E-commerce is rapidly transforming the global business landscape, with diverse new opportunities for players looking to grow and expand their market presence. The following key trends are likely to be shaping this industry in the next few years.
1. Online shopping turns commonplace
- Online shopping is ingrained in a modern buyer’s day to day
This trend is especially pronounced in large cities with a population of over one million, where a fast-paced life and well-developed infrastructure create ideal conditions for the growth of e-commerce. The number of online purchases is constantly growing due to their convenience, a wider range of products, delivery service and good bargains.
- Online marketplaces are retail market leaders due to user loyalty and quality service
Marketplaces offer guarantees and give customers the opportunity to return purchased goods without any hassle if they do not meet expectations. There is also an expanded product range, lightning-fast ordering and quick delivery. One should not forget that it is sellers who fill the virtual shelves of marketplaces with a variety of products, create competition and stimulate innovation. The success of online marketplaces is due to a combination of high-quality service, customer loyalty and sellers’ business acumen.
- The e-commerce market is gaining momentum in the provinces
According to market analysts, buyers from the regions apart from Moscow and St. Peterburg will become the main growth drivers of Russia’s e-commerce market in the next few years. Investment in the local logistics infrastructure, localization of goods and marketing strategies, and improving the quality of customer service will be the strongest advantages in the fight for provincial online shoppers.
- Boosting customer loyalty is crucial for success in e-commerce
Customers value speed, reliability, and seamlessness at all stages of their online shopping experience. An integrated approach that combines financial incentives, personalization and high-quality service is key to an e-com business’s success and growth.
- Direct to Consumer (DTC) is a new popular business model
The two trends dominating the market today are the explosive growth of marketplaces, which increases price competition and erodes brands, and the growing consumer demand for a personalized approach and trusting relationships with companies. The success of direct selling will depend on how well a business strikes a balance between personalization and scale, creating more value for customers.
2. New trends in consumption
- Retailers are adapting marketing strategies as average check size decreases
Consumers are becoming more price-conscious. They are increasingly prioritizing essential goods over non-essential items. As a result, retailers are adapting their strategies to cater to this shift in consumer behavior. This includes expanding their product range to include more affordable options, implementing promotional campaigns, offering discounts, and launching loyalty programs.
- 90% of sales are conducted using mobile devices
The staggering dominance of mobile devices in online shopping is undeniable. To capitalize on this trend, businesses must optimize their online stores and marketing campaigns for mobile users. Key factors for success in mobile commerce include adaptive design, intuitive navigation, fast page loading times, and seamless checkout.
- E-commerce growth is fueled by growing quality of products
Consumers are drawn to the convenience and extensive product selection offered by online platforms. This shift away from offline stores has led to a surge in e-com platform development, fostering the emergence of new market players and intensifying competition. Ultimately, this benefits consumers through improved services.
3. Promising niches in e-commerce
- Marketplaces invest in private label brands
Marketplaces like Amazon, Wildberries, and Ozon are actively investing in their own private label brands. This strategy allows them to differentiate themselves from competitors, enhance customer loyalty, and tap into new market segments. By developing private label brands, marketplaces are emerging as formidable rivals to traditional manufacturers and are creating new points of growth within the highly competitive e-commerce industry.
- New services shaping innovative business models
Companies specializing in express fulfillment services provide sellers with warehousing facilities near marketplace distribution centers, significantly reducing delivery times. Product listing optimization services help sellers optimize their product listings to improve search engine visibility and drive sales. Another high-potential niche is integrated advertising platforms.
- Customer experience analytics improves customer relations
Customer experience analytics services provide valuable insights into consumer behavior, allowing businesses to optimize their customer journey and enhance loyalty. By understanding and addressing customer needs, businesses can drive sales growth and strengthen their market positions.
To thrive in the dynamic e-commerce landscape, businesses must embrace flexibility, adaptability, and a commitment to staying ahead of technological advancements and consumer preferences.
By Anastasia Kondakova, expert in retail, business development and digitalization, ex-cofounder of Redecoro, founder of VRTOOLapp IT services for businesses