E-Commerce and retail have many similarities. Both concepts refer to ways of buying and selling goods. However, there are many differences. Retail refers to many different types of sales. Retail sales can be made at brick-and-mortar shops, online, or even person-to-person. E-Commerce, however, refers to electronic transactions that take place via the internet.
The future of shopping
E-Commerce now makes up about 20% of all US shopping. This number has drastically increased since COVID-19. Lockdown restrictions forced many businesses online, and now it has become an essential source of income and new custom.
These days, many businesses offer a mix of retail and e-Commerce. Brick-and-mortar shops are unlikely ever to go away. However, a recent survey suggests that around 55% of consumers prefer shopping online.
So, what is the future of on and offline shopping? Some shoppers still favor physical retail shopping. However, there are some drawbacks when compared to online shopping. For example, online shopping is:
- More convenient
- Cheaper
- Provide a more comprehensive option of choices
- More sustainable (no travel)
- Time-efficient
- 24/7
Despite these clear advantages, retail shopping still survives. Being able to see and hold a product in hand is still powerful. However, advances in technology are helping to close the gap.
For starters, refinements in digital marketing technology and data science have improved the consumer experience. Greater personalization and recommendations are helping customers find the products they need. Additionally, automated customer service communication tools are improving the customer experience. Finally, tools like VR and AR could further enhance the online experience.
For businesses, digital marketing technology provides many benefits too. Automation, improved customer engagement, and better analytics are all enhancing growth and productivity.
The rise of online shopping platforms
Starting a brick-and-mortar shop is full of challenges. Rental space in busy locations is expensive, while overheads, insurance, and staff all contribute to high costs.
As a result, many businesses will see the appeal of starting an online store. Another reason an online store is a great idea is the rise of online shopping platforms.
According to Gartner research, digital commerce platforms increased by a record 22% in 2021.
Some of the most exciting and creative online platforms use digital marketing technology to offer incredible customer experiences. Some of the prominent leaders in the space are:
- Adobe
- Shopify
- Commercetools
- BigCommerce
- Salesforce
- SAP
Many of these tools take advantage of cutting-edge technology like:
- AI and ML
- Cloud-hosting and computing
- Third-party integrations
- Customer analytics and insights
- Headless content management software (CMS).
As customers demand greater personalization and more attentive service, digital marketing tools will continue to grow.
Wrap Up
It’s an exciting time for retailers. Advances in digital marketing technology can facilitate a better customer experience and increased productivity. Additionally, e-Commerce platforms offer businesses a way to reach a broader, more defined audience.
Which digital marketing tools do you think will make the most significant future impact on e-Commerce and retail merchants?
What do you think the future of brick-and-mortar retail looks like?
