eCommerce’s ever-changing landscape is both frightening and exhilarating. Each year, some developments may aid in the growth of our company or present us with new obstacles that we may be unable to meet. Whatever ups and downs you encountered this year, the eCommerce sector is still growing at a faster pace than before. As we approach the new year, we’d like to provide you with an exclusive look into eCommerce growth patterns for 2022 and beyond.
Global e-commerce sales totaled approximately 4.3 trillion dollars in 2012, demonstrating that e-commerce is becoming an increasingly profitable alternative for enterprises.
That is significant, and the good news is that it is not a new trend.
Indeed, e-commerce sales increased at an average annual pace of 25.6 percent from 2014 to 2017.
That is proof, if you needed it, that e-commerce is alive and well and has been for some time.
Additionally, it is a dynamic industry. Trends are always evolving to shape the way that individuals in every corner of the globe acquire items.
To put it mildly, this bodes well for the future of e-commerce.
Numerous significant changes are expected to occur in e-commerce over the next few years. We’re here to help you envision the future of e-commerce.
Emerging Markets Will Be Critical
The future of emerging markets and e-commerce
Emerging economies such as India, China, Brazil, Russia, and South Africa are expected to influence e-commerce’s future growth significantly.
This is maybe unsurprising given the recent rise of the economies of several of these countries, but let us dig a little further.
By 2022, it is predicted that approximately 3 billion prospective purchasers from emerging nations would have access to the internet. That is a sizable number of potential clients.
Additionally, it is anticipated that 20% of all retail sales in 2022 will come from purchasers residing in those emerging economies. That is a sizable number of potential sales.
The most interesting aspect of all this is that many of these industries are now relatively untouched by established e-commerce enterprises.
This means that established firms have a lot of opportunities to expand and reach new audiences.
This also means that there are several potentials for new e-commerce firms to emerge in those expanding markets and cater to local customers.
Check out eCommerce during lockdowns here.
Will the e-commerce curve going to flatten or continue to grow?
However, once the general population becomes inoculated, the industry is left to wonder: Will consumers revert to their old ways or continue their newly dependent e-commerce habits?
E-commerce, one may argue, is here to stay, as Covid has had a lasting impact on both consumer and company behavior. For instance, consumers spent an additional hour per day on digital activities in 2020 compared to 2019. And by the end of 2022, total digital time will top eight hours. According to an eMarketer estimate, while e-commerce growth will slow in 2021 compared to last year, the sector will maintain its speed to achieve the $5 trillion milestones, where e-commerce is expected to increase by 14.3 percent this year.
Additionally, almost 75% of buyers and sellers prefer digital transactions over physical channels due to increased security, speed, and convenience. The advantages of online buying are unparalleled. For consumers, e-commerce websites make it highly handy to purchase things quickly, whether they are at home, at work, or on the go. It provides consumers with sufficient options to shop for things around the clock comfortably and simply.
Additionally, as a result of the pandemic, new forms of e-commerce trends have evolved. Social commerce, shoppertainment, and influencer marketing have risen to prominence as more engaging alternatives to traditional e-commerce. They are considered a replacement for window shopping or the touch-and-feel aspect.
While businesses developed novel ways to communicate with consumers during the lockdown, such as a few clothes labels launching “stores on Wheels” and malls offering a virtual tour, these concepts took a back seat once consumers began leaving their homes. As more consumers shopped online, businesses were forced to undergo significant digital transformations to remain relevant to their audiences. While many small businesses began by placing their products on the Amazon and Flipkarts of the world, many took advantage of the potential to reinvent themselves and develop closer relationships with their customers by going D2C (direct-to-consumer).
D2C enables brands to retain exclusivity and communicate with their customers, which is difficult to accomplish on marketplaces. For instance, Country Delight or Pharmeasy successfully established a supply chain for crucial commodities during the Covid lockout. Now that people have developed a habit, many of them continue to provide their services.
Indian digital customers are maturing and have begun to appreciate the benefits of convenience and discounts, which has resulted in an increasing number of firms choosing a direct-to-consumer (D2C) strategy and an e-commerce-first approach. In recent months, a rising number of physical establishments have gone online and enhanced their digital self-service capabilities to provide a more enduring consumer experience. The recent year has demonstrated to businesses the critical nature of agility and ongoing innovation. Businesses that can innovate and adapt to shifting consumer preferences and purchasing habits will always capitalize on such possibilities and thrive in the long run.
The pandemic’s impact on e-commerce has raised the bar for what is now considered baseline growth. It has accelerated the sector’s growth over the years. While the transition away from physical stores was already underway, we’ve now accelerated forward to the future of e-commerce. There is an increase in back-end digitization and adoption of concepts such as omnichannel to provide a consistent experience across offline and online sales channels.
Check out our other guides to create more conversions with your eCommerce here.