Ecommerce revolves around the buying and selling of goods and services online. The technology is powered by electronic money transfer, online transactions and mobile commerce among other enablers. According to eCommerceguide, eCommerce has been growing at the rate of over 20% annually since 2015. Global eCommerce retail sales are expected to hit $4 trillion by 2020. This figure is up from $3.4 trillion that was recorded in 2019. The sector is driven by the emergence of boutique retailers and growing interest in social commerce. ECommerce is broadly classified based on the sale items and number of parties involved in a trade.
Classification based on sale items
The merchants operating on eCommerce platforms include physical goods stores, e-goods or digital products stores and service-based e-tailers. A physical goods store typically sells items like home wares, apparel and gifts. The products are normally showcased in an online storefront, where consumers can select and send the items to a virtual shopping cart for checkout. The e-goods stores usually sell particulars like software, graphic images, virtual goods and eBooks. The service-based e-tailers, on the other hand, are mostly concerned with selling packaged services. Most notable examples of e-tailers are freelancers, educators and online coaches.
Classification based on party involvement
The main classifications under involvement includes; Business to Business (B2B), Business to Consumer (B2C), Consumer to Consumer (C2C), Government to Business (G2B) and Consumer to Business (C2B). The B2B transactions involve two businesses while the B2C transactions bring together businesses and consumers. The G2B transactions take place when a company transacts business with the government. This automatically happens when a business pays for services, goods and taxes online.
Trends shaping eCommerce in 2019
Market dynamics are forcing eCommerce entities to change the way they operate. Case in point is the rise in mobile conversions. This development has forced retailers to change the way products and services are marketed and sold. Change is also evident in web design, thanks to the emergence of progressive web apps, responsive mobile websites and so on. According to Shopify Partners, the following trends will impact eCommerce in 2019:
– Chatbots and Artificial Intelligence
Prompted by growing consumer demand for quick and accurate responses, a new generation of chatbots aims to revolutionize eCommerce. A number of companies have incorporated human-like AI learning algorithms in chatbots to enhance user experience. Sellers are also tapping into the niche by deploying smart chatbot AI to take care of incoming messages and perform specific backend and customer support services when the office is closed.
– Video
Video is a powerful tool for engaging customers and the public. As people spend more time watching videos, more consumers now prefer learning about the products they use from watching video. The new trends in video viewing point to increased use of promotional videos and influencer content. This development is forcing retailers to incorporate video in their marketing.
– Voice Search
The number of voice search queries being posted online is rising and eCommerce retailers are taking note. As of now, about 20% of search queries are conducted via voice. This number is set to hit 50% in 2020. The focus of key stakeholders will be improving voice search queries and developing voice search devices capable of reading and translating product descriptions.
– Convenience and UX Realization
The convenience trends shaping eCommerce are mostly focused on creating an improved and rewarding end-user shopping experience. This goal is closely intertwined with the need to match high consumer expectations and demand for instant results at pocket friendly prices. For product manufacturers and retailers, the answer rests in creating more customized products and services and giving consumers an advanced opportunity to try out new products.
– Growth of Augmented Reality
The explosive use of Augmented Reality will impact eCommerce a great deal over the coming years. Several platforms have been developed to help entrepreneurs integrate AR into eCommerce. The engagement will give consumers the opportunity to test drive new products before making a purchase. A number of vehicle manufacturers have incorporated AR in their stores in the hope of using the immersive experience to boost awareness and increase sales.
Advancing eCommerce through blockchain technology
Nando Caporicci is one of the brains behind several cutting-edge blockchain solutions. His areas of expertise include direct marketing, online advertisement and Bitcoin mining. He has a bachelor’s degree in political science and an MBA in marketing. The father of two is currently the CEO of Olitris Technologies, a fast-growing company creating Bitcoin mining rigs. Under Nando Caporicci, the company is working to exploit all the possibilities presented by internet technology with the aim of advancing online trade.