A few years ago, when the internet was still considered a novelty, and e-commerce was taking its first steps, no one believed that new web retailers could compete with brick-and-mortar giants. In the modernisation process, however, the means of communication changed our interpersonal relationships, our needs and the way we buy.
According to data from Statista, the e-commerce sector in Europe is expected to show an annual growth rate of 6.7%, resulting in a market volume of US$503 billion by 2024.
If we consider the latest data, these figures are even more impressive: In 2018, nearly 268 million European consumers made online purchases worth EUR 198 billion, representing an increase of 9.4% compared to the preceding year. The e-commerce market is expected to show a revenue growth of 10.0% in 2021. And the UK is the 3rd largest e-commerce market in the world.
This shows how the internet and technology are an essential part of many people’s daily lives. Currently, browsing the internet has become a daily habit for almost 75% of the European population, and mass access to information and content that stimulates us all the time, such as images, videos and podcasts, has increased.
Social media also plays a relevant role in this scenario. As the main means of communication between brands and users, it is the second largest buying motivator. According to information from Ebit Nielsen, social media is second only to search engines as the main incentive to buy products and/or services. Additionally, 80% of the consumers who buy through recommendations from social media were pleased with the price and praised their purchase the most.
It is important to remember that beyond changing the way we relate to eachother, the internet and technology have revolutionised the way we purchase. Modern consumers are familiar with the internet, frequently search online and offline before buying, take into account the opinion of people they do not know and are increasingly demanding. Online and offline have become complementary. For brands, defining how each channel can coexist without making redundant value propositions is essential.
An e-commerce business has to offer its customers speed, business intelligence and capacity to execute. The greater the knowledge about users, the greater the chance of converting sales. You must consider all business stages, from the development of production, communication and sales strategies to the delivery of products to consumers.
Whether you are a retailer, manufacturer or market investor, e-commerce should be part of your company’s strategies.