Top 5 E-commerce trends to watch this summer!
COVID-19 has driven the growth of e-commerce, and online shopping has become the primary channel for consumer purchases. As summer approaches, we recommend that businesses review their e-commerce strategies to maximize sales. At the same time, businesses should be aware of the following e-commerce trends.
Trend 1: The important role of big data
Brands that want to remain competitive in the e-commerce space must be aware of consumers' need to personalize their e-commerce experience. Big data plays a role in creating a personalized e-commerce experience by collecting data on different groups of consumers, such as purchase history, region, etc., which brands use to group consumers and communicate different messages to them. The following data shows the gains personalization can bring to brands.
- 80% of consumers are more likely to buy from retailers that provide them with a personalized customer experience.
- 49% of shoppers make an impulse purchase after receiving a tailored customer experience.
- 66% of shoppers say encountering content that doesn't match would deter them from making a purchase.
Trend 2: The Rise of Micro Logistics Centers
Micro logistics centers (MFCs) occupy an average of 3,000 to 10,000 square feet of space and are in smaller metropolitan areas rather than on the outskirts of cities or in other remote areas. MFCs speed last-mile delivery by bringing products closer to consumers. This will provide businesses with the following benefits.
- Increased speed of supply chain delivery.
- Enhance competitiveness. Using MFCs to streamline delivery allows smaller e-commerce retailers to build stronger customer relationships and gain customers who would otherwise go to Amazon or Walmart for same-day delivery.
- Improve customer satisfaction. Fast delivery is an important part of the customer experience and meeting their expectations will go a long way toward increasing their overall satisfaction with their purchase.
- Reduce shipping costs. Because MFCs are close to the consumer, delivery distances are significantly reduced
Trend 3: Implementing a dynamic pricing strategy
Brands should adopt a dynamic pricing strategy, which is a flexible pricing system. in which prices for specific items or services change daily or multiple times to respond to competitor price changes and market trends. To increase profitability and sales, dynamic pricing methods use changeable prices rather than fixed prices. The basic concept of the dynamic pricing model is to sell the same item at different prices to different customer segments. Many e-commerce companies modify their prices based on various circumstances such as market prices, seasons, competitors, and internal efforts such as launching a new collection or starting a sales season. A dynamic pricing strategy will provide brands with the following benefits.
- Respond to competition by adjusting prices to consider customer buying habits, giving a better experience at a lower cost than your competitors.
- By introducing a dynamic pricing strategy, brands will benefit from maintaining profitability. This gives brands the freedom and flexibility to focus on other elements of their business.
- Inventory can be better managed using dynamic pricing methods. It helps provide indirect inventory control by allowing brands to offer discounts for overstocked products to reduce their volume or charge higher prices for higher demand items to maintain the supply chain while generating more revenue.
Trend 4: Mobile wallet-led payments
Mobile wallet payment methods use technology to consolidate customers' financial information into a single application and streamline the checkout process. In many growing markets around the world, mobile wallet adoption has surpassed credit card adoption.
According to eMarketer, the use of in-store mobile payments grew 29 percent last year in the U.S. alone, bringing the total number of contactless payment users to a staggering 92.3 million. The report also shows that younger consumers, including millennials and Gen Z, have the highest adoption rates, with the former accounting for about four-tenths of mobile wallet users.
Trend 5: Sustainability and Social Responsibility
Environmental and sustainability awareness has been a growing trend in the e-commerce space. For some time now, online retailers have been thinking about topics such as corporate social responsibility and eco-friendly supply chain approaches to successfully address the growing customer demand for sustainability. In addition, consumers, especially those who regularly shop online, are increasingly aware of the negative environmental impact of the e-commerce industry and they expect companies to strive for global sustainability. According to a recent study, 57% of consumers are willing to change their shopping patterns to help reduce negative environmental impacts, and 71% are willing to pay a premium for brands that offer traceability. And companies can follow the concept of sustainability in the form of
- Providing sustainable shipping options
- Optimizing waste management - by eliminating packaging waste
- Using sustainable and recyclable materials for packaging and choosing climate-neutral shipping options
This article is taken from our LinkedIn newsletter, which you can find here: