E-Commerce is the online sale and distribution of goods and services.
With Amazon, Alibaba, JD.com and Wayfair … online shopping is booming. More than ever, consumers are comfortable and empowered to buy products online. Prices are and barriers to purchase are low, making E-Commerce a preferred buying experience for many consumers. The COVID19 outbreak accelerated this trend and educated consumers on experimenting with different e-Commerce sites.
Consider the following:
- E-commerce is taking over local retail stores.
- Retail companies are evolving into E-Commerce companies
- E-Commerce companies are evolving into Retail operations
- The future model are companies that excel in both retail and e-commerce
Opportunities and Challenges
Opportunities exist in creating premium experiences. Boosting the customer experience with chat bots and creating personalized video content / ads or the rise of AI to analyze data are just a few examples of ways E-Commerce companies are keeping up with rising demand.
App developers have to address multiple challenges such as decreasing return rates and keeping up with the pace of the industry. Companies need to keep up with new technological innovation. Customers increasingly want personalization and an optimized user experience. Apps need to turn immense volumes of data into actionable insights.
E-Commerce Innovation trends
- Augmented Reality (AR)
- Artificial Intelligence (AI)
- Chat bots
- CX and in-store experience simulations
- Data Science
- Loss prevention
- Mobile Wallet
- Premium Membership
- Same Day Delivery
- Seasonal Shopping events (e.g. Amazon Prime Day)
- Sensory marketing
- UX and User Experience Optimization
- Video Marketing
Data can be collected through various channels and in high quantities. The main challenge is to analyze this data and make it accessible for the company to improve the Customer Experience.
Retailers are looking for data from which they can derive real customer habits. Some retailers expect that data prediction will go so far as to know the color of the next purchase from buyers.
Returns and Refunds
Decreasing high return rates is an important opportunity. Refunds and returns cause disruption to businesses. Transportation costs remain high. Addressing these costs can boost profitability.
Integrated cameras, microphones and sensors could be the solution to finally lower these rates. Using 3D recognition and Augmented Reality (AR) can help customers to find products they like and are likely to keep.
Customer Needs and Value Assessment
- Strategic differentiation
- Data collection
- Extra features taking advantage of Smartphone capabilities.
- Unique shopping experience for the existing customer (differentiation from website)
- Use of phone features such as camera, microphone and GPS to collect data
- The company is the expert of their brand not the developer.
- Customer service
- Click and Load Time
About E-Commerce Market Research
E-Commerce companies face many opportunities and challenges that E-Commerce Market Research uncovers. Traditional retailers are evolving to embrace E-Commerce.
E-Commerce Market Research solutions include:
- Customer Insights
- Customer Video Interviews
- UX Research
- New Concept Research
- Market Opportunity & Entry
- Online Communities
- Mobile Ethnography
- Mobile Surveys