Innovating the future of enterprise eCommerce businesses with Magento
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2021 has been the year of enterprise eCommerce businesses, whether we talk in terms of new eCommerce businesses popping up or already-running businesses shutting down, or even physical stores moving online. New opportunities opened up for businesses to gain new customers and an edge over their competitors.
The number of Magento sites have doubled between 2017 and 2018. The enterprise eCommerce platform, powered by Adobe, has helped eCommerce businesses design their store to attract, engage, and push their buyers towards conversion and achieve astonishing feats.
Here are some incredible statistics about Magento:
- Over 270,000 merchants choose Magento for their enterprise eCommerce business.
- eCommerce businesses attribute 10% to 80% of their revenue boost to Magento.
- Magento’s global eCommerce sales in 2020 amount to $224 billion.
In this article, we shall discuss the global eCommerce trends of 2022 and beyond and how the Magento Enterprise (now Adobe Commerce) Edition can help your brand prepare for the future. Furthermore, discover what the future holds for eCommerce businesses in light of the ongoing pandemic and technological advancements, and much more.
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eCommerce trends 2022 that will shape the future of eCommerce in 2022 and beyond
The eCommerce share as part of total retail jumped from 13.8% two years ago to 19.8% in 2021 and is expected to reach 24.5% by 2025. While completely relying on predictions might be challenging, collecting data and analyzing trends and patterns can help in making these predictions more accurate. But collecting data and analyzing trends and patterns can help in accurately predicting the future of eCommerce.
Let’s start with analyzing recent eCommerce trends that emerged in recent years and will continue to grow in the coming future.
1) A shift in consumer behavior:
The pandemic has been the driving force behind how brands sell their products and how customers purchase, whether in physical stores or online. The covid-19 pandemic has amplified customers’ desire for convenience and immediacy. According to a report, three out of four consumers say they purchase from their smartphones because it saves them time.
With changes in lifestyle due to the pandemic, consumers worldwide are purchasing items rarely purchased online before the pandemic, including groceries, health and hygiene, and other home essentials. Several reasons drove online purchases, including direct delivery to consumers’ homes, comparatively cheaper prices, round-the-clock availability, and a more convenient way of shopping.
It’s also possible that these shifts in the consumer behavior can persist. However, it can depend on the experience a customer has had while shopping online. Almost 48.8% of consumers said they would shop online more frequently after the pandemic is over. Consumer survey indicates that these shifts in consumer behavior might prove tricky and challenging and brands risk becoming irrelevant if they don’t adapt.
The Magento Enterprise Edition comes with advanced features and functionalities that enable brands to focus on creating innovative digital experiences. Advanced features of the Magento Enterprise Edition include promotional pricing for specific stores, categories, customer segments, and more. The Magento Enterprise Edition simplifies the shopping experience by reinventing traditional shopping for the post-pandemic world. Furthermore, brands can make it fast and easy to shop from anywhere, upgrading their checkout experience, automating promotions and shipping costs, and more.
2) The power of personalization for eCommerce businesses:
Personalization has grown in importance in recent years for an enterprise eCommerce business. Merchants globally are using personalization to not only engage buyers but also to increase repeat purchases. The Magento Enterprise Edition enables brands to use personalization in different forms, ranging from product recommendations to cart-abandonment marketing emails, and more.
Personalized shopping experiences for customers can result in a 20% increase in sales on average. Furthermore, 80% of customers are more likely to buy from a brand offering personalized shopping experiences, with 44% of consumers likely returning for a repeat purchase.
Before brands venture into a personalization strategy, they should have an understanding of where personalization can occur in a shopping experience. Furthermore, they should also understand the type of information required to deliver a personalized shopping experience; how technology and human insights can be used to create the same.
Customers expect rich shopping experiences with personalized content which can help them fulfill their goals on each stage of buyers’ journey. Today’s eCommerce businesses must deliver a unified and highly-engaging shopping experience to meet their customers’ expectations.
3) Local languages for targeting customers:
According to a survey of 8,709 global consumers in 29 countries conducted by CSA Research, 65% of consumers prefer content in their native language, even if it’s poor quality. Furthermore, 40% of customers will not buy from websites in other languages. Add an option to allow your customers to access your site in their native languages. With the multi-language feature in Magento Enterprise Edition, you can enhance customer experience from first-time visits to checkouts.
4) Build supply chains resilience:
The covid-19 pandemic damaged the supply chain. Globalization, low-cost supply, and minimal inventory are the core features of supply chain management. Companies were forced to build supply chain resilience or prepare for similar future incidents to prevent a complete halt to their business operations.
A recent study from Deloitte revealed that nine in 10 companies are making significant investments to improve their supply chain resilience. Furthermore, Gartner lists out six critical factors to determine the level of resilience of your supply chain.
These factors include the following:
- How much risk can your company absorb?
- Analyze whether your partners can support a diversification strategy
- Evaluate what you are protecting followed by what you are protecting against before making a decision
- Decisions about whether to build resistance for existing networks or pursue diversification for new products
- Who shall pay for more supply chain resilience as it is a form of investment
- Many governments and trading blocs are now providing incentives to companies that relocate manufacturing units closer to the end customer
5) Let your customers buy from a live shopping event:
Live stream shopping events allow the audience or potential buyers to chat with hosts, and then, click on their preferred items to purchase them. Live shopping events are quite a craze in China, where it is already a $170 billion industry, and growing fast. As Amazon and Facebook compete to test live sales platforms, Livestream shopping events in the US are expected to generate $25 billion by 2023.
Meta is also looking forward to expanding its hold in developing countries, with a focus on bringing in more eCommerce opportunities in its ecosystem. According to Facebook’s research, 89% of people have expressed an interest in trying out live shopping.
Consumers already connect with brands on social media. It only seems fit for brands to incorporate the benefit of impulse buying and capitalize on the lure of celebrities and influencers alike.
6) Experiment with augmented reality (AR):
Augmented reality allows brands to simulate in-person shopping experiences online and create a 360-degree realistic customer experience. Customers who use augmented reality (AR) can see a product overlaid wherever they point their mobile device. Conversions are increased when customers can see the size, scale, and minute detail of your products.
Brands can use 3D modeling or 3D versions of their products to help customers understand their shape and structure. 3D modeling, when combined with augmented reality functionality allows your customers to interact with your products in real-time.
The Magento Enterprise Edition can help an enterprise eCommerce business drive sales by converting traditional or physical shopping or marketing experiences into virtual ones. You can educate your consumers on how your products can make their life easier. Furthermore, the Magento Enterprise Edition can help you capitalize on the do-it-yourself (DIY) trend. Lastly, take your customers behind the scenes to help them better understand your brand.
7) Personalized payment options and online checkout:
Payment preferences vary around the world. Digital payment systems like PayPal and Apple Pay come second after credit cards in North America. While cash on delivery is a top payment choice in Eastern Europe, India, Africa, and throughout the Middle East.
Brands often overlook how their customers prefer to pay. Without carefully analyzing data and trends, brands can integrate whatever payment options are most commonly working domestically. The pandemic has sped up consumers’ adoption of real-time payment options by 41%. Real-time payment refers to digital wallet payment options where your customers can make payments quickly. Some popular digital payment options include Apple Pay, Google Pay, Stop Pay, and PayPal.
For some customers, the unavailability of a preferred payment and checkout options is minimal. While for some customers, it can mean a significant factor that weighs on their buying decision. Brands should consider varied payment options for their target region if they plan on expanding globally.
8) Comprehensive data collection and analysis:
According to Elliott Davidson, founder of UK digital agency Contrast, there will be a rise in enterprise eCommerce businesses leveraging data from an in-house perspective. The collection and analysis of data are only likely to grow in importance for ecommerce businesses, eventually increasing ecommerce sales.
A majority of big CPG (Consumer Packaged Goods) brands are integrating the DTC (direct-to-consumer) ecommerce model to know more about their customers. DTC ecommerce models allow you to gather information for more informed decisions around marketing, branding, targeting, retention, personalization, and more. The Magento Enterprise Edition offers enterprise eCommerce businesses comprehensive data collection and data analysis. It can help brands get their message across to people most likely to take action. It can also help identify customers with the highest lifetime value.
9) Artificial intelligence (AI) and Machine learning (ML):
Data, machine learning, artificial intelligence go hand-in-hand. More enterprise eCommerce businesses are relying on machine learning and artificial intelligence to gather data and analyze it. It helps them create a personalized shopping experience for their buyers, optimize their existing marketing campaigns, and price optimization.
The combination of machine learning and data analysis along with artificial intelligence are adept in more than just automating business operations. It can steer ecommerce personalization, enhancing the store experience for your customers. Before incorporating the benefits of machine learning and artificial intelligence, brands can start with figuring out their customers’ pain points. Eventually, how implementing machine learning and artificial intelligence can resolve them.
The above-mentioned ecommerce trends 2022 are among only a few popular trends that have emerged in recent years. These eCommerce trends are likely to grow and stay with enterprise eCommerce businesses. Consumers are more demanding than ever before. Along with the best competitive prices, customers also care about the impact a product or brand has on the environment.
Sustainable products are more than just a buzzword and mobile shopping is the new normal. Automation drives productivity and growth while voice search enhances customer experience. PWAs can deliver an improved online shopping experience. Furthermore, incorporating social media and user-generated content will broaden the path of eCommerce selling.
Conclusion: What future awaits enterprise eCommerce businesses?
There is no definitive answer to what future awaits enterprise eCommerce businesses. Though new trends will emerge as business activities continue to grow globally, all companies need not capitalize on all trends. Deciding on an eCommerce enterprise solution that meets your business requirements is the first step towards achieving your business goals. Eventually, it can increase sales, enhance the shopping experience, and increase customer retention over time.
Engaging and immersive selling formats, such as live shopping events, will be prominent. Furthermore, AR and VR will be critical in improving the online shopping experience, enabling more personalization, and targeting niche customers.
As a popular ecommerce enterprise platform, Magento Enterprise Edition incorporates the majority of the trends in its features. Magento Enterprise Edition allows you to sell anywhere with its practical and holistic solution and deliver a powerful user experience. It can also personalize the shopping experience in real-time with insights tools. This enterprise eCommerce platform also allows you to scale with cloud-based services, control your cash flows with a fully integrated payment solution, and more.
To help an enterprise eCommerce business evolve, an enterprise eCommerce platform must be future-ready for the ever-changing ecommerce models in your industry.
Enterprise marketplaces are transforming the future of the eCommerce landscape. Unique features, including enriched product offerings, sustainable growth, and more have made enterprise marketplaces a go-to option for brands and retailers to adopt the business model. However, a successful launch needs strategic vision. And that’s what we bring you with the Enterprise Marketplace Guide.
How CedCommerce can help an enterprise eCommerce business?
With a future-ready enterprise eCommerce solution from CedCommerce, you can run your online store and marketplaces. You can own your brand and deliver a personalized customer experience across all touchpoints, which is synced directly in your stores. You can stay on top of growing trends in your industry across in-store and online sales with analytics at your fingertips. Keep track of all of your orders, products, inventory, and customer information in one place so you’re always up to date. With CedCommerce, you have everything you need to run your business, market to customers, and sell anywhere.