If there’s one thing we’ve learned over the last year, it’s that things can change in an instant – changes we thought we’d have years to prepare for, behaviours we thought we’d have for the rest of our lives, and expectations we have of ourselves and our companies. This is true of the way we live, work, and shop for and buy things as consumers. (ecommerce business)
The EY Future Consumer Index (Index), which has surveyed thousands of consumers since the beginning of the epidemic, indicated that 80% of Americans are still shifting their shopping habits in early 2021. Sixty percent are visiting brick-and-mortar stores less frequently than they were before the outbreak, and 43 percent are shopping more frequently online for things they would have purchased in stores earlier.
How Covid-19 affect this? (ecommerce business)
One of the most profound implications of Covid-19 is the understanding that, for many of us, geographic location is no longer important – as long as we have access to the internet. This flexibility allows more customers to relocate away from metropolitan regions; according to the most recent Index data, 26% of respondents intend to live in less densely populated locations, up from 22% in April 2020.
We also watched, almost immediately, e-commerce strategies go from a constant top priority on every retailer’s three-year strategy to a badly needed lifeline that may help them survive a global pandemic using the EY Embryonic platform. From May to July 2020, retailers spent about $10 billion on e-commerce investments, acquisitions, and partnerships, according to our research. These investments ranged from logistics capabilities to enable asset-light last-mile approaches such as ghost kitchens (restaurants with a space for kitchen equipment and facilities but no dining area for walk-in customers) and dark stores (retail distribution centres that cater exclusively to online shopping), as well as product portfolio investments in AI and blockchain.
This past year has intensified certain shops’ previously existent initiatives to innovate. For many others, though, it has prompted a major rethinking of customer requirements and the future of digital commerce.
What kind of customer experience do you wish to offer? (ecommerce business)
You must think bigger than e-commerce to be successful in e-commerce. The most important question for retailers to ask is not, “What e-commerce investments do I need to make?” but rather, “What e-commerce investments do I need to make?” “What consumer experience do I need to provide?” rather than “What consumer experience do I need to provide?”
For many merchants, who have long been grounded in brick-and-mortar storefronts, this represents a cultural shift. The consumer experience is fast changing from one based on the transactional process of in-store shopping to one based on long-term, meaningful connections. As a retailer, you must design an interwoven journey that is relevant to your target consumer — and structure your channel ecosystem, including e-commerce, in such a manner that it adds value along the route.
In today’s environment, where people’s social requirements, such as a sense of community, may influence their purchasing behaviours as the pandemic’s conditions change, taking into account the consumer’s full journey is very vital.
The Trend You Should Know
While the trend toward internet buying will definitely continue, people will likely return to businesses in search of post-pandemic social interaction. For example, according to the Index, 38% of customers want to conduct more online shopping and visit establishments that offer exceptional experiences.
Retailers must comprehend the future of experience-led capabilities in order to provide consumers with the journey they require. E-commerce is an important component of that future. But it’s not just about being online; it’s about doing it correctly and continuing to think about how in-person purchasing fits into the customer’s complete trip.
So, how should businesses think about this unified consumer journey and where e-commerce fits in? Here are some key questions to consider before deciding on an investment or operational plan.
Do I have a flexible, adaptable technological platform that recognises that each customer journey is unique?
Is my organisation free of silos that disrupt the experience, such as those that separate e-commerce, merchandising, store operations, supply chain, and marketing?
Have I examined the consistency of my assortment — what’s online versus what’s in store — as well as the reasons for channel exclusivity?
How can I compete on pricing while yet maintaining a profit margin? How can I, for example, integrate impulse purchases into an online setting? What role does merchandising and store layout play in this?
How can I manage the consumer’s transition from digital to physical and back again?
Finally, how can I keep the experience consistent all the way to the customer’s doorstep?
It everything boils down to execution.
The last mile is crucial to e-commerce success. When it comes to accessibility, cost, and convenience, today’s consumers aren’t interested in making excuses. Only one-fifth of Americans (21%) said they will forgive merchants and brands for service disruptions caused by Covid-19, according to the Index. To put it another way, the pandemic is no longer a valid excuse for failing to deliver orders on time. Due to increased online shopping, companies are battling for limited last-mile shipping capacity. It took weeks for things to appear on our doorsteps following Black Friday in 2020, as many of us experienced. Even the most modern e-commerce skills can’t hide the necessity of fulfilment, as delivery becomes a key component of the whole experience.
As a fulfilment facility, the store is used. According to the Index, 37% of US customers plan to buy online and pick up in store more frequently in the future. Buyer beware: curbside or in-store pickup can rapidly lose its allure if customers have to wait in a congested parking lot or if their local store’s inventory doesn’t fulfil their online orders. While using a store as a fulfilment centre can be a successful strategy, it requires systems and business units to communicate with one another in order to fulfil the promise. Retailers’ ability to create a consistent experience must scale as services grow.
Retailers must be prepared to establish stronger, deeper relationships with their customers — both online and in person — regardless of how consumer behaviour continues to change.
Source: ecommerce business , ecommerce store
