The retail industry has changed dramatically over the past decade. From the rise of online shopping and increased competition, to evolving consumer priorities and automation in retail – ecommerce is reshaping how we shop. In this post we'll explore some of these changes, along with their impact on consumers and retailers alike.
Increased Competition
The increased competition has also had the effect of making online shopping a much more competitive environment. Instead of having to choose from the limited number of products and services offered by two or three brands, you now have access to thousands upon thousands of products and services from hundreds if not thousands of different brands. This means that there is more competition for each consumer's business than ever before.
Evolving Consumer Priorities
In addition, consumers are also more aware of the environmental impact of their purchases. They want to know whether or not the product was made ethically, and they want to know where it came from. All of these factors have served to shift consumer priorities in profound ways.
In response, online retailers have found themselves under pressure to reinvent themselves in order to stay competitive in an increasingly crowded market.
Rise of Influencers and Customer Reviews
Over the last decade or so, we have seen the rise of influencers who are not only extremely popular among their followers but also have huge followings on social media platforms such as Instagram and YouTube. These influencers often promote various brands through sponsored content or affiliate links – and this has given companies an opportunity to directly communicate with their target audience in a highly effective way. In fact, according to data from Statista (a market research firm), annual retail ecommerce sales will reach $4 trillion by 2020 – up from $2 trillion in 2016!
Automation in Retail
When you talk about ecommerce, you have to be able to discuss automation in retail. Automation is the use of machines and software to replace humans in the performance of certain tasks. In other words, it's how we've managed to make manufacturing so efficient and cost-effective that we can produce goods at affordable prices for consumers all over the world.
Automation can be applied across industries, but its effects are most noticeable in manufacturing—and nowhere is this more apparent than in ecommerce. Since ecommerce relies on mass production techniques like automation, it's now possible for millions of people around the world who might not otherwise be able to afford products like smartphones or clothing items from major brands like Nike or Victoria's Secret to have access those goods through online shopping platforms such as Amazon Prime Now (a one-hour delivery service) or eBay Now (one-hour grocery delivery service).
The Shift to Mobile in eCommerce
Mobile shopping is the future of ecommerce. The shift to mobile is happening, and it's going to continue growing over time.
Why? Well, it’s convenient: you can shop from anywhere and at anytime. You don't have to worry about whether or not a store has your size in stock when you're out on the town—you can just pull out your smartphone and buy what you need! There’s also no need for cash or credit cards with mobile shopping—which means no more worrying about getting mugged in the parking lot after dark. And security doesn't end there—mobile sites are often more secure than their desktop counterparts because they only collect personal information when necessary (for example, during checkout).
Mobile sites are also easy-to-use (thanks in large part to intuitive design) which makes them fun as well as practical!
Ecommerce is expected to make up 18% of global retail sales by 2023.
Ecommerce is the online buying and selling of products and services. A consumer can browse items on a website, add them to their cart, check out (using a credit card), and have the product shipped to their home or office. For example:
- An ecommerce site like Amazon allows you to buy books, electronics, toys, clothing items—you name it! They also offer services like Amazon Prime where members pay an annual fee for expedited shipping on certain items as well as access to music/movie streaming services.
- When you shop at CVS or Walgreens or Target in person (or online through their respective websites), your purchases are processed by those companies’ brick-and-mortar establishments. With eCommerce sites like Sephora and Ulta Beauty that process payments digitally without requiring customers drive anywhere first; these brands enjoy higher profit margins than traditional retailers because they don't have any overhead costs associated with operating physical locations—which means more profit for them!
Ecommerce is expected to make up 18% of global retail sales by 2023, representing a CAGR of 5.4%. This means that there is still a lot of room for growth in the eCommerce market, and there are many opportunities for businesses to capitalize on this new trend. If you're looking for some inspiration, here are some examples of companies who have done something unique with their eCommerce sites:
Chapters
Robert Simmons
Operations, Lead Development
Robert is the co-founder of Paper Crane, having started the company alongside Tara McLaughlin in late 2019. He heads the online development arm of the company. During his tenure, he has overseen or directly built projects for EasyRedir, Tilt Five, Kudos, Virtual Gurus, and more.
His strengths lie in platform consolidation, speed optimization, and business automation, all under the umbrella of streamlining operations while providing the best possible experience to online visitors and consumers.
Having started his career as a digital nomad, he capitalizes on the ‘location-less’ aspects of his job by spending 2-4 months per year working abroad. When he’s not building out Paper Crane’s underlying infrastructure, he can be found aimlessly learning Spanish - only to forget it again in 3 months time - or playing one of the same 6 songs on guitar. His refusal to learn a 7th is astounding.
