What the future holds for Ecommerce: The current challenges
From our blog / Article
The world of commerce is fast-moving, where companies and their merchants must be constantly on their toes to keep up with the challenges and changes. For this reason, it is imperative to understand the current trends taking place and where we are heading to in the future.
In this article series, we are looking at what is happening in Ecommerce currently, how the landscape is changing for brands, and what new technologies are rising to bring forth high-level customer experiences.
- Part 1 – The current challenges
- Part 2 – Knowing your customers
- Part 3 – New technologies and channels
The current challenges in Ecommerce
The amount of online shoppers have been steadily increasing. In 2020, e-retail sales surpassed 4.2 trillion U.S dollars worldwide. 20% of current retail sales happen online, with 50% of those sales coming from Amazon.
The online commerce world has certainly opened up a plethora of opportunities for brands. Having an online store has shown to be a life-saver for many, especially as we were hit with the pandemic and the so-called retail apocalypse, whereby thousands of retail stores have been going out of business. Simultaneously the competition is getting tougher and advertising costs are getting higher.
Not only are you competing with giants like Amazon for marketshare, you are competing with an influx of new innovative brands with creative tactics in customer acquisition. It is no longer enough to just have a catalog of products online.
Ecommerce has become a complex world to navigate, especially for brands who are not familiar with selling online through their own channels. Finding the right customers, understanding their needs and keeping them long-term are some of the biggest challenges facing brands today.
Fast-evolving environment requires agility
While the world of commerce is changing rapidly due new technologies and trends, companies need to be aware of the challenges and stay a few steps ahead of the game in order to gain competitive advantage. With that in mind, agility and adaptability is required of brands, as well as a defined customer-centric strategy to ensure commercial success for the future.
Stay tuned for the next chapters where we talk more about the importance of knowing your customers as well as keeping up with new emerging technologies and channels.
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