There are thousands of e-commerce transactions taking place every minute. The definition of window shopping has changed from roaming around shops to now surfing across shopping websites. With the convenience of online payments, the e-commerce industry is growing with leaps and bounds.
Currently, the e-commerce sector has transformed into a billion-dollar industry. Over the years, the growth of the industry has been exceptional. From small companies like Flipkart to retail giants like Walmart and Amazon, the e-commerce industry has come a long way. There are some prominent reasons behind this magnificent growth.
- Large Number of Internet Users – With more than a hundred million internet users, the industry is meant to grow limitlessly. The increase in the number of web consumers has led to faster and more secure means of online transactions, making e-commerce an ever-increasing sector.
- Middle Class and SMEs – There is a large population of middle-class people and more so who own small or medium-sized business. Both categories require frequent everyday items and business essentials. And if they are able to obtain those with lesser hassle and at better deals then the e-commerce market is bound to be favored.
- Payment Options – Online retailers are taking special care to ensure that their customers experience a safe and secure payment process. Customer data is treated highly confidential and complete security is maintained. This makes the entire process of online transactions much safer and secure. This accounts for the growth of the entire e-commerce industry.
- Logistics – When a customer makes a purchase online, one of the concerns are receiving the product on time. Logistics plays an important role in this. Timely delivery of the product ensures greater customer satisfaction and greater chances of the customer ordering the same or different products again. Big as well as small brands are working sincerely on improving their logistics in order to offer the best possible service to their customers.
- User Experience – Having a smoothly running website, interactive chatbots for assistance, seamless payment gateways, and prompt delivery are some of the major aspects that account for memorable user experience. The e-commerce industry is taking care of every step that the customer goes through. There is a continuous effort to maintain the user experience who accounts for the growth of the entire industry.
Although the industry is working hard to offer the best to its customers, there are some inevitable challenges that the industry is facing or may face in the near future.
- Online security
- E-infrastructural issues
- Branding and marketing to attract customers
- Lower margins due to high discounts, offers, etc.
- Variable tax structure across different sectors
- Customers prefer purchasing certain type of products physically to ensure the right feel and texture
Despite the numerous challenges, the e-commerce industry is bound to stay; the future still appears to be bright. Here are some technological advances that are supporting the industry strongly ensuring high hopes from the future.
Social Media – Social media plays an important role in making the “buying decision”. Brands are advertising themselves on Facebook, Instagram, Linkedin, Twitter, and more to increase their chances of success and to attract customers.
Drone Delivery – Delivery by drones is no more just a concept. Brands are working to make it work. DGCA is fast-tracking the process of issuing guidelines for the use of drones for civil purposes in India. This will reduce human effort and elevate the logistics process.
Apps are the Winners – Market research has shown that the growth of e-commerce is dependent on mobiles. 70-80% of mobile phone users access the web through their mobiles. Due to this, brands are developing their mobile applications for faster access and better reach.
Google – Google is working on its “Buy Now” button, which will allow online shoppers to search for their products on Google and simply click the “buy now” button to make the purchase. This button will redirect the user to the page where they can select their products, decide the size and color, make the payment, and select a shipping route. This will make the entire process faster and the shopping experience better. This will be a great leap for the e-commerce industry on the whole.
The e-commerce industry is estimated to grow by about 1200% to $200 billion by 2026, up from $15 million in 2016 according to a research report by financial services expert at Morgan Stanley. Technologies like voice and touch-enabled and well-structured tax and governance will surely support the growth of the e-commerce sector in the long run. Purosys offers some unique best practices for e-commerce businesses. We know the challenges that a business owner can face while creating a presence in the e-commerce industry and help them to gain sustainable profits over the long run. To know more about our e-commerce solutions, visit http://purosys.com/