The origin of e-commerce dates as far back as 1979. Even since then, e-commerce has increasingly become popular. In 2023, revenue in the eCommerce market is estimated to reach US$4.11 trillion. In the next 4 years, however, this value is expected to increase by a CAGR of 11.51% (up to US$6.35 trillion in 2027), according to Statista. This trend shows that the future of e-commerce is very bright.
In the coming years, experts expect a lot of big things to change in the ecommerce industry. If you’re still not sure whether or not to start investing in e-commerce, these 2023 trends may help you make the right decision.
Why should you consider investing in e-commerce?
Industry stats
Before going ahead to talk about the benefits of investing in e-commerce, let’s start by talking about the industry stats.
Over the past few years, the global e-commerce industry has been growing at a meteoric pace. This continuous growth contributed to why many people shifted from running traditional stores to online stores. Furthermore, the pandemic also contributed to why many buyers shifted to shopping for their favorite products online. In 2021 alone, the online spending rate was estimated to increase by $183 billion. The same thing happened in 2022 and the first few months of 2023.
As earlier mentioned, revenue in the eCommerce market is estimated to reach US$4.11 trillion in 2023. Further predictions reveal that this value will increase exponentially in the coming years up to US$6.35 trillion in 2027 (at a CAGR of 11.51%). Future predictions, as noted by 99firms, reveal that by 2040 most purchases (roughly 95%) will be carried out via e-commerce.
All these stats are pointing to one thing – the future of e-commerce is bright and you’ll never go wrong by investing in it.
Benefits
Unlike in the past, there are tons of reasons why investing in e-commerce is worth it. Below are a few reasons why you should start investing today.
- E-commerce encourages process automation. With automation, you won’t have to run your business by wasting a lot of time conducting manual processes. By automating your processes, efficiency is assured with your e-commerce business.
- Another good thing about investing in e-commerce is that you can always achieve high returns. With an e-commerce store, you won’t have to spend as much as you spend for starting a traditional store.
Marketplace e-commerce is a good example of a cheap way of investing in e-commerce. To start this type of business, all you need is to pay development and maintenance fees and you’re good to start selling your products on your favorite e-commerce platform.
- Unlike traditional stores that have closing hours, e-commerce stores work 24/7. With this offering, your customers can easily shop online at any time and place without any restrictions.
- By investing in e-commerce, another thing you stand to benefit from is analytical data. Analytical data will help you understand a lot of things about your customers, such as their buying habits, how they interact with your website and their past purchases. You need all these pieces of data to make informed decisions regarding how to run your business successfully.
What does the future hold for e-commerce?
As a retailer looking to invest in e-commerce, below are a few future trends you need to get familiar with:
- One future e-commerce trend you should expect is that new marketing channels will soon start emerging. No doubt, marketing your products and services is becoming a lot easier today, all thanks to various social media platforms. According to experts, marketing your e-commerce business will even become a lot easier with the help of connected TV advertising. Yes, in the coming years, you’ll be able to run your ads smoothly on various TV platforms, such as YouTube TV and Roku.
- Global retail ecommerce sales are expected to Increase. Today, more security options are available to secure customer data online. In addition, payment options are becoming very secure. All these factors and a few others are influencing buyers’ decisions to shop online. With more people looking to shop online in the future, global retail e-commerce sales will surely increase.
- Headless e-commerce will become more popular in the future. In case you don’t know, this type of e-commerce uses two technologies; the front end and the back end. The back end is designed to help you run your business processes and activity effectively. The front end, on the other hand, will assist you in utilizing your content in the right way.
- Another thing you should know about the future of e-commerce is that it’ll encourage voice shopping. According to recent research, more than half of the US population now takes advantage of the power of voice shopping features every day. Experts reveal that this feature will become increasingly popular globally and it’ll make online purchasing processes a lot smoother.
Why hire AWM today?
With more than 4 years of experience in the e-commerce industry, there’s no denying that Automated Wealth Management Holdings (AWM) is a good firm to partner with. Apart from helping you get started with your favorite e-commerce platform, our experts can also help you with ecommerce management. Speak to our representatives today to better understand the step-by-step guide on how to start investing in e-commerce.