Technology
How COVID19 is changing commerce forever
Rish Sharma, founder and CEO of Mallama, predicts that as e-commerce continues to fuel the battle for convenience and habitual buying behavior, frictionless commerce methods like voice purchasing will grow as customers move away from purchasing products at retail stores and look for easier more convenient ways to get products delivered to them.
August 31, 2020 by Rish Sharma
In the time of COVID 19 when we are all at home, demand for e-commerce brands has skyrocketed as retail operations have been halted and forced to close. Due to whole populations sheltering at home, Emarketer projects e-commerce sales will grow by an astonishing 18% in 2020.
As consumer habits change and move away from the legacy of brick and mortar to the convenience of e-commerce, it will create a gold rush as brands vie for consumers' dollars and mind share.
The segment of e-commerce brands that are poised to see great benefits is Direct to Consumer Brands or DTC Brands. These brands are built selling their products and services digitally by leveraging platforms and data to deliver unique customers' experiences to specific audiences.
Direct to Consumer brands and beyond
With no timeline in sight for when life will return to a pre-COVID world, e-commerce is the primary selling tool for many businesses young and old. A great example is PepsiCo and the launch for their two DTC initiatives, Snack.com and PantryShop.com. Large companies like PepsiCo don't make investments or changes in their business unless they feel there is a long term case for revenue growth or strategic advantage to be had. Any merchant should look at this statement and have confirmation from these industry leaders that DTC and e-commerce is here to stay. The ones that invest will be the ones reaping the rewards in the long term, even when we have a return to "normal."
The future is digital
As e-commerce continues to grow over the next decade and beyond, there will be opportunities for brands and merchants to offer new digital experiences to enrich the customer experience while providing more actionable data, frictionless ways to sell a personalized product catalog, and developing products that are perennial sellers for particular niches.
Quizzes and other recommendation engines are one such way that many e-commerce brands and merchants like Glossier, and ReadySetJudy are leveraging to offer customers products tailored to their needs and lifestyle. As a consumer goes through online quizzes they will answer questions about their concerns, lifestyle habits, and personal environment.
The recommendation engine then provides an answer highlighting the very best products for that particular consumer. From that data, the merchant can leverage what types of products are more in demand or what new products work well to sell to their customer base.
The voice assistants offer new brand experiences
As e-commerce continues to fuel the battle for convenience and habitual buying behavior, frictionless commerce methods like voice purchasing will also grow as customers move away from purchasing products at retail stores and look for easier more convenient ways to get products delivered to them. In addition to voice being used as a purchasing medium, it can also be used to create new experiences like answering questions, delivering directions, or guidance on how to use products through guided assistance.
Finally, at this moment, most of e-commerce is still completed on screens and so it is vital brands and merchants create and deliver bold imagery that tells a story to their customer, and how this product will benefit them. E-commerce is an exciting field of opportunity with able growth ahead of it, but it will be companies that execute today that will have distinct advantages in the future.
Rish Sharma is founder and CEO of Mallama.
About Rish Sharma
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