Posted on Nov 11, 2021 by Deligence Technologies | Blog | Total Hits:
E-commerce (electronic commerce) is the buying and selling of products and services over the Internet using devices such as computers, tablets, and smartphones, driven by advances primarily in digital technology.
E-commerce is characteristically classified into four types:
- Business to Business (B2B) wherein one business sells products or services to another business.
- Business to Consumer (B2C) wherein a business sells products or services to a consumer.
- Consumer to Consumer (C2C) wherein a consumer sells products or services to another.
- Consumer to Business (C2B) wherein a consumer sells their products or services to a business.
- Retail products: Products are sold by a business directly to a customer
- Wholesale products: Products are sold in bulk to retailers who then sells them to consumers.
- Services: Skills provided to consumers such as home services for repair work. The price is determined by the skill type and time spent on the service activity.
- Digital products: Products such as e-books, e-course material or multimedia that must be purchased for consumption.
- Subscription: Products can automatically be purchased on a regular basis till a subscriber chooses to cancel.
Over a decade, E-commerce has been growing and gaining popularity with a wide variety of products and services being offered. The pandemic scenario has accelerated E-commerce growth with online shopping and digital transactions scaling new peaks. With rapid advancements in technology, E-commerce business is further getting re-shaped to transform itself with new trends offering smoother experience to sellers and purchasers.
Trends in E-commerce
E-commerce has heavily influenced the way customers shop, the versatility desired, accessibility from multiple points such as apps or social media website, ease of use and personalized choices. An engaging virtual experience adopting the latest digital technologies is the need of the hour. Let us examine key trends below:
This business approach presents shopping experience to a user on a social media platform such as Facebook or Instagram. Over the years, E-commerce has been predominant with smartphone users using mobile apps over desktops. There has also been higher cart abandonment owing to reasons like complex use flow, competitive offerings, or a simple purchase deferment. Social media platforms now play a significant role in resolving these challenges since most mobile users visit social networking websites regularly. This gives an opportunity for businesses to present their product brands and a complete shopping through these platforms. The essence is to align socializing with the commerce environment. Businesses can partner with the social media to present a user experience in-place with focused brand presentation and a simple checkout process. This makes it necessary for a mobile app to develop a user experience with a greater attention span and a visually effective brand presentation.
AR-Powered Shopping Experiences
Augmented Reality (AR) is a technology that superimposes a computer-generated image on a user’s view of the real world. AR is now being used to support online users by providing a ‘try-before-buy’ digital experience from the comfort of their homes. E-commerce app development are evolving at a rapid pace to use AR technologies that are offered as toolkits that allow users to visualise brand products online in real time in context of its use. Some well-known examples are try-on spectacles, furniture placement at home and try-on apparels. These easy-to-use toolkits are consumed by e-commerce app development companies to build their customized AR experiences presented through mobile apps or on social media.
Online Grocery Platforms
The coronavirus pandemic and work-from-home scenarios has boosted grocery market as an e-commerce offering. This trend continues to see rapid growth across the world. The methods of shopping in this space presents flexible delivery models such as (1) end-to-end purchase with home delivery by the business, (2) an intermediary vendor executing the home delivery while the discovery and purchase is with the business (3) users buy online and pick up from the business store or a pickup point.
Voice commerce technology allows customers to use voice commands to discover and purchase products online simplifying e-commerce experience. This is a rising trend that is paving the way for a simpler experience driven by an intelligent product discovery and presented by a smart mobile app. Integrating voice-enabled smart devices for such discovery is accelerating this space and has a potential for a significant growth.
Personalizing user experience through Data Analytics
E-commerce development services are focusing on personalized experiences even more than before owing to the variety of consumer needs and features associated to products. Businesses are adapting to this need by a data-driven approach that analyses user data such as consistently shopped products, categories, favourites, and cart discarding scenarios. This requires making an experience dynamic and personalized and tailored to the consumer requirements by analysing the data. Mobile apps hence are being developed to make experiences progressive and adaptive using the right front end app technologies and backend analytics using Artificial Intelligence.
An omnichannel strategy
With the E-commerce market being a lucrative business opportunity, competition amongst e-commerce development services becomes heavy and this can lead to dearth of e-commerce app developers with a broad expertise and experience. A business therefore needs to effectively present its online offerings across channels such as business-owned apps, social media platforms, or brick-and-mortar in-shop experience. Enable such a pervasive strategy, the appropriate digital technology components for mobile app and data analytics development needs to be assessed and chosen. The key is to make a user experience immersive. This shall be irrespective of the device being used, the mobile app / social platform being accessed, or the physical location of consumer.
The pandemic scenario has significantly changed business models and E-commerce experiences. This is expected to evolve post-pandemic too. An intuitive E-commerce experience that is adaptive and pervasive is the need of the hour. Across all the predominant trends we examined above, it is evident that smart mobile apps and social platform-driven interfaces with AR that present an immersive experience and backed by data analytics is one of the foundations to a successful E-commerce business.