E-commerce: An ever-growing empire
Translated by Nancy Panagoulopoulou
One of the fastest growing fields of commerce in the last 2 years of the pandemic, is the branch of e-commerce. Electronic commerce or e-commerce has experienced an impressive growth during the 2010s decade. According to a Euromonitor International research though, the biggest boom in growth will occur in the years between 2020-2025. But it is estimated that from the total increase of the retail revenue, half of it will come from e-commerce, amounting to 1,4 trillion dollars. Three in four consumers worldwide are expecting that this uptick in electronic purchases will continue in the post-covid era. This alone demonstrates that the shift in commerce has been notable.
The rise of e-commerce
The inhibiting factors that have always impeded the growth of e-commerce are many: the limited capabilities of postal services, the little amount of trust that consumers have on the internet grid and the lack of familiarity that most have with the internet, have perhaps been the key reasons. However, the public health crisis of the last two years has changed the game. Companies after the coronavirus outbreak, had to invest large sums in their digital presence in order to keep providing in their services effectively during lockdown. The outcome? New and improved websites, new methods of attracting customers and better delivery services. Also, a novelty of note is the furthering of communication between company and customer through social media apps. For example, the multinational enterprise Walmart allows customers in Mexico to order through Whatsapp.
The trend and pace of change in the industry
During the pandemic, the supermarkets had the quickest rate of growth, as essentials and food products were a priority for the online consumer. In the fashion industry, e-commerce is predicted to continue its upwards course ever since the beginning of the pandemic. The industry as a whole however, has experienced a decrease in revenue by 19% during 2020. The sudden rise in the development of online retail started slowing down by 3% by 2021, which shows that the e-commerce empire will continue to grow, surpassing other forms of commerce, but not with the impressive rates of the last two years.
What is the lesson learned?
Other than the statistics, the transition from physical to online digital markets will notable affect consumer habits. This change comes at an incredible speed and store owners are trying to keep up with the new reality of e-commerce. The participation of retail stores in e-commerce, will most likely determine if they manage to survive. From what it seems, retail shops as well as established brands, can’t afford to delay the transition any longer! They have to keep up with the new requirements of commerce if they want to maintain their success and trustworthiness.