3 Major Retail Predictions for 2014

One industry insider offers his top insights on the retail industry for the New Year.

Randall Benton, AP

This story originally appeared on FOX BUSINESS

A revolution is playing out in the retail industry and small businesses have the upper hand, according to one industry insider.

According to Shopify Chief Platform Officer Harley Finkelstein, the future of retail belongs to the entrepreneur and the creator, rather than the big-box stores. Finkelstein calls this shift the "democratization of retail."

Shopify is a commerce platform used by more than 80,000 businesses -- digital and brick-and-mortar -- in over 100 countries. Some of the companies Shopify helps power range from Tesla Motors (TSLA), Gatorade and CrossFit, to StartupThreads, DODOCase and Tattly. The Ottawa, Canada-based startup received $100 million in Series C funding this week, which it plans to put toward offline-selling platforms.

"Consumers want to buy from the makers," Finklestein says. "[The] people that are passionate about their product and the brand and the great community behind it."

Related: 4 Moves to Make Now for a Profitable 2014

1. Buying from the little guy online.

And he may be onto something. While Amazon (AMZN) topped the Black Friday and Cyber Monday traffic charts with 2.6 million visitors, according to a DeepField Blog report, Shopify wasn't far behind. The commerce site came in third (behind eBay, and ahead of big retailers Walmart (WMT), Best Buy and Target) with nearly 1.5 million visitors.

In 2012, Shopify stores sold $23 million during the Thanksgiving shopping weekend, compared to $63 million during the same period in 2013. Finklestein predicts all this marks the shift toward small business preference that will dominate 2014.

Shopify markets itself as an easy way for merchants to sell products online, or at retail and pop-up locations. Some of its product offerings for retailers range from an online storefront, payment solutions to accept credit cards and a point-of-sale system.

Related: Your Part-Time Workers Are a Big Deal

2. "Popify' finds no boundaries between offline and online.

Finklestein says part of the company's recent transition into offline stems from an increasingly unified shopping space. In contrast to some other industry experts, Finklestein says omni-channel shopping, where consumers use all online, in-store and mobile options to browse and compare products before making a purchase, is not necessarily the way of the future.

Shopify recently carried out two pop-up experiments to observe the way shoppers interact with products in a physical location. The "Popify" test found "traditional brick-and-mortar" shoppers are all different – some try out products and buy them in-store, while others go home to purchase them online. So retailers who view their physical stores and online stores as separate pieces of the puzzle are missing the point.

"The barrier between offline and online is artificial," he says.

Related: How Millennials Shop for the Holidays

3. It's all about the consumer, stupid.

A reason for the fizzling of the offline/online separation, and another trend Finklestein predicts for the New Year, is a heightened awareness of consumer preference.

And what do consumers want?

A recent Accenture study found that half of consumers believe the best thing retailers can do to improve shopping is to better integrate the offline and online shopping experience. The same study found that 89% of consumers want retailers to let them shop in the way that is most convenient for them.

According to Finklestein, retailers of today should take this into account while planning for tomorrow.

"We are in the midst of something right now … in 10 years we'll be able to say that's when retail changed," he says.

Related: The Digital DNA Behind Holiday Shoppers

Related Topics

Editor's Pick

The Dark Side of Pay Transparency — And What to Do If You Find Out You're Being Underpaid
Thinking of a Career Change? Here Are 4 Steps You Can Take to Get There.
A Founder Who Bootstrapped Her Jewelry Business With Just $1,000 Now Sees 7-Figure Revenue Because She Knew Something About Her Customers Nobody Else Did
Everything You Need to Know About Franchise Law
Marketing

What Is a Brand Personality? Here's How to Develop One.

Connect with your audience on a deeper level by giving and cultivating your brand a personality. Read here how to do so.

Business Ideas

55 Small Business Ideas To Start Right Now

To start one of these home-based businesses, you don't need a lot of funding -- just energy, passion and the drive to succeed.

Starting a Business

How To Sell on Etsy in 2023: A Comprehensive Guide

Want to start selling your handmade goods online? This article outlines how to start and grow your business using Etsy.

Starting a Business

How to Craft the Best Benefits Package for a Global Workforce

Attract top talent from across the globe with a benefits package that speaks to anyone, anywhere.