What is Ecommerce?
Ecommerce (or electronic commerce) is the buying and selling of goods or services on the Internet. It encompasses a wide variety of data, systems and tools for online buyers and sellers, including mobile shopping and online payment encryption. Most businesses with an online presence use an online store and/or platform to conduct ecommerce marketing and sales activities and to oversee logistics and fulfillment.
According to e Marketer, in 2022, global retail ecommerce sales will surpass $5 trillion for the first time, accounting for more than a fifth of overall retail sales. And by 2025, total spending will exceed $7 trillion, despite slowing growth.
To fully understand ecommerce, let’s take a look at its history, growth and impact on the business world. We will also discuss some advantages and disadvantages to ecommerce as well as predictions for the future. For more expert insights on the go, check out our biweekly audio series, the Make it Big Podcast, where global thought leaders discuss all things ecommerce — from industry news and trends to growth strategies and success stories.
Sizes of Ecommerce Businesses
From small startups to large enterprises, ecommerce businesses can come in all sizes. Let’s look at the main four you’re likely to come across.
Startup.
A startup is a business or project in the first stages of development, often built by an entrepreneur to pursue an innovative business model.
Typically a startup has less than 100 employees, however a startup is often defined not by size but by profitability. According to Alex Wilhelm, writer for TechCrunch, a company is no longer considered a startup after it reaches a $50 million revenue run rate or is worth more than $500 million, on paper or otherwise.
Small business.
Small businesses are sole proprietorships, partnerships or corporations that sell products or services and make less money and have fewer employees than large multinational corporations. The U.S. Small Business Administration further defines a small business in terms of employment (from 100 to over 1,500 employees) or average annual receipts over time (ranging from $1 million to over $40 million).
Mid-market.
According to Sangoma, small and medium-sized enterprises (SMEs), also known as “mid-market,” businesses, typically have between 101-500 employees and genrate between $10 million and $1 billion in annual revenue.
Enterprise.
Large enterprise businesses can have over 1000 employees and usually generate over $1 billion in annual revenue.
Since the beginning of 2020, 45% of ecommerce software buying activity has come from enterprise-level companies.
Which retailers provide online shopping?
Today, most stores provide online shopping facilities. In other words, they have a website that allows consumers to purchase from them on the web. The retailer either delivers to the shopper’s home, office, a neighbor, or a nearby store location. Many people do their weekly supermarket grocery shopping online.
Some companies, in fact, only sell online. They have no physical shop that people can visit. For example, Amazon.com sells nearly all of its goods online through its e-commerce platform. New Egg, Ocado, and TigerDirect also focus primarily on online shopping facilities.
How does online shopping work
Above all, you will need an Internet connection, a debit or credit card, and a secure password. You may also need to have an email address or mobile phone number.
Most retailers will allow you to make up your password. Make sure it is a password that nobody could guess. Avoid your birthdate and those of relatives. Ideally, you should include a combination of letters, numbers, and higher and lower cases. You then scroll through the items the retailer is offering. Sometimes they will have a category list, such as furniture, sports equipment, gardening, etc.
Most retailers also have a search facility. This means that you can write the name of the item you seek to determine whether they have it.
Online shopping – paying
When it is time to pay, the retailer will ask for your card details. They will require the name on the card, the long 16-digit number, the expiry date, and a 3-digit number at the back. You may also need to provide details of the card’s billing address.
When giving your card details, make sure their web address starts with ‘HTTPS’ and NOT ‘HTTP.’ A web address that starts with HTTPS’ means it is a secure page, and suitable for handling payments.
Online shopping is great for buying things that are identical. For example, printer toner, toilet paper, or windshield liquid for your car are items that do not vary. However, fruit and vegetables are different. They may be overripe or not ripe enough.
Most retailers allow you to send back goods. In fact, in some countries, you get a ‘grace period.’ This means that the law allows you to send back goods within a certain period.
Therefore, online shopping is also good for items that you need to try on, such as shoes or clothes. Because you can send them back.
A ShopperTrak survey found that physical retailers face a major challenge. Their challenge is how to satisfy connected consumers. Connected consumers expect to be able to flex between physical and online stores.
When we pay for a book online or register for an e-learning course, we are paying for knowledge. In fact, knowledge commerce or K-commerce is a massive global industry.
Benefits of AI tools for e-commerce and online shopping
- Explain how AI tools can enhance customer experience, satisfaction, and loyalty
- Explain how AI tools can increase sales, revenue, and profitability
- Explain how AI tools can reduce costs, errors, and fraud
- Provide some statistics or case studies to support the benefits
Risks of AI tools for e-commerce and online shopping
- Explain how AI tools can pose ethical, legal, and social challenges
- Explain how AI tools can create privacy, security, and trust issues
- Explain how AI tools can cause bias, discrimination, and unfairness
How can AI help me find the best products for my needs?
AI can help you find the best products for your needs by analyzing your preferences, behavior, and feedback, and providing personalized recommendations. For example, ViSenze is an AI tool that helps customers quickly and easily find the products they want using visual search and image recognition.
How can AI help me write better product descriptions and marketing copy?
AI can help you write better product descriptions and marketing copy by generating engaging and relevant content based on your keywords, audience, and goals. For example, ChatGPT is an AI tool that uses natural language processing to create product descriptions that boost conversions and SEO.
How can AI help me optimize my pricing strategy and increase my profits?
AI can help you optimize your pricing strategy and increase your profits by analyzing your competitors, market trends, and customer demand, and adjusting your prices accordingly. For example, Prisync is an AI tool that monitors and compares your prices with your competitors, and automatically updates them to maximize your margins and sales.
Enhance Customer Service and Satisfaction
- AI can enhance customer service and satisfaction by providing fast and accurate answers to common questions, resolving issues, and offering proactive support. For example, Inbenta is an AI tool that uses chatbots and natural language understanding to improve customer interactions and loyalty.
Streamline E-commerce Operations and Management
- AI can streamline e-commerce operations and management by automating various tasks, such as inventory management, order fulfillment, and fraud detection. For example, Click Up is an AI tool that uses automation, templates, and project management tools to simplify and optimize your e-commerce workflows.
Boost E-commerce Sales and Marketing
- AI can boost e-commerce sales and marketing by creating personalized and engaging campaigns, using data-driven insights, and testing different strategies. For example, Get response is an AI tool that uses marketing automation, AI-driven personalization, and analytics to increase your conversions and revenue.
Selection Criteria
- The factors that should be considered when selecting AI tools for e-commerce and online shopping
- Some possible factors are: business goals, budget, data availability, integration, scalability, security, and user feedback
- Provide some tips on how to evaluate and compare different AI tools based on these criteria
Comparison
- Compare and contrast some of the popular AI tools for e-commerce and online shopping in the market
- Some possible tools are: Shopify, Magento, Big Commerce, Woo Commerce, Amazon Personalize, Google Recommendations AI, IBM Watson Commerce, and Microsoft Dynamics 365 Commerce
- Highlight the strengths and weaknesses of each tool, and how they fit different business needs and scenarios
Benefits
- Explain the benefits of using AI tools for e-commerce and online shopping
- Some possible benefits are: improved customer satisfaction, loyalty, and retention, increased conversion rates and revenue, reduced costs and errors, enhanced product discovery and personalization, and better insights and analytics
- Provide some statistics and case studies to support the claims
Implementation
- Discuss the best practices and challenges of implementing AI tools for e-commerce and online shopping
- Some possible best practices are: defining clear objectives and metrics, testing and iterating, aligning with business strategy and values, and educating and engaging customers and employees
- Some possible challenges are: data quality and privacy, ethical and legal issues, technical complexity and compatibility, and user adoption and trust
- Provide some solutions and recommendations to overcome the challenges
The Future of Ecommerce
According to Statista, ecommerce revenue is expected to show a yearly growth rate of 14.56%, resulting in a projected market volume of $1,365.00 billion by 2025 — which goes to show that ecommerce is no passing trend.
Especially with the rise of omnichannel shopping experiences, digital buyers should expect to be able to research, browse, shop and purchase seamlessly between different devices and on various commerce platforms.
Other trends to watch for in the future of ecommerce include:
- Robust customer journeys and personalization.
- Artificial intelligence-enabled shopping.
- Social shopping.
- Mobile commerce.
- Digital currencies, such as mobile wallets and cryptocurrency.
Overall, we have to remember that ecommerce is still fairly new in the big picture of retail. The future holds endless opportunity, but its success and continuation will depend largely on buyers’ preferences in the future.
Conclusion
AI tools for ecommerce are not just a trend, but a necessity for online store owners who want to stay ahead of the competition and grow their business. By using AI solutions, you can enhance customer insights, personalize customer experiences, streamline operations, and improve fraud detection. However, you also need to be aware of the risks, such as data privacy concerns and technical challenges, and find the right balance between AI and human intervention. Whether you are looking for a comprehensive ecommerce platform with integrated AI, or a specific tool to solve a particular problem, you can find it among these options. We hope this article has helped you discover the best AI tools for ecommerce that suit your needs and goals.
- Summarize the main points and takeaways of the blog post
- Emphasize the value and potential of AI for e-commerce and online shopping businesses
- Encourage readers to take action and try out some of the AI tools mentioned in the post
- Thank readers for their time and attention, and invite them to share their feedback and questions
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