E–commerce, which is now indispensable in the life of consumers, is the most effective tool for companies to increase customer loyalty. But, on the other hand, the market, which is accelerating day by day due to the rapidly changing demands and needs, due to accelerated consumption and the conditions created by the pandemic, is open to danger even though it contains many new opportunities. Therefore, the right strategy is indispensable for growth and profitability.
They accelerate consumption, product diversity, ever–changing demands and needs, transparent sector boundaries. Brands struggle to make consumers choose them among thousands of similar products, services, and solutions in the e–commerce market. The transformation movement aimed at improving the customer experience and growing by adding value with new technologies, which has been going on since the beginning of the 21st century, has accelerated with the unique conditions brought by the Covid–19 epidemic. This transformation process brought significant operational changes based on digitalization and data analytics, especially in functions such as sales and marketing, which are based on a one–to–one interaction with the customer.
E–commerce has become an indispensable part of the consumer’s life, with the convenience that eliminates the need to go to the store thanks to electronic devices and the opportunity to instantly compare prices and reach the most suitable options for the budget.
The online market is the reality of today and has a rising volume. However, despite this situation, many companies in the online market continue to make losses or continue with low profitability. Although it varies according to the sector, the decrease in profitability is up to 50 percent compared to the physical environment/store. Especially in some industries, e–commerce can become unprofitable due to cost–inducing factors such as logistics, product replacement, returns in this context, clothing, food, electronics, etc. Therefore, it is a correct approach to consider companies in this context.
Global and Domestic E–commerce Developments and Trends
Considering that there are expectations that the e–commerce channel will grow by 400 billion TL in 2021, the importance of the need for sites or companies that allow online shopping to follow trends is better understood. To talk about our thoughts about what these trends will be today and for the future;
- The demands for cryptocurrencies, which everyone is familiar with, are increasing daily.
- It is now possible for everyone to sell and open a “store” through social media platforms. It is estimated that the place of these platforms in e–commerce will gradually grow.
- The rising momentum of e–commerce accelerates the digitalization processes of brands. In fact, in this process, brands are expected to make significant investments in e–commerce.
- One of the first things that e–commerce companies think about is to open e–commerce sites. Thanks to the easy integration provided by the marketplaces, it is expected to pave the way for many new initiatives.
- “Dropshipping,” which is on the rise among the e–commerce trends of 2021, is a concept that describes the people who want to do e–commerce to sell from e–commerce sites or marketplaces without stocking up on any product.
- With the increase in the use of mobile devices, a new era has begun in e–commerce. Generally, about 80 percent of customers visiting e–commerce sites make their relevant visits via mobile devices. Therefore, e–commerce has become an essential tool for increasing customer loyalty.
E–commerce and its Sectoral Effects
Thanks to e–commerce, one of the most popular channels of recent years, companies also have a traceable data source for a much larger customer pool. This provides an opportunity to restructure customer segmentation and develop segment–based strategies. Especially with the Covid–19 pandemic that started in 2020, the interest in the e–commerce channel has increased rapidly on both consumer and producer bases. Many sectors experienced severe losses and shrinkage due to the pandemic, but some sectors turned this environment into an opportunity for growth with their e–commerce activities.
Global E–commerce Market
The global e–commerce market, which has grown in double digits since 2015, recorded a growth of 28 percent in 2020. As a result of the development of technology and the change in consumer habits, the expected increase in the market has become sharper with the effects of the pandemic. In the e–commerce market, where demand is the determining factor for the trend, the intense shopping of consumers in online channels contributed significantly to growth.
With the increase in penetration of product and service sellers in online channels, it is seen that small, medium, and large-sized enterprises that have not been able to adapt to technological developments today have increased their competitive power in their sectors by entering the e–commerce field.
Eight Critical Points that Businesses Should Integrate Into Their Business Models in the Field of Retail and E–commerce
Insight–Driven Strategies and Actions
Ability to develop an analytical culture of an integrated customer and product relationship to deliver the best experience across all touchpoints while addressing their customers’ data integrity, privacy, and security.
Experience Centralization by Design
To design and deliver flawless customer experiences that adapt to evolving expectations at all physical and digital touchpoints and increase interaction, satisfaction, and loyalty.
Seamless Interaction and Trade
To carry out transaction activities seamlessly at distribution, participation, and service touchpoints, consistent with the customer experience and performance targets.
Responsive Operations and Supply Chain
Enabling the customer to choose the products appropriately for himself as a result of analytically driven demand planning, inventory management, and distribution.
A Harmonious and Empowered Workforce
To ensure that all management processes, skills, and knowledge are aligned, including top–down managerial vision, matrixed and dynamic organizational structures, and integrated performance management.
Digitally Enabled Technology Architecture
To benefit from technology systems to efficiently deliver cross–channel experiences, provide practical tools to employees, and protect information privacy and security.
Integrated Partnership and Alliance Ecosystem
Effectively leverage third parties to access new markets and customers, increase speed to market, reduce costs, or fill talent gaps.
What should businesses want to do in e–commerce but cannot invest in online channels?
Small and medium–sized businesses have already started e–commerce by integrating into online marketplace models and opening their virtual stores. We hear that the number of businesses switching to e–commerce has increased by 50% compared to last year.
This data explains how commerce has evolved. Companies that transform their business today, not tomorrow, will survive!
The devastating aspects of Covid–19 for the whole world are discussed enough. We will somehow get through this epidemic how we can come out of this process and turn it into an opportunity.