I would certainly be controversial and thought-provoking if this blog post was about the decline in eCommerce and the brick-and-mortar store comeback. But there is no decline in eCommerce; just the opposite. The share of shopping that is conducted online is continuously growing. Major retailers are struggling to survive and shopping malls are transforming themselves in order to stay relevant. If the following data from statista.com is any indication, they have their work cut out for them. The eCommerce juggernaut is showing no sign of slowing down.
eCommerce growth continues to accelerate
- Between 2014 and 2017, eCommerce sales grew from $1.336 trillion to $2.304 trillion, an astounding growth rate of 72%. And that’s only over four years. By the year 2021, this number is projected to rise to $4.878 trillion. Clearly, if you’re not part of this “sea change”, you are likely to be left out in the cold.
- Despite this phenomenal growth, conversion rates have fallen, from 2.61% in Q1 2017 to 2.59% in Q1 2018. So, while the conversion rate has fallen, the sales rate has skyrocketed. This would indicate that the sheer number of online shoppers has more than made up for the lower conversion rate. But it also means that there is a major growth opportunity for those eCommerce merchants who can increase their percentage of conversions.
- While there is an emphasis on having smartphone-enabled eCommerce sites, statistics show that, in Q3, 2017, the highest-revenue purchases were still made on traditional devices, like PCs. The average purchase made from a laptop or PC exceeded the average purchase made from a smartphone by $112.48 to $84.55. In fact, while website visits from smartphones accounted for 58% of overall site visits, they only accounted for 38% of the revenue generated.
- A Statista survey revealed that worldwide, 64% of consumers reported that they used their tablets or laptops to shop online compared to 24% who preferred ordering via smartphone.
Should you rethink your smartphone strategy? Absolutely not, considering that smartphone purchases are expected to increase at a rate of 15% per year. Some of that increase will certainly come at the expense of the traditional eCommerce devices.
What these statistics really mean
At the end of the day, eCommerce and, in particular, smartphone-driven eCommerce hasn’t been around long enough to draw any dogmatic conclusions, except one: the more you are able to provide an omnichannel shopping experience, the more likely you are to succeed. That means:
- Your eCommerce store must be able to adapt quickly and effectively to technology changes as they occur. That’s why your choice of an eCommerce platform is critical to your success. Without the ability to change (and do it quickly), your store can fall behind those of your competition. Your store must be able to adapt to the fast-changing omnichannel environment.
- Technological savvy and marketing expertise are now critical components of your eCommerce effort. If you’re not current, you are headed for obsolescence. But being current can be difficult. You’re running a business. That’s your top priority. Becoming a technology and marketing guru isn’t. You would be wise to seek help.
The value of the partnership
At Adeo Web, we know where you’re coming from. That’s why we offer our services as a Magento Partner to help you implement the number one eCommerce platform in the world today. With the most extensions, a vibrant open-source development community and unrivaled support, Magento maintain its lead over its competitors. And, Magento also boasts the fastest payback of any eCommerce platform investment.
But choosing the right platform is only the first step. Choosing the right partner is just as critical. You may not be an eCommerce technology or marketing expert, but your partner should be. With almost ten years of eCommerce experience, Adeo Web is more than just a room full of geeks with keyboards; we’re your trusted eCommerce partner, your expert –in-waiting. Waiting, that is, to help you with whatever project you have, whenever you need it. And eager to introduce you to innovations that we know will help your business thrive.
As stated previously, at Adeo Web, we know where you’re coming from. But more importantly, we’ll help you get to where you want to go.