The State of Ecommerce in 2019
Global economic slowdown has begun to take effect around the world: Trade growth is decelerating and global output is falling to levels not seen since the troughs of the euro-area crisis. So, what is ecommerce doing and where does it stand
According to emarketer.com, the global ecommerce market will grow 20.7% to $3.535 trillion in 2019, accounting for 14.1% of total retail spending worldwide - and nearly double to $6.542 trillion by 2023. This is largely due in part to mobile e-commerce, which accounts for a whopping 64% of total ecommerce shopping.
Canada, #6 on the list of fastest growing ecommerce markets, grew 21.1% in the first part of 2019.
So what’s the big deal about ecommerce? Why does it continue to grow at an alarming rate? And what are the opportunities?
The Ecommerce Appeal
Ecommerce is changing the face of retail as we know it. Customers are flocking to ecommerce because of the convenience, portability, and efficiency of the whole experience. As technology improves so does the customer experience. Customers save time by not having to buy in-store, they can confirm whether an item is in stock or not, they can take all the time they want to browse and shop, with the click of a button can order just about anything online and sometimes have it on their doorstep the next day. It's an incredible thing that 10 years ago would have sounded crazy.
With platforms like Shopify, which has over 500,000 merchants, BigCommerce, and now Webflow allowing everyday people, business owners, and companies to sell online ecommerce continues to grow.
Aside from obvious beneficiaries of ecommerce, traditionally service only or in-person businesses are starting to use ecommerce to supplement and even scale their businesses. Spas, Personal Coaches, Photographers, Designers, and more are all turning to ecommerce to modernize, productize, and bolster their businesses by adding a second stream of income. In most cases, it makes sense. A Spa that books appointments will naturally also sell the oils, moisturizers, and treatments that it uses. A coach might have a personal brand that client’s can buy. Consultants can digitize their services and work a split portion of their time online. ]
We are seeing a huge uptick in ecommerce stores, spending, and overall adoption because of the opportunity it brings for businesses as well as the improved customer experience it offers.
Is the ecommerce growth sustainable?
Ecommerce is becoming apart of our everyday lives more and more. Think about the last 2 purchases you made, was one of them online? What do you like about shopping online and what do you prefer about shopping in-store?
Likely, you’ve made a purchase online recently and the ecommerce growth numbers, as outstanding as they are, might not surprise you. You might be asking, is this growth sustainable? What is the future of ecommerce?
Globally, ecommerce growth as a percentage change is set to decline from 44.3% to 27.5% to 17.7% in 2017, 2019, and 2023 respectively. This isn’t necessarily a negative statistic because it represents the global adoption of ecommerce. This also doesn't mean traditional retail will become obsolete. Many believe that commerce will become a blend of what traditional retail is today and ecommerce. Forming an ecosystem that is flexible enough to suit the specific needs of every customer. A hybrid - if you will - of brick and internet.
As the CEO of Ali Baba, China’s largest ecommerce company, has said
“I hope in 15 years people forget about ecommerce because they think it’s like electricity” - Jack Ma
Ecommerce is becoming apart of the very fabric of how we live. Any business that is not in some way or another online is likely to become obsolete, it's just the fact of the matter.
Brick and Internet stores will have a huge competitive advantage over either counterpart. Any business that puts the needs of their customers first, and focuses on tending to the individuality and specific requirements of each and every customer will win in the end. Core to Scalecube’s beliefs, is understanding each business and their customer so that every solution we make can serve the end user as best as possible.
What does this mean for my business?
If you are a strictly ecommerce business then keep pumping out products and profits. If you are a more traditional, “brick and mortar”, or service based business than you should be thinking about the opportunities that ecommerce holds. The growth that ecommerce shows doesn’t necessarily mean that you have to sell a physical product online to get a piece of the pie. Service businesses can take advantage of online tools, website frameworks, and methods of promotion, marketing, and selling online that can boost their business and ultimately better serve their customers. Sometimes, it's hard to see how you can evolve or even diversify your business but its the businesses who think about these things and prepare for the future that are setup for success.
At Scalecube, it is our job to help businesses find their success. We might be categorized as a digital agency but our true job is to enable businesses to build a foundation for success and then scale it. If you have any issues, concerns, ideas, or questions feel free to reach out to us on our website or get in touch at email@example.com and we'd be happy to help.