We are all consumers. And who can deny that the biggest opportunity for business to play a huge role in our lives, is e-commerce? The consumer journey across the digital platforms and network is increasing significantly from one to three times faster.
The main reason behind this is that people prefer using the internet for various things like shopping, comparing prices, booking travel tickets, booking accommodations, etc. eCommerce makes a business more efficient, affordable, and much more convenient. This provides an astounding opportunity in today’s business world for organizations to grab this huge cash cow of online sales and thereby enrich their business model. According to the e-commerce industry website, sales are estimated to be $16.68 trillion per year by 2021. It’s growing by 35% per year. This number clearly shows that E-commerce is impacting our lives, and how we spend and live, in ways we never imagined.
So, what are the financial benefits of E-commerce?
Companies are introducing AI in their operations. This is by using internal AI models to improve communication and ramp up operational tasks without the need for huge investments.
They are also using AI in product solutions, and they’re setting up e-commerce solutions. But there are tremendous disparities between what these brands are doing currently compared to what is planned, by investing in AI solutions.
They are focusing on smaller businesses, small and medium-sized enterprises (SMEs) as the lucrative opportunities for brand growth will always be on a smaller scale.
Here are the things companies are shortchanging themselves for:
- E-commerce businesses are missing the opportunity to break the old adage, “If you want it, you have to pay for it”.
- E-commerce services cost and the ROI of investing in e-commerce can be very high.
- Every 1% spent in e-commerce brings over $11 in value to the customer.
But this can be differentiated very easily.
So, why haven’t companies taken advantage of these opportunities yet?
Perhaps it’s a fear of massive user migration to new digital platforms from Facebook and Amazon or it might be an unwillingness to offer new products and services.
Despite all this, E-commerce is much more than just content sharing on your Facebook feed. In the research we do, we talk to thousands of top marketers and entrepreneurs, they demonstrate that 85% of consumers agree that there is room for more innovative offerings.
To succeed, businesses will need to rethink their approach to online platforms.
They need to quickly innovate in their offerings and monetization to match the consumer trajectory.
Since we believe this is the future, we are going to continue to look for more technical research opportunities to better understand what this might look like.