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How Digital Transformation affects e-commerce

March 26, 2024

Trends & Views

Although businesses in various sectors had started implementing digital transformation earlier, the pandemic accelerated the process. A Statista report says that the technology and energy sectors have accelerated the digital transformation processes, while transformation in the e-commerce and retail sectors has accelerated to 70% since the pandemic. Next, we will examine the impact of digital transformation on e-commerce, trying to explore the future of both.

Online shopping has now become an established activity. Exploring products on the Internet and making purchase decisions is a widespread practice. However, trends are changing, and you need to embrace digital transformation to upgrade your business.

Increasing customer demands

Convenience has overtaken brand loyalty with e-commerce adoption trends. The customer is now looking for better prices, ease of pickup and delivery, timely delivery of orders and ease of return. These demands and expectations push the business to choose newer technologies to keep up with the pace of customer demands.

Direct-to-consumer strategies

With increasing competition, brands are now looking for ways to sell directly, opting for direct-to-consumer strategies. By enabling customers to interact directly with the brand on their own platform rather than on aggregators’ online shopping platforms, businesses can reduce costs, offer better prices to customers, and generate revenue. Customers also get a better product experience by interacting directly with brands.

Efficient delivery systems

Online shopping offers the convenience of returning the product if a wrong or defective one was delivered to the customer. However, with increasing demands, the customer now expects to receive the right order at the right time in the first place. Inaccurate order deliveries may discourage customers and subsequently businesses. Thus, having a strong delivery system and supply chain is one of the critical factors driving businesses to opt for digital transformation.

Contactless purchases

The pandemic has forced retailers to provide contactless shopping experience for greater safety, enabling an improved online shopping experience along with contactless payments. This has also highlighted the need to provide customers with a personalized online experience that reflects a commitment to the end user.

Personalized suggestions

Artificial intelligence has made e-commerce processes smarter. Understanding customer behavior, choices and preferences and then suggesting the right products for each case is the essence of personalization.

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