The last few years have seen many changes and taught us to expect the unexpected. The businesses that adapted to change and pivoted successfully weathered the storm. Businesses that failed to adapt and change did not survive. While changes are inevitable, organizations that anticipate and prepare for them will reap the benefits in the long run. Let’s take a look at a few of these changes.
Social e-commerce trends
The social e-commerce trend is on the rise, as users can buy anything without leaving the social media platform they’re using. Instead of navigating to a different platform to make a purchase, users can do it right inside the app. This creates a seamless shopping experience for users, and they’ll likely use their saved credit card or the on-file payment method. One major difference between social commerce and traditional e-commerce is how the buyers and sellers interact.
In China, Pinduoduo, one of the largest interactive social commerce platforms, has a user experience that revolves around browsing. Moreover, users can create teams to make purchases together. Another key benefit to Pinduoduo is that it utilizes the WeChat mini platform, which has greatly facilitated the growth of social commerce in the country. Social e-commerce is becoming more important in other parts of the world, including the U.S.
In addition to Facebook, Twitter, Instagram, Pinterest, and TikTok, brand managers need to keep an eye on the social e-commerce trends in order to stay competitive. For example, the newly launched Instagram Checkout makes it easy for brands and influencers to sell products on the platform. Pinterest, which is also a popular category search engine, has many opportunities for social commerce. While it’s less popular than Facebook and Twitter, it’s still a vital purchase channel.
Understanding the share of the search for sponsored links and e-commerce product pages is key to maximizing your ROI. You can use the data to identify opportunities for new products, assess demand, and merchandise effectively and increase sales. Below are four key reports to watch and learn how to leverage them. This research will help you build a competitive advantage and maximize the effectiveness of your paid advertising campaign. Identifying the right keywords and content to market can increase your conversions and maximize your ROI.
Using Sponsored Ads in e-commerce has many benefits. These ads provide increased order value and volume, thereby increasing revenue. They boost brand visibility and loyalty and connect brands with interested consumers. In addition to the increased order value, Sponsored Ads also help increase conversion rates. Because sponsored ads are pay-per-click, the seller only pays for them if a potential customer clicks on their ad.
To maximize ROI, advertisers can use the ad format to target the most relevant consumers. For example, Amazon’s Sponsored Display ads can be displayed on external websites. The ad format enables advertisers to dynamically adjust bids based on the purchase probability. Moreover, merchants can specify a maximum bid and a daily budget for their ads. To maximize the benefits of Sponsored Ads, use a combination of both.
Sponsored Ads are most effective when used effectively. These ads are similar to Product Display Ads except that the ads are made by Amazon and are clearly identified as sponsored by the site. Amazon Sponsored Ads feature a gray or orange tag above the title. It is important to remember that when placing Sponsored Ads in e-commerce, advertisers should set specific goals. This way, they can achieve the best results from their advertising budget.
While many companies are battling it out in the e-commerce space, only Amazon has managed to sustain its market share. Their commitment to customer service and satisfaction is what sets them apart from the competition. The company has implemented numerous innovations to create a more seamless shopping experience for its customers. The results speak for themselves. Customers who are extremely satisfied with their purchase experience are 60 percent more likely to do business with the same company again. The same goes for their customers who recommend a brand to others.
Amazon’s business model has been evolving and expanding, and it’s not only about hardware. The company has branched out into new services such as grocery delivery and the Echo voice assistant. They’ve also expanded into other areas, including business-oriented services such as Amazon Web Services. They also offer a membership program, Prime, which includes free or discounted express shipping worldwide and instant streaming of thousands of movies.
The company’s evolution from book retailer to everything-retailer has been made possible by its ability to leverage the power of customer referrals. As a result, Amazon has managed to generate new customers from referrals by leveraging positive experiences. People tend to share their experiences online and personal recommendations have far greater weight than the brand marketing approach. So, it’s easy to see how Amazon can dominate e-commerce and the retail industry.
As the economic situation continues to deteriorate, retailers are looking to e-commerce for growth. Walmart is no exception, shifting some of its retail sales online during the recent COVID-19 pandemic. By creating an online customer experience that is as seamless as possible, the company is able to leverage its scale in e-commerce to the benefit of its customers. While the company has faced challenges in the past, it has now found the secret sauce for its success.
The global health crisis has also given Walmart a sense of urgency to expand its online presence. e-commerce now accounts for a rapidly increasing share of total US retail sales, and the global health crisis is only adding fuel to this trend. However, Amazon has a far larger market share, with 39.5% of the U.S. online market versus just 7% for Walmart. Amazon’s market share is expected to surpass Walmart’s by June 2021.
Using its vast number of stores, Walmart has found ways to expand its digital presence. Walmart can pinpoint the closest store to an individual’s location with a few taps on its mobile phone. Once the order is placed, Walmart can simply pass the order on to a delivery driver and notify the customer that their product is on the way. This allows the company to keep costs down while delivering more items to customers. Walmart also uses its stores to attract customers with catchy slogans.
A key to success in e-commerce is to reimagine your company through an omnichannel lens. Tapping into your existing operating margin and making on-the-margin tweaks will not make you a winner. The digital world is an ever-changing target. To be relevant, organizations need to be agile and digital-first. Otherwise, they risk losing market share, relevance, and profitability.
Alibaba has expanded beyond China and has its dominant position there. Amazon is applying its strategy to other niche marketplaces. This will increase its addressable market and provide another reason to invest in Amazon. E-commerce is not just a domestic phenomenon but is growing internationally as well. In Latin America, the company MercadoLibre dominates, operating in 18 countries, including Brazil. MercadoLibre makes about half of its revenue in Brazil.
Adapting to e-commerce trends in 2022
To remain relevant, e-commerce brands must adapt to the latest technologies and trends. Voice interfaces, subscription services, hyper-personalization, and omnichannel shopping are just a few examples of the new trends that will continue to shape the online retail market in 2022. Adapting to these trends will ensure success in this new pandemic market and keep brands ahead of the curve. Brands that ignore the technological revolution will be doomed to fail in the next decade.
Augmented reality and artificial intelligence are redefining customer experiences. This technology will allow consumers to experience products in a more personalized way. By using AR or Augmented Reality, e-commerce brands can provide an unparalleled customer experience. Augmented reality, for example, allows consumers to view the products in a virtual store before they buy them. With these trends in mind, e-commerce brands should start working on them now.
The evolution of e-commerce is constant, and brands need to remain innovative to stay ahead of the competition. While the online space is constantly changing, successful brands are often innovators in customer experience, marketing, and business. By adapting to these changes, you’ll stay one step ahead of the competition and grow your business. e-commerce brands can sell both physical and digital products. The key to surviving in this new market is listening to what consumers want.
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Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.