The Covid-19 pandemic and the ensuing lockdowns drove people of all ages to shop online. It grew e-commerce, which is now expanding at an unprecedented rate. Currently, the total value of e-commerce transactions is estimated to be $4.2 trillion.
Online retail is now more profitable than ever, and e-commerce platforms such as SHOPLAZZA and Shopify provide merchants with a golden opportunity to reach more customers globally.
Online Retail Will Expand Further
According to statistics, retail e-commerce in Canada will increase by an astounding 75% by 2021. More people are buying online as a result of mandatory distance purchasing. Experts in the United States predict that by the end of 2021, consumers will have spent more than $933 billion on e-commerce. This represents a 15% increase in the total value of retail sales. E-commerce is expected to account for nearly 24 percent of total retail sales by 2025.
Web technologies that have made online shopping quick and easy have contributed to the rapid growth of e-commerce. Shoplazza, for example, is a user-friendly platform that provides an excellent online shopping experience.
The Significant Impact of Social Media
Social media platforms were developed to assist people in connecting, sharing, and interacting. They have, however, evolved into effective marketing tools. Companies are now heavily investing in social media campaigns in order to reach more customers.
Companies in the United States, for instance, spent more than $40 billion on social media advertising in 2002. The figure is expected to reach $57 billion by the end of 2021. Influencer marketing alone costs $4 billion in 2020, with a projected increase to $4.14 billion by the end of 2021.
The Rise of Mobile Shopping
Another trend that is expected to continue is the rise in the number of consumers who shop on their mobile phones. For example, in 2021, mobile e-commerce increased by 15% and accounted for 73% of all e-commerce sales. This pattern is likely to continue in the coming years.
Improvements in e-commerce Payment Processing
One of the reasons consumers abandon a shopping cart at the last minute is due to complicated payment processes. Competitive online selling platforms, such as Shoplazza, Shopify, and Squarespace, have simple checkout processes in place.
Local payment options and the ability to consolidate all payments into a single platform are now available on e-commerce platforms.
Voice Shopping Becomes Popular
Voice shopping is popular among consumers in the United States, and the trend is expected to spread to other parts of the world as well. The number of voice shoppers is expected to increase by 55% by 2022.
Following the release of Amazon's smart speaker, the Echo, there was an increase in voice shopping. There are no images in voice shopping, which can be confusing for some customers. When using voice shopping, customers can only describe what they want. Food, homeware, and low-cost electronics are among the items purchased using this method.
Increased Availability of Artificial Intelligence
E-commerce companies, like other organizations, are using AI to improve the customer experience. AI is widely used in e-commerce to provide customer support. The first e-commerce companies to use artificial intelligence were online retailers. It is estimated that online retailers will have spent $7.3 billion on AI by 2022.
(Contributed by Kevin Orwa; Co-author: Hermes Fang & Ethan Tang)