How technology is changing ecommerce?
The impact the technology has on e-commerce is stronger than ever. Technology helps companies to reach their potential clients all over the world and provide the best experience they can. Having an online business was always a challenge but the technology makes it easier to start and manage than before.
The first online shopping system was created in 1979 by the English entrepreneur Michael Aldrich. Two years later Thomson Holidays UK (now TUI UK) installed the first B2B online shopping system. That marked the beginning of e-commerce.
From the invention of e-сommerce, four decades have passed and it most definitely looks different today. The evolution of the technology allowed to shape e-commerce to better fit the ever-changing market and the needs of customers. Nowadays technology helps users to find what they want faster and easier than ever before and it will not stop here. As the technology moves forward, so will the e-commerce.
Mobile apps
A lot of users are checking the product online before making a purchase. Most often they use their phones for that. This created the need for companies to adapt their online stores and websites to smaller screens.
However, the mobile version is not the only option. In addition to that companies develop apps that allow users to view the products, buy them, leave a review, collect points, etc. Mobile apps help to build stronger relations with customers because they are providing convenience and a better experience. Besides that mobile app makes users see the brands logo and name more frequently due to the visibility of the app’s icon.
Augmented Reality
The biggest downside of e-commerce is the inability of customers to physically check out the product. It is very important especially in industries where customers are choosing the product based on its appearance. Augmented Reality (AR) apps allow users to „place” products in real life with the help of the phone’s camera to see how it actually would look like. Apps contain high-quality renderings of the product to provide the most realistic experience to customers.
The opportunity to „see” the product without the need to visit the physical store removes one of the biggest objections the customers have when shopping online and strengthens the relations between the brand and its clients. Besides that after using the AR app users are more confident in their purchase decision.
Personalization
Most companies nowadays are using some sort of software that collects the data of their users through cookies. This allows for the personalization of the message that potential customers receive. The high level of customization benefits both customers and companies. 78% of users report that they won’t engage with an offer that was not tailored to their previous interactions with the brand. So the personalization is very important especially in the time when users are bombarded with the offers from all the sides.
Customization makes customers trust the brand more because they feel like the company knows what they want and cares about them. On the other hand, it allows companies to save money by not marketing their products to people who won’t be interested in the purchase or won’t even notice the offer.
Analytics technology and artificial intelligence (AI) play a big role in the understanding of the users' behavior and habits that allows delivering a better-personalized experience. Without that the customers' data would be almost impossible to process and interpret.
Automation
Nowadays it is easier than ever to open an e-store and start to sell online. Thanks to the available technology sellers don’t need to have the specialist knowledge. Even without the help of the developers' everyone can create a simple online store and install necessary extensions in one click.
The management of the e-business is very easy due to the fact that most processes are handled automatically by the system. Sellers don’t need to manually update the inventory and oversee the logistics. Some types of e-commerce (like drop shipping) even allows for the avoid all the management altogether as the products are sent by the manufacturers themselves. By automating the majority of the operations business owners have the opportunity to focus more on the sides of the company other than selling. Entrepreneurs can grow their brands faster and easier online than ever before.
Opportunity for small businesses
As the technology is more accessible for everyone the small online stores have a chance to compete with bigger players on the market. Technology provides the same level of transaction security, software management for every online store no matter its size, type of products and volume of sales. Nowadays, tiny local shops have the same odds of reaching global customer as giant corporations. That results in an increasing number of small businesses and startups that are becoming known all over the world.
The technology allows entrepreneurs to start a business with limited funds and industry knowledge minimizing the risks of failing at the same time. Most aspects of e-commerce became easier thanks to the growth of technology. Analytical tools and management systems help the companies to grow faster while also taking care of other things related to the enterprise. While the technology continues to develop there will be even more opportunities to build a strong brand with the global reach.
