E-Commerce vs. Retail has been a hot topic since the concept of online shopping has arrived on the market. The Idea behind eCommerce is to enable a customer to access the products that they want from wherever they wish.
The idea became a huge hit with the normalization of the internet and hence all the giants that we have right now in the eCommerce market were born.
There was a time when eCommerce development companies struggled to get people on board as there were so many issues related to security and product originality.
Later, when the issues were resolved, the clutter in the eCommerce space increased to the point where every other product legal or illegal was being sold online.
Amid all of this, the offline retail market was also functioning well as people from the previous generation depended on offline sales and primitive ways of buying products.
They were not wrong too as they had seen some of the miserable failures and scams of the eCommerce industry in its earlier days.
Sure a downfall in the population that used retail offline markets was noticed in the past decade however the regulation on the online marketplace required a lot of updates that have made it stronger and surprisingly a better experience for the people.
With newer regulations on the internet and drastically advanced eCommerce development solutions, the future of shopping is slightly different than what you might have expected.
You might be wondering what else does the future hold for the shopping experience? As we are already on the verge of experiencing products in real-time with the help of AR and VR.
What else does the future of shopping hold for the entire market? Well, there are so many upcoming technologies as well as ways that are going to enhance the entire future of both online and offline, eCommerce, and retail shopping experiences, and how it is going to do that is what we are going to discuss in this post.
So sit back, relax and get ready to be amazed as you are not ready for what the future holds for you.
E-Commerce or Retail? What Will Dominate the Next Decade?
For a lot of you, this might not even be a question as you believe that eCommerce has already taken over the entire shopping experience.
Well, that is not completely true as there are so many malls and outlets that are still generating more businesses than many small eCommerce platforms. You will be shocked to know that the retail market generates more revenue than eCommerce ones.
Yes. So what does it mean? Well, your expectations from eCommerce are not completely wrong as it is going to boom even in the upcoming decade just the way it has dominated the previous ones; however, if you think from a business management perspective, creating an omnichannel experience is going to be the focal point.
What is an omnichannel? Well, there are so many brands that have a unique sleeping product that can only be bought with the understanding of the material or experiencing the product firsthand.
For instance furniture and home decor items. For such products, there needs to exist both an online channel for ease of access and placing an order while an offline brick and mortar store to provide an experience of how these products may look and feel.
Creating multiple channels of selling is called the omnichannel approach. With the help of one such mechanism. You can not only make things work for online consumers but you can still keep the excitement of offline shopping alive.
The impact of the pandemic is also something that needs to be considered in understanding the current phase of eCommerce and retail shopping.
You see, the entire world shopped online for straight two years and in those two years, if there is one thing that they have realized, it is that nothing can compare to the regular offline shopping experience and hence the retail shopping has seen a huge bump in the number of people going out for shopping into physical stores.
Another reason for this sudden bump in the fact that people missed out on the experience for a long time due to lockdown and the pandemic which made them realize the importance of brick and mortar stores.
Understanding the current dynamics of the market, it is kind of tough to say which one is going to dominate the shopping industry as there are online stores that are generating excellent revenue and then there are those that hardly survive and the same is the case with the offline stores.
Sure, online eCommerce has more scope in terms of generating a better business opportunity as the investment is way less than managing an offline store, and hence as far as the enterprises are concerned, they will always go for establishing an online eCommerce platform.
Not to mention, with the technological advancements and the availability of solid eCommerce management services, generating revenue from the online stores is much easier and requires less of an investment than what it would go in managing an offline store.
All in all, you can say that eCommerce will dominate the market in the upcoming years if you have to make one choice out of them both, go for an online eCommerce store however, the best thing for today is to start an online store and then convert it into an omnichannel experience.
What are the Factors that Go in the Favor of E-Commerce?
Now that we have established that eCommerce is going to keep dominating the way it does today. Let us take a step further and understand how exactly the dynamics work in the field and what are the exact factors that give eCommerce an edge over the retail environment.
Just to clear the air, eCommerce development companies and solutions play a major role in the success of eCommerce as without them, creating a flawless experience would not have been possible. People used to struggle with eCommerce applications in the beginning.
It was the development companies and eCommerce software solutions providers that made it happen for several brands and with the advancement in the technology, all the practical features are now available in the online stores at prices so low that no one could have imagined.
So the improvement in technology and availability of such resources is surely one of the biggest factors that play a crucial role in creating the dominance of eCommerce in the market.
Other than this 3 major factors account for the sheer success of eCommerce. These are:
1. Extended Clientele
There is no denying the fact that the reach of an online store is way more than the usual stores. This is because while an offline store will require you to visit it physically, an eCommerce website enables you to make the most out of your time by simply clicking on a link and accessing the products from wherever you are.
It is easier to share with the help of social media and digital marketing practices, it is easier to reach a larger audience with minimum investment.
The client acquisition cost is way less than what it is in physical stores. The reach that the internet brings to eCommerce can never be matched by offline stores.
2. Convenient and Safe
With the pandemic every individual got the understanding that being present in every situation may be of high risk as not every place is safe enough to go.
With the social distancing norms that were being implemented, people were afraid to find themselves in offline stores, and hence eCommerce became the ultimate destination from a safety point of view.
As far as convenience is concerned, every individual is aware of how eCommerce has brought everything into the palm of the users. An individual now does not have to rethink about getting the best products and deals as they have the options to compare.
3. Higher ROI
For enterprises, the increasing awareness of the users is a great way to capitalize on extensive participation in online activities. With the availability of the internet and devices, the reach has gone too high.
People are more invested in their devices than they are in their real-life and hence the return on investment for brick and mortar businesses is lower than that of an eCommerce website.
There is no denying the fact that you need a lot of resources to maintain offline stores, you need stores, warehouses, and multiple retail outlets whereas with online stores all you need is a warehouse.
Everything from your finances to your inventory can be managed online and hence you are looking at a higher return on investment.
There are many other aspects of the market that make eCommerce the best way to initiate an enterprise in the eCommerce industry but as of now, these 3 factors along with the best eCommerce consulting services are something that will help the sector grow in the next decade.
Hope the post clears your point of view about what will help your organization grow and which sector to choose between eCommerce and retail.
About the Author!
Scarlett works with the editorial team of A3logics, a leading company offering eCommerce development services. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.