What's happening with Ecommerce?
Time to read 3 min
Time to read 3 min
As it's been widely written about, COVID-19 accelerated the growth of ecommerce retail considerably.
2023 has seen a deceleration and moderation of ecommerce growth, understandably, as retail stores have reopened and people have gotten out and about. Ecommerce is still growing though, so what state is it in?
I summarize this state below to create a reference baseline and will detail where I see ecommerce going in subsequent articles.
These developments have collectively shaped the ecommerce landscape over COVID-19, pushing the industry towards greater innovation and customer-centric approaches. This sets a new baseline and foundation for what's to come.
In 2020-2023, ecommerce underwent significant transformations, propelled by technological innovations and shifts in consumer behavior, further accelerated by the COVID-19 pandemic. Advanced recommendation algorithms powered by AI and machine learning became indispensable for customer personalization and sales optimization. Augmented and virtual reality technologies allowed customers to virtually "try" products, enhancing the online shopping experience. Voice-activated shopping gained momentum due to the increasing popularity of smart speakers like Amazon Echo and Google Home.
Consumer expectations evolved, driving retailers to offer seamless omni-channel experiences, including popular features like "buy online, pick up in-store" (BOPIS). Social commerce took a leap forward as platforms like Instagram and Facebook expanded their in-app shopping features. Subscription services proliferated across various sectors, from beauty to groceries.
Sustainability entered the mainstream, with a growing demand for eco-friendly practices like sustainable packaging and carbon-neutral shipping. Fast delivery options, including same-day and even two-hour deliveries, became feasible thanks to advanced logistics and localized warehousing. Regulatory changes also made an impact; increased scrutiny on data privacy forced e-commerce sites to adopt stringent data protection measures. Taxation laws evolved, requiring standardization in online sales tax collection.
These multifaceted developments collectively steered the ecommerce industry toward greater innovation and a more customer-centric approach, setting up a strong future for ecommerce growth.