In 1994, when Amazon was launched, its first package (a book about physics) was sent snail mail. Today, drones are being deployed to deliver packages to doorsteps.
There’s no doubt that eCommerce is the key retail driver of the future. Every year, new trends emerge in the eCommerce space that move the sector still further forward
Let’s look at just some of those trends.
Deliveries
Since 2015, eCommerce deliveries have become crucially time sensitive. Numerous studies have shown that customers are willing pay more for same-day delivery or scheduled deliveries. PwC’s Global Consumer Insights Survey 2018 found that over 40% of online shoppers said they would pay an additional charge for same-day delivery.
Same day deliveries result in higher sales volumes and reduce warehouse space. Amazon’s Prime Air promises a future when most deliveries will be made by drones. In fact, Jeff Bezos claims that more than 86% of Amazon packages weigh less than 5 pounds and are therefore readily deliverable by air. From 2021, and beyond, we can expect to see more drone deliveries.
Data privacy
Businesses today collect and analyse huge amounts of user data. Web browsing cookies, mobile app usage, website behaviour, heatmaps, to name just a few. Increasingly, businesses recognise that reckless use data of customer data could spell doom for the business. eCommerce retailers have been criticized for too many retargeting ads and emails that misuse data.
Security breaches at the likes of British Airways, Equifax, Exactis, and Cathay Pacific are notable examples. According to PWC’s 2018 Digital Trust Insights, “although companies encourage consumers to entrust them with their data, only 53% include proactive management of cyber and privacy risks in their digital transformation plans.”
GDPR was just the beginning in data collection controls, and as data privacy takes centre stage from 2021, businesses will be forced to implement new data protection measures or revamp their existing processes to retain customer confidence.
Voice Shopping & Search
Amazon’s Echo has raced to 10% penetration of US homes, Google’s Home, 4%, and Microsoft’s Cortana, 2% — bringing voice search to the forefront in online shopping.
Right from checking how the day’s weather is going to pan out for the day to streaming on-demand music, there is so much that these virtual assistants can do. Furthermore, they have become catalysts for eCommerce as well. The talking shop – the rise of voice commerce report by OC&C Strategy Consultants have found that by 2022 voice shopping is expected to jump to $40 billion in the US and by $5 Billion in the UK.
Modern eCommerce retailers, if they wish to stay relevant in a business landscape led by voice search, will be forced to adapt their shopping channels to voice shopping. And 2021 will see more developments in that direction.
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