How Is E-Commerce Affecting Retailing? | E-Commerce Or Retail?
The world of shopping, which was only meant to take place in physical stores a few years ago, has taken on an entirely different form with the advent of technology. Retail shops are either already online or are planning to be online shortly as a result of eCommerce trends. One might wonder whether e-commerce will lead to the end of the physical retail era. Some may be speculating about the future of brick-and-mortar stores.
However, one thing is for sure with increasing internet penetration across the globe, eCommerce is directly impacting the retail industry, encouraging it to offer a similarly engaging shopping experience. Consumer trends in 2022 indicate that the eCommerce industry surely has a pivotal role to play in determining how the retail business will evolve. To understand more briefly, how e-commerce is affecting the retail market, we have to first understand consumer behavior & mindset, and why they prefer shopping through e-commerce or traditional brick-and-mortar stores.
Top 5 Preferred Reasons for Online Shopping
Various research studies on online buyers across different geographies reveal the top 5 preferred reasons for online shopping
- Variety: Browse and select products as per your choice and latest trend (even rare products are easy to find)
- Saves time: no parking hassles, no crowding, no queue at the cash counter, no hassle of carrying bags, and no sales pressure from shop staff
- Ease of delivery: hassle-free same-day/next-day delivery
- Better Prices: Heavy discounts & loyalty points with an easy product replacement option
- Convenience to shop 24/7: you don’t have to wait until the store opens.
Top 5 Preferred Reasons for Offline Shopping
Similarly, research case studies on offline buyers reveal the top preferred reasons for offline shopping
- Immediate availability of the desired product
- Value-added services in stores such as personal styling, alteration services, etc
- Quick trials to decide what to buy and what to not.
- Touch and feel the product
- Enjoy the in-store experience. Shopping is also about having fun
Who is Winning the Race?
One cannot deny the fact that retailers across the globe are adopting new technologies that enable potential customers to access the listed products anytime, anywhere. However, e-commerce is not an alternative to brick & mortar retail, but they are complementary to each other, and as a response, omnichannel commerce has been emerging in recent years. Omnichannel commerce is a strategy that provides a seamless shopping experience from the first touchpoint to the last, regardless of the channel the customer is using.
In a world where digitization has increased the ability of retailers to grow sales, the integration between online and offline can invariably trigger a virtuous cycle. There are several brands like Target, Singapore airlines, value city furniture, Sephora, Disney, and Bank of America that have mastered themselves in omnichannel eCommerce by delivering a cohesive and comprehensive experience across touchpoints.
The Takeaway Tip
It is a must to find your niche before starting online. Developing an e-commerce niche will help you attract customers who will come back to you again and again. It could be your pricing, your service, your quality, the features of your product, or the product or service itself that differentiates your brand from others. The niche you choose will help you win in the long run!
Why Choose YRC
With 11+ years of experience and deep digital expertise, Your Retail Coach, YRC is a reputed retail & eCommerce consultancy building holistic omnichannel strategies for our clients. We leverage world-class analytics to help you evaluate consumer purchasing behaviors and realign your channel strategies.
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