Gone are the days when consumer products were sold under a brick-and-mortar
system. Leveraging the technology, retailers are increasingly using Omni
channels to sell their products. Post the pandemic, retail sales only continue to
grow especially in the US and European markets. There is a jump of 40% in retail
sales among Americans in the last year.
With the recent slowing of economic activity and opening up of stores, the real
question is will the e-commerce industry continue to grow. The answer lies in
some detailed analysis of the market. A recent Mckinsey report observed not just
growth in e-commerce but also an evolution in the coming years. There are a
plethora of opportunities for retail online businesses especially in the food &
beverage, personal care, and consumer electronics sectors to grow. This offers
both advantages and challenges to retail digital brands. While the demand for
products is bouncing back post-pandemic so does the competition.
The share of the UK in online sales is on the uptrend and will continue to grow.
So how big is the market we are looking at? In 2021, the online purchase rate
grew to the tune of 74% in the US and 81% in the UK. Developed countries are
witnessing cut-throat competition as brands are left with limited opportunity to
use cost advantage.
Despite all the struggle, the market is huge, and constructing an effective
strategy will undoubtedly drive small retailers' growth as well. The US market
presents opportunities for B2C business.
The revenue from retail e-commerce is $875.2 billion in 2022 and is expected to
climb up to $1329.7 billion by 2025. The numbers are expected to grow in the UK
market as they record $117.7 billion making it the fourth largest e-commerce
market in the world.
As per a recent survey, the majority of respondents are either planning to
increase their data collecting budgets (52 percent) or keep the same budgets (45
percent) for the next 12 months. This shows that eCommerce companies are
aware of the increasing need for data to make better business decisions.
What contributes to the Growth?
The global numbers are moving up over the next few years and are propelled by
the growing middle-class from East and Southeast Asia. Trends indicate that the
internet users rate will grow at an annual rate of 4%. The US and the UK have
maintained their internet penetration of over 90%. This is the primary driver for
the push in the e-commerce sector. As more and more people gain access to the
internet, the customer segment for online retail businesses grow as well.
Increasing smartphone users are the primary contributor to the increase in
online shopping, especially in the food and beverage industry
Pandemic with stores closing down
After the pandemic, consumers have switched to digital purchases of their
consumables. According to Cowen's Report with a survey of 2500 consumers, they
had doubled their online purchases as compared to the previous year. Based on a
recent survey, 75% of US consumers have tried different stores and brands during
the covid crisis. With the limited in store options, more consumers preferred
Wide variety of Options
The Internet offers way more variety than a traditional store. With increased
awareness of products with high end features, customers are more likely to settle
for platforms where they can find a plethora of options.
Better User Experience
With UI/UX advancements, the user interface is only getting better. Customers
prefer to shop using mobile devices over physical ones. Now brands are
increasingly listening to their audience and users to provide a seamless interface.
Now to answer the most important question. What is the next BIG thing in the e-
commerce business that will make your brand stand out?
Well, the answer might not be very simple. But the brands that prove to be
dynamic usually reap the benefits of being profitable firms. From supply chain
management, sourcing, and pricing to website, customer service, branding, etc, a
company has multiple ways to improve its revenue.
From the pricing side, first mover advantage can be taken by companies that
focus on tracking competitors' prices. In short, companies can survive the
upcoming competition by cutting costs or driving revenue using innovative
methods. When it comes to competitor price tracking and monitoring,
pricechecker has been the market leader. Integrate price tracking
win you customers in the long run.