Online shopping is a phenomenon that is growing rapidly nowadays.
The pervasiveness of internet access has flattened the playing field of retail, making it easy for individuals and businesses to sell products without geographical restrictions.
The growth of e-commerce has not only changed the way customers shop, but also their expectations of how brands approach customer service, personalize communications, and offer customers choices.
The future of online shopping depends on smart professionals who can create a personalized, engaging virtual shopping experience for consumers.
Those entering a career in business administration need to adopt the latest digital technologies and tools – such as data analytics, machine learning and mobile trends – to meet the demands of today’s online shopper.
What is E-commerce?
The term e-commerce refers to a business model that allows companies and individuals to buy and sell goods and services online.
E-commerce operates in four major market segments and can be conducted through computers, tablets, smartphones and other smart devices.
Almost every product and service imaginable is available through e-commerce transactions, including books, music, airline tickets, and financial services such as equity investing and online banking. As such, it is considered a very destructive technology.
Trends that are shaping the future of online shopping.
As retailers adapt to this digital sales boom, online markets are changing the way customers shop. Other major online retailers also saw huge increases in their online sales.
The pandemic, which pushed many consumers to change the way they buy essential items, electronics and clothing, has helped reshape the future of online shopping and has forced businesses to evolve to meet new needs and demands.
To take advantage of the opportunities presented by e-commerce, business professionals need to be well versed in the latest technologies and trends, including the following.
1. Customer data and analytics improve marketing tactics.
Online stores may not have clerks or locker rooms, but they can recommend products based on customer interests, style choices, and preferences using data. The future of online shopping relies on capturing patterns of shopping behavior.
This allows a brand to create strategic awards, cross-advertising and promotions both on an individual basis and based on widespread trends.
For example, a brand may display social media ads during peak shopping hours, promote items that are often purchased together, or display an ad for a specific item that a customer has seen before.
Business professionals trained in market research analysis use a range of tools to process customer data and discover knowledge.
Analysts also use data to conduct product research, identifying which items they are selling and how much they are willing to pay customers. Product development, including new products to sell and how they are positioned, is also increasingly data driven.
Analysts need strategic thinking, computing skills and decision-making skills to succeed in the future of online shopping. The recent explosion in online shopping offers an exciting opportunity for business professionals to enter a digital marketing role.
2. Learning technology devices creates a personalized online shopping experience.
In the world of e-commerce, shoppers are looking for a more personalized experience. When online stores personalize their shopping experience, they may experience an increase in sales conversion rates.
Instead of manually analyzing customer information, data analysts use artificial intelligence and technological devices to compile data and create customer profiles. Analysts use these profiles and knowledge to provide personalized recommendations and relevant content, based on an intelligent algorithm.
Most analytical processes, market research analysts apply their knowledge and understanding of consumer behavior to make recommendations and guide the ongoing optimization of e-commerce.
3. Online shopping via mobile devices
The retail industry has been significantly affected by the increasing use of mobile devices. With e-commerce on mobile, purchases happen everywhere, no showcase or laptop required. So what does mobile mean for the future of online shopping?
A retailer’s website and online store should not only be accessible from the computer, but also optimized with a design or application that makes it easy to browse and purchase from a smartphone, tablet or other mobile device.
The e-commerce experience on mobile offers customers personalized products, more competitive pricing and added accessibility. Analysts and business professionals need to consider the user’s journey across multiple devices (including mobile, desktop, and in-store) and integrate a multi-channel strategy to optimize sales conversions.
For example, if a customer places items in a cart on mobile, and then switches to desktop, the information needs to be updated in real time to create a smooth shopping experience across platforms.
4. Voice technology (telephone conversations) leads to automated commerce.
The retail coupon code tracker found that nearly half a millennium have used voice technology to buy items online. Simply by calling someone one can add an item to his online shopping cart.
While not everyone uses their smart speakers to make online purchases, a considerable number of device owners rely on one of them to help make purchasing decisions and start product searches. This can have a huge impact on consumer purchasing decisions.
Business leaders need to consider how to take full advantage of this growing channel for selling their products and services. By designing strategies on how to incorporate voice technology into their marketing, companies can connect with more customers and also use automated commerce.
5. Shopping on social media platforms expands online sales
Billions of people use social media platforms every day. While many businesses appreciate the need for a strong social media presence for marketing purposes, more and more see these platforms as effective places to make direct sales.
More than half of Instagram users use the platform to find products. Many online shoppers look to Pinterest, Facebook and others for ideas on what to buy.
Giving social media users a chance to make purchases within the networks they already use ensures a faster and easier shopping process with fewer steps.
Moreover, social media platforms are well positioned to implement augmented reality experiences. Having the ability to test or try products builds confidence in a purchase.
The growing use of social e-commerce and the opportunities it presents for more interactive and personalized shopping experiences, suggests that more businesses should explore the possibility of using social media platforms to expand their online showcases.
Elements that an online purchase involves
1. Customer satisfaction
Customer satisfaction is the result of comparing expectations and experience; in other words, the customer is satisfied when the delivery meets or exceeds his expectations. Satisfaction and loyalty are the key elements that determine the success of implementing the market concept.
Satisfied customers are the ones who will repeat the purchase if the service provider has achieved or exceeded their expectations. It is important to identify customer satisfaction variables, as they represent the business standard and serve as a guide for future improvements.
There are 8 determinants identified as important for customer satisfaction; they are as follows:
- security
- information quality
- payment methods
- electronic service quality
- product quality
- product range and service delivery
- web design
The following are the determinants of customer satisfaction: quality of the customer interface, quality of information, perceived quality and privacy.
2. Safety
Security is defined as the ability of a website to protect the personal data of consumers from any unauthorized disclosure of information during electronic transactions. Security is considered to be an important factor perceived seriously by consumers of online shopping.
This is due to the fact that security and privacy issues play a crucial role in building trust during online transactions. Since online shopping usually means paying by debit or credit card, consumers sometimes turn their attention to information about the seller as a means of protection.
The willingness of consumers to visit online stores and shop there is directly related to consumer confidence in providing personal information and credit card payments. Consumers tend to buy a product from a seller they trust or a branded product they are familiar with.
In online commerce, trust is one of the most critical issues affecting the success or failure of internet marketers. Security tends to be a major problem that prevents consumers from shopping online, as consumers are worried that they will be deceived by sellers who will misuse their personal information, especially their credit card details. Websites that provide security have reliable and satisfied customers.
3. Availability of information
Buyers expect online retailers to provide all relevant and accurate product information. Since online shoppers rarely have the opportunity to touch and feel the products before making a purchase decision, online retailers need to provide information about it. Consumers value the information that will meet their requirements.
A number of authors believe that the quantity and reliability of information are key elements in ensuring the quality of e-shopping service. The amount of information refers to the ability to access adequate information when shopping online (e.g. price comparison), while reliability refers to the degree to which consumers trust the information provided by online retailers.
Providing the right information can help online retailers allay consumer concerns and fears about a particular product or online shopping. Instead of byte sounds, consumers want access to all the information that will enable them to make an informed decision about a product, service or supply.
Interactive online tools for comparing products and services are considered to be the essential tools for obtaining information that will facilitate the decision-making process for online purchases, making consumers more satisfied. Product information, in terms of abundance and quality, are identified as components of electronic satisfaction.
4. Transportation
Transportation is a link in the supply chain that directly affects the customer and causes their satisfaction. Transportation is a key activity in any process, and especially in online shopping. Product delivery service is a prerequisite for customer satisfaction.
This means that the customer will receive the ordered product, which is well packaged and the quantity, quality and specifications of which are in accordance with the order, as well as with the specified time and place of delivery.
The customer expects the retailer to deliver the promised product in a reliable and convenient manner. The customer believes that he has the right to receive the concrete product at the appointed time according to the promised conditions.
It is emphasized that delivery service is the most critical factor in meeting the expectations and satisfaction of the electronic customer. In online shopping, a reliable, secure and timely delivery is the basic and essential goal for online consumers.
Consumers are inclined to buy a product from their homes, and thus demand a safe, reliable and prompt delivery of the desired product to its destination. In the online environment, a timely and reliable delivery plays a key role in meeting customer expectations and creating their satisfaction.
Delayed delivery can make the customer feel unhappy. Timely and reliable product delivery encourages new online sales. The quality of the delivery service also affects the trust in online purchases.
With a single click, customers can easily switch from one website to another if they are unhappy with delayed and unsafe deliveries. It is therefore essential that delivery is carried out in accordance with customer requirements.
5. Quality
The quality of products and services in online commerce has a positive impact on customer satisfaction. Perceived product quality is defined as the consumer’s judgment of the product’s perfection or overall superiority.
Minimizing product cost and maximizing product quality should be considered as key factors in the success of e-commerce. Perceived product performance is the most powerful determinant associated with satisfaction.
Quality of service determines whether customers will develop strong and loyal relationships with online retailers. Online retailers that offer excellent service quality meet their customers’ expectations and thus improve their satisfaction.
Quality of service is interpreted as the degree of assistance from online retailers in providing an efficient and effective purchase, transportation and distribution of products and services. By offering and delivering information whether through formal or informal platforms, online retailers increase their customers’ expectations and add value to their services.
Therefore, it is very important to manage quality in business to ensure the best quality of service to customers. Quality of service is the ability that means firstly to anticipate, and secondly to meet customer demands.
This is why providing quality service has an important role in increasing customer satisfaction. The best quality of the website significantly influences the consumer’s decision to buy online.
6. Price
The professional literature describes price as an important factor in customer satisfaction, due to the fact that consumers always turn their attention to price when evaluating the value of the product and service. From the consumer’s point of view, price is what gives up or depreciates to get a product.
A number of studies have determined that price is significantly related to customer satisfaction. Price directly affects perception on the value and usability of the transaction offered, and, consequently, customer satisfaction.
Negative perception of price makes customers feel dissatisfied and unfaithful. More than half of e-customers who changed retailers did so because of the price.
Price has a special impact on the satisfaction of experienced online customers. When the client is sure of the transaction, his demand for financial gain increases.
Due to better buying conditions, consumers use the internet to buy the same product at a lower price than in the store. Many customers expect online stores to offer their products and services at a lower price compared to traditional stores.
Discounts on purchases affect consumers’ belief in prices, and ultimately they affect their satisfaction. When shopping online, customers may not see or test the product; therefore, they are not sure that the product delivered is identical to that on the website.
Consequently, price perception has a more significant role. Because online stores offer customers a range of products and services, consumers can compare product prices from different websites and find products with lower prices than in-store stores.
Some websites offer customers an auction or more. the best. deals, offering them a good deal on their product. Such an approach turns online shopping into a game, turning it into fun and entertainment.
After all, price can be the reason to give up the product or service or to make a sacrifice to have the product or service.
7. Time
Saving time is one of the most influential factors in online shopping. Time is the main resource that consumers spend when shopping online or in traditional stores. Browsing the online catalog while shopping online saves time and reduces stress compared to traditional shopping.
One possible explanation for why online shopping saves time is eliminating the hassle of traveling to the store. On the other hand, saving time is not a motivating factor for consumers to shop online, as it requires little time for shipping.
A factor in saving time was identified as the foremost among those consumers who have already experienced electronic shopping. In addition, there is a difference between online and offline customers. Online consumers are concerned with the benefits of shopping, saving time and choice, while offline consumers are concerned about security, privacy and on-time delivery.
According to the customer’s perception, the advantage of online trading is related to the simplicity of the purchase and the reduction of the time spent on the purchase. One of the most important problems that people generally face has to do with the perceived pressures of time.
The pressures of time represent the degree to which one realizes that there is no time left in relation to obligations and daily chores.
Since online trading can be done anywhere and anytime, it greatly simplifies the lives of its users; by shopping online, consumers avoid traffic jams, should not seek a parking space and should not stand in line, nor be part of the crowd at the store.
Top rated e-commerce companies are:
