More fast-food restaurants are introducing a drive-through and online order system. Intermediary agents like Streetify are using its website and free app to help connect consumers with local stores to help keep them afloat. Fairway Markets started promoting its skip-checkout app, a scan-and-go app that helps shoppers to use their phones to scan product bar codes at the check-out and leave the premise.
B. More e-commerce platforms will rise
The surge in the number of online customers will likely trigger business firms to adopt an E-commerce platform. Many e-commerce firms are also ramping up their effort to ease online shopping experience.
As e-commerce uptake spreads and people are more prone to online transactions, they will use digital platforms more for other needs and services. These combined activities will accelerate digital transformation as well as the gains of digital transformation including an increased contribution of the internet to GDP (GDP).
The decline in the use of cash and reliance on digital payments is likely to increase. We’re likely to see a rise in the number of e-commerce businesses and e-commerce versions of many businesses.
C. E-commerce will embrace advance A.I. Technology
A.I. technology has helped capitalize on the concept of personalization when it comes to selling. E-commerce firms are embracing A.I. technology to make the entire online shopping process more personalized.
The eCommerce industry has adopted a different form of A.I. by introducing chatbot services, analyzing customer comments, and providing personalized services
In fact, a 2019 Ubisend study found that 1 in every 5 consumers are willing to purchase goods or services from a chatbot, while 40% of the online shoppers are looking for great offers and shopping deals from chatbots.
A.I. has already taken over inventory management to keep current and future stock in check. Businesses are using A.I drove an email marketing campaign to drive an effective sales campaign. Alexa is looking to expand their voice software to introduce a review of the daily deals on Amazon.
D. More People will choose Video Streaming over Theaters
More people have resorted to watching Netflix and YouTube at the time of the pandemic. Netflix and other digital streaming platforms are seeing a surge where Netflix reported that it has recorded 117.58 million subscribers who watch 140 million hours of content on average per day.
Netflix got 16 million new visitors in the first three months of 2020. The sheer increase in demand for streaming even made Netflix reduce the quality of its videos in Europe to ease the strain on internet service providers. The firm also hired an additional 2,000 customer support staff to handle the increased interest in the first quarter of 2020.
It expects to add another 7.5 million members in the three months to the end of June. It also said revenue increased to $5.76bn, up more than 27% compared to the same period in 2019. Profits almost doubled, from $344m in the first quarter of 2019 to $709m.
Amazon-owned Twitch has seen its viewership grow 31% from 33 million to 43 million (March 8th to 22nd), further highlighting these short-term changes to consumer behavior.
With new content available on the internet at a short time after its release, people will resort to watching movies at the comfort of their homes.
E-commerce will likely see more innovations in the coming years with many developing nations taking a leap in online shopping. Online commerce contributes to $35 billion in revenue to the Indian Government. Many governments around the world are willing to adapt to E-commerce and ease restrictions related to e-commerce transactions.
Searchable Design LLC is a premier web development and digital marketing agency in Des Moines. We are always willing to offer our expertise and world-class service in growing your businesses’ digital reach. Get in touch with us to find the best e-commerce solutions for your business.