Having a consumer-centric, digitalized and data-driven mindset are the keys to success for e-commerce companies. And when it comes to data, the important thing is not big data but smart data. The data you need to fully understand your customers and to be able to fulfil their expectations.
At the E-commerce Expo in Stockholm, Sweden, the online entrepreneur Sïmon Saneback gave his view of the fast developing e-commerce market. A market which is global, mobile, disruptive as well as consolidated. A market where consumers expect good experiences and control.
Globalization, consolidation and disruption
What is actually happening is an ongoing globalization of e-commerce. Purchases directly from China have increased tremendously with the growth of online marketplaces like Wish, with its user-friendly mobile platform and its direct connection to production in China. Payment methods have evolved and are no longer a show-stopper for cross-border e-commerce. Companies consolidate and merge by buying new companies to become even more powerful. Global marketplaces, like Amazon, Asos, Farfetch, etc., are growing bigger and in a couple of years are estimated to account for 50 % of global e-commerce. Yet marketplaces also want to be brands. Non-brands struggle to become brands. And brands, like Nike, want to be marketplaces or at least they want to control more of the supply chain.
The mobile (r)evolution
Consumer behavior has changed over the years. From “being informed” to “being connected”, consumers now expect to be “in control”. What is notable is the mobile r(e)volution with about 70 % of all internet traffic coming from mobile. Smartphones will soon replace other devices and will be used for everything, not only among the young and in growing markets.
Offering a “wow” experience
Most important for success in the ever-changing world of e-commerce is to know and understand the customer, stresses Sïmon Saneback. Three of four consumers will leave if they are not happy with the product and service. It is important to retain your customers. Although the cost for retaining a customer is big, it will cost you even more to win a new customer. So know and understand your customers and always try to create a “wow” experience.
Kajsa Ehmer and Malin Herzig, Marketing, Direct Link Sweden