If we look at the status or the potential customers towards eCommerce forums, they have been significantly increasing ever since the pandemic swept the offline stores by a wave when governments were forced to impose a lockdown owing to protecting people from the insidious COVID-19 Virus.
Even before the set in, eCommerce platforms were picking up their pace and competing fiercely with offline stores but after the lockdowns were imposed it seems as if the Online Stores have an edge over the normal stores.
This clearly substantiates the fact that online stores have a lot of scope to grow in the future. According to a lot of reports, the eCommerce industry is expected to grow and cover a market size of more than 188 Billion Dollars three years from now in 2025.
If we summarize the major reason behind the rapid growth of eCommerce websites it can be majorly owed to people quickly adapting to newer technologies, in eCommerce sites you can now find a quick way to add a payment method or track the live location of your respective shipment.
Plus people find it extremely convenient to do shopping from the go and irrespective of the time. These normal stores are constrained by time and location however, online stores work irrespective of the time and the location you reside in.
Why is the E-Commerce Industry is Booming
It can be said without doubt that the eCommerce Industry has been rising significantly over the past few years and it is expected that the growth rates will only increase in a couple of years.
The majority of the boom in Online Stores is led by the stalwarts of the Online Industry such as Amazon, Walmart, and so on by increasing the investments and involvement in this particular sector.
You can also give some credit to the COVID-19 pandemic for providing some push and impetus to the Online Shopping industry as well.
The government policies also have been conducive towards the promotion of eCommerce Sites. A lot of industry giants such as Facebook and Google have been continuously funneling money into the eCommerce industry as well.
Let’s look and analyze the reasons why eCommerce sites have been growing significantly over the past:
Improved User Experience
Potential Customers of the website expect the user experience to be flawless and without any issues. Taking these into consideration the eCommerce websites have been engaging themselves in advanced web development in order to provide the users with the best possible User Interface.
The sites have also been optimized for mobile phones alongside stable application development. The user experience has also been significantly increased after the focus of the eCommerce platforms has put a good emphasis on providing after-sales support to the customers as well.
The user experience of the customers has also been significantly improved by adding newer features especially to the liking of the tech-savvy audience. Using the up-and-coming technologies the developers have been continuously developing better designs that are also stable in nature.
In the initial stages of the rollout of eCommerce Services, they were limited to certain cities only due to territorial restrictions. With the spread of high-speed internet in a lot of remote areas and also better penetration of courier partners, these eCommerce sites have been successful in spreading their influence throughout the globe in all the remote parts as well.
Better pricing given by these online shopping websites have also potentially increased the outreach of these websites and people prefer online shopping sites since they save the money of traveling to and from an offline shop as well.
The spread of technology, specifically mobile phones, has significantly increased the penetration of these eCommerce sites as well since people are now better equipped with technology than they were five or ten years before.
Increased use of Digital Payments
If you would ask a person ten years ago if they prefer cash payment or a credit card payment he or she would definitely choose the former on the basis that cash payments are safe, convenient, and faster than using non-digital payment methods such as credit cards or any other payment method as a matter of fact.
Now ten years later in 2022 rarely you will see you a person carrying out a transaction based on cash for any reason whatsoever since with the inception of digital payment methods such as Bitcoin, Apple pay, PayPal, and so on cashless digital transactions have taken a driver’s seat and people find it extremely easy to pay via an online method rather than cash.
This particular rise in the use of Digital Payments has given a huge impetus in the spread of eCommerce sites since they have been using it to conduct most of their transactions.
It has been reported that more than 70 percent of the transactions would be via online or digital payment methods a couple of years from now.
Extra Investment in Logistics
As stated earlier in a point about the penetration of eCommerce sites being limited to major towns and cities due to a lack of mobility and relevant courier partners to deliver their goods in remote towns.
However, since then the eCommerce sites have significantly increased their investments in logistics and some have even come up with their own courier branches of the company in order to have better coordination with the delivery partners post the confirmation of the order.
The investment in logistics has significantly popularized since a lot of people now can buy goods and services out of these eCommerce sites irrespective of the city or town they reside in.
Growth of Various Sectors
eCommerce has been growing significantly since the industries they have been involved in are at a constant rise as well.
For instance, the food industry has been growing at a rapid pace which has a direct impact on the food delivery eCommerce platforms as well.
Then comes the smartphone industry as well which has been growing at a rapid pace and hence the eCommerce sites dealing in them have been on a rise as well.