Have you ever done transactions online? If yes, you are part of one of the fastest-growing industries globally. Over the years, mainly due to technological advancement, e-commerce has been the one-stop place for both personal use and business.
E-commerce showed the highest sales growth, even when the world was on a hiatus due to the pandemic; e-commerce showed the highest sales growth. Many e-commerce giants reached new sales milestones.
Advantages of eCommerce
- Huge Market Potential
Having a digital space where businesses and individuals from anywhere can access your products has been one of the biggest bonuses in the expanding industry.
A physical store owner may only contact a limited number of buyers. They can deliver to consumers' houses; however, distance restrictions may apply. Several e-commerce platforms have their logistics and delivery systems.
- Easy Access to Locally Unavailable Products
Buying and selling beyond your borders allow you to buy products that are not readily available in your local market, making e-commerce one marketplace.
- Affordable Prices
Access to various products from different providers allows you to choose the supplier with the cheapest products. Also, one of the essential benefits of e-commerce to businesses is cost reduction, which keeps sellers interested in selling online. Many vendors have to pay a lot to support their physical stores' running.
Sellers can show off their products in e-commerce marketplaces' visual mediums.
- Enhanced Business Performance
Online sales give businesses the tools to study their market and adjust accordingly. Companies have mastered delivering services and products that match their customer's needs through proper marketing strategies.
- Easy Transactions
Finance technology has revolutionized over the years with various payment means. Unlike major physical shops, the online B2B marketplace allows your client to make transactions in their preferred mode.
Personalization appeals to buyers, which is true when paying for their orders.
- Easy Accessibility
Unlike physical shops, one does not require making a queue to access a product. You can freely roam the corridors of the online marketplace, and you can easily purchase products with little to no limitations.
No matter where a shopper is, eCommerce makes it even easier for them to make a purchase. Shoppers can purchase using Instagram Ads, in-store smartphone apps, and more. eCommerce helps businesses eliminate friction points and make buying the items they want as simple as possible.
- Flexible Routine
Shifting to online shopping was hugely accepted since fulfilling your needs was one click away. Regardless of the time of the day, most digital spaces provide 24/7 services.
These are a few of the advantages of e-commerce and understanding why there is a need to understand the e-commerce industry and take advantage of the sales growth trends.
eCommerce Sales Growth Trends to Check-in 2024
- Social Commerce
Social media platforms have garnered popularity in such a short time frame. Most people access these platforms not just for news and entertainment but also for shopping. The clear indicator suggests that social media and in-network commerce is a perfect marriage. The number of active accounts, penetration, and time spent has increased globally.
Facebook and Instagram are taking advantage of this need for their e-commerce sales growth and reaping millions. Most businesses in e-commerce sales are also diversifying their products for social media platforms.
According to Facebook, 63% of shoppers who use their platform do so for shopping. With increased competition, brands are going for venues that will give their clients easy access to their products.
Among other social media marketing advantages, social media marketing has been resourceful in increasing consumer engagement.
Some of the ELT benefits are:
- Its solutions combine social media marketing and sales data in retail, e-commerce, and other industries.
- You may push analysis-ready information to any data warehouse and get actionable insights in your preferred business intelligence tool.
- Anyone can extract and normalize data using these platforms from any social media network.
- Personalized services
Personalized services ensure products match clients' descriptions. Ecommerce platforms are working towards ensuring that they build trust with their client base by offering customized services for their customers.
You can use top-rated products linked to consumers' goal categories to increase CTR on your product pages. Users always pay greater attention to popular products because they want to know what's hot right now and why it's so popular. You'll need a well-designed recommendation system to comprehend your clients' interests and preferences for this reason.
- Platform Optimisation
With e-commerce platforms, which might include millions of product listings, varied photos, and other heavyweight features, having an optimized website is critical for a company's exposure and search engine results. As crucial as having adequate performance is taking care of your content and technical SEO optimization for better e-commerce sales growth.
Get creative with the ads you employ to reach out to potential customers to stay ahead of your competitors. In search engines, traffic ranking higher on the SERP will undoubtedly result in more leads. The position does not entice users to click on your search engine results. Your headlines must be well-thought-out.
If you're conducting a campaign, make sure your creatives are explicit, simple, and reflect the value you're offering. Also, ensure that you have a selling digital content strategy. Always keep in mind that you're paying for clicks, not conversions.
The strength of content lives in its ability to enter an audience's heart and mind through a well-told, consistent tale about people rather than products.
- Customer Research
It's more complicated than ever to recognize and stay up with customers' ever-changing requirements and preferences in these unpredictable times. Because many new clients have shifted to online buying, they do not yet have an established shopping pattern or interaction with e-commerce brands. It would be unrealistic to rely on pre-COVID customer behavior insights.
Furthermore, trends such as quick fashion add to the ambiguity of consumers' choices. Trending products might vary every month, making it difficult to expect which items will be popular in the coming years.
Companies could test their drafts and predictions to discover what further actions would create more income, rather than relying on the time-consuming investigation of consumers' needs, producing a proof of concept, and drafting reports.
Iterative A/B testing and detailed customer research aren't ideal in today's industry. We're not arguing that ignoring target group research is a good idea. However, in today's world, e-commerce firms must be flexible and adapt to changing markets for better performance of their e-commerce sales growth.
- Augmented Reality
It was critical for businesses to provide clients with in-store experiences without requiring them to leave their homes during the global lockdown. Incorporating augmented reality became the worldwide trend for getting clients. Augmented Reality is a composite view created by superimposing a computer-generated image on a user’s perspective of the actual environment.
Some of its benefits are:
- Users have additional opportunities to browse new products, compare them, try them, and make purchases with AR in retail.
- Brands are betting on virtual shopping and experimenting with augmented and virtual reality retail on many platforms.
- Consumers have no boundaries in the metaverse, a 3D virtual environment.
- People from all over the world can interact with products in a metaverse, regardless of where they live.
- Supply Chain Optimization
When the coronavirus disrupted supply chains worldwide, it prompted businesses to focus on supply chain resilience or ways to prevent supply networks from pausing and quickly restore them if they do.
Experts estimate that systems will not "normalize" until at least 2023. Even if they do, the epidemic has highlighted future political instability, natural disasters, and regulatory changes as weaknesses in the global logistic network.
Corporations have no control over rising charges and delays on a larger scale because it all boils down to global shipping congestion. Optimizing the supply chain at the corporate level may reduce the projected delivery time and improve the customer experience.
Customers are also likely to not trace their products during the shipping process, receive incorrectly estimated delivery times, and wait longer than planned for their purchases. If the crisis passes, the logistics sector will improve even more. In 2024, every e-commerce company will need to optimize its warehouses, install supply chain management software, and expand supply chains.
These acquisitions point to a shift in the retail industry. Brands that previously trusted third-party logistics are now bringing those activities in-house to avoid supply chain interruptions.
For 2024, supply chain optimization will focus on leveraging generative AI, real-time visibility, and smarter control towers to anticipate and solve problems.
These technologies will help supply chains become more resilient, efficient, and responsive to rapid changes, ensuring that organizations can adapt swiftly and effectively to emerging challenges and opportunities
- Subscription Models
A "lifetime" is long when calculating a customer's value, which is too long for any business that runs under real-world cash flow constraints. Customer lifetime value is, in some ways, an essential e-commerce company indicator. If entrepreneurs find a suitable niche, subscription-based revenue models produce excellent results. However, the e-commerce subscription trend has yet to take hold. What benefits may firms expect from this strategy?
When the e-commerce market is so competitive, it's no surprise that the rate is low. Customers may never return to your e-commerce site after making their initial purchase. They might find one that offers lower prices, faster deliveries, or better customer service. It may be a challenge to keep track of their costs and promotions, given that there are many rivals.
If you want to keep customers committed to your company for a more extended period, subscription-based models are ideal. Firms can assist clients in automatically restocking consumable products with a subscription model. It could be helpful for both B2C and B2B.
Even though numerous subscription terms exist, firms often convert all customers to a year-long membership. Customers become accustomed to the benefits provided by the e-commerce platform after paying once for the entire year. Furthermore, if the company offers free shipping, clients may place additional orders to return their membership investment.
As a result, subscriptions help e-commerce businesses clearly, and this model will undoubtedly be a growing e-commerce trend in 2024.
In 2024, e-commerce subscription models are anticipated to evolve, with a greater emphasis on using technology for personalization, data-driven strategies, omnichannel experiences, and AI integration to predict customer needs and enhance service delivery.
These trends underscore a commitment to more tailored, efficient, and engaging customer interactions in the subscription space.
- DTC Models
The direct-to-consumer ethos is a marketing and retention strategy based on the value and feel of one-on-one connections, yet free of production and distribution ownership constraints. Clients are seeking the fulfillment of their essential needs. Today's shoppers like to learn about brands and form relationships with them.
Traditional digital native vertical brands are expanding beyond direct to consumer as an operational approach to tackle scalability challenges. Instead, "direct" will become an ethos: a marketing and retention strategy based on the value and feel of one-on-one connections but free of production and distribution ownership constraints.
In the near run, selling your product on massive marketplaces like Alibaba may be effective. However, when you're just another listing in an enormous ecosystem, it isn't easy to describe your company's narrative, the features of your product, and the effort you're putting into it.
The direct-to-consumer strategy has revolutionized the industry. Make your website your primary distribution channel if you're a manufacturer or have a product. You can think of it as the digital face of your business. It helps you create tales, conveys the value of a product, and helps raise your e-commerce sales growth.
The maneuver works in both directions: from the bottom-up and top-down.
- Omni-Channel Strategy
Aside from new growth, in-store retail sales outnumber online sales by more than $15.21 trillion. It turns out that their items are still prevalent in some places. Crossing the online-to-offline barrier is critical for brands looking to grow.
Even though distributing your products solely through Amazon isn't a good idea for brand visibility, it is an excellent approach to boost earnings. You'll attract more clients if you target multiple platforms.
Distributing your items over many channels, such as social media, marketplaces, physical stores, and other choices, is known as omnichannel retail. Placing products on all major platforms has a significant impact on their online presence. According to Google data, omnichannel initiatives increase by 80 percent in total store visits.
- Diverse Payment Methods
Ecommerce and retail businesses that provide a variety of payment choices to their customers are more likely to enhance conversion rates and improve customer satisfaction. The global rate of shopping cart abandonment in 2021 was 75.6 percent. There are various reasons for this, including extended delivery delays, delayed loading, and security concerns.
One of the reasons why potential customers abandon carts before converting is the lack of essential payment choices. With the growing number of payment options, it's more important than ever for businesses to give their customers options. Companies should know their customers' payment methods to boost e-commerce sales with new payment options.
It asserts unequivocally that Gen Z customers employ a more comprehensive range of payment alternatives than Gen X shoppers. As a result, performing audience research before integrating new payment options is critical.
- Cross Border
The world is within grasp for the first time in history. Navigating across national lines, however, is not without its difficulties. Medium merchants, formerly the domain of prominent corporations, can now sell globally with the flip of a switch. Shopping across the border gives businesses an upper hand in their e-commerce sales growth.
If the facts above, reports, and trends suggest anything, global e-commerce isn't a choice—it's a requirement. It could mean the difference between your company's growth and survival.
It's not an extravagance nor intended for international corporations. It's also not just one of many growth techniques. E-commerce sales growth is an art that companies need to master.
If you want to gain the most out of eCommerce, we are here to help you with the best strategies to grow your sales.