As of 2021, the global e-commerce market had a value of $13 trillion. By 2027, industry experts believe that this market will reach a value of over $55 trillion.
At present, there are over 26 million e-commerce sites in the world, through which over 2.14 billion people worldwide purchased some kind of service or product in 2021. e-commerce sales will amount to over $6.5 trillion by 2023, as predicted by experts.
The COVID-19 pandemic gave the e-commerce industry a huge boost. In 2020, global e-commerce sales amounted to $815.4 billion, almost a $150 billion increase from 2019. Even with the pandemic situation cooling down, e-commerce sales are skyrocketing. Thus, it’s evident that the e-commerce market is a profitable one.
However, not everyone can succeed in this industry.
Why E-commerce Businesses Often Fail
Despite the high numbers in sales, e-commerce businesses have a failure rate of 80%-90%. There are many reasons behind this.
One of the most common reasons that e-commerce businesses fail is a lack of understanding of how to correctly market their products. E-commerce businesses are often successful at selling their products online, but they fail to properly promote their products or understand which marketing strategies work best for their industry.
Another reason that many e-commerce businesses fail is that they do not have a strong social media presence. Customers expect companies to be active on social media platforms like Facebook and Twitter, but many e-commerce businesses do not take advantage of these tools and end up losing potential customers as a result.
There’s also the fact that several e-commerce businesses don’t pay much heed to logistics, like efficient delivery methods and using a capable fulfillment service. All these lead to the downfall of many such businesses.
So, what can you do to succeed in this market?
How You Can Be Successful in the E-commerce Industry in 2022 and Beyond
Here are a few things every e-commerce business must ensure to succeed in this market in 2022 and beyond.
Invest in Social Media Marketing
In 2022, social media marketing will be the most important marketing strategy for e-commerce companies. Social media is a great way to connect with potential customers, but it’s also an opportunity to engage with current customers and build a relationship with them.
Marketing through social media can help you reach new audiences and expand your reach beyond your physical store or website. A well-executed social media strategy can also help attract new visitors to your site, improve brand awareness, increase engagement rates on other channels like email campaigns and newsletters, and drive sales from existing customers through cross-selling opportunities. Using influencers or even brand ambassadors to promote your platform can also improve sales.
Directly selling through social media is another option you must consider. A 2020 survey of e-commerce decision-makers shows that 12% of e-commerce businesses planned to sell directly through social media platforms. 30% of e-commerce platforms were already selling directly through social media. So, you’ll likely have to deal with losses if you don’t participate in this trend.
Find an Efficient E-commerce Fulfillment Service
In the e-commerce business, it’s important to find an efficient e-commerce fulfillment service that can manage your entire fulfillment process. This includes warehousing and shipping, as well as ensuring that your products are safe and secure throughout their journey.
Many companies offer such services, but you should make sure that they understand your needs and will be able to meet them. Some companies may offer lower rates in exchange for less service or less control over your products. This can be a dangerous trade-off because it’s likely to lead to more problems down the road—and could even mean lost sales if customers don’t receive their orders on time.
Ensure that the fulfillment service you choose has the infrastructure to handle your volume of orders and offer services that meet all your needs. The company must also handle order returns carefully and, if possible provide product tracking to you and your customer.
Build a Mobile App
In 2021, mobile e-commerce contributed to 7.3% of all retail sales in the US. It also contributed to 53% of all e-commerce sales. So, it’s clear that mobile e-commerce is here to stay and will continue to grow over time. The best way to stay on top of this trend is by building a mobile app for your e-commerce platform.
A mobile app allows customers to browse and purchase products from your website even when they’re not at home or on their computer. It also makes it easier for them because they don’t have to type in their credit card information each time they want to buy something from your store.
It’s important to note that there are two types of e-commerce apps: native and web-based ones. Native apps are made specifically for iOS or Android devices, while web-based apps can be used on any device that can access the internet. Start by developing a native app first. Then, you can work your way towards a web-based app if you find it necessary.
Use Data Analytics for Targeted Marketing
E-commerce businesses need to use data analytics to find out what their customers want so they can stock up on products and create marketing content that caters to their needs.
With data analytics, you can:
- Find out what your customers want.
- Figure out how they’re searching for it and where they’re looking.
- Optimize your website, so more people find it.
Data analytics can also be used to target specific demographics with different types of content. If you know that people in Missouri prefer ads on television while people in New York prefer Facebook ads, you could create two different campaigns and choose which one works best for each location.
Ensuring all these might sound simple at first. However, once you get started, you’ll realize that it’s not that easy. Even then, with some effort, you can ensure it all and build a successful e-commerce business that will be profitable in 2022 and beyond.