The e-commerce industry has grown immensely popular over the past few years, and the epidemic has now given it even more energy. The rate of consumption growth has changed from being stable to being exponential. What actions have e-commerce companies taken to keep this momentum going? What strategies are they betting on? Does this growth have a future, and if so, how? Let’s investigate:
- Offering consumers more options
Since the pandemic has forced people indoors, e-commerce companies have had to adapt their methods and give customers more freedom while browsing and ordering things, as well as tools to aid them in making the best decision possible. A number of elements that were previously specialised are now actively being pushed to the front of online buying. The following are a few of the most practical and important of these tools:
Alternative Payment Methods
- The Metaverse and Blockchain
Blockchain is poised to become the e-commerce industry’s next big thing. Cryptocurrencies, NFTs, and—possibly most significantly—the Metaverse—all have several applications. Many believe that this sector is about to take off and has the power to completely alter the way we view the world. But regardless of whether it’s just hype or has real value, its impact is apparent. It is, if not more, truly altering the way that many people shop. This revolution is primarily being driven by two major forces:
i. Non Fungible Tokens (NFTs)
ii. Decentralization And Web 3.0
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- The increase in “Buy Now, Pay Later”
Buy-Now-Pay-Later is one of the newest and most well-liked alternative payment methods to appear recently (BNPL). As the name implies, it essentially enables you to make purchases and pay for them later. Usually, it is simpler to set up and interest-free. A wide number of possibilities are also provided, ranging from standard monthly payments to a single, sizable payment at the end of the month. This gives consumers a lot of freedom and flexibility, which is to their advantage.
- Subscription-Based Services
As time goes on, subscription models will expand even more, giving their consumers a simple and quick way to set up recurring payments without having to worry about their services being discontinued. Subscription services are very good at luring users into a certain ecosystem and keeping them there. Even firms not involved in e-commerce have adopted this tendency to a large extent.
Streaming services are, of course, the most known examples. The way we watch TV has changed as a result of services like Netflix, Hulu, Disney+, and many more. Similar innovations in e-commerce are long overdue, and Amazon Prime is the ideal example of what an all-in-one membership model should look like.
- Digitization and IoT
For the logistics and e-commerce sectors, the Internet of Things (IoT) has been nothing less than a windfall, significantly decreasing individual workload and assisting in the automation of many previously tedious, time-consuming procedures. In order to better serve the clients, it also helps to recognise patterns and create algorithms. Some of its primary duties include:
Show Products and Ads Based on Customer History of Browser
Carry out polls to learn about customer preferences
Three automated methods of pushing advertisements and promotions to online users.
Factory and warehouse automation
- Influencer marketing and social media
Influencer marketing has experienced a tremendous increase in popularity as the pandemic has driven every aspect of our lives online. Many firms have chosen the strategy of entering into deals with these influencers since people turn to them for advice and put their trust in them. Finding a select few core influencers that specialise in a market connected to your items is advised. This guarantees that the adverts won’t appear abrupt or unwelcoming. For instance, a health influencer could be able to promote a sports drink but not necessarily companies of junk food.
- Cross-border Logistics
International borders no longer seem to have any real significance outside of the geopolitical sphere as globalisation and interconnectedness increase. Retailers benefit from access to new markets, while customers benefit from a significantly increased selection of products thanks to cross-border transportation. International shipping has consequently become much simpler and less complicated. Shipping and logistics courses in Kerala will give you ample oppurtunities to know about the industry.
- Direct-to-Consumer Model
It’s interesting to note that a lot of e-commerce platforms now choose D2C (Direct to Consumer) services to avoid marketplaces and problematic third parties. Both small and large manufacturers are embracing it because it enables them to save on margins that the intermediaries previously ate up. Since customers are now purchasing products directly from producers, there is also a time and money savings from avoiding the additional shipping procedures necessary for conventional models. Additionally, it forges a close bond between the buyer and seller.
- Increased Attention on Sustainability and the Environment
Nowadays, a lot of companies are making the decision to “go green,” using recyclable packaging, lowering their carbon impact, etc. Many logistics platforms have taken notice and are now promoting “green logistics” and sustainable delivery methods.
This occurs as a result of consumers’ increased awareness of where they purchase, how it affects the environment, and other associated issues. Large firms have already launched numerous social media ads emphasising their environmentally friendly business practises, like Apple and Amazon.
It’s crucial to concentrate on efficiency and quality performance for the benefit of the customers, but it’s also a good idea to keep in mind that there wouldn’t be many customers if we transformed the globe into a wasteland in the first place.