Very few people around the world knew of e-commerce when Amazon.com Inc. was established in 1994. Perhaps no one thought that one day it would rise to become a multi-billion business, making Jeff Bezos the wealthiest person in the world. The success of Amazon.com is an example that even very basic, natural looking, the habit of civilization can be challenged just by throwing a different deal. This story of Amazon is a role model for entrepreneurs around the world. It has changed the way people around the world shop.
E-commerce implies transactions of services and goods on the internet. Introduction of retail in e-commerce was an innovation whose success has made online retail somewhat synonymous with e-commerce. With $681 billion sales in online retail, China leads the e-commerce sector, followed by USA, and India.
Change in shopping ways
Traditional retailers, through years of expertise and analysis, have known the tricks of the trade. They have long learned to shift low-margin brands at lower decks and higher-margin premium brands at eye level or to come up with superior deals onendcap. Brands have long used fancy strategies such as printing catchy messages and packaging to adapt to this environment and maximize their sales.
The arrival of online stores changed the whole scenario of retail marketing strategies. Now the process is straightforward:
- Shoppers type a generic term for any article, say trousers.
- Server presents before them a vast collection of trousers
- Confused by the choices, the shopper applies filters or investigates shortlisted trousers
- Then they head for customer reviews, and then if satisfied, buy a pair of pants.
Now, every product is at eye level, every product is customer reviewed, and there is no scope left for the brands to carry on with beautiful wrapping or strategies as such. It can be added that more prominent brands can optimize their products (Like SEO), but they cannot change customer reviews. This platform alone has forced the brands to focus more on products rather than branding.
Change in Marketing Strategies
After facing the popularity of online retail, brands have, lately, come up with new strategies focused on it.
- Extensive studies are going on the shopping patterns of shopping
- Shopping searches are anticipated seriously
- Real-time data of traffic for a specific product is used to throw deals and offers
- Optimizing product name to usual search text entered by the shoppers, so that, their product is featured on top
- Supply chains have changed. The product is sent directly to distribution centers from production houses.
- Some big brands subsidize shipping charges on their products as well.
Small business owners can sell their products on these platforms, thus relieving them with a significant part of their debt payoff (of which primary contribution is to rent/own a shop). Debt relief companies have found that many small entrepreneurs are getting benefitted by the advent of retail e-commerce. Visit here to know more about the solutions available to businesses in need.
The proposition is beyond any doubt that e-commerce in retail has changed the market for good. Not only it has helped the customers buy quality products and saving time, but small businesses can now flourish too.