Ecommerce Is the New Normal. Here's What That Means for Entrepreneurs 3 strategies to strengthen your ecommerce approach to meet changing customer expectations.
By Saagar Govil
Opinions expressed by Entrepreneur contributors are their own.
Among the many behavioral shifts that have occurred as a result of the pandemic, one of the biggest — at least from a business perspective — has been the swift takeover of ecommerce in consumers' lives. Online shopping quickly became a must-have for many during the early days of Covid-19. Now, even as more people begin to return to some semblance of normalcy in their everyday lives, online shopping won't be fading into the background any time soon.
Indeed, there's evidence to suggest that ecommerce will dominate the sales landscape even when Covid-19 is in the rearview mirror. Ecommerce continues to outperform more traditional sales channels for companies in a variety of industries, leading many experts to proclaim that the popularity of digital commerce is officially here to stay.
If you're running a small business or if you're an entrepreneur looking to break into retail, this is potentially great news. You can create an online storefront that reaches more consumers than ever before. There's just one problem: You'll still be competing with big box stores.
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This past quarter, Walmart saw its ecommerce sales jump by a stunning 79 percent. This is both promising and intimidating for smaller organizations and entrepreneurs. Clearly, there's business to be found in the booming world of ecommerce, but is there a way to make a space for yourself among these big players?
The short answer is yes. Ecommerce has not yet reached a saturation point, which means there's plenty of room for disruption and new competition. However, success will require finding ways to stand out by creating a better online experience than larger competitors. To do this, you'll need to go beyond the basics of online shopping and seek out more cutting-edge solutions.
Why success in present-day ecommerce requires embracing the future
Today, people are looking for more dynamic brands that keep up with the times and acknowledge the changing shopping habits of consumers. This is about more than just the pandemic: Customer preferences are influenced by the backdrop of social media and a desire for interactivity that goes beyond a static online storefront.
The businesses that succeed are those that can address these modern desires. An approach that uses advanced technology — meeting consumers where they're headed rather than where they've been — can be an incredibly useful way to not only get customers in the door (so to speak), but also to help you increase conversions and keep people coming back for more.
The evidence backs this up. Shopify reports that the integration of 3D assets on product pages can increase conversions by 250 percent. Meanwhile, a Deloitte survey found that consumer use of augmented reality in ecommerce continues its steady growth in popularity, showing that this technology is more than simply a pandemic stopgap for shoppers; it's a glimpse into the future of ecommerce.
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AR and 3D are still in their relatively early stages when it comes to ecommerce adoption, with many big-box retailers slow to embrace them as the next wave of online shopping. This means you have the chance to make investments today that can pay off for years to come. In the not-too-distant future, these advanced solutions will go from nice-to-have features to essential elements of ecommerce. Now's the chance to lead the way into the future instead of getting left behind.
How entrepreneurs can embrace the future of ecommerce in 2022 and beyond
Whether you've been running a business for years or are an entrepreneur looking to break into retail for the first time, your goal should be the same: to create a dynamic online shopping experience that can help propel you into the future rather than hold you back. Here are a few steps you can take to ensure that you're doing just that:
1. Digitize your entire product catalog
Emerging tech that simplifies the ecommerce experience and appeals to the next generation of consumers can be a powerful tool for ecommerce entrepreneurs looking to carve a niche out for themselves among bigger players. Don't start with the basics of the past — begin with 3D assets and consumer-focused strategies. Remember: You're not just selling a product; you're also selling a brand and an experience and consumers know it.
To create an engaging customer experience that can adapt to new technology, commit from the start. Don't just turn a few feature products into 3D assets for the purpose of AR, virtual reality (VR) or a combination of the two with extended reality (XR). Make the investment and work with agencies to create 3D assets of your whole catalog that can be integrated into your present website and into future workflows.
In SmartDesk's experience selling products online, digitizing our product to create an AR experience not only provided a practical benefit to customers, but also boosted their confidence that our high-tech products were the real deal, leading to more conversions.
2. Don't neglect your website
Too often, businesses set up an initial ecommerce website that works well in the moment and then languishes without updates or regular maintenance. The result is an experience that quickly becomes outdated and a site that becomes riddled with bugs, dead links and other unpleasant quirks that never get ironed out. These are more than just minor inconveniences: They can drive customers away. Research from Salesforce found that 80 percent of consumers consider experience to be equally important to products and services.
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Beyond these practical considerations, remember that a website that doesn't see regular upgrades and maintenance will not be ready for whatever comes next. Audit your website content, document glitches and align with best practices. Use outside agencies if needed and augment your staff with additional teams so you can keep things moving. That way, you can keep customers satisfied in the present while preparing your site for the future.
When the iPhone X came out with the ability to map faces using its front-facing cameras, Warby Parker was ready to put that to use, creating a virtual try-on experience that put its competitors to shame. One of the reasons Warby Parker could act so quickly was that it had already been trying out ways to allow shoppers to do exactly this on their site. This useful feature created plenty of buzz and acted as a striking differentiator from other eyewear companies.
3. Partner up to create an engaging experience
An engaging experience is key to making a name for yourself in the online shopping space. However, the idea of tackling the AR, VR or XR spaces can be incredibly intimidating, especially to smaller operations. Luckily, plenty of experts are out there who can help. Wannaby, for example, licenses its AR technology to fashion brands, making it possible for a variety of retailers to offer at-home fittings of clothing and shoes.
Engage digital agencies to develop branded experiences that boost brand awareness and build on your ecommerce offering. Work with a partner to ensure that future marketing plans and campaigns use XR and brainstorm how the technology can build on current plans.
While the pandemic may have spurred on its popularity, it's clear that ecommerce will remain a dominant force going forward. Entrepreneurs that want to stand out among the increasingly crowded field of online purchasing will need to work to ensure that they stay on the cutting edge of technology. That way, they can deliver a premium, modern experience that customers will be happy to engage in.
