As eCommerce continues to rapidly grow, drawing in both large and small brands into the market, competition is increasing faster than the total growth of the market itself. This is leading to customers being more difficult to win and easier to lose, with a heavy emphasis on their user experience and costs. Staying aware of the present eCommerce trends and integrating them into their marketing strategy is what will keep brands ahead of the competition and will drive their success.
ECommerce Trend: Growth shifts to Asia
When eCommerce was starting out, the United States was the major driver behind the growth of the market. Since becoming a global phenomenon, the United States has maintained its key role in eCommerce growth. However, with the US market being close to the saturation point, growth rates are expected to slow, even if only slightly. In comparison, Asian markets, mainly China, are expected to continue massive growth. China’s growth is increasing so rapidly, that total eCommerce sales are expected to double by 2019. Knowing this trend, brands need to be going international with their eCommerce and start selling in new countries to new customers.
ECommerce Trend: Increase in Mobile Users
Mobile devices make up over 50 percent of all internet traffic, and that number is continuing to grow. However, many customers aren’t satisfied with the simplicity of purchasing through a mobile device and would rather use their computers. According to Wolfgang Digital, 59% of all sessions on eCommerce sites on mobile devices only led to 38% of the revenue. While browsing was becoming the norm, purchasing remains on the desktop, especially when considering high-cost purchases, such as the holiday season. Brands need to be seeing mobile users and desktop users as the same type of customers, as a majority of users balance both devices. By creating a mobile experience that replicates the ease and comfort of desktop purchases, brands will be able to convert more and more users at the time of purchase inquiry.
ECommerce Trend: Subscription-based Business Models
Pioneered by Software as a Service businesses, the subscription-based business model has shown its effectiveness for both consumers and businesses. It allows for flexibility for the consumers, while the recurring revenue is a big win for businesses. Platform as a service has also become a popular business trend, as Uber, Netflix, Spotify and AirBnB have shown. Businesses that offer products can also take advantage of the recurring revenue that subscriptions offer. Dollar Shave Club, a monthly razor subscription service, grew to $615 million in just five years. By adding a subscription-based model to a brand’s business plan, brands can attract many repeat customers that can generate ongoing revenue. The high disposable incomes of today’s millennials equates to money to be spent on subscriptions, as millennials are keen to spread their costs over a subscription rather than make one large purchase.