Millennials are the most extensive online shoppers, followed by Gen Xers, and both groups spend more time online than previous generations. According to a recent report, more than 60% of millennials and 56% of Gen Xers shop online. They also spend 50% more time online than their predecessors. This is a significant challenge for the eCommerce industry.
OECD involvement in e-commerce
The OECD recently held a roundtable discussion on e-commerce and its implications for competition law and policy. The discussion focused on the competitive dynamics of the sector, recurrent competition problems, and the likely future challenges and issues in the e-commerce sector. Here are some of the critical points outlined in the roundtable discussion:
One of the key drivers of e-commerce participation is convenience. Many new users will likely continue ordering goods online, especially if the service is convenient. Subscription models also contribute to the convenience factor. These countries should consider community-based delivery models for consumers with limited or no e-commerce skills.
The COVID-19 pandemic has had a significant impact on the e-commerce sector. It accelerated the development of e-commerce and led to a substantial shift in purchasing habits from luxury goods to everyday necessities. It has also created new business opportunities and increased dynamism in the e-commerce landscape in many countries.
OECD’s involvement in e-commerce is also essential to international efforts to bridge the digital divide. The OECD has considerable experience in this area. It is also part of the Digital Opportunity Taskforce, established by the Group of Eight industrial nations last July. The discussions at the OECD conference will feed into the DOT Force’s work.
While e-commerce is gaining popularity in many countries, there are still some persistent gaps. For instance, the involvement rate of SMEs in e-commerce was less than half that of large firms in most OECD countries in 2017. This low level of digitalization makes it difficult for firms to change work practices.
As a member of the OECD, Australia is actively engaged in e-commerce policy development. It is also actively drafting the OECD Guidelines for electronic commerce, the most significant international agreement on this issue. These guidelines aim to increase consumer confidence in electronic commerce and protect consumers when shopping online.
Getting and maintaining customers
Customer retention is an essential aspect of increasing your eCommerce sales. Your customers will likely buy from you again if you have a high customer retention rate. Retaining your customers will help you build a loyal base worth growing. Here are some tips to improve customer retention rates:
First, focus on customer service. Providing excellent customer service is crucial to retaining a customer. You can create a fantastic customer service experience by providing ongoing support and account updates. By improving your customer’s experience, you’ll encourage them to spend more. You can also build a comprehensive customer dashboard to provide an all-in-one experience for each customer.
Another effective way to retain customers is to establish a loyalty program. Loyalty programs offer incentives for repeat purchases. They also track purchases in dollar value. Some companies even give customers different levels of loyalty, recognizing different ways that they support the brand. In return, customers are more likely to return to your store.
Supply chain challenges
The eCommerce industry has a variety of supply chain challenges that businesses must deal with as the industry continues to grow and expand to meet consumer demand. New technologies and processes are needed to meet consumer demands, and the supply chain must continue to adapt. Businesses must take the appropriate steps to improve their operations.
One of the biggest challenges in the supply chain is ensuring that a product arrives promptly. Ecommerce consumers increasingly expect their products to be delivered the same day. As a result, supply chain managers must be able to meet customer expectations and pivot quickly when necessary.
Another challenge is inventory management. Retailers must ensure they have adequate stock levels and can quickly and accurately replenish inventory. Having ample stock in inventory can make the difference between meeting demand or being out of stock. The best way to handle this is to develop multiple supplier relationships and be flexible in your approach. This will allow you to take advantage of new opportunities and keep up with changing markets.
Ecommerce is a fast-paced industry, and it can put additional strain on existing resources. Changing customer demands means companies must make new investments to keep pace with the growth. Additionally, the customer experience must be consistent no matter what device the customer uses. For this reason, supply chains must be built with continuity in mind.
Fortunately, technology is improving supply chain management. As a result, companies are making significant technological advancements and finding innovative ways to solve supply chain challenges. For example, one luxury apparel brand has implemented a machine-learning algorithm to detect products that have high return rates. The algorithm then moves these items to an in-store-only category when returning them. This is just one of many advancements in the eCommerce logistics industry, and we can expect the trend to continue as the industry grows and shifts.
Supply chain optimization is critical for eCommerce. A successful supply chain must be efficient and flexible enough to address the eCommerce industry’s growing needs. Ecommerce is not just about selling and buying products but also about delivering them quickly. The exponential growth in the industry is creating a new challenge for companies supply chains.
Getting to market
Before launching an eCommerce marketing campaign, it is essential to understand your target market. You should know their age, gender, location, salary, and interests. It would help if you also learned about their habits and lifestyle. You can find out more about these traits by creating buyer personas. This will help you brainstorm ways to reach them.
You can also use a FAQ page to answer common questions from customers and build authority. In addition, creating a FAQ page will help you rank well for high-volume long-tail keyword searches. Both of these strategies will help you gain traffic and increase sales. It would help if you also considered using search engines marketing techniques such as SEO and paid advertising. SEO relies on understanding the Google ranking algorithm, while paid advertising includes a display and product-specific ad campaigns. These strategies will help you reach the top of search engine results pages.
