We’re constantly keeping our finger on the pulse of the eCommerce market to know its latest discoveries, trends, and pains. This summer was turbulent for the economy, and the unprecedented stay-at-home phenomenon paved the way for interesting news and developments in the eCommerce sector.
Here, we gathered must-read eCommerce blogs of summer 2020, which help to better the understanding of the industry’s direction and its best practices.
1. eCommerce Pandemic Boost
eCommerce is a silver lining of the current economic storm. Expectedly, the pandemic led to more people buying online. However, the scope of the shift is dramatic: eCommerce market share is predicted to grow by 20% in 2020, accelerating the shift to eCommerce by 5 years.
Also, the crisis shifted consumers’ focus: people started buying less clothing and more groceries, home improvement materials, and alcohol.
Unfortunately, such a boost to the eCommerce industry didn’t come for free. Brick and mortar stores took heavy losses. Some companies reported up to 75% of non-essential product sales decline. Also as a result of the crisis, a lot of firms started undergoing digital transformation to address declining revenue.
Read more on TechCrunch:
“COVID-19 pandemic accelerated shift to e-commerce by 5 years, new report say”
2. The Success of the Second-hand Online Retailer From Scandinavia
The Scandinavian market, which Forbytes has close ties to, is showing interesting trends as well. The bright example is Swappie — an online retailer of refurbished iPhones — that secured $45 million of investments this summer.
The success of Swappie is important because it serves as an example of the continuous growth of the Scandinavian eCommerce market. Also, the growing demand for second-hand goods opens interesting prospects for online sellers in Europe and beyond.
Read more on UKTN:
“Swappie raises $40m Series B”
3. Emerging Markets’ eCommerce is on the Rise
eCommerce of the emerging markets is often neglected when the talk gets to the global online retail trends. However, the industry of developing countries is quickly becoming the power to be reckoned with. For instance, in Malaysia alone, eCommerce is worth 2.2% of GDP and is expected to “grow at a compound annual growth rate of 24 percent a year.”
Overall, Business Wire reports, “the Emerging Markets Internet & Ecommerce ETF (EMQQ) is up over 45% for the past one-year period through June 19th, 2020 and recently surpassed $650 million in assets under management.”
Read more on Business Wire:
“The Emerging Markets Internet & Ecommerce ETF (EMQQ) Announces Strong One-Year Performance”
4. Odd VC Investments Dynamic
Now, to a paradoxical bit. Despite the booming growth of the online retail sector, venture capital investment in eCommerce is rather lacking. As the recent CBINSIGHTS Q2 report indicates, even though the eCommerce investments of the second 2020 quarter grew in comparison with the first quarter, the numbers are still a long way off.
It’s difficult to pinpoint the exact reason for such a situation. Perhaps, it’s a combination of the crisis uncertainty with a ‘kill zone’ principle — an overwhelming competition threat posed by the market giants.
Nonetheless, eCommerce investments are slowly rising from the depth of Q1 indicators despite the ongoing crisis.
Read more on Extra Crunch:
“Despite booming consumer demand, VC interest in e-commerce startups falls in 2020”
5. Reducing Shopping Cart Abandonment Rates
Shopping cart abandonment is an important eCommerce performance indicator. Unfortunately in the worst cases, up to 80% of users leave their carts without committing to a purchase. Nevertheless, knowing the reasons for high abandonment rates as well as ways of addressing them can help eCommerce companies lower the number to 20% in the best case and boost their performance significantly.
Read more on Forbytes:
“How to Improve Your Shopping Cart Abandonment Rate”
6. Another Magento 2 Success Story
An eCommerce powerhouse, Magento 2, continues to enhance the performance of different online shops.
The most recent example is Norwegian retailer Get Inspired that reported 30% year-over-year growth after migrating from Magento 1 to Magento 2.
This example demonstrates that even though migration from one platform to another is a complex endeavor, a careful approach combined with proficient developers makes it completely worth the effort.
Read more on Magento:
“Norwegian retailer Get Inspired sees 30% growth YoY after migrating to Magento 2”
7. Tricky Subject of Choosing an eCommerce Platform
“Open-source or SaaS platform?” is the question that is almost as old as the industry itself. On the one hand, there is no one-size-fits-all answer to this question. On the other hand, you can decide which option is better for your particular case based on professionals’ insights, experience, and advice.
Read more on Forbytes:
“Open-source or SaaS: Which eCommerce Platform to Choose?”
8. COVID Affects Asian Super Apps
Super apps — mobile or digital platforms that combine several services in one place — have seen some peculiar trends under the influence of the crisis.
For example, Malaysian Grab — a super app that offers taxi-booking, hotel-booking, food and grocery delivery, and financial services — had to reorganize its operations, close some low-profit services and focus on the rest to preserve performance. At the same time, food delivery and financial services are expected to become new drivers of super app development.
Asian super apps trend is important to the understanding of the possible future of the eCommerce industry development. It’s quite likely that the rest of the world will double down on super apps as they present a viable, convenient, and efficient software ‘packaging.’
Read more on Oxford Business Group:
“How is Covid-19 changing Sout-east Asia’s super apps?”
9. Voice Search-Enabled eCommerce
Voice connects us, and the desire to speak rather than text has been growing stronger recently. Therefore, it’s not surprising that voice search-optimization is becoming a useful tool for selling things and services online. Thus, as search engines strive to become more conversation-oriented than keyword-oriented, eCommerce players who want to stay ahead need to adapt to the new reality. A meticulous voice optimization of the eCommerce resource can boost its search engine visibility as well as help to engage customers better.
10. Malaysian Farmers Go Digital
For the 10th entry in this list of must-read eCommerce blogs of summer 2020, we decided on a little ‘feel-good’ story that demonstrates eCommerce’s ability to help common people persevere. In this case, as wet markets were shut down, Asian fishermen and farmers went digital for the very first time.
Steve Teoh, Cameron flower plantation owner, as well as other Malaysian fruit and vegetable farmers, received help from Singapore-based eCommerce marketplace Lazada, which provided them with a platform to sell their goods online. According to Lazada, more than “1.5 tons of vegetables were sold in the first weekend of the lockdown.”
Read more on BBC:
“Asia’s fishermen and farmers go digital during virus”
While closely monitoring the current state of the eCommerce market, we’re celebrating its victories and feel for its failures. On our side, we apply all our knowledge and experience to multiply the number of the former and decrease the number of the latter. Despite the inherent global anxiety of the current crisis, the top articles about eCommerce only further reinforce our positive attitude towards the future of the industry and our part in it.
If you require eCommerce development expertise, feel free to contact us. We’re focused on technology that helps your business grow.