The emergence of the B2C E-commerce market & The Opportunities Ahead
Human life has evolved substantially in the last few years, we have moved from traditional notepads to the tablets and iPad’s, from pen and paper to digital notes, from brick and mortar stores to online shopping in the last two decades. The invention of the internet has completely transformed the way we live and do stuff.
The change in the pattern of consumer buying behavior is no exception to this change, now the whole world is a global store accessible in just a few clicks. Smartphones are playing a key role in all this transformation from e-commerce to m-commerce (Mobile Commerce). The e-commerce shopping offers ease of shopping, affordable pricing, and home delivery; therefore, most of the millennials are preferring this mode of shopping over the traditional one. However, this is also equally true that e-commerce can never replace traditional brick-mortar stores, but they do seriously impact their businesses.
The e-commerce is an open platform, there is almost zero entry barrier for anyone willing to enter this platform. You have a product, you have internet connectivity, that’s it, you are good to go. However, the process of growing and sustaining is equally tough, considering the high competition in the b2c e-commerce market. “Digital Marketing” also known as “Online Marketing” is highly important to promote the products online, otherwise your e-commerce store will be quickly lost in the ocean of e-commerce websites. B2c e-commerce giants such as Amazon, Alibaba, Flipkart uses promotional strategies such as ‘Affiliate Marketing’ by offering members commission for promoting and selling their products. This is by far the most effective online marketing strategy in the B2C E-commerce market.
In order to attract customers for buying your products, your online presence, brand recognition, brand reputation, and word of mouth play a significant role. Product quality and uniqueness are key factors for succeeding in online commerce. Therefore, the stores need to provide the best product, on-time product delivery, secured payment options, easy return policy, best aftersales support, and marketing strategy to increase sales.
North America & Europe are key dominant marketplaces for the e-commerce industry, the regions also have the largest online shoppers’ population. However, the dimensions are changing noticeably as the Asia Pacific region is emerging as the fastest-growing region for e-commerce services. China has already recorded the largest product exports in 2019, the online sales of Chinese electronics, electrical, industrial and clothing products is growing steadily for the last 5 years. Growing smartphone penetration in India is also supporting the Asia Pacific B2C E-Commerce Market growth.
The clothing & apparel market dominated the global b2c e-commerce industry in 2019. Online stores offer all brands at one place, easy return policy, and on-time delivery, therefore the customers are preferring shopping for clothes online recently.
B2C E-Commerce Market Trends
Key trends that shall drive the future of the e-commerce industry are as follows:
- The usage of technologies such as Artificial Intelligence, Virtual Reality, Augmented Reality, Machine Learning, Big Data Analytics is anticipated to increase in upcoming years to provide customers with a personalised shopping experience.
- The mobile commerce (M-Commerce) will dominate the market, companies need to optimize their mobile applications to improve the user shopping experience.
- International shopping is peaking up, the export of electronics, clothing, cosmetics, food & beverages is anticipated to grow significantly between 2020 to 2027.
- There is a significant difference in the buying behaviors of customers in developed countries such as the U.S., UK, and Germany as compared to developing countries such as India, China, and Brazil.
- Payment security and data privacy concerns are major challenges impacting market growth.
- Governments from around the world are expected to ease their compliances and regulations to promote e-commerce businesses & increase exports in order to stabilize the economies affected due to the COVID-19 pandemic.
- The growth in the mobile payment market is expected to drive industry growth. The usage of debit/credit cards for online shopping shall witness substantial growth.
The Final Verdict
The B2C E-Commerce Market has high growth opportunities in the forecast period. Online marketing and quality services are highly important to attract and retain online customers. Affiliate marketing, discount coupons, seasonal sales, video marketing, word of mouth are key strategies practiced to promote the b2c e-commerce business. The competition in this market is very high as there is no entry barrier, however, the right marketing strategy and a unique product shall definitely help you to establish in the market easily.