In 2021, retail eCommerce sales went up to approximately 5 trillion U.S dollars worldwide, and growth is expected to continue over the next 4 years. It is expected that by 2025, retail eCommerce sales are likely to hit approximately 7 trillion dollars. The constant increase in eCommerce sales can be attributed to a wide variety of issues. One of the most common reasons people choose to go online whenever they want to make a purchase is that it is convenient. All you have to do is log into your computer or smartphone, select the item you want and place an order. Within a couple of hours or days, your package will arrive right at your doorstep.
Another reason why many people prefer buying online is that the costs of items are relatively lower. Most retail business owners do not need to have a team of employees; they simply manage their business by themselves, which cuts down operational costs. There is also no need for office or storage space because a seller can simply send a package directly from the manufacturer to the consumer.
There is also the issue of COVID, which threw almost everyone off balance. With such a pandemic looming large, a lot of people took precautions and stayed at home. People had no choice but to go online and carry out most of their transactions on the internet. The workforce itself had to carry out tasks from home. The realization that it is actually possible to get things done online has also spurred more interest in the eCommerce retail industry globally.
In full realization of how the eCommerce industry is growing, it is important for executives consider the growing ecommerce trends in 2022. Failure to cope with these trends may result in missed opportunities and even loss of market share. Here are three retail ecommerce trends that are likely to further grow in 2022.
Social commerce will be pivotal to reaching younger people
In developed economies, out of 10 teens, 9 have at least one social media account, and at least a third of these people own a mobile device. And out of the entire population, 7 out of 10 people use social media.
The truth is that the social media space offers young people a way to communicate cheaply. It also allows them to acquire information regarding the latest news and trends across the world. This platform is quite entertaining and intriguing to these individuals.
With more young people connecting on social media, forward-minded businesses have come up with strategies to market their products and services on these platforms. A short video with funny content and a pinch of marketing can go a long way in getting the attention of young people and encouraging them to buy.
Sites such as TikTok, Facebook, and Instagram are among the most popular social media platforms. Tiktok has crowned itself as the most researched platform in 2021. A marketing strategy tailored for these platforms can be key to increasing sales, especially if you are targeting millennials and Generation Z.
Marketplaces are likely to become more popular
Most new businesses do not have the resources it takes to establish and manage their own websites. That is why they opt to post their products on already established marketplaces.
Virtual marketplaces are websites that allow individuals to post their products and let people place orders. The primary website owner then gets a commission whenever a consumer buys something. Popular examples of marketplaces are Amazon, Noon, among others.
The good thing about marketplaces is that they do not specialize in selling one particular type of product. Instead, they let sellers post all sorts of products. That is quite advantageous to buyers because they can get whatever they want on one website, especially that the concept of purchasing a basket of products is key for consumer conversion and cross selling in ecommerce.
Whether they are looking for a television set, a refrigerator, or shoes, there is a category for almost everything. Another advantage to buyers is that they get to compare different products on one single website. That way, they can find products at the cheapest possible rates.
An advantage to sellers is that they do not have to worry about maintaining the website. Instead, all they have to do is follow the rules and instructions laid down for posting and try to build traction around their products through digital marketing and inviting consumers to leave reviews to entice other shoppers looking for similar products to buy.
Marketplaces also offer a sort of advertising advantage. For instance, Amazon can run various marketing campaigns letting consumers know about all the products available. This takes away the need for a newly established business to run marketing campaigns.
While there are well-established marketplaces today, the chances are that the more established companies will also come up with their own. That way, they can capitalize on profits and increase their reach.
More Direct-To-Consumers (DTC) businesses will emerge
As noted before, people are going online to find the best bargains. But the problem is that the traditional retail setup makes it almost impossible to sell products at a lower cost, especially with the rising tensions and conflicts globally, for example the Ukraine and Russia war, which is further distorting supply chain and global commodity prices.
Many businesses will opt for the DTC model to cut down on costs, overcome the challenges of supply chains, and limit the period it takes for a product to get from the manufacturer to the consumer. Direct-to-consumer is more convenient and makes it possible for sellers to compete in the eCommerce space.
Ollen Group is one of the leading retail consulting firms in the Middle East & Africa region (MEA) offering consumer goods, retail consulting services and ecommerce services with turnkey solutions from strategy to execution. Our strategy consultancy services are up to date with consumer shifts, and the necessary steps needed to find success in the future. Our expert consultants will help your through your journey.
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