With Covid blackening everyone’s economic horizons, the news headlines are hardly designed to foster exuberance in the general business community. Yet, there are sectors that can buck the trend. In particular, the eCommerce sector has largely escaped the worst of Covid’s wrath, and opportunities remain online for business of all sizes. In fact, as the High Street has found itself ravaged by the pandemic, it has eyed eSelling as a way to future-proof its business.
Here are the three eCommerce must-dos to stay ahead of the game:
Access emerging consumer markets
eCommerce is increasingly multilateral and increasingly global. As consumer purchasing power expands and digital infrastructure becomes more sophisticated across the world, businesses need to identify and access emerging markets with the right potential. Accessing these evolving consumer markets helps businesses diversify their revenue streams, which helps build greater resilience and stability when growth (or a pandemic!) slows in other markets. Amazon is a key example … their Selling Globally initiative is designed to open doors across their international platforms.
Looking at a couple of individual markets, the scale of this opportunity is clear: According to 2019 research by PayPal, e-commerce in India is expected to grow by 42 per cent year-on-year, in a country where only 34 per cent of consumers shop cross-border, and businesses anywhere in the world could target the Indian consumer and capitalize on that growth potential. In Japan, where only 6 per cent of consumers purchase from non-local online retailers, there are tremendous opportunities for the cross-border e-commerce sector to expand.
Be known for something other than low product prices
Changes to taxation and trade policies related to online goods could potentially affect price-sensitive shoppers, and impact online sales. However, the survey has shown that in Asia Pacific, price is not the only driver for online purchases. Almost half of consumers shop internationally as it allows them to purchase higher quality goods (49 per cent) and gain access to items not found in their own country (48 per cent).
For unique or niche products, some consumers are willing to pay a premium. But for mass-market products that have been commoditized, they will search for the cheapest option available to them from anywhere in the online world. Businesses with the resources and capabilities to do so should investigate the potential for producing their own branded products in order to offer consumers greater value-add beyond just price. Amazon private labelling works great in this regard. Online retail need not be a race to the cheapest item.
Enhance the overall consumer experience
Seamless retail and service experience holds the key to succeeding in today’s shopping environment. As a greater proportion of retail sales comes from online, businesses need to understand the changing consumer landscape and constantly improve the shoppers’ experience to cushion against price increases. With e-commerce as an endless aisle, the need to provide an excellent overall experience is more important than ever to retain customers.
The research identified the main barriers for cross-border e-commerce as shipping costs (29 per cent), a difficult returns process (24 per cent), concerns about not receiving an item (23 per cent) and a perceived lack of help (22 per cent). Businesses need to think beyond their narrow perspective and give their customers what they want.
A word from the author:
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