5 Key Factors Fueling Global E-commerce Growth
Recently eMarketer released reports detailing the expected growth of business-to-consumer (B2C) e-commerce in various regions around the world. In the early days of the internet there were many discussions about whether anyone could make money online.
Would buyers trust putting personal financial information online and at scale to purchase goods and services? As you can see in the eMarketer chart below, in 2013 it is expected that global ecommerce sales will top $1.2 trillion dollars. Clearly we are past the tipping point in consumer adoption of online purchasing.
The rapid adoption and growth of B2C e-commerce is fueled by the rapid maturation and change in online consumer behavior. We believe there are five key factors fueling ecommerce growth.
1. Consumer Confidence
eMarketer estimates that in 2013 there will be 1.03 billion digital buyers around the world. The eMarketer report shows over 70% of internet users in the US & Western Europe are digital buyers with continued upward growth and massive opportunity for growth in emerging markets.
2. Mobile & Tablet Adoption
According to a recent Pew study 91% of adults own a cell phone and a staggering 56% own a Smartphone. An estimated 34% of American adults own a tablet. Of the Smartphone owners 90% use them for pre-shopping activities online.
3. Consumer Reviews
We’ve all seen a massive explosion of consumer reviews online. According to the Google Zero Moment of Truth an estimated 70% of Americans say they look at user generated consumer reviews before taking the next step to purchase.
4. Ease to Purchase
In the most simplistic terms it has become easier to purchase products online and have them arrive at your front door. The big e-commerce sites like Amazon and retailers have made it easy to quickly and confidently purchase products. Even medium and small businesses are enjoying growth in their business due to the maturation of online purchase tools and consumer confidence.
5. Consumer Expectations
As a result of the factors previously mentioned we have seen a massive shift in consumer expectation around their user experiences online. Consumers expect to be able to engage with a brand and quickly purchase products.
At Gloto we are focused on building products, such as the Gloto Designer Platform, which help marketers bring the consumer closer to the purchase point by delivering integrated e-commerce experiences on social channels within the context of the user’s behavior and expectations. For example if a user is watching a how-to video on YouTube, they should be presented with real-time information about the products featured, purchase options and ultimately be able to push that product directly to a shopping cart for purchase. The following example shows how TRESemmé used Gloto’s Social Designer to make their YouTube videos shoppable.
The YouTube example is just one example of bringing e-commerce into a user experience. What factors do you think are responsible for fueling e-commerce growth? What do you think consumers expect regarding online purchasing within social channels and ad units?
Originally published at www.gloto.com on August 2, 2013.
