Worldwide eCommerce sales are expected to reach about $5.55 trillion by the end of 2022 and continue to increase every year. With eCommerce sales at an all-time high, many businesses are looking to take advantage of this next big frontier.
These sales increase just as rapidly as eCommerce products change to meet the varying demands of consumers across the globe. But the next eCommerce frontier has a lot in store for businesses of all sizes.
Trends that are shaping the future of eCommerce
Ecommerce offers enhanced convenience for shops, allowing them to purchase products and services anywhere at any time.
Here are four trends that are currently transforming the eCommerce industry.
1. Online competition and global expansion
More businesses are globally expanding than ever before, while online shopping continues to increase. But with growth in eCommerce comes more competition.
Many legacy wholesalers have transitioned their physical businesses to digital platforms, creating more marketplace competition than ever. Regardless of whether a business is on the other side of the world from yours, essentially everyone is competition.
2. New consumer behaviors affect retail
A desire for immediacy, convenience, and ease of use drives the online marketplace. Consumers expect digital shopping experiences that are engaging and intuitive no matter the category.
And since the pandemic has forced people to spend the majority of time indoors, more time is spent on the computer. This often leads to online shopping. Homes have become both work and entertainment spaces for people, causing products such as cleaning supplies, decor, and various home essentials to skyrocket.
3. Improving fulfillment services as an advantage
An increase in online sales leads to a greater demand for fulfillment services. Businesses are now investing in packaging and shipping more heavily to get their products out faster and satisfy customers.
Automated full-service fulfillment centers are becoming increasingly popular for large eCommerce businesses. Businesses are also making more investments in machine learning and other areas of technology to better meet the fulfillment demands of customers.
4. Customer experience to challenge marketplace dominance
Large online marketplaces such as eBay, Etsy, Amazon, and more are quickly trying to find solutions that will make their sites more appealing to their customers. While these corporations may very well have the funds to afford engaging remodels of their websites, more site visitors means more customers and a desperate need to support their online actions.
However, online consumers are getting tired of impersonalized website shopping experiences. What’s more, they can often tell when algorithms are being used to collect their data.
Research shows that 41% of buyers say they’ve already switched from businesses that they originally liked but now find to have an impersonal shopping experience. Instead, they want to feel as though there’s a real, human person behind the computer screen.
Businesses that know how to evolve with their industry and embrace opportunities are the ones most likely to survive longer and make substantial gains. So, if you haven’t expanded yet, know that this is the perfect time to do so.
How do you know you’re ready to expand your eCommerce business?
If your business takes on more than it can handle, you’ll likely run into trouble down the road. Ensuring your team, finances, accounting, product inventory, and more are ready to take on the next frontier will help your eCommerce expansion thrive.
But it can sometimes be difficult to know when your eCommerce business is ready to expand.
Here are some telling signs to know when the time is right:
- You’re frequently selling out.
- You’re receiving numerous returns.
- Your competition is increasing.
- Your social media mentions are increasing.
- You don’t use paid traffic.
- You don’t do email marketing.
- Shoppers are abandoning your site at checkout.
Invest in the right tools
Readiness is the best preparation for expansion.
Being ready to globally expand means you need the right tools. Global fintech platforms such as Airwallex and Payability make it easier to manage your eCommerce sales with their wide selection of services and tools.
Airwallex allows businesses to offer their overseas vendors, customers, and suppliers more options for sending and receiving money. Airwallex’s multi-currency payment gateways make global business easier than ever.
However, if your business has insufficient funds to get your international expansion underway, you can apply for an offer from Payability.
As a leading platform in funding eCommerce businesses, Payability provides capital for thousands of sellers and entrepreneurs based on their sales in a given marketplace. They empower eCommerce sellers to maintain cash flow while working on their capital solutions.
Both Airwallex and Payability help small- and medium-sized businesses (SMBs) navigate a myriad of tools to ensure a successful expansion into the online eCommerce marketplace.
Consider these questions
Consider these questions before expanding to any new market.
Have you narrowed down your prospective new markets?
Create a short list of potential foreign markets you’re interested in expanding your business to. You’ll want to consider population and geographical size, market growth rate, GDP, consumer preferences, competition, culture and language barriers, and foreign sales tax.
Have you completed a requirements analysis to determine your expansion strategy?
You need to ensure your eCommerce products can handle the same tasks for customers in different geological regions. You also need to figure out where and how you want to sell your products — globalization will help you do this.
Globalization is a concept that requires you to be aware of different laws, customs, and more specific to a certain country. You can then adapt yourself to that country (and culture) accordingly.
Do you have a multi-cloud eCommerce platform to support your needs?
Your multi-cloud eCommerce platform needs to meet your specific language needs and market your products in a way that’s appealing to all markets. Your platform for selling your products will also need API support to integrate with third-party software.
Additionally, your selling platform should be compatible with mobile. Most internet searches are conducted through mobile phones rather than desktop computers, so ensuring you have a user-friendly eCommerce shopping platform on all mediums (mobile, desktop, or tablet) will help you generate more leads.
Do you have proper payment service providers?
Payability is a funding platform that provides eCommerce sellers with capital based on their marketplace sales. They offer fast approvals and easy access to payouts so that businesses can grow without cash flow constraints.
Airwallex offers free domestic and foreign business accounts while working with 11 currencies. Low foreign exchange (FX) rates, borderless cards, and automated payouts are just a few ways that we help both SMBs and large enterprises streamline their finances.
[Related: How to pay globally distributed teams]
Execute eCommerce selling
The barrier for entering the international market is lower than ever. The technology era has completely transformed the way we sell and buy products and services — it really is as easy as the tap of a finger.
Be day-one ready with reassurance that your problems are solved and your journey into the online eCommerce marketplace is underway. Your borderless business can lean on global fintech businesses to expedite your expansion.
Contact Airwallex to facilitate your global eCommerce payouts
If you’re ready to take on the next eCommerce frontier, contact Airwallex today.