Do you remember when you bought your first item online? Maybe it was a book on Amazon back in the 90’s or maybe you’ve given in to online shopping as a result of the pandemic. Either way, the online shopping trend started a long time ago and adoption has accelerated since the pandemic hit. Today, more than ever, people are shopping online for anything from clothing, to food, to furniture, other household items, and almost anything else you can think of. And while online shopping was once mostly reserved for the consumer or retail merchants, it’s becoming clear that business buyers are demanding the same convenience and are favoring vendors that provide online buying options.
eCommerce has and continues to evolve. It will soon comprise a majority of purchasing done through any channel. Technology is rising to meet consumer expectations. Personalized shopping experiences coupled with augmented reality provide a virtual experience that rivals any in-person experience.
If you’re still not convinced that eCommerce is right for your business, we’ve compiled some information that illustrates eCommerce adoption, how trends are evolving, and where industry analysts see things going.
In the retail space (B2C), growth of online shopping has been consistent and is one of the most popular online activities. According to Statista, in 2014 global online retail sales were $1.3 trillion and are expected to be $4.5 trillion in 2021. You may be surprised to learn that wholesale (B2B) online sales for 2018 were $7.7 trillion and forecasted to be around $12.5 trillion in 2021. Almost 3 times more than B2C sales.
The increase in online sales can be attributed to a few factors:
- Increase of comfort level in shopping online
- Increase in trust from the buyer for online stores
- Personalized experience
- And, of course, the COVID-19 pandemic
With health authorities imposing restrictions and locking down in-person interactions, more and more people have and will continue to turn to online shopping. The impact of the global pandemic won’t be short lived and those who never shopped online before, are doing so now, out of necessity. Visual commerce is on the rise and consumers are in less and less need of personal interaction while shopping.
As far as what is driving the adoption of online buying, the trend has been steadily growing with the pandemic providing a huge accelerant, like adding fuel to a fire. A more interesting question is who is driving the trend? According to Verto Analytics data, 95% of online shoppers are between the ages of 18-74.
It probably comes as no surprise that Gen X and Millennials account for a majority of the online buyers. When you combine that with the knowledge that Boomers will be retiring over the next few years leaving the younger generations to assume management roles and influence buying behaviors of a vast majority of organizations, it’s clear where merchants need to focus their efforts to support their customers’ buying preferences.
Young consumers have greatly impacted the changes we see in the eCommerce landscape and will continue to do so. According to Shopify, two out of three young consumers aged 18 to 34 are spending more money online than even before the pandemic. Therefor it follows that online businesses should be targeting the younger generations as a way to increase sales.
How do merchants keep up with these trends? Here are a few suggestions:
- Market your online store. This applies to merchants just starting on their eCommerce journey or those who want to get the most of their current investment in a web store. Social media can have a huge impact on the success of your store. You need to understand which platforms your customers are most likely to frequent and be there with them. Engage with them and you will see benefits. More and more B2B buyers are looking for the B2C experience from their vendors. Merchants who can deliver will earn their loyalty. There are many ways to market your online store. Social media is just one.
- Provide a personalized buying experience. This is particularly important for B2B eCommerce. Often merchants will have special pricing for different customers, payment terms, specific products that only certain customers can buy, among other unique characteristic of wholesale distribution. Honoring these B2B idiosyncrasies along with an easy to navigate buying process is a must to deliver an online experience that will ensure customer loyalty and repeat business. This is most easily achieved if your web store is integrated to your back office accounting system.
- Optimized for mobile. According to Statista, by the end of 2021, 73% of ecommerce sales will take place on mobile devices. Google will severely downgrade your organic search rankings if your site is not mobile compliant. Today, users are shopping and researching on their mobile devices more than ever. While many websites are mobile friendly, the shopping experience has yet to catch up, particularly in the B2B world. With more people working remotely, a trend that is anticipated to continue even after the pandemic, be sure to address this in your site design.
Considering all the points we discussed, having an option for your customers to buy from you online is no longer an option. It is, as they say, table stakes to be in business. The statistics bear it out. Customers are demanding it and will favor vendors that provide it.
At North49 we work with our customers to develop, support, and enhance their online business. We can do the same for you. Feel free to book some time with me to discuss your situation.