April is already showing on the calendar pages, which means it's high time to recap the 1st quarter of the new year in eCommerce and draw conclusions from past activities. How is the industry shaping up and what can be done to keep sales high in the coming months? Tips to answer this question can be found in the pages of reports, studies and eBooks that have been published with increased frequency by eCommerce companies recently. Taking care of your time, here is a brief summary of the most important information. If you want to know what has changed in consumer behavior and what actions eCommerce owners are currently taking, read the latest issue of Advox Press Release!
Is overseas expansion an opportunity for successful eCommerce?
Already in 2022, 86% of Polish retailers decided to expand their sales to foreign markets, generating more than 30% of their turnover this way. As a result, cross border commerce has not only become one of the most important trends for 2023, but has also proven to be an opportunity for many to develop their e-business confidently and effectively, as ¼ of entrepreneurs confirm.
One of the biggest challenges for entrepreneurs deciding to make a foreign debut is certainly finding their way among competitors operating in a new market, learning its specifics and understanding the needs of foreign customers. However, sellers have access to modern tools that not only allow them to scale their domestic business technically freely, but also support the analysis of a given market. It is these that are making it easier than ever to sell overseas, which, combined with growing consumer confidence in ordering outside the country, makes the global market one of the more attractive places to continue eCommerc expansion.
Not only are customers gaining confidence in overseas purchases, but they also value, among other things:
- attractive prices and access to a wide range of products, often not available locally,
- payment methods familiar to them from the local market,
- seeking inspiration and the hitherto unknown.
All of the above conclusions come from PayPal's eCommerce Index 2022 report. The company studied 12 European markets, and the results clearly indicate that cross border commerce will be (and even already is) an important determinant of the industry's future. According to the above data, at least ⅕ of transactions are now made with an international seller. Greeks, Irish and Germans are the most likely to use this shopping option. In contrast, Poles rank 9th in terms of the share of consumers using global eCommerce.
You can find the full report at this link, and in it you'll also read about this year's other trends.
How does eCommerce industry deal with challenges? Spyrosoft eBook
The last three years have been exceptionally profitable for eCommerce. The pandemic reality and the relatively rapid development of new tools have caused the industry's growth to accelerate, with customers placing orders online without hesitation. However, the last few months, rising inflation and the worsening economic situation have slowed the boom so far and forced eCommerce entrepreneurs to look for new sales solutions.
What are the biggest challenges for eCommerce owners these days? Spyrosoft decided to investigate the areas that are sometimes problematic for online stores.
- Choosing the right technology - the platform should not only be a solid and stable engine for the e-store, but also support external tools to improve the work (e.g. marketing automation).
- Changing business needs - both market development and competition, as well as consumer expectations are changing at a dizzying pace. In such situations, e-entrepreneurs must constantly and rapidly respond to maintain stable profit levels.
- Analytics - the study of data related to online store traffic is currently an important (and still often overlooked) element of running an online store. Developed and properly conducted analysis of the acquired information allows, among other things, to scale sales and strengthen the relationship with the consumer.
Spyrosoft's publication shows, however, that eCommerce owners are up to the challenge, with 86% of them undertaking various investments to catch up with market demands. This can be seen in activities such as developing automation tools, combining online and offline experiences, or developing personalization and customer localization, among others.
In addition, brand forecasts indicate that the value of the online sales market in 2027 will be 187 billion zlotys (in 2023 it is 124 billion zlotys). Such growth also speaks to the unwavering power of eCommerce.
For more information contained in the eBook, follow this link And you, how do you see the future of the industry?
New consumer habits on display according to DPD. Rapot "Delivering Change"
"Delivering Change" - That's the name of this year's e-Shopper Barometer report published by logistics company DPD. Conducted on nearly 24,000 consumers from 22 European countries, it indicates the preferences, expectations and needs of today's shoppers. The latest edition reveals that eCommerce user behavior is largely dictated by the weakening economic situation, but not only.
What characteristics can exactly be attributed to today's e-consumers?
- Practical approach to shopping - the share of impulse purchases has declined in recent months, but customers still regularly use eCommerce platforms. Practical aspects such as convenience or attractive prices have become more important in the ordering decision.
- C2C eCommerce - making transactions between individuals is one of the leading trends observed in 2022, according to the report. 57% of European e-buyers buy products on second-hand platforms on average 12 times a year, or about once a month. The C2C industry is not only an opportunity for cheaper shopping, but also a step towards developing a sustainable economy.
- Clothing (59%) and footwear (49%) still dominate the first place among product categories. Surprisingly, the popularity of beauty items fell, while sales of medical products increased.
eCommerce has become an integral part of the lifestyle of European consumers, with 77% of the Old Continent's population shopping in the digital world. To maintain the interest of almost ⅘ of Europeans, eCommerce stores must continue to evolve and adapt to changing demands. Today, customers expect an efficient shopping process, fast and reliable delivery, the ability to track shipments, and the flexibility to decide when and where a package is delivered. Among the most important criteria for deciding to buy online, free delivery ranks first with 40% of indications, followed by not having to pay for returns (27% of indications) and no hidden fees (22% of responses).
You can find the latest edition of the DPD report here. Did you find any of the survey results particularly surprising?
