Blurring the lines of E-Commerce

Black Friday 2017 set a record of 5 billion dollars in online sales, and this week's Cyber Monday did not disappoint, raking in over 6.5 billion dollars through digital sales. E-commerce is enabling retailers to escalate their revenues to new heights. Benefits of selling online are plentiful; sellers have their customers attention 24 hours a day. There are multiple channels for accessing target markets including social media, e-mail notifications, and text messaging which can cultivate a Fear of Missing Out also known as FOMO. Receiving an e-mail containing a 60% off sales pitch from your favorite retailer is hard to resist, and most seldom do.   

However, this is about much more than internet activity during the holiday season. The practice of employing online services has dug deep roots into the global culture of commerce. Older generations have adapted to engage in online activities, and younger generations are growing up in an environment that is a combination of brick-and-mortar while having internet access 24-7. There is a possibility that future generations will grow up in an environment solely dependent on e-commerce platforms to satisfy their daily needs. Within the last fifteen years, online services have become available in every industry including banking, healthcare, travel, groceries, and fundraising. These offerings are rapidly increasing while improving in quality. Websites and client portals are continually being revamped to reflect the trendiest User Experience available while also focusing on bettering customer service.

E-commerce now blurs the lines where monetization of transactions occurs. Consumers options are much more than in-store, or online. Retailers use online advertising as a touch point for getting customers to visit the store. Digital offerings that are redeemable "in-store only" is a typical way to usher them in. Some consumers use clothing websites to look at items, but visit the store to try on and purchase. Some retailers responded by creating an online inventory, so customers can hold clothes in their size and color choice to reserve at their desired store location, available for trying on and purchasing. The online inventory also enables retailers to send a notification when the stock is low, tempting customers to buy before the item runs out. Another way e-commerce is creating hybrid shoppers- competitive pricing. Online retailers who guarantee low prices have created a shopper profile who visits the store first, and later purchases online after they have found the lowest price available on the internet.  

It has not been smooth sailing since the beginning. E-commerce is still overcoming multiple hurdles to achieve the ultimate shopping experience. When visiting a store, taking a quick stroll around the floor reveals product availability. However, when shopping online, people only saw what they clicked on. The fix was for retailers to make product recommendations based on views and shopping cart status. ‘We recommend this skirt to match the blouse you clicked on,’ or ‘You just placed potatoes in your cart, would you like to purchase some canned gravy?’ This solution extends beyond consumer packaged goods and into other industries. Many website homepage designs now feature a scrolling menu, showing different services and offerings immediately. Navigation systems feature simple user experience layouts, so users can access what they are looking for as quickly as possible. Online retailing also needed a substitute for retail sales associates. Answers included e-mail notifications for abandoned shopping carts, and a mix of Artificial Intelligence and human customer service representatives available 24-7.

All these evolving features result in a significant increase in development costs and concerns – one of the largest being cybersecurity. The growth of online commerce signifies an increase in the processing of personal information including e-mail accounts, home addresses, phone numbers, and payment information. Online security has become a pressing priority. A hacked bank account or stolen customer information has become an online provider’s worst nightmare. Failure to provide a secure environment results in a loss of consumer confidence, trust, and ultimately sales. Soon expect to see roll-outs of virtual online changing rooms, face recognition based payment processing, and drone deliveries on a massive scale. These new offerings demand new best practices and cybersecurity methods which evolves as quickly as the technology it serves to support while not inconveniencing the customer. Strong passwords, additional security layers, and payment gateways are only some components of cybersecurity that need constant updating.

Global Logistics and Supply Chain Management must also grow to support the increasing domestic and international demand for e-commerce. Implementing the correct enterprise system to improve company transparency and provide real-time reporting contains numerous advantages for a business offering online services. Collecting and analyzing data can discover inefficiencies including improper workflow, product packaging issues, and unnecessary transportation costs. Paying attention to detail and resolving small problems can sometimes add up to a company saving millions of dollars during their customer’s engagement lifecycle.

Lastly, imagine you are a new business who is trying to gain traction in online sales. The question is – how will anyone find your website? The sector of digital marketing that will significantly help drive traffic to your site is Search Engine Optimization. Many large online businesses have an in-house SEO staff who focus on keyword research, local search optimization, and content writing. There are many analytics platforms available for the sole purpose of internal SEO reporting, to help formulate strategies for improving site visibility. Investing the time to learn basic SEO practices, or hiring a consultant or agency to implement the right tactics will boost your site’s ranking in the search results when done correctly.

E-commerce is growing every day. Each time you go online using your PC, laptop, or mobile device, there is an increase of products and services available. Demand is increasing for e-commerce jobs, including digital marketing, cybersecurity, graphic design, software development, and global logistics. E-commerce is here to stay. E-commerce needs our support to continue to flourish in a secure environment- to help create economic growth and prosperity. Because where else would we be able to find a Super Mario Brothers Gingerbread Castle or a Keyboard Waffle Iron.

Robert Endo is the founder and Engagement Manager of Intrepid Data.

Intrepid Data is a full-service developer that builds platforms for web-based applications