E-Commerce

E-commerce – an area full of potential

E-commerce is thriving. Especially in the consumer electronics, fashion, and home and living sectors, online retail is increasingly outstripping brick-and-mortar retail. In addition to the major core industries, segments such as health and wellness, FMCG (fast-moving consumer goods), and hobbies and leisure are catching up. That means big opportunities for retailers and brands if they target the right consumers online with an effective strategy.

End of the road for brick-and-mortar?

People buy from people – and online retail can’t defy this sales mantra. Online retailers with brick-and-mortar DNA are posting the strongest e-commerce growth. That shows that online and offline go hand in hand and can be mutually beneficial. Although the coronavirus pandemic gave rise to strong growth in online retail, more and more people are shopping in-store again now that the situation is improving. Despite that, online advertising in brick-and-mortar retail can boost sales through the ROPO effect (research online, purchase offline), while the growth in online marketplaces can also complement brick-and-mortar trade. Instead of silo thinking, e-commerce providers should look at the big picture of how their customers get information and make purchases, both in-store and online. Whether online retailers can reach their target group, optimize funnels, and personalize content in the best possible way depends in no small part on the e-commerce system.

E-commerce shop systems spread their wings

From specialized brick-and-mortar businesses through to pure-play Internet retailers, a good shop system is essential for e-commerce success. Many solutions, large and small, are now available. If you want to run an e-commerce shop alongside your website, then you can get started with a shop plugin such as WooCommerce for WordPress. Large professional sellers benefit the most from an on-premise shop system. For everyone in between, either a software-as-a-service (SaaS) solution such as Shopify or an open-source shop system like Shopware or Magento are useful. Which e-commerce system fits depends mainly on the (sales) targets.

Online marketplaces gaining in e-commerce share

Whether eBay, Real, Hood, Amazon, or Rakuten – online marketplaces are exerting increasing pressure on conventional e-commerce webstores. Retailers without a brick-and-mortar presence are especially losing market share to online marketplaces. Amazon and eBay are also establishing themselves as price comparison websites for many users, which is giving them a further competitive advantage. According to a study published on the Statista portal in May 2022, Amazon Marketplace accounts for 36 percent of total online retail sales in Germany. With the triumphant advance of marketplaces, online advertising is experiencing a bit of a renaissance. For example, Amazon Advertising, Amazon’s advertising division, is already generating billions in sales.

The future of online retail is digital and mobile 

The digitalization of retail is in full swing. Since the establishment of 5G connectivity, e-commerce has been increasingly moving to mobile devices. Platforms such as the app from American company Wish are trying to redefine online shopping for smartphones and make it even more attractive. Online retailers have to promote and develop the necessary digital knowledge in-house if they are to survive in this changing market. New concepts such as social commerce and marketing automation are key leverage factors in this respect. Make sure you keep in the loop by browsing our stories – we hope you find them insightful and useful!