At the end of the year- 2019, the whole was shocked by the novel Coronavirus or COVID-19. The pandemic of this 21st century changed many things including society, human lives, business, and thought processes. The whole world is still suffering from it now. The pre-COVID situations were good as eCommerce took the rise in that period since launching.
But now, the conditions are not the same, so how COVID-19 has changed the future of eCommerce? In this article, we will read some points that will be worthy of the information it will also be fruitful for the marketers who are searching to overcome the difficulties raised due to the worst conditions. It would be best if first, we start with some basic details of this industry.
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The Ecommerce Industry, Types & Statistics
It is the year 1979 when Michael Aldrich invents electronic shopping. It was the baby step toward eCommerce then; later on, many changes have taken place, and eCommerce became the choice of people around the world.
The term eCommerce stands for the sale of physical goods via online/digital channels to customers. It is like an ecosystem for sellers and buyers comprised of a variety of data, tools, systems, and applications. It facilitates the business owners to reach the customers to offer their products, and on the other side, users can choose whatever they want to purchase. There are two crucial terms regarding it which are online shopping and payment.
The eCommerce business owners sell their items via an online store or shop where consumers purchase the products online and pay the price via online modes such as Net Banking, Mobile Wallets, etc. The payment facility backed by payment encryption technology provides safety and security to the customers.
Apart from the customers and sellers, another important person related to this industry is an eCommerce software developer. They are the professionals who consistently remain involved in eCommerce application development; these applications are being used by business owners and customers.
To transform the business into eCommerce or launch a business on an online platform, you need the services of an online shopping app development company that will build an application for you where you can sell and earn as much as possible.
Ecommerce business can be of various types such as –
- B2C – When a transaction occurs between a business and a customer is called business to customer, aka B2C. It is a major segment of the eCommerce industry and has more share than other types. Ex- Amazon, Etsy, etc.
- B2B – When transactions occur between business and business is called B2B, where manufacturers sell their products to wholesalers and retailers. Ex- Alibaba, eBay, etc.
- C2C – When a customer sells products to the other, it is called C2C. It is re-selling or sometimes exchanging of stuff. Ex- OLX
- C2B – It is a reversal eCommerce, in which customers make products available for the businesses such as stock photographs etc.
- B2A – When the transaction is between business and administration, it is called B2A, such as social security, legal documents, devices purchased by the administration for public use, etc.
- C2A – This segment has a very less percentage till now. But you can understand it as when consumer sells products to the administration such as solar energy.
Check out some stats that will provide you more insight about the trends in 2021 and the future-
- By the end of 2021, the eCommerce business is expected to reach $2,723,991 million US dollars.
- With consolidated annual growth6.29% (CAGR 2021-2025), it is projected to reach $3,447,296 million by 2025.
- The major percentage of eCommerce is covered by the Fashion segment. In 2019 its market value was 36 billion US dollars worldwide, which is projected to reach 43 billion US dollars by 2029. The projected volume for 2021 is $759,446 US dollars.
- By 2025 the number of eCommerce platform users will reach up to 4,914 million by 2025.
- The average revenue is expected as $715 per user.
What Makes eCommerce Most Favorable of Sellers & Buyers?
The things that make eCommerce most favorable for sellers and buyers are-
- Smooth functionality
- Multiple choice availability for purchasing and selling.
- Payment options
- Easy reach to the products and customers.
- Budget options
- Easier brand promotion.
- Not bunded by the location(s).
- Comprehensive approach worldwide
- Cost & time effective
- Enriched experience of shopping
These all above points make eCommerce a most favorable option for business and shopping. But do you know apart from the business owners that their other people are also responsible for it who consistently work behind the curtain? Those are eCommerce applications software development services, and providers.
For launching the business online, there are two things required: the website and the other. For both, you need experienced eCommerce software developer(s) because there are many things you have to ensure before launching your business
The key points that can make any newly built eCommerce platform favorable are a smooth shopping experience, safe & secure payment methods, use of the latest technology & tools, availability of items, etc. Several app development companies exist in this world, serving a large segment of the market in terms of eCommerce application development.
How the E-commerce Trends Have Changed During COVID-19?
In the pre-Covid era, fewer people were interested in purchasing from eCommerce websites. As the pandemic came into the world, the crowd of customers disappeared due to the lockdown and fear of infection. That created on-demand solutions for eCommerce application software development to cater to customers’ needs where they can order the items from their homes.
Other than fashion, food delivery became one of the hottest segments because people can’t go outside their houses for having food items. In 2017 the restaurant-to-customer model delivery users were 497.3 million, and the platform to the customer was 364.8 wherein 2021, till now the number is reached more than 821.6 million and 790.3 million, respectively.
It is only one segment, but if we talk about other segments, the data will be more than our imagination. Here we should note that in 2016 the number of digital buyers around the globe was 1.66 billion is raised to 2.14 billion now only in the middle of 2021, and definitely, by the end of the current year, the number will cross 3 billion because there is very little sign that Pandemics will completely be wiped out till Dec 2021.
1. Increasing & Decreasing Revenue
Novel Coronavirus has changed our lives and has an impact on the market & business as well. Until 2019, the businesses were running regularly, but when conditions started becoming worse, the whole market got paralyzed. The eCommerce industry depends on the delivery services that went on a halt during the global lockdown, so in between, the revenue decreased.
One of the global survey companies SearchNode conducted the survey among shoppers and eCommerce businessmen. Then 7 out of 10 shoppers admitted that they have switched to online shopping because of the lockdown. More than 90% of online store owners accepted that their online sales increased, whereas 27% of business owners said their sales increased 27%. It is also cross-confirmed by one of the eCommerce giants Shopify that by 2021, the worldwide eCommerce sale is projected to reach 4.5 trillion USD 2021.
2. Impact on Profit Margin
Several challenges need to be answered by the eCommerce portal owners; a pandemic has its effect on it. The interrupted supply chain and aggressive competition, are the two factors that have disrupted the profit margin, but now things are different as via more users are onboarded for online shopping, the profit margin increased.
There is no doubt that business trends have changed, so the retailers who were doing business physically now launched their online services via app and website with the help of an eCommerce solution company. Among total online retail leaders, 40% say that their profit margin increased; according to the 40% of owners, the margin is still the same, and only 15% say that it is decreased. Here, the point is to be noted that online customers rise in considerable numbers day after day, leading to revenue generation. If any business does still not have its own presence online, then still, it is the right time to for that with the help of a mobile app development company.
3. Changed Working Style and Impact on Workforce
It is not only the personal lives that have been changed but professionals also. A major portion of the workforce is working remotely, irrespective of their profession. Only the medical and essential service employees are only in the field. Due to the pandemic conditions, the eCommerce workforce is also working with relocated staff, where some of the workers lost their work and increased headcount. Although an ample amount of work is generated for eCommerce application development professionals, they are also working remotely.
Work from home is not a new term, but people came to know about it during the lockdown. Still, there is -confusion among the professionals that WFH is fruitful or not. As per Statista.com, 57% of professionals feel that their productivity increased, whereas 17% denied it and feel less productive. Only 24% believe that productivity is constant with them.
4. Decreased Sales at Physical Stores
It is self-understood that if there is no customer in the market, a shopkeeper can sell their products to the roads or walls or to the birds flying above their location. Still, there is survey data that tells a different story. The products such as Books & Magazines, Fashion Apparel, Food & Drink, Healthcare, Beauty Products, Home Improvement, Tools, etc., are being sold via stores regularly. But due to COVID-19, physical sales are decreased. Where 43% of shop owners confirmed it.
5. Impact on Strategy
The success of any business strategy is a key requirement. In the pre-Covid era, the strategy was only to increase sales, but now eCommerce is a new normal and a solution to the businesses by Magento development services to launch the online stores. So, now online shop owners strategize things not only for sale but also for brand promotion and to reach the customer base. Here the role of a web development company is also increased that helping the business owners in eCommerce applications software development and digital branding. So, now, there is the main focus on online business and brand awareness to stay on the top among companions.
Apart from the above points, the thing is that financial consequences are not good because Pandemics hit the market very badly, and there is ample loss. It is very complex to predict how this loss will be recovered because still there is a disease and people lost their income. So, it is hard to think about the great business. But the only good thing is that transactions are still going on, and eCommerce owners can sell their products to earn bread and butter.
Trends That Give Greater Insight About the Future of Ecommerce
Online shopping is the new normal due to the novel Corona Virus, but mark these words that the future of eCommerce is bright. As new trends have been set and now the people are also taking an interest in it. The b2b eCommerce developers for hire are getting requests from their clients for eCommerce application software development, and very soon, there will be new apps and websites will be added.
Here are some trends that give greater insight into the future of eCommerce-
1. Mobile Shopping
The mobile platform is one of the wonderful things of this decade. Although, before 2017, there was less volume of it after the time passed, it gained popularity, and after 2019 it is in full swing. The customer used to buy products from a physical store; now, they also have their accounts on the eCommerce app and website. Mobile shopping is a delightful thing, where you need to choose the product and pay for it. Then, without going outside, the desired stuff will be delivered to your premises.
It also facilitates the online shop owners to update the product catalog ready for sale. Moreover, without wasting money on paper and banner campaigns, they can spend their valuable money on an online advertisement that in-turns provide more conversion ratio than traditional marketing.
In terms of data, it is the hottest trend that greatly influences the future of eCommerce. In 2020, the digital buyers are 2.05 whereas at the start of 2021 it reached 2.14 billion, we are now in the middle of this year, and definitely, it will increase. Alone in the USA, revenue for 2021 is recorded as 660,497 million USD which is projected to reach 740,389 by 2023. If we compare the mobile shopping apps, then Amazon is recommended by 81% of users alone in the USA. In addition, 43% of global shoppers first research on the internet before making any decision.
The above are the statistics for information, many reasons make mobile shopping favorable. The other point is that it is not bounded by any platform, such as several eCommerce applications available on the Android platform and the same with the iOS. The enterprise owner who wants to launch their application on both platforms can hire dedicated developers for the same purpose, such as hiring an iOS developer or hire Magento developers.
For making mobile shopping in trend, there is the equal contribution of eCommerce solution company that develops applications for the businesses so that the customers can use them with ease. Other than a company, enterprises also Hire eCommerce Developers.
2. Remote Working
Most of the employees work from home except for essential services such as medical & healthcare, police, law enforcement officers, etc. It is also one of the factors for eCommerce business rise. For improving the working facilities and productivity, people are purchasing stuff online that includes equipment such as computers, laptops, stationery items, and furniture to make the working space comfortable at home.
Because of remote working, major populations are sitting at home with their systems and side-by-side action on social media. It encourages the business owners to take the brand image at a high stake. Pickup timing is also improved as there is no need to wait for the customer to deliver the goods at the mentioned address.
3. Evolution of Payment Options
The evolution of payment options is directly proportional to the growth of eCommerce platforms. Alongside various applications for online shopping in the form of the online store, multiple payment options have been included. To provide a safe environment to the consumers, eCommerce software developers are consistently involved in developing new methods to eliminate all kinds of cyber threats.
Among other payment methods, PayPal was raised as one of the most promising payment platforms. More than 40% of online shoppers admitted that it is their most favorable option for payment. People used to pay from mobile wallets as they can set the limit for payment for safety causes. Even if people are purchasing from a physical store, they are also using payment apps that create equal opportunities for business owners, customers, and full-stack development companies.
4. Increased Sales of Electronic Devices
Several factors are responsible for a considerable rise in sales of electronic devices, which the first is need. Due to staying and working from home, people felt the need for devices for use, including wi-fi modems, speaker systems, headphones, smartphones, home appliances, computers, laptops, etc. Other than the common devices, there is still considerable demand for devices that require internet connectivity. With its help, work can be done such as professional work or personal work such as banking, online shopping, etc. The eCommerce sector got the advantage of it. People ordered devices from the devices, so it can be counted as a dual advantage.
The revenue generated is 138,710 million US dollars in 2021, with an annual growth rate of 1.50%, CAGR 2021-2025. In the consumer electronics market, 51% of revenue is generated via online sales in 2021, reaching 974 pcs by 2025. It means the average availability of devices per person is 2.80 pcs in only 2021. This data is enough to predict the future of eCommerce.
5. Catering for All
Now eCommerce is not limited to a certain set of generations from 15 years old to 60 years old People are easily placing their orders at online stores with ease. Here credit goes to the android app development company or if the app is on the Apple store, then for more reach to the customer-owners hire iOS developer for launching their app on the Apple platform.
All age group of persons is enjoying the benefit of eCommerce portals. Most of the applications and websites you will find are developed by the Magento development company. Magento is one of the top platforms for developing eCommerce application software development.
The reasons for catering for all are easy app layout, availability of multiple apps, accessibility options to increase the customer widths enterprises can hire Magento developers, and the last, but not least factor is an online advertisement.
Benefits That have Impacted The Future of Ecommerce
There are several benefits of eCommerce, and due to these, the future of eCommerce is bright and shiny. Very soon we will also see some new advancements in it. Let the things remain hidden for surprise until the revelation of it.
Here are some key benefits of online shopping in post-Covid 19:
- Safety– It is one of the most crucial things because the people who suffered and survived Coronavirus will tell you better why it is and how important it is. There is no need to go to the store with a feeling of fear of infection, and you can’t believe that it is very tough to manage the sanitizer with the wallet. It is not a humorous thing; it is the reality. So, from the online shop, you can order the items by sitting on the couch comfortably.
- Revenue Generation– There is no need to go and open the storefront. The enterprise owners receive the order details and payment at their home. They only have to ensure the timely delivery of desired items by the customers. There is no need to pay the rent, so the outgoing finance is low and more incoming. Here you just need to reach the customer via offering the deals and discounts with the help of an application developed by Magento development company.
- Cost-Effectiveness– for surviving in cutting-throat competition, online shops offer various deals with discounts and offers. By going with it, the customers can order the products they need and purchase for themselves. It includes professional as well as personal products. It also saves the cost of fuel that we spend to reach the store. It is such a worthy option.
- Ease of Use– It is one of the biggest advantages of eCommerce that you do not need to roam corner to corner only for finding the products that suits your need. All products are available to be purchased with a single click here; you only need to decide which brand you want to go to. We should also thank an eCommerce software developer who developed an easy shopping solution for us. The full-stack development company launched many applications for eCommerce that allow any user to scrutinize the products for purchase.
- Ease in Decision Making– While finalizing the shopping, you can take your decision very easily. As on the e-commerce sites, other customer reviews are available. You can check out the ratings and original product images posted by the customers. That will help you a lot in the decision-making process. In addition, it would be best if you remain conscious about the identity of an eCommerce site that checks whether it is fake or real.
The Final Words!
The year 2020 we will never forget because we got bitter and sweet experiences in only one year. The bitter experience is about the fear of disease, and the sweet experience is that while working, we spend time with family. The post-COVID time strong the roots of eCommerce and its future. The shopping behavior totally changed every day; there is a rapid rise of online shoppers that are generating opportunities for the business and eCommerce application development services providers.
Now, most businesses have their online presence based on the principles of eCommerce, where eCommerce software developer(s) help the organization to hold their positions and look forward to the future. The enterprises that have not gone online can hire dedicated developers for apps and websites.
Technology is changing overnight, so there is a need to be present everywhere; for example, if an online store owner has its app on the Google platform, it would be best to ensure its presence on iOS. For the same, they can hire an iOS developer. Furthermore, it is confirmed the prediction that by the end of 2021, the eCommerce business is expected to reach $2,723,991 million US dollars. So, the opportunities are waiting for everyone. Still, you doubt that it will be great to consult with an online shopping app development company.