The market trends behind E-commerce exponential growth

E-commerce seems to be the strongest arm of the retail industry, thanks to a consistent growth record in the recent past. Although Amazon has been taking an increasing interest in brick-and-mortar operations to help with inefficiencies in the delivery system, that interest is far less than that traditional retailers like Walmart have been exhibiting towards the online market. Brick-and-mortar businesses may be doing well, but e-commerce is doing much better.

The numbers speak for themselves, as all the three Internet-supported buying and selling processes – commerce, services, and delivery – all outperformed the S&P 500 over the past year. Internet-commerce, in particular, did exceptionally well, having appreciated 48.8 percent during the period, according to data from Zacks Investment Research.

Revenue-wise, the e-commerce industry grew 83.2 percent from 2014 to 2016, and growth margins are expected to remain relatively consistent throughout this year.

What’s going on?

Buyers and sellers influence the e-commerce scene in unique ways. If you’re thinking about diving into the booming industry, it helps first to take a quick glance at what’s going on.

  1. Mobile commerce

E-commerce is increasingly becoming reliant on mobile and wearables, as shoppers get accustomed to an “anytime, anywhere” system of shopping. Online stores and online payment machinery never close. Even brick-and-mortar establishments are now starting to rely on mobile apps to increase awareness and push promos at opportune moments. EMarketer predicts that smartphones will remain a primary driver of e-commerce, growing to 50 percent of total online sales by the end of 2017.

  1. Social networking

The traditional shopping model often involves friends and family looking through merchandise together and selecting after discussion. The lack of face-to-face interaction has restricted online trading in this respect. However, the gradual incorporation of social media into e-commerce seems to be changing things up a bit. Pinterest, for instance, is presenting potential customers a chance to explore the tastes of others and make shopping more interactive.

  1. Voice search

According to Merkle’s Digital Marketing Report, Google AdWords increased 19 percent sequentially in the first months of 2017, with product-listing ads being among the hottest trends. The continued popularity of mobile search has helped Google. The company says that 20 percent of its searches through smartphones are voice searches. Therefore, voice search is no longer an unfamiliar concept but an emerging trend for both shoppers and merchants

  1. Payment options

Payment services companies are consistently pushing for smooth e-commerce transactions. While credit cards remain the most popular means of accepting payments online, merchants now have other solutions to make use, including e-checks, mobile money transfers, and virtual wallets.

Payment processors like eMerchantBroker are now offering e-commerce merchant accounts that come bundled with all the services relevant to an Internet-based retailer. Making payments online has never been easier.

E-commerce has exploded in recent years, and it’s expected to get even more dominant in the retail world. Although brick-and-mortar establishments are far from becoming obsolete, a future where the internet has as much command of the market as physical stores is indeed possible.

Comments are closed.