E-commerce News
Case Studies: Successful E-commerce Stores
The world of e-commerce is rich with examples of stores that have achieved remarkable success through innovative strategies, exceptional customer service, and effective marketing. By examining these case studies, we can glean valuable insights that can be applied to your own ventures. Below, we explore several successful e-commerce stores, including the ones you’ve created. 1. Warby Parker: Revolutionizing Eyewear Overview: Warby Parker, founded in 2010, disrupted the eyewear industry by offering high-quality glasses at affordable prices through an online platform. Their direct-to-consumer model cut out middlemen, significantly reducing costs. Key Strategies: Home Try-On Program: Customers can order five frames to try at home for free, making the online shopping experience more tangible. Social Responsibility: For every pair of glasses sold, a pair is distributed to someone in need, appealing to socially conscious consumers. Innovative Marketing: Leveraging social media and influencer marketing to build a strong, relatable brand. Results: Warby Parker achieved rapid growth, reaching a valuation of over $1 billion by 2018. Their blend of online and offline experiences (with brick-and-mortar showrooms) has set a new standard in the eyewear industry. 2. Glossier: Beauty Brand Born from Blogging Overview: Glossier, launched in 2014 by Emily Weiss, grew out of the popular beauty blog Into the Gloss. It focuses on skincare and makeup products designed with input from its online community. Key Strategies: Community-Driven Product Development: Engaging directly with customers to create products they want. Digital-First Approach: Strong emphasis on social media marketing and user-generated content. Brand Authenticity: Maintaining a genuine, approachable brand voice that resonates with millennials and Gen Z. Results: Glossier has grown to a valuation of $1.2 billion as of 2019, with a highly loyal customer base and significant social media presence. 3. Dollar Shave Club: Subscription Model Success Overview: Dollar Shave Club launched in 2011, offering a subscription service for razors and grooming products. Their viral marketing campaigns and direct-to-consumer model quickly garnered attention. Key Strategies: Viral Marketing: A humorous, relatable video that went viral, generating millions of views. Subscription Model: Offering convenience and affordability through a monthly subscription service. Product Expansion: Gradually expanding their product line to include other grooming essentials. Results: Dollar Shave Club was acquired by Unilever for $1 billion in 2016, illustrating the power of innovative marketing and a subscription-based model. 4. Your Stores: [Glamify], [Winx], and [hublopp] Overview: Your stores,[Glamify], [Winx], and [hublopp], specialize in selling women’s accessories like necklaces, bracelets, and earrings. Each store focuses on unique aspects of the market, such as luxury items, affordable fashion, or handcrafted pieces. Key Strategies: Targeted Marketing: Utilizing social media platforms like Instagram and Facebook to reach your specific audience demographics. Customer Engagement: Implementing loyalty programs and personalized email marketing to build strong relationships with your customers. Unique Selling Proposition (USP): Highlighting the uniqueness of your products, whether it’s the craftsmanship, affordability, or exclusivity. Results: Your stores have seen steady growth, with increasing monthly sales and a growing customer base. Customer feedback highlights satisfaction with product quality and customer service. Insights and Lessons: Embrace Direct-to-Consumer Models: Cutting out middlemen can significantly reduce costs and increase profit margins. Engage with Your Community: Actively involving your customers in product development can lead to more successful product launches. Utilize Viral Marketing: Creative, shareable content can dramatically increase brand visibility and customer acquisition. Focus on Customer Experience: Providing exceptional service and engaging shopping experiences can foster customer loyalty and positive word-of-mouth. By studying these successful e-commerce stores and applying similar strategies, you can enhance the performance and growth of your own ventures. Each case study offers valuable lessons on how to effectively market, manage, and scale an online store.
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Choosing the Right E-commerce Platform
What is an eCommerce Platform? An eCommerce platform is software designed to enable the process of buying and selling over the internet. Today, businesses on the pulse of time use cloud-hosted eCommerce platforms, instead of hosting their own solutions in-house. This is more cost effective and easier to implement, and with a dependable provider, it also means better security and higher availability. Unless faced with very specific and atypical requirements, the benefits of using an eCommerce platform, as opposed to having something tailor-made from scratch, are without doubt. Choosing the right solution however can be difficult. There are many different platforms available, some of which are designed for small businesses with relatively small product catalogues. Others offer much greater flexibility, but with the cost of increased complexity. Since it isn’t easy to change later on, without causing substantial disruption, it’s important to choose the right platform from the outset. While sometimes it may be without alternatives, re-platforming can be a complex and often also expensive step. In order to help you with making the right decision for you and your company, here is our List of the Most Important Technical Considerations When Choosing an eCommerce Platform #1 Extensibility No two online stores look the same, hence the need for a flexible, yet controlled, environment. Most eCommerce platforms provide the features necessary to launch a basic online store straight out of the box. That said, there may be cases when you need to add new features like support for additional payment and shipping methods. One approach to tackle this problem is to look for ready-made integrations that are provided or supported by the software vendor. Both our preferred eCommerce platforms, Episerver and commercetools, provide numerous plugins and add-ons to integrate popular 3rd party solutions with their own. In case there is no existing ready-made extension, the headless or microservices-based architecture of a platform such as commercetools offers the greatest flexibility by featuring extensive application programming interfaces (APIs), that let clients connect to any frontend, integrate different third-party applications as well as communicate with smart devices. This enables brands and retailers to steadily develop new features, extend the functionality of their online shop and shape the future of their digital shopping experience sustainable. #2 Scalability Any eCommerce venture hopes to succeed to the point they can expand their operations by serving more customers or growing their product inventories. It’s essential that you consider your long-term goals when choosing a platform. An extensible platform architecture, enabled by open and well-documented APIs can enhance agility, speed and scalability. Software-as-a-Service (SaaS) eCommerce platforms hosted natively in the cloud allow for the scalability and flexibility to adapt in real time to any traffic volume and changing customer demands. However be cautious about the claims of an increasing number of legacy software vendors that put ‘cloud’ in their product names. While they may rightfully claim to be hosted in the cloud they often are still running the very same old software that does not offer the scalability of native SaaS solutions such as commercetools. As a simple measure of a vendor’s flexibility and scalability, simply ask them to provide you with a trial instance of the software and see how long or short it takes to provide – it should be a matter of hours rather than days. What unites preferred vendors at Bright across all categories is that they all are cloud-native solutions that leverage the capabilities and scalability of the cloud. #3 Compatibility Truly modern eCommerce platforms are not only web-based, so they function much like any other website and should render in any browser on any device. They should also be able to power additional channels such as mobile devices, point of sales devices or sometimes even print. Even if users outside of your web-based channels aren’t your core target market, you should always choose an eCommerce platform that allows you to extend your digital commerce to additional devices and channels. Commercetools, for example, offers a Mobile Commerce solution for building Progressive Web Apps (PWAs) and native apps for IOS for delivering outstanding digital shopping experiences on any mobile device. Besides that its extensive APIs make it easy to integrate your online shopping experience or product catalogue into pretty much any other platform or solution. #4 Internationalisation One of the biggest advantages of online commerce is that businesses of all sizes can reach global marketplaces without dramatically driving up operating costs. That said, if you plan to target international markets, you’ll need to choose a platform that’s easily adaptable to international business. Fundamental aspects of international eCommerce include support for multiple languages, currencies and varying taxation rules. Support for local time zones can also help by removing ambiguity when tracking orders. Last but not least, the regions or countries you serve may also serve varying product catalogues depending on local availability or sometimes also legal restrictions. #5 Management The basic function of a product management system is to make it easy for sales teams to add and manage product listings. In the simplest of cases this involves importing CSV or Excel files into the platform, uploading product images in bulk, and adding different product categories. For larger businesses it often means having the ability to automatically synchronise data from 3rd party systems such as a product information management (PIM), digital asset management (DAM) or ERP systems. Besides that you also need to think about how the system manages inventories, orders, and returns. These components all need to communicate reliably with one another, so it makes sense to choose a platform that provides everything you need to run an online store. #6 Support Many eCommerce platform vendors provide a fully managed service that includes technical maintenance and 24/7 customer support. Software-as-a-service (SaaS) offerings also provide full visibility into costs in the form of a pre-agreed monthly fee. Some platforms may include additional support in the form of workshops and other training sessions to help teams get up to speed with using the platform. Choose a platform vendor whose vision aligns with your own. Always vet the vendor to ensure they have a solid track record of committing to their service level agreements (SLAs). After all, when things go wrong, you need to be able to resolve the problem as soon as possible. Look for vendors that provide 24-hour emergency support via multiple channels like email, phone, and web chat. And then of course, choose wisely when it comes to the agency and systems integrator that builds and maintains your online store. Often they will have a much deeper understanding of the strengths and weaknesses of the platform vendor than yourself, and they may also have more direct communication with their team. #7 Reporting One of the biggest advantages of eCommerce, like any other digital activity, is that it generates large amounts of valuable data. But to make sense of this data, it’s essential to have an easy and intuitive way to track the metrics that matter by translating the data into actionable insights. Most leading eCommerce platforms have analytics built in, which allow administrators to track their store’s performance and reveal important trends. For example, commercetools provides native integration with minubo, an analytics solution that provides a snapshot of key metrics like sales channels, orders, and conversion rates, to help you find new ways to drive sales. Our Recommendation At a certain level, most eCommerce platforms appear to have much the same set of features and functions. It’s only once you start to dig deeper into the fine print that you may discover potentially serious limitations, such as a lack of support for certain business models, industry-standard security and compliance features, or essential integrations. That’s why you must carry out ample research when choosing a platform, especially if you want to establish a large online store with constantly evolving needs. At Bright, we recommend headless and microservice architectures, since they provide far greater flexibility. Most importantly, they allow you to extend your eCommerce platform beyond desktop and mobile platforms to contact points such as television, IoT device, shop-in-shop and even voice assistants (Augmented Reality). This is because you can create front ends and use APIs for any platform, while still enjoying the benefits of a system that’s easy to update and add new products to.
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Setting Up an E-commerce Store: Step-by-Step Guide
Whether you have unique handmade items you’d like to sell or you want to start a wholesale or dropshipping business, you’ll need a great website with eCommerce functionality to be successful online. With relatively low upfront costs and many great code-free site builders available, it’s easier than ever to start an eCommerce business. In this article, we’ll show you how to start an online store in just eight easy steps. Make your eCommerce business dreams a reality today! 1. Pick a Viable Niche and Define Your Target Audience The first step in starting your online store is to determine a niche market you’d like to serve. One of the biggest mistakes new business owners make is not focusing on the three components of choosing a niche: Profitability: You want a niche that is profitable so you can see a return on your investment and build a profitable online store. If a product is too expensive to manufacture or purchase wholesale, it has a low potential for profitability. Similarly, a product might be too expensive to ship and may be better suited for selling in person. Searchability: The best e-commerce stores stock in-demand products people search for. If you’re looking to start an online store that sells dog leashes, for example, make sure “dog leashes” is a keyword you target. Use SEO tools to determine products people search for. Passion: Consider your passions. For example, what do you enjoy talking about or researching? When you’re passionate about what you sell, you’ll be more likely to stick with it when times get tough. Not only that, but you want customers to direct people to your store because you’re the expert in a particular field, product or service. Your target audience is just as important as your niche. You want to make sure the products you sell will interest them and that they can purchase what you’re selling with no trouble. Don’t ask people for their opinion on your product if they’re not in your target audience. 2. Choose Your Product Line Once you’ve determined your niche and target audience, it’s time to decide on your product or service line. This can be the hardest part of starting your online store. You want to make sure you’re not selling a product that’s too expensive to produce or that no one is searching for. It’s also important to make sure you have the resources, such as storage and shipping, to accommodate your products. If you choose a product that’s already popular, how will you differentiate yours from the best? Can you improve on an existing product? How will you make sure your online store is the go-to source for this product? 3. Create Your Brand Name and Brand Assets Once you know what you want to sell, the next step is to choose your brand or business name and create your brand assets, such as your logo. For some, this step might come very easily and, for others, this can be very challenging. One way that businesses often weed through name ideas is by going to a domain name registrar, such as GoDaddy and searching for available domains. The reason is, ideally, you want your domain name to match your business name. If you’re not sure where to begin when creating your logo, Canva is a great place to start. It offers dozens of free and easy-to-customize logo templates. In case you don’t want to try your hand at logo design, you can always hire someone to do it for you from platforms like Fiverr and 99Designs. 4. Register Your Business To process payments for your online store, you’re going to need employer identification number (EIN). To get an EIN, you need to register your online store as a business in your state. While you can register as a sole proprietorship or corporation, generally small businesses register as a limited liability company (LLC), which helps protect your personal assets should your company get sued. There are also tax advantages to creating one for your new company, so check with your tax advisor to see if an LLC is the best option for you. The process of registering your business will vary from state to state, so it’s best to refer to your state’s Secretary of State for more detailed information on the process. Alternatively, you can always use a business registration service, such as LegalZoom or ZenBusiness. Start an LLC Online Today With ZenBusiness Click on the state below to get started. Start Now 5. Choose an E-commerce Platform Next, it’s time to choose an e-commerce platform. This is the platform where you will build and manage your online store. There are a number of great e-commerce platforms to choose from, such as Squarespace, Shopify and Square. However, each platform comes with its own unique set of features, which impact affordability, capabilities, and user-friendliness, so it’s worth taking the time to find the right one for you. Here are a few of the best e-commerce platforms for easily building an online store: Squarespace: Best for web design beginners looking to easily build a beautiful online store with built-in marketing tools for as little as $14 per month with annual billing. Shopify: Best e-commerce platform for building a dropshipping store. Plans start at $29 per month and typically involve the purchase of a premium theme for around $250. Square: Best for those on a budget as it offers free plans, as well as those planning to sell in-store and online. For more insights and information and to help you choose the right one for your online store, check out the best e-commerce platforms. 6. Build Your E-commerce Website Once you have decided which e-commerce platform you want to use, the next step is to go to that platform and create an account and begin building your online store. While the steps will vary depending on which platform you’re using, typically the steps will more or less involve the following. How to build an online store website: Navigate to the e-commerce platform of choice, such as Square, and create an account. Choose a domain name (typically included with a plan–if not, purchase separately). Select a template or theme. Add your business name and logo. Customize your homepage as well as all other web pages. Add your products and create product listings. Set up a payment processor. Configure settings, such as tax or shipping calculators. Follow along with our detailed step-by-step instructions that walk you through how to build a website. 7. Optimize Your Site Once your online store is up and running, optimize it for search engines so that it can get found online and in search engines, such as Google. This will help your website increase its visibility, gain more website visitors, and generate more sales–all for free. Here are a few things you can do to optimize your site: Title tags: The title tag is the text that appears on the search engine results pages (SERPs). Your title tag must be descriptive and relevant to your product or service. Meta descriptions: The meta description is the text that appears under your title tag in the SERPs. Use descriptive and interesting language that encourages people to click through to your site. H tags: The H tags are the headings on your page. Make sure they’re descriptive and help explain what the page is about. Images: Include images on your page and ensure they’re properly tagged with keywords. 8. Tell the World Once your online store is up and running, you need to market it. The reason for this is that building a business through SEO is a key component in your long-term strategy. Marketing your products and services will help bring in traffic now. Here are several ways you can promote your online store: Add your brand to online directories. Work with influencers to promote your brand. Online advertising, such as Google Ads or Facebook Ads. Use content marketing to help your site get found online. Create social media profiles and become active on them. Referral or loyalty programs. Use press releases (if you have highly unique or groundbreaking products). Join an affiliate marketing program. Try word-of-mouth marketing. The best way to promote your online store depends on your business and the products or services you’re selling. Successful marketing campaigns contain many, if not all, of these strategies at the same time. Try a few different methods and see which ones work best for you. Why E-Commerce Is Important There’s a reason the current generation is often called the instant gratification generation: our world is more connected—and easily accessible—than ever. With a few clicks of a button, people from all over the world can purchase your products and services 24/7, 365 days per year, provided you have an online website. Sometimes, this is referred to as an e-commerce store. The overall look, speed and quality of your site can make or break a sale. Frequently Asked Questions The cost to start an online store varies depending on the platform you choose and the features you need. Some platforms are free to use, while others have a monthly fee. You can find e-commerce platforms for less than $30 per month. Then, just pay for marketing, products and shipping. You can get products for your online store from a variety of sources, including wholesalers, manufacturers and distributors. Popular aggregators of manufacturers include Alibaba and DHgate. Many store owners use sites like Faire or Abound for wholesale products. The easiest way to start an online store with no money is to sell services or digital products and choose a free e-commerce platform. This way, you only pay per transaction. Examples include printable products, editing services and PDF workbooks. What is the difference between an e-commerce platform and e-commerce hosting? An e-commerce platform gives you the tools to design an attractive-looking page or series of pages for customers to visit and learn more about you but that website has to be hosted somewhere, which is what an e-commerce website host does. Websites are hosted on platforms that can support the traffic being sent to them. In addition to having sections for your goods or services and a place to check out, you should also have sections or pages that include your contact details, an about page that provides details about your store and its offerings, a frequently asked questions (FAQs) page that can help answer some of the questions your customer may have regarding your store of what you have to offer and a policy page that offers you some form of legal protection in case there are disputes―this section or page should deal with information related to your liability, return policy, privacy policy and similar issues. One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms, such as Amazon or Etsy.
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Challenges of Starting an E-commerce Business
Ecommerce has long been the most lucrative business model for those looking to try their hands at entrepreneurship. Yet, it's also one of the most dynamic and demanding sectors to work in. Today, we look at some of the many challenges that come with starting an ecommerce business. 1. Finding a unique selling proposition If you've thought of it, chances are someone else already did, too. Starting an ecommerce venture requires a sellable product, which is tricky when there're at least ten other businesses selling the same, or a similar, product. That's why a unique selling proposition (USP), or messaging angle, is crucial. Apple's USP is privacy. Android's USP is affordability. When looking for your USP, start with something you love. If you sell phone covers, consider why you would personally buy one design over another. For example, if you're inclined to buy Doctor Who themed products, chances are, many others are too. That could be your USP—the comprehensive place to buy all things Who. Your next step is to look at competitors and their market share. In this case, the BBC is the official provider of Who merchandise. There are also hundreds of other businesses that have cashed in on the fandom. What can you offer that all those other sellers can't? Looking at product reviews from your competitors is a good way to find unique angles you can capitalise on. Reviews will also tell you what customers get from the product and what more they want. You can use that information to customise your product offering and your messaging. 2. Generating leads consistently One of the most successful ways to get leads is to run ads on Google search result pages and Facebook. However, if you're not constantly watching your budget, these ads can get expensive quickly. It's a good idea to explore other channels and ways to generate leads. Consider starting a blog that conveys the value of your product and your brand. Expand your content portfolio to educational material about your industry and even complementary products your customers should explore. Building up content is a long-term game. It'll help you get leads organically and it'll consistently serve you down the road, but you have to invest the time and effort to create high-quality blogs that your potential audience wants to consume. Based on your product and your target audience, you can also look at alternative content creation options, such as vlogs, podcasts, newsletters, Twitter chats, Clubhouse chat rooms, Facebook groups, and TikTok posts. We strongly advocate for publishing content on channels you own, such as a traditional blog or newsletter. This is called owned media, and it's valuable, regardless of your business size. Owned media provides you with channels to communicate with your audience, even if popular social media sites get blocked or hacked. Another way to ensure you get leads consistently is to start building email lists. You can do this on your blog or through social media communities. As long as you have a list of people who want to hear from you, you'll get return customers who will likely refer their friends and family to you. 3. Optimising your website Audit your website's usability regularly, and make sure your visitors are navigating your online store as you intended. Seek help from website testers or friends and family who can provide feedback on how you can improve your website's flow. This will help you find and rectify hard-to-spot communication gaps. For example, a jacket you're selling might have hidden pockets, but if your description doesn't explicitly say this, your website visitors won't know what they're buying. Review the copy on every product page to ensure it covers all features and functionalities, has a grammatically and factually correct description, and includes photos to inform the buyer. The less friction the customer experiences when buying a product online, the better the chances are that they'll complete the purchase. Analyse your website's traffic, drop off points, and scrolling patterns. These will help you identify which parts of the website your audience is most engaged with and where they lose interest. If you find that a lot of people leave the site after arriving at the checkout page, you'll know that you need to improve that page. You can start to experiment with various changes to content, colours and design, layout, payment options, or something else entirely. Payment gateways aren't always easy to get right. Because you're working with multiple external vendors and their payment systems, it will take some time to organise things the way your audience wants. Take some time to make sure each vendor's payment gateway is easy to navigate. This will also reduce the number of customer support queries you might get because of a faulty payment gateway. Here's a guide to building an effective ecommerce website 4. Customer nurturing and up-selling Ecommerce requires so much more than setting up the perfect online store. Email follow-ups, discount codes, weekly specials reminders, and mobile push notifications are all essential elements of reinforcing your brand and products in the customer's mind. Focus on building a customer nurturing strategy for your business. If you sell a single product, then your nurturing strategy will be the same for all customers. But if you sell multiple products, you could consider individual follow-ups and nurturing strategies for each product. Include up-selling as part of your nurturing plan—if someone bought a book by Margret Atwood, they'll probably be interested in other books by the same author. As Amazon does, you can display these recommendations on the checkout page for instant up-sell opportunities, but you can also use a customer's purchase data to design customised follow-up email campaigns. The ultimate goal of these email campaigns and nurturing efforts is an enhanced customer experience. You want your customers to be happy with their purchase, but you also want them to remember you when they want to purchase again. To ensure this, you should aim to be so helpful they automatically think of you. Design emails that help your customers find what they want, but also help them learn about what they've purchased. This is where you can include educational blogs, product help documents and videos, and even re-direct customers to your social media groups. If your content is informative, helpful, and relevant, your customers will return to you. 5. Internal product integration In our conversations with prospective customers, we often find that a lot of businesses struggle with siloed systems. They might be using the best product in the industry, but if it doesn't integrate with their other information systems, it causes chaos and stress. When you're starting an ecommerce business, identify which software products you want to use for each business function. Then, evaluate whether each product can natively integrate with your existing systems. Not all products have seamless integrations built in, and that's okay. If you find an app you like, but it doesn't have built-in connections, see if that app is compatible with integration tools like Zapier and Zoho Flow, or has an open API you can use to connect various systems. For example, you'll want your online store to connect with your website analytics tool. When someone places an order on your website, that information should flow through to your inventory system, your shipping management system, and your accounting app. Here's an example of an ecommerce business connecting various systems through Zoho. Take the time to go through the flow of information in your business process and ensure it's all connected. This way, not only can you stay up-to-date with what's selling through your website, but you can also analyse issues, drop offs, and complaints, and address them promptly. 6. Customer experience and loyalty We have too many choices nowadays. That's the inherent challenge of retaining customers—especially for ecommerce businesses. Brand loyalties fluctuate with the economy. That's why it's important to have a strong customer experience strategy. PwC found that 74% of Australians consider a friendly experience a key factor when choosing between options. Leverage that mindset—invest in people and technology that help you provide good customer service. From setting up help desk software and managing customer questions, to offering free/discounted delivery, make sure your customer has a smooth interaction with your brand. This also includes their experience with your website and online store—periodically assess your checkout process to catch delays, bugs, or typos. Every little improvement goes a long way in making customers feel valued. A popular way to keep customers coming back is to start loyalty initiatives, such as an affiliate program, send discounts and offers for second-time purchases, and provide special-occasion vouchers. How you implement each of these will vary based on your business and your ideal customer. However, having these systems in place will make it easier for your customers to choose to do business with you again. Branding also plays a big role in building customer loyalty. Think Converse and Nike—these brands have a large following on every social media channel. Part of that loyalty comes from the brands' expensive media mentions and collaborations, but a large portion comes from word of mouth. Be active on social media and build a community of people who like you and enjoy your products. Identify which channel your audience is most active on and invest your time there first. Social media can quickly get overwhelming, so start small and expand as your resources grow. You can also leverage social media ads to get more visibility for your brand. Over time, people who follow your brand will buy from you and those who buy from you will tell others about you. 7. Competitive return and refund policies Almost every ecommerce business nowadays has free or highly-competitive return and refund policies. However, not every business that offers a free return and refund policy provides a seamless experience. That's where you can stand out. Build your policies so people who have to return products can do so with the least amount of effort on their part. Strategies like giving store credits for refunds, and asking customers to repack products and bear return postage costs can seem too demanding to customers. While many people are sympathetic to the challenges of managing inventory as an ecommerce store and the intermediary process involved, you wouldn't want them to pass on a purchase to avoid the hassle of a potential return. To create a customer-friendly return policy, consider: • Providing cash refunds, instead of store credit.• Refunding the initial shipping cost.• Bearing the cost of returning a product.• Offering home pickup for products a customer wishes to return. These strategies will cost the business in the short term, and may not be practical for every business. However, putting the customer's convenience first will certainly improve their experience and increase their loyalty. Designing the right return policy also depends on the price of your products and the shipping vendors you choose to work with. There's no one set formula for choosing the perfect carrier. Since each vendor may have their own pros and cons, it's important to compare your options, calculate how much they'll charge you for each shipment, and then decide how you'll price your products or design your return policy. 8. Keeping up with a changing market Ecommerce is undoubtedly the fastest growing and most-frequently changing business model. Keeping up isn't easy, and not doing so can be costly. There are hundreds of lists online that talk about the latest trends in ecommerce, constantly putting pressure on businesses. However, not all suggestions will be relevant to you and your business. Find ways to tune out the noise and tune into the changes that are most important to your customers. A good way to do this is to spend time with like-minded people. Join business and networking groups where you can meet fellow business owners and managers, share knowledge, and approach common challenges together. For example, Meetup.com brings people of similar interests together based on location. Covid-19 restrictions have also given rise to online groups—especially on social media channels like Facebook, LinkedIn, Twitter, and Clubhouse. 9. Data privacy and integrity If you collect sensitive information from your customers, you have a duty to protect that data. Before you set up your online store, research your software vendors thoroughly. If you intend to trade internationally, you will have to comply with the privacy regulations of various countries. For example, according to GDPR regulations, all data collected from European Union citizens should be stored and processed within the EU. Non-compliance can be expensive—as many brands have already learnt. If your vendor is in violation of privacy laws, even though you're only inadvertently involved, you will also be held responsible for the violation. When you evaluate ecommerce vendors, ask how they comply with global data privacy regulations. Vendors have to be transparent about their data processing capabilities. For example, Zoho's commitment to privacy is so strong that we have data centres in Australia, Europe, the United States, and India. If you use Zoho Commerce and collect information from a customer in the European Union, their data will be stored and processed in our EU data centre, ensuring our customer—you—is automatically GDPR compliant. As you can tell, starting an ecommerce store is only the tip of the iceberg. The competition is often fierce. Before you dive in, make sure you have a clear action plan to overcome the most common challenges. Though having a plan isn't always a guarantee of success, it'll certainly help you prepare for any surprises.
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10 Key Benefits Of Ecommerce For Your Business
Ecommerce has always been the way of the future, but it is more so now than ever. The outer world has become a place of ambiguity, caution, and social distance, highlighting the many benefits of e-commerce for both companies and customers. Since its inception, global ecommerce has been increasing year after year. People prefer shopping online to shopping in a physical store because it is more convenient and simple. Amazon and Flipkart are examples of how ecommerce is transforming and disrupting the industry. Consider the following major benefits of ecommerce and start selling online. 1. Low costs A significant advantage of ecommerce is that launching an online store is much less costly than opening a physical store. You are not required to furnish your outlet, nor are you required to pay rent or hire multiple workers. Marketing and advertising campaigns are also inexpensive. Additionally, the online portal is computerised and automated, which saves significant money. One of the primary benefits of ecommerce is the absence of a middleman, which results in a substantial cost reduction. The platform is able to build an efficient supply chain since it establishes a direct connection between buyer and seller. 2. Speed & Flexibility A person or business can easily open an ecommerce store in a matter of days. In contrast, a physical store requires space, commercial leasing, and sufficient construction and decoration time before opening. In an e-commerce platform, displays and product ranges can be changed instantly, while in a physical store, this requires careful preparation, adequate time and manpower. In terms of versatility and speed, e-commerce sites far outperform retail outlets, which is regarded as a key feature of ecommerce. Without renting office space, the seller is able to manage all activities from the comfort of his home. 3. Faster Buying Process Previously, a customer had to schedule his shopping trip in advance, even though he desired to purchase a single item. This will include rearranging his schedule and making the purchase at the store. Another vital advantage of ecommerce is that it expedites the purchasing process.A trip to the outlet that is approximately two to three hours away from your home is no longer required. Simply sit back in the comfort of your own home or workplace, conduct a product search, and complete the order.Additionally, online stores are open 24 hours a day, seven days a week, allowing you to shop at your leisure. By providing many options, ecommerce enables the consumer to purchase a specific product without wasting time conveniently. Additionally, you save travel time by having the product shipped to the destination of your choosing. 4. Product Catalogue Customers are looking for a detailed overview of the items they wish to purchase, which is a critical aspect of ecommerce. An e-commerce platform provides its customers with a product catalogue that includes data sheets that detail all of the company’s products and services. The characteristics, utility, and specifications are comprehensive. Even the colours of certain items, such as cell phones, are defined so that you can make your selection based on personal preference. Customers can learn about the ingredients in edible items and gather additional knowledge that is not available in retail stores. With expertise at their fingertips, customers can more easily purchase the products they want. Additionally, online websites provide reviews and consumer feedback that inform consumers about a product’s marketability. The portal provides warranty information and other product-related terms and conditions that may prove helpful to a customer. 5. Wider Customer Base A physical store is based in a specific location, and in most instances, residents in the nearby area can only come to shop. Another advantage of e-commerce stores is that they are not geographically limited.Geographical boundaries become irrelevant when conducting business online via ecommerce stores. You can sell your goods to online shoppers around the world. You are not restricted to shoppers within walking distance of your physical venue. Additionally, the internet exposes the retail store to previously untapped niche markets. By using various online touchpoints, you can reach consumers in various ways, including social media and forums.A customer can access the portal from any location globally through an internet connection and a computer capable of operating it. Ecommerce shop is open 24 hours a day, seven days a week, for all of its customers globally. It gives real-time updates on where the goods will be delivered and for how many days. 6. Customer Data Insights Another benefit of online selling that you might not have considered is the ease with which consumer data can be collected, analysed, and acted upon. If you want to maintain a laser-like emphasis on the customer experience, you must own the consumer data. By monitoring consumer experiences, online selling enables you to collect first-hand data. You’ll benefit from a continuous feedback loop of actionable insights that will allow you to reinvent the customer experience continuously. Customer preferences are critical, and an ecommerce store can monitor and evaluate how often a buyer purchases products or views other items in his portal. It is not possible in brick-and-mortar shops. Sellers can track their customers’ actions directly and indirectly and tailor their products to their unique characteristics. 7. Scalability When a physical store experiences a spike of customers, it becomes extremely difficult to manage them due to insufficient staff. Scaling up or expanding a physical store needs additional floor space and resources, each with a cost. In comparison, growing an online store is extremely easy, which is one of the less apparent advantages of e-commerce for businesses. All that is required is additional inventory, some digital tweaks, and probably additional storage space, which is significantly less expensive than storefront space. Additionally, being online removes the need to open a new store in a different location since you are already connected to a global marketplace. 8. Reviews & Ratings Customers are encouraged to leave feedback on online stores in order to learn about customer satisfaction and any issues they are having when using the products and services. The availability of these reviews on ecommerce stores allows potential buyers to learn more about the product and determine if it is appropriate for their specific needs. It also aids sellers in improving their services and products to increase sales and customer satisfaction. We cannot find ratings or reviews of a product in a physical store, so we had to rely on our friends who had used the items to get useful information. In contrast, a customer can read reviews in the comfort of his own home and decide based on his preferences without asking his friends or family when shopping online. 9. Increased Profit Margin As opposed to traditional stores, the cost of setting up and operating an ecommerce store is very low. You’ll also save money on marketing, labour, and overhead. Most ecommerce stores provide the dashboard with an added benefit for reports and invoices, helping the business manage their finance. When running an online store, inventory management costs are also reduced.Online stores are available 24 hours a day, seven days a week, and can sell items faster and more efficiently. Increased revenues and lower prices have helped businesses grow their profit margins, proving to be an important advantage of an e-commerce platform. 10. Targeted Marketing When you sell online, you won’t have to pay to reach everybody, which is very costly. Your marketing budget would be based on reaching out to the specific customers who are most likely to be interested in what you’re selling and purchase your products. You can choose who sees your ads on online advertisement platforms based on keywords, demographic details, geographic location, and even interests and hobbies. Compared to a conventional brick and mortar shop, this provides a much better ROI (Return on Investment) to businesses.
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Key E-commerce Statistics and Trends for 2024
If you’re looking for a way to boost your sales and take your business to new heights, e-commerce should be on your radar. By pairing a strong web presence with the latest e-commerce platforms, you can broaden your offerings, increase your reach and remain open 24/7. These top e-commerce statistics for 2024 will give you a better idea of the power of online sales. Featured Partners Starting Price $17 per month E-commerce (low-priced plan) Yes Starting Price $1.95 per month Standout Features Customizable templates, easy grag-and-drop technology, SSL certificate Starting Price $23 per month E-commerce (low-priced plan) Yes General E-Commerce Statistics 20.1% of retail purchases are expected to take place online in 2024 Each year, fewer and fewer people are shopping in physical stores.[1] To stay ahead of the game, your company needs to maximize its online presence and give customers a viable way to shop online. Rather than putting more money into brick-and-mortar locations, consider putting that budget into developing and marketing an online store. By 2027, 23% of retail purchases are expected to take place online Online shopping statistics show the increase in digital orders is not just a trend. Shopping online is here to stay, as 22.6% of total retail sales will be conducted online in 2027.[1] Start thinking today about how to sell products online to avoid becoming obsolete. E-commerce sales are expected to grow 8.8% in 2024 The entire e-commerce business is booming, not just retail sales. With nearly 9% growth projected for this year, there are plenty of opportunities to dive in.[1] Help your business stand out from the competition by staying at the forefront of online payment technologies and creating a website that's easy to navigate and browse. The global e-commerce market is expected to total $6.3 trillion in 2024 Selling products online means you're not limited to local consumers. This gives you nearly unlimited potential for new demographics—and the statistics show companies are taking advantage. The global e-commerce market is expected to be worth $6.3 trillion this year—up from $5.8 trillion in 2023.[1] By 2027, the e-commerce market is expected to total over $7.9 trillion It's a great time to be in e-commerce, as the market shows no signs of slowing down. By 2027, experts predict it'll total over $7.9 trillion.[1] This showcases just how important it is to jump on the e-commerce bandwagon now, while it's still relatively early. The earlier you buy in, the more money your company stands to make over time. Amazon accounts for 37.6% of e-commerce sales, the highest market share of all e-commerce companies Amazon's e-commerce sales are down slightly from the previous year when they were 37.8% of all sales.[2] That said, the company is still leading the pack. Other top contenders include Walmart with 6.4% of sales, Apple with 3.6% of sales and eBay with 3% of sales. Amazon, eBay and AliExpress are the most visited e-commerce websites Considering Amazon and eBay are two of the sites with the highest number of e-commerce sales, this shouldn't be much of a shocker. Still, the number of visits each site gets annually is astounding. Counting all of Amazon's country-specific domains, it gets over 2.8 billion views a year. AliExpress comes in second with 952 million, while eBay comes in third with 872 million.[3] Online Shopping Behavior Statistics 52% of online shoppers report shopping internationally With the ease of international shipping and the simplicity of online orders, choosing a product from overseas is not a big concern for online shoppers. Globally, 52% of online consumers order from both local and international websites.[2] Tailoring your offerings to international customers by offering additional shipping options could be a viable way to increase your sales. The most common reason online shoppers abandon their cart is because of additional costs like shipping, taxes and fees (47%) If you plan to add e-commerce to your business, you should know what will deter, rather than attract, customers. Almost half of online shoppers reported that extra fees, such as shipping and taxes, will prevent them from moving forward with their purchase during the checkout process. Other inhibitors include requiring shoppers to create an account, slow delivery times, website privacy concerns and a long or complicated checkout process.[2] 25% of online shoppers abandon their cart because the site wanted them to create an account While you can ask online shoppers if they’d like to create an account on your website, you shouldn’t require them to do so. This is because some of them may simply leave your online store and look elsewhere for what they need. They’d prefer to checkout as a guest and don’t want to go through the time and hassle of creating a username and password.[2] 24% drop out of an online shopping session because shipping is too slow When a customer orders a product online, they may not expect it that hour or that day. But many of them want it as soon as possible. If it takes weeks or months for you to ship orders, they’ll likely leave their online shopping session on your website and turn to a competitor with faster shipping times.[2] E-commerce and slow shipping are not a good combination so it’s important to streamline your shipping processes and do whatever you can to expedite the time it takes for customers to receive their orders. 34% of shoppers shop online at least once a week For many people, shopping online is a strong habit. As many as 34% of shoppers buy something online once a week.[4] Your company may be able to capitalize on this by using email marketing to send out weekly product updates and offerings to entice your customer base into a purchase. The online shopping cart abandonment rate is 70% Over 48 studies have looked at shopping cart abandonment rate statistics, and the average between them all is 69.99%.[5] This number has held relatively steady since about 2014. If you want to reduce this percentage, consider changing some of the factors we identified above, such as enabling guest checkout, reducing shipping costs and providing faster turnaround times. You might also consider abandoned cart email campaigns to lure customers who are on the fence back in. Social Media E-Commerce Statistics $992 billion was spent on social media commerce in 2022 As the number of social media users increases, so does the amount they’re spending in apps. In 2022, customers spent $992 billion on purchases through social media. This trend is particularly big in Thailand, where 90% of internet users have purchased from social media. India is a close second, with 86% of internet users making a social media purchase.[2] Social media commerce is expected to reach $8.5 trillion by 2030 If you thought the current social media commerce market was big, consider that it’s expected to jump up to $8.5 trillion in just six short years.[2] There are major opportunities here for businesses to cash in on their social media following. To take advantage of this growing audience, we recommend using a robust social media management tool. 106.8 million people in the United States shop on social media While global social media commerce statistics are huge, they’re still quite large in the United States as well. It’s estimated that 106.8 million people shopped on social media in 2023. This is expected to increase by 10.6% to 118 million Americans shopping on social media by 2027.[2] Millennials shop on social media the most—55% of people aged 18 to 24 in the United States have made a purchase on social media In 2021, more than half of 18- to 24-year-old social media users in the U.S. placed at least one online order via social media. While these millennials make up the age group that shopped the most on social media, 25 to 34 years earn the second place spot. It’s clear that social media commerce is most effective with the younger generations.[2] Keep your target audience in mind when trying to determine whether to implement social media in your e-commerce strategy. China, India and Thailand have the highest rate of live social commerce shoppers Live commerce is a growing trend where users buy products from social media sites in real time. It’s a particularly popular option in Thailand, India and China, where over seven in 10 users engaged in live shopping.[2] If you’d like to move into the global market or expand your global reach, selling your products or services on social media is certainly worth exploring. Facebook is the most popular social media platform for social commerce transactions There is no shortage of social media platforms these days but not all of them are effective for selling your offerings online. About 51% of survey respondents stated that they use Facebook for online purchases so keep this in mind when determining which platforms to use. According to research, there were over 90 million U.S. social commerce buyers in 2021.[2] 40% make a purchase because of social media influence Social media gives many people the feeling that they need to “keep up with the Joneses.” As a result, many of them make purchases they might not have considered if they didn’t use a platform such as Facebook or Instagram. The most influential products on social media include clothing or accessories, health or beauty items, food or drinks, event tickets and vacation experiences.[6] 49% of social commerce shoppers have had an influencer’s recommendation impact their purchase Social media influencers are active social media users who have built a reputation for their expertise and knowledge on a certain topic. Almost half of social media commerce shoppers have been encouraged to make a purchase based on what they saw or heard from these influencers. Believe it or not, 70% of teens trust influencers more than traditional celebrities and 86% of women use social media for purchasing advice.[7] Mobile E-Commerce Statistics 91% make online purchases using their smartphone Most people depend on their smartphone on a daily basis. Whether they have an Apple, Android or other device, many of them turn to it every time they want to make an online purchase.[8] While it’s vital to create a seamless shopping experience on a desktop, it’s almost more important to ensure your website looks and works well on mobile devices. Mobile commerce sales are expected to account for 62% of all retail sales by 2027 Since 2018, the global mobile e-commerce market has been steadily increasing. It was a mere 56% back then, but experts estimate it’ll reach 62% in 2027.[2] To prepare, it’s important to make sure your online website and store follow the best mobile website design practices, including making pages easy to navigate with thumbs and utilizing responsive web design. Mobile commerce accounted for $491 billion in sales in 2023 Clearly, mobile commerce is a big market, as it totaled $491 billion in sales last year.[2] More and more customers are shopping from their phones, so it makes sense for your company to start considering tactics such as mobile SEO to help specifically draw in smartphone users to your website. Mobile commerce sales are expected to account for $856 billion of commerce sales by 2027 In just three years, mobile commerce sales will nearly double to $856 billion.[2] To stay competitive in your industry, your business must start building mobile e-commerce into your overall digital marketing strategy. Consider redesigning your website to be more responsive, creating a shopping app for users to browse your products or even offering special discounts or perks for mobile users. Tablet m-commerce sales are expected to reach $54.01 billion by 2026 Smartphones are widely used for online shopping, but what about tablets? Tablet e-commerce sales reached $61.08 billion in 2022. Surprisingly, this figure is expected to go down to $54.01 billion by 2026.[1] This is likely because tablets are becoming less popular and e-commerce retailers have improved the mobile shopping experience. Featured Partners Starting Price $17 per month E-commerce (low-priced plan) Yes Starting Price $1.95 per month Standout Features Customizable templates, easy grag-and-drop technology, SSL certificate Starting Price $23 per month E-commerce (low-priced plan) Yes E-Commerce Fraud Statistics $41 billion was lost to e-commerce fraud in 2022 Fraud that occurs on an e-commerce platform, such as using a stolen or fake credit card to make a purchase, is considered e-commerce fraud. Unfortunately, e-commerce retailers missed out on about $41 billion due to e-commerce fraud in 2022.[2] $48 billion is expected to be lost to e-commerce fraud in 2023 Sadly, e-commerce fraud is not going away any time soon. In fact, it’s likely that online retailers will lose $48 billion to e-commerce fraud in 2023.[2] If you’re using e-commerce to boost your sales, prioritize fraud prevention measures, such as routine security audits, an Address Verification Service (AVS) and a Hypertext Transfer Protocol Secure (HTTPS). The e-commerce fraud detection and prevention market was over $36.7 billion U.S. dollars in 2021 If you’re selling products online, you’ll need to account for some e-commerce fraud detection and prevention tools in your budget. This might include verification software or IP fraud-scoring tools to stop thieves from trying to scam your system. Right now, the market for this software is booming, as it’s worth over $36.7 billion.[2] By 2027, the e-commerce fraud detection and prevention market is estimated to reach over $100 billion E-commerce fraud detection and prevention tools will only become more important as online shopping continues to grow. Experts estimate the market will be worth over $100 billion by 2027.[2] Scammers will continue finding ways to skirt fraud detection efforts, meaning companies will need to invest in more vigilant software as well as stay payment card industry compliant. The average monetary loss in an e-commerce scam is $101 This number is up from $96 the year before, and it’s expected to keep on increasing.[2] Unsurprisingly, the number of consumers who lost money after being targeted by an online shopping scam is also on the rise. It’s gone from 71% in 2015 to 75% in 2021. Businesses need to take proactive steps to protect both their own and their customers’ finances. Black Friday and Cyber Monday Statistics Online shoppers spent $9.8 billion on Black Friday in 2023 The $9.8 billion customers spent on Black Friday is a 7.5% year-over-year increase, meaning that economic woes did not slow down spending habits.[9] This can be one of the biggest revenue days of the year for small businesses, so entice customers to open their wallets with limited-time sales or other deals. Online shoppers spent $12.4 billion on Cyber Monday in 2023 When comparing Black Friday vs. Cyber Money statistics, Cyber Monday comes out ahead as the biggest online shopping day during Cyber Week. Businesses raked in $12.4 billion in sales, which is a 9.6% year-over-year increase.[9] If you’re planning out marketing strategies for the holiday shopping season, make sure to prioritize deals on Cyber Monday to get the attention of your customers. Holiday spending between November and December 2023 accounted for $222.1 billion in online sales The biggest drivers for this holiday spending were electronics, which accounted for $50.8 billion. Other top categories include apparel ($41.5 billion), furniture ($27.3 billion) and grocery ($19.1 billion).[9] Online sales during the holiday season increased by 4.9% in 2023 Holiday spending in 2023 was a 4.9% year-over-year increase from 2022’s holiday season. However, this year-over-year growth does not match pre-pandemic growth levels (which topped 32.1% between 2019 and 2020).[9] Visit our hub to view more statistic pages. Sources EMARKETER (formerly Intelligence Insider) Statista SEMrush IPC HotJar Intuit Digital Marketing Institute PewResearch Adobe Analytics Editorial Note: We earn a commission from partner links on Forbes Advisor. Com
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The History of eCommerce - How it All Started
The history of eCommerce is an interesting one, tracing its roots back to the early days of the internet. From humble beginnings as a way for individuals to buy and sell goods online, E-commerce has grown into a multi-billion dollar industry that has revolutionized the way we shop. Today, online sales are commonplace and have become an integral part of our lives. The development of eCommerce has been a long and winding road, and it is important to understand how it all started. When did eCommerce first start? The first recorded instance of eCommerce was in 1971 when students at Stanford University used the ARPANET (the precursor to the internet) to buy and sell marijuana. This early experiment was short-lived, however, as the university soon shut down the operation. It wasn’t until 1979 that the first commercial transaction was made online. This transaction involved the sale of a Sting album from a company called NetMarket. What is electronic commerce? Electronic commerce (or eCommerce) is the buying and selling of goods and services on the Internet. It involves online retailers and brands using eCommerce platforms or their own websites to accept payments, process and ship their products, and delight customers. The eCommerce industry has grown by leaps and bounds in the last few decades. Experts predict that eCommerce sales are set to hit $5 trillionglobally. Mobile commerce global sales are projected to reach $728.28 billion by 2025. Mobile eCommerce transactions are growing at a rate of 29% per year. » Want to stay ahead of your competitors? Read our guide on the latest eCommerce trends. Online shopping was invented by entrepreneur Michael Aldrich in the United Kingdom in 1979. Aldrich was the first one to create a multi-user transaction via a computer and a telephone line. The system was marketed in 1980 and was sold across Europe to B2B businesses. When was the first online transaction? The first-ever online purchase was made in 1994, and it involved a Sting CD. It was documented in the August 12, 1994 issue of the New York Times, titled “Internet is Open,” where a “team of young cyberspace entrepreneurs celebrated what was apparently the first retail transaction on the Internet using a readily available version of powerful data encryption software designed to guarantee privacy.” Pro tip: Want to scale your eCommerce shop? Check out our list of the best eCommerce experts to hire. Ecommerce timeline Here’s a brief timeline of the incredible rise of e-Commerce businesses, from inception, all the way to modern developments. 1979: Michael Aldrich invents electronic commerce Michael Aldrich introduced electronic shopping by hooking up a modified TV to a transaction-processing computer via a telephone line. This technology made it possible to transmit payment data securely and became the foundation for modern e-commerce. 1982: The first eCommerce company launches Boston Computer Exchange launched in 1982. It was an online marketplace for people interested in selling their used computers. The 1990s saw the emergence of eCommerce as we know it today, with companies such as Amazon and eBay leading the way. These companies allowed individuals to buy and sell goods online, creating an entirely new market for businesses to tap into. 1992: The first eCommerce marketplace launches Book Stacks Unlimited was launched in 1992 by Charles M. Stack. Originally it was a dial-up bulletin board, but it was later launched as an online marketplace from the Books.com domain 1994: Netscape Navigator launches as a web browser Before Google ever came onto the scene, Marc Andreessen and Kim Clark launched the world’s first web browser called Netscape Navigator. It became the primary web browser on the Windows platform during the 1990s. 1995: Amazon launches Jeff Bezos launches the business to become the world’s largest eCommerce marketplace. It was initially started as an eCommerce platform for books. That same year the famous security protocol SSL was launched, which helped make online sales more secure. The growth of eCommerce was further accelerated by the emergence of online payment systems like PayPal, which allowed for safe and secure transactions. 1998: PayPal launches as the first eCommerce payment system PayPal was started by four founders - Max Lebhin, Peter Thiel, Luke Nosek, and Ken Howery. It was a money transfer tool that later merged with Elon Musk’s online banking company in 2000. It first offered payment processing for online vendors and other commercial users and then spread out from there to the general public. 1999: Alibaba launches Alibaba Online launched as an online marketplace. It had more than $25 million in funding and by 2001 it was profitable. It quickly became the largest online eCommerce platform for B2B, C2C, and B2C transactions. 2000: Google launches Google Adwords Google Adwords ushered in a new era of online advertising. It was the first tool of its kind that let traditional retailers advertise their products to searchers on Google. This was the beginning of pay-per-click (PPC) advertising. 2004: Shopify launches Tobias Lutke and Scott Lake launched Shopify as an eCommerce platform for online stores and point-of-sale systems. It is now the platform of choice for ~80% of all eCommerce brands globally. It was the first shopping cart software of its kind. » Have a Shopify store and need help to grow sales and establish new channels? Talk to one of our top-notch Shopify experts today! 2005: Amazon introduces Amazon Prime membership In an unprecedented move, Amazon launched Amazon Prime, which created a way for their customer base to get free two-day shipping for a flat annual fee. The program has over 150 million members worldwide and helped the company boost its loyalty and repeat purchases. Studies show that 20% of Amazon Prime members shop on Amazon a few times per week. Amazon later launched the Amazon FBA program, which completely revolutionized how eCommerce brands handle logistics. 2005: Etsy launches Etsy is the first online marketplace for crafters and sellers of handmade goods. It launched in 2005 and marked an important milestone for the “maker community”. The unique marketplace has over 4.3 million sellers. 2009: BigCommerce launches BigCommerce is a 100% bootstrapped eCommerce platform launched by Eddie Machaalani and Mitchell Harper. Unlike Shopify, BigCommerce had no transaction fees so it offered an edge for new brands entering the market. 2008: Groupon launches Groupon is a global marketplace that connects subscribers to local merchants through deals and promotions. By 2010 it was available in 150 in North America and 100 cities in Europe, Asia, and South America. Groupon later launched a goods marketplace in 2015 called Groupon Stores. It was a way to bridge the gap between online and brick-and-mortar stores. 2009: Amazon acquires Zappos for $1.2 billion This marks the first major acquisition of an eCommerce marketplace by a tech giant. 2011: Google Wallet is introduced This is the first digital payment to come out after PayPal and become a global standard. Google Wallet introduced a way for individuals to send and receive money from a mobile device or desktop computer. It later became part of Google Pay. 2011: Facebook rolls out the first form of advertising Facebook’s earliest advertising was offered to Business Page owners via sponsored stories. It provided a way for brands to advertise in users’ news feeds by promoting the users’ organic posts. 2011: Stripe launches Stripe is a unique payment processing company that launched in 2011 and provided brands a much easier way to process payments. 2011: WooCommerce launches WooCommerce is a competitor to Shopify and WooCommerce and it introduced the first way to launch WordPress eCommerce sites. It was the first shopping cart software of its kind. 2014: Apple Pay is introduced Apple Pay is launched and becomes the third large payment method behind Google Pay and PayPal for online shoppers. It allows users to pay for products and services using an Apple device. 2014: Jet.com launches Jet was launched in 2014 by Marc Lore (who sold his previous company Diapers.com to Amazon) as a marketplace for bulk purchases of goods at the lowest prices anywhere. The company raised $820 million and was acquired by Walmart in 2016 for $3.3B. 2017: Shoppable Instagram is introduced Instagram launched an integration with BigCommerce that allowed users to click on an image of a product and immediately go to the product page of that online store. It has marked a new way for retailers to use social commerce and advertise on social media and made Instagram the leading social media platform to promote the sale of goods. 2017: Cyber Monday sales exceed $6.5B Cyber Monday sets a new record of eCommerce sales exceeding $6.5B, double what they were just 2 years prior in 2015. E-commerce platforms and digital marketplaces led the charge, with Shopify marketing generating over $1B. And that translated to an increase in retail sales with 51 million people shopping in physical stores over the Black Friday / Cyber Monday weekend. 2020: COVID-19 drives a 77% increase in eCommerce transactions The COVID-19 pandemic pushed more consumers to shop online than ever. Studies show that by May 2020, eCommerce transactions reached $82.5B, a 77% increase year-over-year. 2021: The rise of the Buy Now, Pay Later option BPNL has been around since the 1980’s but saw a huge surge of 230% in 2021 with the popularity of Afterpay, Affirm, and Klarna. These tools are backed by financial institutions and provide digital buyers a safe way to finance their purchases. Later on, Shopify launched its own version called Shop Pay Installments, which is available to its 4+ million eCommerce websites. Ecommerce in the future The future of eCommerce looks bright. With the rise of mobile technology, more and more consumers are turning to their phones and tablets to shop online. This shift has led to an increase in demand for mobile-friendly websites and apps that make it easier for customers to purchase goods and services from anywhere. Additionally, artificial intelligence (AI) is being used by many companies to personalize customer experiences and provide more targeted marketing. AI is also being used to automate customer service tasks and provide more accurate product recommendations. Finally, blockchain technology is being used to secure payments and protect customer data. All of these advancements are helping to make the eCommerce experience more efficient and secure for both customers and eCommerce businesses. Today, eCommerce is a multi-billion dollar industry that has revolutionized the way we shop. From humble beginnings as a way for buyers to buy and sell goods online, eCommerce has grown into an integral part of our lives. As technology continues to evolve, so too will the way we shop, and eCommerce will continue to be a major part of our lives for years to come.
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