E-commerce companies have witnessed a huge growth over the last 10 years. With the internet continuing its worldwide takeover, major high street businesses have migrated to the world wide web, while newer companies, such as ASOS and Just Eat, are solely web-based.
But, what is it that has made e-commerce so important to our population? We’ve teamed up with commercial Ford dealers Lookers, whose vehicles make great delivery vans, we look at the rise of e-commerce.
When did e-commerce become popular?
E-commerce has quickly become one of the major players in regards to catering for the buying habits of the public. This year, Nasdaq has anticipated that 18% of purchases in the UK will occur online, while 77% of us have bought goods online at some point. Millennials are the biggest users of e-commerce services, with the age group purchasing 54% of their products and services online.
It has also become a big player for brands too due to its low expenses. Because of this and the internet offering a wider range of custom, the popularity has sky rocketed for businesses. For consumers, they are taking advantage of the lower rates as the prices of the products represent this.
E-commerce sales have more than doubled in value since 2015.
How is it improving?
Overseas deliveries remain a big part of our everyday life. Companies are taking advantage of e-commerce to tap into markets that they’d previously not have been able to reach. To do this, you need to produce a strategic sales and marketing plan to help you successfully convert international customers. Improved social media campaigns are one of the main ways ecommerce is improving.
However, as more and more purchases are taking place online, there is a higher expectation creeping in. Stats from an Alix Partners report show that three quarters of Americans believe the offer of free shipping impacts their final decision on whether to buy a product. While this is the case, the maximum delivery time has continued to diminish. In 2012, those expecting free delivery were willing to wait 5.5 days for their product. By 2017 though, a full day had been wiped off that expectation.
Because of this, e-commerce businesses have had to spend a lot of attention and time on how they delivery their goods. This has led to many companies offering next-day delivery. While speed is important, so too is flexibility and reliability. It’s no use a customer being offered a fast delivery time if it’s not a convenient time frame. Because of this, companies like Amazon, who have even started offering ‘free’ next day delivery to their Amazon Prime customers, offer consumers the chance to choose a specific slot, meaning they know they’ll be in to receive their goods.
By keeping a close eye on customer service, the e-commerce industry is fast becoming the strongest player in the retail world. After all, research has found that 52% of customers won’t return to a product if they have a bad interaction.
There are currently in the region of 1.92 billion digital buyers. This represents 63% of internet users. By 2021, 2.14 million digital buyers will be in the economy. The number of people making purchases that will be facilitated by e-commerce is expected to dramatically increase, too. Research has found that up to 95% of purchases by 2040 will be made using e-commerce.
This has paved the way for many new innovations being trialed. Amazon have experimented with in-home delivery. The concept behind this is that the consumer can remotely unlock their door via their smartphone when the delivery driver arrives with the parcel. A real-time camera connection allows for added security.
Currently, although the industry is ready for such crucial revelations, it appears that consumers may not be there just yet. With 68% of US adults admitting they wouldn’t feel comfortable granting a driver access to their home, it’s sure to take time for the idea to catch on. However, one step further has been the trial of autonomous cars. This removes any need for a delivery person, with takeaway companies ready to roll out this concept. The recipient simply types a code into the vehicle’s keypad to open a compartment where their food is kept. This is currently being tested in the States and could well be brought over to the UK in the near future.
It’s notable that e-commerce has a big grip on how we shop. With new innovations constantly being introduced, it doesn’t look like the rise of the e-commerce sector will be slowing down anytime soon.