Overview:
E-commerce is an increasingly important part of the economy in the United States. It is estimated that in 2020, the total value of the US e-commerce market was about $709.78 billion, representing about 12.5% of total retail sales. In 2021, e-commerce sales are expected to account for 15% of all retail sales, and the sector is expected to grow to $862.7 billion.
Trends:
1. Mobile Commerce:
Mobile commerce now accounts for approximately 45% of online retail sales in the US, with more consumers choosing to shop on their smartphones and tablets.
2. Omnichannel Shopping:
Consumers are increasingly shopping across multiple electronic and traditional channels, with the goal of seamlessly reorganizing their purchases.
3. Voice Commerce:
Voice-enabled gadgets like Amazon’s Alexa or Google Home are becoming increasingly popular, allowing customers to shop or place orders without having to type.
4. Social Commerce:
Social media platforms such as Instagram, Pinterest, and Facebook are now being used by shoppers to purchase products directly from their timelines.
5. Visual Searching:
Visual searching technology is being implemented at a rapid rate, allowing users to search for items by taking images of them with their phones.
Opportunities:
1. Cross-Border eCommerce:
With increasing globalization and more international shipping options, there is a great potential to open up new markets and gain customers from other countries.
2. Targeted Marketing:
Advances in analytics and machine learning enable e-commerce businesses to better understand customer behaviours and provide more targeted advertising and promotions tailored to individual customer preferences.
3. Automation and Personalization:
Automation can speed up the process from order fulfilment to customer service. It can also be used to personalize the customer experience by learning from customer purchases and recommending tailored products.
4. Subscription Services:
Subscription-based services are becoming more popular, offering customers the ability to have goods or services delivered on a regular basis.
5. Diversifying Payment Methods:
The emergence of various payment methods, such as cryptocurrency, are allowing customers to pay for their purchases in ways that are more convenient and secure.
Challenges:
1. Fraud:
Fraudsters are becoming more sophisticated in their attempts to steal money and data from customers and e-commerce businesses, making it necessary to have advanced security protocols in place.
2. Data Privacy:
A growing concern for e-commerce businesses is data privacy. Many countries now have laws that require businesses to protect customers’ personal information and keep data secure.
3. Shipping and Logistics:
The cost and complexity of shipping products to customers, as well as ensuring timely delivery, can be a challenge, especially for small businesses.
4. Customer Engagement:
Keeping customers engaged with e-commerce businesses is a challenge, as customers can easily become distracted by other websites, services, and offerings.
5. Cybersecurity:
Cyberattacks are increasingly common and aggressive, and e-commerce businesses must be vigilant in ensuring their systems and data are protected.
Conclusion:
E-commerce businesses in the US face both opportunities and challenges as the industry continues to grow. Companies need to stay up to date with the latest trends and technologies, as well as ensure they are compliant with regulations and have adequate security measures in place. Despite the challenges, e-commerce remains a lucrative and attractive business sector, and businesses that are prepared to meet the needs of their customers can be successful.
