E-Commerce: From Threats to Opportunities
E-commerce: Today &Tomorrow
The global coronovirus pandemic made people stay at home that impacted significantly on most businesses. Some traditional industries such as groceries, automotive, finance and others went digital to satisfy immediacies but not keep loyalty. Most of them pivoted to e-commerce and won.
E-commerce means different things. They could be trivial like buying and selling things, getting services online. They are also about financial and trade transactions or constantly improved business processes. They could be complex, as we see the growth of the digital economy. Really, modern consumers see the Internet as an alternative to crowded stores and e-commerce suggests solutions for them, providing numerous benefits such as goods availability, their wide choice, lower costs and saving time.
E-commerce is becoming the nuclear, the core of the rapidly emerging digital economy worldwide. Statistics on Statista.com shows the significant growth rates of the digital economy in recent years.Telecommunication capacities and the Internet globalization boost the explosive growth and development of e-commerce, making industries more digitized, digitally trendy and competitive. Just think of the numbers. There are 7,8 billion people on the Earth by worldometers.info and 7 billion devices are connected to the Internet, as Juniper Research says. By 2022 there is a perspective of getting over 50 billion devices over the globe. All of them will get access to global marketplaces which are available to buy and sell in any markets. People can make electronic purchases or sell goods via online services, funds and systems. In such a way the global e-commerce market is predicted to extend to $2.5 trillion by 2022 [2; 3].
Business side: E-commerce is rather attractive for sellers, it has a low entry barrier. But it is full of competition that might bring good or bad surprises, and the business might face severe online competitors or even monopolists. Competition is a normal phenomenon for e-commerce but it makes businesses survive, thrive or die.
Data & Security side: The popularity of e-commerce and payments is a fuel for sophisticated fraudsters who violate the standards of privacy and wellbeing. As the new research states, e-commerce gains its popularity, as well as payments by credit or debit cards, that attracts criminals. That’s why the increase of security and data, money protection, and anti-fraud measures are top issues which need effective solutions such as two-factor authentication . Besides payment details, there are other important sensitive users’ data which require being thoroughly handed over, i.e. to avoid being got into wrong hands, and regulated by the law, otherwise its availability to wrongdoers may lead to devastating consequences.
Technological side: The Covid-19 situation put numerous companies to test, i.e. how quickly they could adapt digitally and not put their users to frustration and dissatisfaction by a huge number of bugs and failures.
Marketing side: Engagement of target customers is getting trickier due to a big variety of channels and evolving media landscapes and constantly changing complex online behaviour of consumers [4: 3-4].
Human side: E-commerce makes people invisible. It builds an illusion people are of no necessity or they are of low value. Is it a true fact? Some companies view people in e-commerce as a main manpower, such as Amazon, and even temporarily employ those who face hard times.
E-Commerce market is a growing market with a great variety of opportunities for the online wholesale and retail trade industry which faces the growing number of potential internet consumers. The result of this electronic commerce could be growth of eCommerce sales on the Internet, which has always been a means of advertising, communication and spreading information. Especially, if online consumers use their social followings and behave like influencers building with media marketing opportunities for e-commerce sellers.
Within big threats there are great opportunities for the e-commerce ecosystem, infrastructure and practices. It is a global online community which shows its potential.
- E-commerce losses to online payment fraud to exceed $25 billion annually by 2024. Resource online / https://www.juniperresearch.com/press/press-releases/ecommerce-losses-to-online-payment-fraud-to-exceed
- Clement, J. COVID-19 impact on global retail e-commerce site traffic 2019-2020 // 2020, Aug., 17. Resource online / https://www.statista.com/statistics/1112595/covid-19-impact-retail-e-commerce-site-traffic-global/
- Muncster, Paul. Global e-commerce fraud to top $25 billion by 2024. Resource online / https://www.infosecurity-magazine.com/news/global-ecommerce-fraud-to-top-25/
- 2019 RESEARCH REVIEW: Insights we uncovered in 2019 that will take you into 2020 / Think with Google. Resource online / https://storage.googleapis.com/think/docs/think-with-google-2019-research-review.pdf
Photo by Anastasiia Chepinska on Unsplash