Reasons behind the success of e-commerce companies29th June 2022
There are several reasons of rise in e-commerce, following are the mentioned below
- Low cost of investment
- less employees needed.
- High returns.
- Fast conversion. Etc
A rise of digital wallets and online payments
Digital India campaign and Demonetization has spelt wonders for the e-commerce industry. For convenience and safety, regular buyers are parking a fixed amount of money in mobile wallets like PayTm, Ola Money, Mobiwik, BHIM etc. and using it for quick payments. Even banks have come up with their online wallets. There is also growing awareness about using net banking and debit/credit cards. To capitalize on this popularity, mobile wallets and banks are also flooding users with cashback and discount offers.
Technology led purchase revolution
Shopping as an experience has changed in India. In earlier days, shopping was a fun and leisure activity enjoyed with family and friends. Today, it is a solo activity, digitally influenced and all about convenience. The concept of shopping anything-anywhere-anytime has given the boost to the e-commerce industry in India. All of this has been contributed by technology.
Leveraging the untapped power of small-town shoppers
India has a considerable population in small towns and villages. As per Red Seer, small-town Indians contribute around 41% of all online shoppers. With such a big share, there is a lot of scope and wide consumer base for e-commerce companies to hold ground. The leading players are already launching campaigns to tap the power of rural India.
- Mobile Adaptivity
More and more web traffic is generated by smartphones and tablets, driving ecommerce sales. All major brands make sure that their websites are mobile-adaptive enhancing the customer experience and more often than not they need native mobile apps to form shopping even easier. If your website isn’t mobile and tablet adaptive, you’ll definitely be losing millennial customers and also the youth of Generation Z.
In addition to the current, technological advancements like voice-activated shopping and better connectivity have caused a surge in mobile shopping revenue from $3 billion to $31 billion in America alone.
Think about hiring a technical support expert or an ecommerce support virtual assistant to simply transition into this new phase of online commerce.
- Omnichannel Retailing
Ecommerce has progressed beyond programme optimization to other channels of selling to and interacting with customers. Businesses interact with their customers through their websites, email, social media, and physical stores. This creates multiple channels of purchase, receipt, and exchange of products, with a prevalence of shopper-friendly shipping and return policies. Customers should buy online, pick their purchases up at a physical store, return any defective items online, and avail discount offers supported a particular number of referrals. This integrated online and physical experience drives more sales.
The accessibility of a store is out of the acquisition equation now. Ecommerce promises 24/7 accessibility, twelve months a year, with no downtime for public holidays, closing times, weather condition conditions etc. Customers can shop as and after they like, from where they need, be it the comfort of their own bed. Ecommerce makes purchasing faster and easier, without the effort of crowds, traffic, and awkward social interactions.
Customers can compare offerings online and skim up reviews to work out how the merchandise or service fared within the view of like-minded individuals to work out which provide has the most effective value, all without having to travel from one shop to the opposite.
- Greater Range of Offerings
With incredibly low overheads like negligible utility bills, skeletal staff, and also the ability to produce a product or service from any location to a worldwide customer base, ecommerce dramatically reduces costs of operations. this permits businesses to transfer a number of these onward to price-sensitive customers within the style of cheaper products with automatic replenishment since warehouses are not any longer restricted to certain geographic locations.
- Individualized Products and Services
More sophisticated algorithms allow companies to supply more personalized, customer centric recommendations. A far cry from recommendations supported typical buying habits and products purchased together, ecommerce today allows businesses to provide customer suggestions supported their individual preferences.
These encourage customers to get items that appear completely necessary since they’re so aligned with their personal preferences. Lower start-up costs allow more sellers to control, targeting niche markets with highly customized options, selling more sizes, colors, personalized designs etc. than would be feasible to supply in an exceedingly physical store.