HOW COVID-19 HAS CHANGED “THE FUTURE OF ECOMMERCE”
The novel Coronavirus or COVID-19 shook the world towards the end of the year, 2019. The pandemic of the twenty-first century altered many aspects of civilization, including human lives, business, and cognitive processes. It is still affecting the entire planet today. The pre-COVID position was favourable, as ecommerce grew rapidly in the years following its inception.
However, the circumstances have changed, so how has COVID-19 affected the future of eCommerce? In this post, we will go over a few suggestions that will be useful for marketers who are trying to overcome the challenges that have arisen as a result of the current circumstances. It would be great if we began with some fundamental information on the industry.
The Ecommerce Industry, Types & Statistics
Michael Aldrich invents electronic shopping in the year 1979. It was the first move toward ecommerce at the time; since then, many developments have occurred, and eCommerce has become the preferred method of commerce for people all over the world.
The term eCommerce stands for the sale of tangible commodities via online/digital channels to the clients. It’s similar to an eco-system for sellers and buyers, including a wide range of data, tools, systems, and apps. It makes it easier for company owners to reach out to clients and sell their products, and it also allows users to choose what they want to buy.
The eCommerce business owners sell their items through an online store or shop, where customers may buy them and pay for them using online payment methods such as Net Banking, Mobile Wallets, and so on. Customers benefit from the payment facility’s payment encryption technology, which ensures their safety and security.
Aside from customers and sellers, an eCommerce software developer is a significant figure in this market. They are the professionals who are always active in the development of eCommerce applications, which are used by both business owners and customers.
To convert your business to eCommerce or start a business on the internet, you’ll need the help of an online shopping app development company to create an app that allows you to sell and earn as much as possible.
Ecommerce business can be of various types such as –
- B2C – When a transaction occurs between a business and a customer is called business to customer, aka B2C. It is a major segment of the eCommerce industry and has more share than other types. Ex- Amazon, Etsy, etc.
- B2B – When transactions occur between business and business is called B2B, where manufacturers sell their products to the wholesalers and retailers. Ex- Alibaba, eBay etc.
- C2C – When a customer sells products to the other, it is called C2C. It is re-selling or sometimes exchanging of stuff. Ex- OLX
- C2B – It is reversal eCommerce, in which customer make products available for the businesses such as stock photographs etc.
- B2A – When the transaction is between business and administration, it is called B2A, such as social security, legal documents, devices purchased by the administration for public use etc.
- C2A – This segment has very less percentage till now. But you can understand it as when consumer sells products to the administration such solar energy.
Check out some stats that will provide you more insight about the trends in 2021 and the future-
- Till the end of 2021, the ecommerce business is expected to reach $2,723,991 million US dollars.
- With consolidated annual growth6.29% (CAGR 2021-2025), it is projected to reach $3,447,296 million by 2025.
- The major percentage of eCommerce is covered by the Fashion segment. In 2019 its market value was 36 billion US dollars worldwide, which is projected to reach 43 billion US dollars by 2029. The projected volume for 2021 is $759,446 US dollars.
- Till 2025 the numbers of ecommerce platform users will reach up to 4,914 million by 2025.
- The average revenue is expected as $715 per user.
What Makes eCommerce Most Favorable of Sellers & Buyers?
The things that make eCommerce most favorable for sellers and buyers are-
- Smooth functionality
- Multiple choice availability for purchasing and selling.
- Payment options
- Easy reach to the products and customers.
- Budget options
- Easier brand promotion.
- Not bunded by the location(s).
- Comprehensive approach worldwide
- Cost & time effective
- Enriched experience of shopping
All of the aforementioned factors combine to make ecommerce a very attractive alternative for both company and shopping. But did you know that, in addition to the business owners, other people who work behind the scenes are also accountable for it? Those are the companies that offer eCommerce application development services. There are two things that are required to start a business online: the website and the other.You’ll need an expert ecommerce software developer(s) for both because there are a lot of things to check before establishing your firm.
A smooth shopping experience, safe and secure payment methods, use of the newest technology and tools, and availability of items are some of the essential features that can make any freshly established ecommerce platform appealing. There are several app development companies in the world that cater to a huge section of the ecommerce application development market.
How the E-commerce Trends Has Changed During COVID-19?
People were less interested in purchasing via ecommerce websites before Covid. Due to the lockdown and fear of contamination as pandemics spread over the world, the crowds of customers dissipated. As a result, on-demand solutions for ecommerce application software development were built to cater to consumers’ expectations, allowing them to order things from the comfort of their own homes.
Apart from fashion, food delivery has become one of the most popular areas because individuals cannot leave their homes to eat. In 2017, the number of restaurant to customer model delivery users was 497.3 million, while the number of platform to customer users was 364.8 million; by 2021, the numbers had risen to almost 821.6 million and 790.3 million, respectively.
It’s worth noting that the number of digital buyers worldwide was 1.66 billion in 2016, has risen to 2.14 billion by the middle of 2021, and will almost certainly surpass 3 billion by the end of the year because there’s little reason to believe that pandemics will be completely eradicated by December 2021.
1. Increasing & Decreasing Revenue
Our lives have been affected by the novel Coronavirus, which has also had an impact on the market and business. Until 2019, the businesses were running regularly, but when conditions started becoming worse, the whole market got paralyzed. The ecommerce industry relies on delivery services, which were halted during the global shutdown, resulting in a drop in revenue.
The poll was performed among shoppers and ecommerce businessmen by SearchNode, a global survey organisation. Then, due to the lockdown, 7 out of 10 shoppers acknowledged to switching to online shopping. More than 90% of online store owners agreed that their online sales rose, with 27% saying their sales climbed by 27%.It is also revealed by Shopify, an eCommerce behemoth, that by 2021, global ecommerce sales are expected to surpass 4.5 trillion USD.
2. Impact on Profit Margin
The proprietors of ecommerce portals have a number of obstacles, and a pandemic has an impact on them. The profit margin has been disturbed by an interrupted supply chain and fierce competition, but things have changed now that more users are onboarded for online purchasing, and the profit margin has improved.
Without a question, business trends have evolved, and retailers that formerly conducted business in person have now launched their online services via app and website with the assistance of an eCommerce solution provider.In sum, 40% of online retail executives claim their profit margin has improved; 40% say it has remained the same, and only 15% say it has decreased. The point to be made here is that internet clients are increasing in number every day, resulting in revenue production.If a company does not yet have an online presence, now is the time to do it with the help of a mobile app development company.
3. Changed Working Style and Impact on Workforce
Not only have people’s personal lives been altered, but also their professional life. Regardless of their occupation, a large share of the workforce works remotely. Employees from the medical and essential services are the only ones who work on the field. Due to the pandemic, the eCommerce workforce is also working with relocated staff, since some workers have lost their jobs and headcount has increased.Despite the fact that ecommerce application development specialists have enough of work, many also work from home.
Work from home is not a new concept, but it gained popularity during the lockdown. Professionals are still divided on whether WFH is beneficial or not. According to Statista.com, 57 percent of professionals believe their output has grown, while 17 percent disagree and believe they have become less productive. Only 24% of respondents say their production is steady.
4. Decreased Sales at Physical Stores
If there are no customers in the market, it is common knowledge that a shopkeeper can sell their goods to the roads, walls, or birds flying above their location. Survey data, on the other hand, offers a different tale. Books & Magazines, Fashion Apparel, Food & Drink, Healthcare, Beauty Products, Home Improvement, Tools, and other items are often sold through retailers.However, due to COVID-19, physical sales are down. It was confirmed by 43 percent of shop owners.
5. Impact on Strategy
A vital criterion for any company strategy is its success. In the pre-Covid period, the objective was solely to grow sales, but now eCommerce is the new normal, and Magento development services may help businesses build online storefronts. As a result, online store owners today strategize not just for sales, but also for brand marketing and customer acquisition.In this case, the job of a web development company has grown, since it assists business owners with ecommerce software development and digital branding. So, in order to stay on top among companions, the main focus is now on online business and brand exposure.
Apart from the aforementioned factors, the financial ramifications are not favourable because pandemics have a severe impact on the market, resulting in significant losses. Because there is still an illness and people have lost their income, predicting how this loss will be regained is extremely difficult. As a result, it’s difficult to imagine a successful firm.The one saving grace is that transactions are still taking place, and ecommerce businesses can continue to make money by selling their wares.
Trends That Give Greater Insight About the Future of Ecommerce
Due to the unique Corona Virus, online buying has become the new normal, but mark these words: the future of eCommerce is bright. As new trends have emerged, people are becoming more interested in them. Clients are requesting ecommerce application software development from mobile app developers for hire, and new apps and websites will be added in the near future.Here are some trends that give greater insight into the future of ecommerce-
1. Mobile Shopping
One of the nice things about this decade has been the mobile platform. Although there was less of it before 2017, it grew in popularity as time went on, and it is now in full swing after 2019. The consumer used to buy things in a real store, but now they have accounts on an ecommerce app and website as well.
It also makes it easier for online store operators to keep their product catalogues up to date and ready to sell. Furthermore, instead of squandering money on paper and banner ads, they can invest it in an online advertisement, which has a higher conversion rate than traditional marketing.
In terms of data, the most recent trends have a significant impact on the future of ecommerce. In 2020, there will be 2.05 billion digital buyers, up from 2.14 billion at the start of 2021. We are now in the midst of the year, and this number will undoubtedly rise. In the United States alone, income for 2021 is estimated to be 660,497 million dollars, with a projected increase to 740,389 by 2023.When it comes to mobile shopping apps, Amazon is recommended by 81 percent of users in the United States alone. Furthermore, 43% of worldwide shoppers conduct preliminary research on the internet before making a purchase.
The figures presented above are for informational purposes only; yet, mobile purchasing is advantageous for a variety of reasons. Another advantage is that it is not limited to any platform, as evidenced by the numerous ecommerce programmes available on the Android platform, as well as the iOS platform.Hiring dedicated developers for the same purpose, such as hiring an iOS developer or hiring Magento developers, is an option for business owners who wish to publish their app on both platforms.
Ecommerce solution companies contribute equally to making mobile shopping popular by developing applications for businesses so that users may utilise them easily. Enterprises, in addition to businesses, recruit mobile app developers.
2. Remote Working
Except for critical services such as medical and healthcare, police, and law enforcement officers, most employees work from home. It is also one of the elements contributing to the growth of the ecommerce industry. People are buying products online to improve their working facilities and productivity, such as computers, laptops, stationery, and furniture to make the working environment more comfortable.
Because of remote working, large populations are sitting at home with their computers and engaging in side-by-side social media activity. It encourages business owners to place a premium on their brand image. The pickup time is also improved because the customer no longer has to deliver the goods to the specified place.
3. Evolution of Payment Options
The expansion of ecommerce platforms is directly linked to the evolution of payment choices. Multiple payment alternatives have been provided alongside numerous apps for online buying in the form of the online store. Ecommerce software developers are constantly active in developing new strategies to eradicate all types of cyber dangers in order to provide a safe environment for consumers.
PayPal has emerged as one of the most promising payment solutions among other options. More than 40% of online buyers stated that this is their preferred method of payment. People used to pay with mobile wallets since they could establish a payment limit for security reasons.People are adopting payment apps, even if they are purchasing from a physical store, to promote equitable chances for business owners, customers, and full-stack development companies.
4. Increased Sales of Electronic Devices
Even if people are purchasing from a physical store, they are also using the payment apps that create equal opportunities for the business owners, customers, and full-stack development company.Aside from the conventional devices, there is still a significant need for internet-connected devices. Work such as professional or personal work such as banking, internet shopping, and so on can be done with its assistance. The ecommerce industry benefited from it. People ordered equipment directly from the devices, therefore it’s a win-win situation.
The income generated in 2021 is 138,710 million US dollars, with a CAGR of 1.50 percent from 2021 to 2025. In the consumer electronics market, online sales will account for 51% of revenue in 2021, rising to 974 pieces by 2025. It suggests that in 2021, the average number of devices per person will be 2.80. This information is sufficient to forecast the future of ecommerce.
5. Catering for All
Now, ecommerce is not limited to a specific generation. People ranging in age from 15 to 60 years old can easily place orders at online retailers. Credit goes to the Android app development company, or if the software is already on the Apple store, employ an iOS developer to help them launch their app on the Apple platform.
The advantages of ecommerce websites are enjoyed by people of all ages. Magento development firm is responsible for the majority of applications and websites. Magento is one of the most popular platforms for creating ecommerce applications.
Easy app layout, availability of numerous applications, accessibility options were to improve customer widths organisations can engage Magento developers, and the last but not least component is an online advertisement are the reasons for catering to all.
Benefits That have Impacted The Future of Ecommerce
Ecommerce has various advantages, and as a result of these advantages, the future of ecommerce is bright and dazzling. We shall see some new developments in it very soon. Allow things to remain hidden for the sake of surprise until they are revealed.
Here are some key benefits of online shopping in post-Covid 19:
It is one of the most essential factors because those who have experienced and survived Coronavirus can better explain why and how vital it is. There’s no need to go to the supermarket fearful of illness, and you wouldn’t believe how difficult it is to balance the sanitizer and the pocketbook. It’s not that it’s amusing; it’s that it’s true.So, from the online shop, you can order the items by sitting on the couch comfortably.
There is no need to go to the storefront and open it. The order details and payment are delivered to the business owners at their residence. They merely have to ensure that customers receive their requested things on time. There is no need to pay rent, thus there is less money going out and more coming in. You only need to reach out to the customer by using an application to give deals and discounts.
To stay afloat in a cutthroat market, online stores provide a variety of bargains, discounts, and special offers. Customers can order the things they require and purchase them for themselves if they choose to use it. It comprises both professional and personal items. It also saves us money on the gas we use to get to the store. It’s a fantastic alternative.
Ease of Use
One of the most significant advantages of ecommerce is that you do not have to go from store to store looking for products that meet your requirements. All products may be purchased with a single click from this page; all you have to do now is choose which brand you wish to go with. We should also express our gratitude to an ecommerce software developer who created a simple shopping solution for us.We should also express our gratitude to an ecommerce software developer who created a simple shopping solution for us. The full-stack development firm released a number of ecommerce applications that allow any user to examine things before making a purchase.
Ease in Decision Making
When it comes to completing your purchasing, you can relax and enjoy the process. Other consumers’ reviews are available, just like on ecommerce sites. Customers have left ratings and original product photos, which you can see. This will greatly assist you in your decision-making process. Furthermore, it is better if you are aware of the identity of an ecommerce site that verifies whether it is genuine.
The Final Words!
We shall never forget the year 2020 because we had both bitter and sweet experiences in just one year. The bitter experience is the worry of disease, while the sweet experience is spending time with family while working. The post-COVID period has strengthened the foundations of ecommerce and ensured its future.Every day, purchasing habits change; there is a tremendous increase in online customers, which creates prospects for businesses and ecommerce application development services suppliers.
Most organisations now have an online presence based on ecommerce principles, with ecommerce software developer(s) assisting the organisation in maintaining their positions and looking forward to the future. Businesses that have not yet gone online can hire specialist app and website developers.
Because technology changes so quickly, it’s important to be available everywhere. For example, if an online store owner has a Google platform app, it’s smart to make sure they’re also present on iOS. They can also engage an iOS developer for the same purpose. Furthermore, the estimate that the ecommerce company will reach $2,723,991 million US dollars by the end of 2021 has been validated. As a result, possibilities abound for everyone. Even yet, you doubt that consulting with an online shopping app development business will be beneficial.