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How Online Businesses Stay Successful Despite Coronavirus
TOP Ecommerce Trends in 2021.
In 1995, the first product, a book, was ordered through Amazon. More than 20 years have passed since then and now the volume of online purchases is about $ 2 trillion. According to forecasts, in 2021 this figure will exceed $ 4.5 trillion. E-commerce, as one of the fastest growing sectors of the economy, generates various trends that help businesses remain successful. Which of these trends you should pay attention to right now - read further in the selection of PaySpace Magazine.
Mobile shopping: shopping with smartphones
Mobile sales have increased by 15% since 2016. According to Statista, 73% of e-commerce sales will be on smartphones by the end of 2021, thanks in part to the demand for this method of shopping among millennials and Gen Z.
To stay competitive, businesses need to optimize their website and online store for mobile devices.
Voice Commerce
At the end of 2017, 13% of smart speaker owners in the United States made purchases using voice commands. According to OC&C Strategy Consultants' forecast, the number of such buyers will grow to 55% by 2022. According to experts, this method of shopping has gradually developed into a trend, mainly thanks to the smart Echo speaker, which was released by Amazon in 2014.
However, due to the fact that voice shopping is a non-visual experience, so far they are not used for searching, but for making purchases based on an already made decision. For example, most shoppers use voice commands to purchase low-price items such as food and low-cost electronics. Nonetheless, the projected growth in Voice Commerce suggests that businesses need to be aware of this trend, especially when targeting an international market that includes US and UK customers.
Increasing the role of social media as a sales channel
Social media has influenced not only our communication, but our daily life, including the way we buy things. According to data from BroadbandSearch, the average internet user spends about two hours a day on social media, so why not use popular apps as channels to sell goods and services? With the increase in ad share on popular sites like Facebook and Instagram, adding Buy buttons was an obvious step.
During the coronavirus pandemic, the social network also proved its effectiveness as a trading platform. So, earlier one of the leading retail banks in Spain, CaixaBank, launched a technology that allows retailers to sell goods through social networks and instant messengers. As small businesses were forced to close their physical offices due to quarantines, many of them tried to get online. To help the business with sales, CaixaBank rolled out Social Commerce, which allows retailers to manage online purchases directly from their Facebook, Twitter, Instagram, WhatsApp, Telegram, and other messenger profiles.
Using social networks will allow you not only to sell goods and services, but also to promote your brand using various available tools (videos, text posts, publications with photos, advertising, collaborations with famous bloggers, etc.). In addition, during the coronavirus crisis, social networks help small businesses with promotion. So, Facebook and Instagram now have a “Share a Business” button, with which users can tell about their favorite manufacturers and stores.
In addition, Instagram launched a new function for ordering food online, and also allowed entrepreneurs to acquaint subscribers with their proposals using special stickers in Stories.
Note. Video sharing service TikTok and its Chinese version Douyin ranked # 1 in in-app purchases in April 2021. In just one month, in-app sales increased 10x to $ 78 million, surpassing services such as YouTube, Netflix and Tinder.
Ecology theme
Today's consumers are becoming more aware of how their shopping behavior affects the environment. In particular, in recent years, various services have begun to appear for tracking the carbon footprint based on the analysis of the user's purchases, payment eco-cards and terminals .
Business must take this trend into account, making sure that its activities meet accepted standards and do not harm the environment. Some marketplaces also add special filters to help users find products that are environmentally friendly.
Note. Several years ago, the environmental degradation in China boosted online commerce.
Examples of eco-filters on the Ukrainian website MAKEUP. Source: psm7.com
Examples of eco-filters on eBay.
Role of artificial intelligence
According to BusinessWire, global retail spending on artificial intelligence (AI) will reach $ 7.3 billion per year by 2022 (in 2018, the volume of expenses was $ 2 billion). Companies are using AI to improve customer experience and personalization. This includes the use of automated marketing platforms that are equipped with tools to generate timely offers, or chatbots that respond instantly to customer inquiries. Other areas in which AI will be useful for retail are: optimizing pricing and discounting, and predicting future demand.
Augmented reality
Prnewswire predicts that by 2022 more than 120,000 stores will use augmented reality (AR) technology to provide a better shopping experience. Thus, the use of AR will solve the problem with the visualization of goods that customers cannot see with their own eyes when ordering online. With the help of AR, customers will be able to better understand how the products presented on the site meet their needs. In this way, companies will provide an opportunity for shoppers to test and research products in the same way they would do when shopping in brick-and-mortar stores.
Personalization is the future
According to a Bazaarvoice study, over 50% of online shoppers note the importance of personalization when shopping. According to Evergage, 74% of marketers believe personalization has a "strong" and "critical" impact on the development of business customer relationships. Shoppers value a personalized approach (this includes sending personalized newsletters and messages, providing relevant information to an interested consumer group, interacting with customers via video content or blogs, etc.) and may avoid certain stores altogether due to poor customer reviews.
Visual commerce
One of the many difficulties in running an online store is selling products to consumers who have no chance of physically interacting with the product. It is for this reason that businesses should resort to Visual Commerce (VC), which takes marketing to the next level. So, instead of just using photos, VC is introducing other types of visual aids: user-generated content (blogs, podcasts, online photo and video sites, online reviews), interactive content, engaging videos, and, as mentioned above, augmented reality.
Visual commerce is slowly but surely becoming an integral part of e-commerce, as evidenced by the rise in the use of deep learning technology. This includes the field of image recognition, the volume of which, according to the forecast of MarketWatch, by 2026 should grow by 19.6% to $ 81.88 billion (in 2018 it was $ 20.19 billion).
Impact of the coronavirus pandemic
If earlier the editors of PaySpace Magazine, when talking with experts, asked who has the greatest influence on trends - business, consumers or governments, now the focus has shifted to the COVID-19 coronavirus and its detrimental effect on most areas of the economy.
Experts point out that the coronavirus has had one of the most significant, if not most significant, impacts on e-commerce in 2020.
With governments around the world closing stores and imposing quarantine restrictions, more and more people have begun to resort to online shopping to purchase goods. So, in just two months of the coronavirus pandemic, the founder and head of Amazon, Jeff Bezos, earned $ 29.9 billion, increasing his income to $ 146.9 billion.
Experts predict the impact of the coronavirus will be a long-term boost for e-commerce. New customers will continue to buy products online, as it is convenient, fast and safe (due to non-cash payments and guaranteed money back in case the product does not fit).
Analysts say the e-commerce industry will be the largest beneficiary of the coronavirus pandemic. The penetration rate, which is currently 15%, is expected to increase to 25% by 2025 (according to MarketWatch). At the same time, due to the negative impact of the pandemic, over the next five years, the closure of 100 thousand ordinary stores is predicted.
TOP Ecommerce Trends in 2021.
In 1995, the first product, a book, was ordered through Amazon. More than 20 years have passed since then and now the volume of online purchases is about $ 2 trillion. According to forecasts, in 2021 this figure will exceed $ 4.5 trillion. E-commerce, as one of the fastest growing sectors of the economy, generates various trends that help businesses remain successful. Which of these trends you should pay attention to right now - read further in the selection of PaySpace Magazine.
Mobile shopping: shopping with smartphones
Mobile sales have increased by 15% since 2016. According to Statista, 73% of e-commerce sales will be on smartphones by the end of 2021, thanks in part to the demand for this method of shopping among millennials and Gen Z.
To stay competitive, businesses need to optimize their website and online store for mobile devices.
Voice Commerce
At the end of 2017, 13% of smart speaker owners in the United States made purchases using voice commands. According to OC&C Strategy Consultants' forecast, the number of such buyers will grow to 55% by 2022. According to experts, this method of shopping has gradually developed into a trend, mainly thanks to the smart Echo speaker, which was released by Amazon in 2014.
However, due to the fact that voice shopping is a non-visual experience, so far they are not used for searching, but for making purchases based on an already made decision. For example, most shoppers use voice commands to purchase low-price items such as food and low-cost electronics. Nonetheless, the projected growth in Voice Commerce suggests that businesses need to be aware of this trend, especially when targeting an international market that includes US and UK customers.
Increasing the role of social media as a sales channel
Social media has influenced not only our communication, but our daily life, including the way we buy things. According to data from BroadbandSearch, the average internet user spends about two hours a day on social media, so why not use popular apps as channels to sell goods and services? With the increase in ad share on popular sites like Facebook and Instagram, adding Buy buttons was an obvious step.
During the coronavirus pandemic, the social network also proved its effectiveness as a trading platform. So, earlier one of the leading retail banks in Spain, CaixaBank, launched a technology that allows retailers to sell goods through social networks and instant messengers. As small businesses were forced to close their physical offices due to quarantines, many of them tried to get online. To help the business with sales, CaixaBank rolled out Social Commerce, which allows retailers to manage online purchases directly from their Facebook, Twitter, Instagram, WhatsApp, Telegram, and other messenger profiles.
Using social networks will allow you not only to sell goods and services, but also to promote your brand using various available tools (videos, text posts, publications with photos, advertising, collaborations with famous bloggers, etc.). In addition, during the coronavirus crisis, social networks help small businesses with promotion. So, Facebook and Instagram now have a “Share a Business” button, with which users can tell about their favorite manufacturers and stores.
In addition, Instagram launched a new function for ordering food online, and also allowed entrepreneurs to acquaint subscribers with their proposals using special stickers in Stories.
Note. Video sharing service TikTok and its Chinese version Douyin ranked # 1 in in-app purchases in April 2021. In just one month, in-app sales increased 10x to $ 78 million, surpassing services such as YouTube, Netflix and Tinder.
Ecology theme
Today's consumers are becoming more aware of how their shopping behavior affects the environment. In particular, in recent years, various services have begun to appear for tracking the carbon footprint based on the analysis of the user's purchases, payment eco-cards and terminals .
Business must take this trend into account, making sure that its activities meet accepted standards and do not harm the environment. Some marketplaces also add special filters to help users find products that are environmentally friendly.
Note. Several years ago, the environmental degradation in China boosted online commerce.
Examples of eco-filters on the Ukrainian website MAKEUP. Source: psm7.com
Examples of eco-filters on eBay.
Role of artificial intelligence
According to BusinessWire, global retail spending on artificial intelligence (AI) will reach $ 7.3 billion per year by 2022 (in 2018, the volume of expenses was $ 2 billion). Companies are using AI to improve customer experience and personalization. This includes the use of automated marketing platforms that are equipped with tools to generate timely offers, or chatbots that respond instantly to customer inquiries. Other areas in which AI will be useful for retail are: optimizing pricing and discounting, and predicting future demand.
Augmented reality
Prnewswire predicts that by 2022 more than 120,000 stores will use augmented reality (AR) technology to provide a better shopping experience. Thus, the use of AR will solve the problem with the visualization of goods that customers cannot see with their own eyes when ordering online. With the help of AR, customers will be able to better understand how the products presented on the site meet their needs. In this way, companies will provide an opportunity for shoppers to test and research products in the same way they would do when shopping in brick-and-mortar stores.
Personalization is the future
According to a Bazaarvoice study, over 50% of online shoppers note the importance of personalization when shopping. According to Evergage, 74% of marketers believe personalization has a "strong" and "critical" impact on the development of business customer relationships. Shoppers value a personalized approach (this includes sending personalized newsletters and messages, providing relevant information to an interested consumer group, interacting with customers via video content or blogs, etc.) and may avoid certain stores altogether due to poor customer reviews.
Visual commerce
One of the many difficulties in running an online store is selling products to consumers who have no chance of physically interacting with the product. It is for this reason that businesses should resort to Visual Commerce (VC), which takes marketing to the next level. So, instead of just using photos, VC is introducing other types of visual aids: user-generated content (blogs, podcasts, online photo and video sites, online reviews), interactive content, engaging videos, and, as mentioned above, augmented reality.
Visual commerce is slowly but surely becoming an integral part of e-commerce, as evidenced by the rise in the use of deep learning technology. This includes the field of image recognition, the volume of which, according to the forecast of MarketWatch, by 2026 should grow by 19.6% to $ 81.88 billion (in 2018 it was $ 20.19 billion).
Impact of the coronavirus pandemic
If earlier the editors of PaySpace Magazine, when talking with experts, asked who has the greatest influence on trends - business, consumers or governments, now the focus has shifted to the COVID-19 coronavirus and its detrimental effect on most areas of the economy.
Experts point out that the coronavirus has had one of the most significant, if not most significant, impacts on e-commerce in 2020.
With governments around the world closing stores and imposing quarantine restrictions, more and more people have begun to resort to online shopping to purchase goods. So, in just two months of the coronavirus pandemic, the founder and head of Amazon, Jeff Bezos, earned $ 29.9 billion, increasing his income to $ 146.9 billion.
Experts predict the impact of the coronavirus will be a long-term boost for e-commerce. New customers will continue to buy products online, as it is convenient, fast and safe (due to non-cash payments and guaranteed money back in case the product does not fit).
Analysts say the e-commerce industry will be the largest beneficiary of the coronavirus pandemic. The penetration rate, which is currently 15%, is expected to increase to 25% by 2025 (according to MarketWatch). At the same time, due to the negative impact of the pandemic, over the next five years, the closure of 100 thousand ordinary stores is predicted.
