E-commerce is still booming. In the 3rd quarter of 2016, online retail sales grew from 7.4 % (during the same period in 2015) to 8.4 %, according to data from the U.S. Department of Commerce. E-commerce sales are expected to touch the $100 billion mark by the end of the year in the U.S., an improvement from $97.3 billion in online sales recorded at the end of last year.
Though the annual growth rate of the ecommerce sector has slowed down from the 20 % per year recorded a decade ago (to about 15 % annually), pundits project that ecommerce revenues will hit the $4 trillion mark by 2020, which will be equivalent to about 15 % of total retail sales.
So what will drive this growth? The following trends provide insight into the evolution of the sector and help paint the future of E-Commerce.
Mobile Will Be the Key to Growth
Smartphones accounted for 29.9 % of total U.S. e-commerce traffic in 2014, but only 11.2 % of total revenue. Comparatively, desktop e-commerce traffic accounted for 55.7 % of total traffic and brought in 75.1 % of total e-commerce revenue. This might indicate users are more comfortable checking out items on their phones on the go and then and then if they remember, complete sales on their desktops.
As a result we see many abandoned shopping carts that never turned into sales.
Poor mobile checkout experiences are among the key reasons for the sales disparity between mobile and desktop ecommerce revenues. However, the adoption of responsive web designs and mobile application development on smartphones, mobile will play a pivotal role in the growth of e-commerce.Improving the user’s experience is what will lead to increased sales via mobile applications. Of course, the use of smart mobile devices can also be used in retail channels, either as a payment method (mobile wallet), or as a user identification and payment mechanism (amazon go), or as a promotions recipient in retail stores. In conclusion, smart mobile devices are now the absolute multi-tool for retailers.
Digital media is unlike anything we’ve ever seen before. Compared with traditional print media, digital media opens up a new world of possibilities for retailers that improve message delivery and marketing efficiency.
In fact, companies with well-defined cross-channel customer experience strategies in place achieve a 91% higher year-over-year increase in customer retention rate on average, compared to organizations without cross-channel programs in place.
One of the main keys to the growth of ecommerce will be the utilization of more than one form of digital media to get the message out. Users are shopping for products and services on their smartphones, tablets, and desktops, so businesses with a presence across these channels will benefit massively going into the future.
COMBO SOLUTION by SOFTWeb for Capsis Hotels
SOFTWeb has developed for Capsis Hotels the two native mobile applications in iOS & Android as well as the official website. Capsis Hotels by using the combo solution (website & mobile application), interrelate various channels to engage with customers as a holistic whole, to ensure they are having a wonderful overall experience with the brand throughout each and every channel. The focus is on building a stronger relationship between consumers and the brand.
Capsis Hotels Website
Capsis Hotels mobile applications iOS & Android
Technologies such as Augmented Reality will also have a profound effect on the online buying experience within the coming years. Imagine trying on a pair of sunglasses virtually without actually wearing them physically. Such disruptive technologies will have a huge impact on e-commerce going forward.
GLOW magazine Augmented Reality Application powered by SOFTWeb.
SOFTWeb has developed for GLOW magazine http://glow.gr/ the two native mobile applications with AR functionality in iOS & Android. Using the camera through the application we can scan a number of pages of the magazine and a hyperlink is automatically displayed, which can be everything from a transition to an e-shop, an advertising campaign, to videos etc.
SOFTWeb as an innovative and visionary IT company with web & mobile solutions, has been around for 8 years and has invested and specialized in the mobile application field. The company has developed the innovative and awarded technology PocketWarp. The company’s constant presence in technological events abroad, constantly enriches with collaborations and reflection of market trends and adoption of new technologies.
For more technology news and information, stay tuned to our site www.softweb.gr
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