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The primary reasons ecommerce has evolved and is growing at a fast pace are the ever increasing online populace as well as the swiftly growing access to and entranceof the smartphones. Countries like US, China, India and Britain have some of the largest online population ranging from 500 million to 1 billion.
If you follow the Compound Annual Growth Rate, CAGR you will see that this online population is growing at a rate of 13% and more, depending on the specific country making these countries the best place for the e-commerce startups.
However, the telecom industry and the stiff competition among the different service providers have also fueled the rise in ecommerce over the past few years. These providers have done a great job as they have brought in more and more online users. The primary reason for such a huge increase in the number of online population can be summarized as:
- The reduction in the data price
- Providing good data connectivity
- Change in the mindset of the consumers
- More disposable income of the millennial and
- Increase in the use of smartphones.
The rise in ecommerce is also a result of more than half of the online population using different social media platforms while the other half still uses the traditional methods such as emails and Google. However, with the growing habit among the consumers of online usage, it is expected that there is enough room and scope for the e-commerce firms to grow and upsurge the number of users in the near future.
Categorizing the sectors
Therefore, with such growth indication, it is expected that the major part of retailing will be transformed into active e-tailing by the end of 2020.
As of now, study shows that the growth of e-commerce users is different in different countries. For example:
- It is 48% in the US
- 22% in China
- 10% in India when the entire population of internet users is taken into account.
If you want to categories the different of these e-commerce users you will see that there are usually four types based on the size of the market and online penetration.
- Proven Value: This is the first category that includes all those sectors that have grown to a considerable market size and have a fairly decent online penetration. In this sector you will have sectors that deal with online ticketing, OTAs, online cab service and online food delivery.
- Large Potential: This second category of ecommerce includes those specific businesses that have a good market size but their online penetration is significantly low. Therefore, with the growing online population, these specific businesses are expected to witness huge growth in the future. The business types included in this category are online fashion, online groceries, and e-tailing.
- Emerging: The third category includes all those new and upcoming sectors. These businesses quite naturally will have a very small market size and a very low online penetration. However, this is also the sector that is growing at a much quicker rate in comparison to the other sectors. The key sectors of this emerging category are those that deal with hyperlocal and online medicine delivery.
- Organic: This is the last category of ecommerce that have created a large market size as well as have a very good online penetration. When it comes to further growth in these sectors, it can only happen organically. Examples of such category include online real estate listings and online matrimonial.
No matter whichever sector you belong to and whichever category you are in, there is no end of scopes and growth in ecommerce. You will only have to choose the right one. Therefore, know more and research about these options before you choose just as you would read the debt settlement reviews to decide whether or not you should go ahead with it.
The right fit
It is all about your ecommerce website and how functional it is to ensure that you attain the right size chart which is very important for your customers to experience. To ensure this you must first know a few things about ecommerce especially.
- In ecommerce, there is nothing as ‘one size fits all’ concept and therefore strategies and approaches mustbe carefully selected
- Returnsare inevitable in it and as per the industry data such return rates can be as high as 30 or 40% of the merchandise purchased online and
- Returns rates may vary according to the type of business and for fashion and lifestyle it can be the highest.
There are several reasons for the variance in ‘return rates’ but the most common cause is incorrect ‘Size’ charting. If you want to be the most successful online retailer then you should know about this most important aspect of ecommerce. Right fit is something that all shoppers look for and in most cases e-commerce companies often fail to deliver it to them.
Tips to find the right size
In order to deal with this issue, several many e-commerce companies look for innovative ideas and many have come up with a few different and unique solutions that are effective as well.
One such solution is the ‘try before you buy’ method. In this process the companies provide product SKUs in limited number at the doorstep of the customers. The customers are given the liberty to choose finally from the limited assortment presented to them. The drawback of this seemingly interesting model is that you will never be able to offer huge number of assortment to choose from to your potential customers.
There are other ways to get the right fit for your store. It is true that you cannot create the exact brick and mortar experience in the online world but at least you can create a real-like experience for sure with the help of several tools and technologyinnovations such as VR and AI.
All you have to do is avoid generic estimates of sizes, augment the reality apps, use useful features such as a small video along with the product images and publish customer reviewswithout any filtration.
