Is E-tailing a new future of the retail industry?

The E-tailing industry has been booming after the advent of the COVID-19 pandemic. Undoubtedly, it’s the future of the retail industry. Local stoppers, shoppers are increasingly moving towards online modes due to the convenience and huge profits. Recognizing the ease and cost-effective nature of e-tailing, Astute Analytica estimates that the global E-tailing market is forecast to grow at a compound annual growth rate (CAGR) of 18% during the forecast period from 2020 to 2025.

Rising Penetration of the Internet

The advent of the internet has changed the overview of every industry. In every sector, be it automotive, retail, medical, or consumer goods, the internet has definitely increased the potential scope of every sector. In the retail segment, consumers prefer online shopping because of exciting offers and the easy availability of the material. Just a tap and the product will be available at the door within a few days. Consumer behavior is changing rapidly. Moreover, the growing adoption of smartphones is contributing to this new revolution. Statista estimates that the number of smartphone subscriptions exceeded around 6 billion in 2021. Furthermore, China, India, and the United States are the prominent countries accounting for the highest number of smartphone users.

Product Promotion

Earlier, we discussed the customers’ behavior that is boosting the e-tailing industry. However, retailers are also experiencing heavy growth due to growing internet penetration. The traffic on the internet is increasing on a regular basis. Advertisers use modern methods to reach the target audience. The internet is considered the cost-effective yet efficient platform to promote a product to a mass audience. In addition, the presence of renowned social media platforms, such as Instagram, Facebook, WhatsApp, has been a significant benefit for all the companies. Furthermore, it increases the profit margins by eliminating land cost, additional services cost, and much more. 

Online Payment, Cash on Delivery, Online Wallet, And What Not?

Most online websites offer significant discounts to attract an audience. Moreover, the ease of payment is a cherry on the top. The evolution of unique business models such as online payment, cash on delivery, and online wallet is supplementing the growth of e-tailing adoption worldwide. Furthermore, e-tailing companies’ value-added offerings, such as product or service comparison and anytime accessibility, are paving the road for consumers to use the e-tailing platform. 

Government Support

The government of India has provided significant impetus through initiatives such as Digital India, Make in India, Start-up India, Skill India, and the Innovation Fund, which will boost the growth of the e-tailing industry in the coming years. As China’s central bank intensifies its quest to build its own digital currency, the country’s central bank has produced pilot versions of its digital yuan wallet application for mobile phone app stores.

Constant Innovations

The forthcoming innovations are likely to decide the future of the e-tailing industry. Artificial Intelligence (AI) has been empowering brands around every vertical for years. Moreover, companies are also leveraging the growth of virtual reality. In addition, chatbots are significantly the future of the industry. Chatbots offer an efficient platform to ease the work of e-retailers and convenience to consumers. Moreover, chatbots with artificial intelligence can build efficient communication between the customers and the companies through a chat interface.