Are you a fan of online shopping? If so, you’re part of the over 2.14 billion online shoppers worldwide who purchase goods and services through virtual means. With that staggering number, it’s not a surprise that the eCommerce industry is booming and is expected to be valued at $6.35 trillion by 2027, with a compound annual growth rate (CAGR) of 11.51%.
This has opened new avenues for businesses, giving traditional brick-and-mortar stores a facelift. Ranging from retail, food and beverage, services, and more, online shopping transformed accessibility, price point, and frequency of purchases.
It did not only change the way businesses operate but it also paved new shopping experiences for consumers. Through the prevalence of eCommerce businesses, 51% of consumers now prefer to shop online rather than head to a physical store.
To call eCommerce a trend is an understatement. It is here to stay, with thousands of small and major businesses transforming their approaches to cater to their online audiences.
WHAT IS ECOMMERCE AND WHY IS IT GAINING TRACTION?
eCommerce might seem like it popped out of nowhere with a sudden surge, but it’s been around as early as 1948. Today, eCommerce is recognized as the selling and purchasing of goods or services online, but in a broader sense, anything bought or transmitted electronically was previously considered an eCommerce transaction as well.
In lieu of a traditional store, websites, apps, and other digital platforms serve as the “shopping center” for online consumers.
Its popularity can be attributed to the fact that it is widely available for any type of merchant—whether you’re a big business, an independent seller, a freelancer, or an SME. On the other side of the coin, it’s also collectively preferred by consumers. With no geographical boundaries, online shoppers can purchase local goods and other services from all parts of the world with just a click.
BENEFITS OF ECOMMERCE TO CONSUMERS
During the course of COVID-19, even getting groceries and basic goods was difficult due to restrictions on going outdoors. As a result, online shopping jumped from 11.6% in 2019 to 51.2% in 2020. However, these numbers didn’t decline even when the pandemic slowed down because of these reasons:
As mentioned above, a great percentage of people turned to eCommerce businesses when they struggled to head out for health and safety reasons. People experienced the ease of shopping in the comfort of their own homes, at any time of the day or night, without having to leave the house or deal with crowds and traffic. This newfound ease and flexibility have made eCommerce a popular choice for many consumers, and it is likely to continue shaping the future of retail. Convenience is priceless—that’s why it’s not a surprise that more and more consumers continue to opt for online shopping today.
EASY ACCESS TO INFORMATION
eCommerce platforms provide consumers with easy access to product information, such as specifications, dimensions, and materials. This makes it easier for consumers to find products that meet their needs and preferences.
Free from the burden of maintaining the costs of a physical store, online shops can offer lower costs to consumers. Aside from that, online shoppers can easily compare prices from multiple retailers at a glance, helping them find the best deals in an instant.
In addition to lower costs, online stores often offer a variety of promotions that are not typically available in physical stores. These can include vouchers, coupons, and other special deals that can help shoppers save even more money on their purchases. By taking advantage of these online promotions, consumers can stretch their budgets further and get more for their money.
An online business’s or seller’s credibility is measured through customer reviews. This helps assure potential buyers that the products on the site are legitimate and worth purchasing.
Along with written reviews, ratings are also a key component of customer feedback. They provide a quick and easy way for online shoppers to evaluate the reputation of a seller or business and help them identify trustworthy and reliable sources.
ENDLESS PRODUCT CHOICES
Because eCommerce isn’t bound by borders, it’s more capable of offering a wider variety of products. Consumers have easier access to a selection of products that were previously a challenge to purchase (e.g. goods or commodities only available in a certain country).
It’s also common to see different categories on one eCommerce platform or app. Online shops could be selling fashion, furniture, and electronics in one place. This opens up a greater selection of products, styles, and price points than in a physical store.
In terms of convenience, eCommerce platforms provide home delivery, eliminating the need for consumers to leave their homes to retrieve their purchases. This can be especially beneficial for those who may not have access to transportation or have limited mobility.
Additionally, many eCommerce platforms offer the option to pay online or opt for cash on delivery (COD). COD is a particularly convenient payment method for those who do not have credit or debit cards or prefer to pay in cash.
By offering these, eCommerce platforms have significantly expanded their customer base and made online shopping more accessible and convenient for a broader range of consumers.
BENEFITS OF ECOMMERCE TO BUSINESSES
As more consumers reap the benefits of eCommerce, so do businesses. In 2022, eCommerce businesses accounted for 20% of retail sales. To date, there are more or less 12 to 24 million online stores worldwide. Here’s why its trajectory is upward:
ACCELERATE YOUR ECOMMERCE BUSINESS
Boost your online business and continue remaining competitive through outsourcing. eCommerce services such as mobile app and web development, customer service, logistics, virtual assistants, and more help online businesses save costs and drive efficiency.
The Remote Group offers eCommerce services that solve common pain points for businesses in the industry. Start your outsourcing journey with us today and discuss your requirements with our sales team.