What will be the future of eCommerce, especially in a post-COVID world? If your business has an online presence and you’re trying to compete for digital sales, it’s important to know how to best position yourself among the competition.
Over the past 10 years, Amazon has clearly emerged as the “everything store” to serve as a one-stop shopping destination for online consumers; however, a growing coalition that’s been dubbed the “anti-Amazon alliance” has been developing to carve out its own stake in the online ecosystem. While this alliance includes major players, such as Google and Target, it also involves brick-and-mortar retailers, mom and pop shops, online entrepreneurs, eCommerce brands, drop shippers, and a variety of other small businesses.
Shopify and Etsy have both developed competitive digital strategies that are helping to shape the future dynamics of eCommerce. By late 2019, Shopify achieved a 50% compound annual growth rate (CAGR), and since the start of the global pandemic lockdowns, both Shopify and Etsy have capitalized on the acceleration of eCommerce
Of course, your business is very different from that of an Amazon or a Shopify or an Etsy – but here are some lessons you can learn and apply from their strategies and successes:
1. Lessons from Amazon
To understand the nature of Amazon’s power in the marketplace, it’s useful to know Aggregation Theory. In short, this is the idea that an aggregator succeeds because they have a direct relationship with customers, and as their network grows, their customer acquisition costs go down while they incur no marginal costs for serving more customers.
While your business may not have the large network effects of an Amazon, there are lessons you can learn from their business approach:
Proactively address online shoppers’ top concerns – when buying online, customers are looking for quick delivery, an easy checkout process, minimum shipping costs, and a positive return process if necessary. While you may not be able to offer one-click buying and free two-day shipping, what can you do to improve the shopping experience? Especially during COVID, customers want to know that their orders will be delivered safely, reliably, and reasonably soon.
Personalize the online shopping experience – Amazon continuously shows users product recommendations based on their browsing history and past purchases. Can you use some form of personalization tech, knowing where someone is on the customer journey, and guiding them to the next step? Or maybe you can take advantage of Google remarketing strategies to show visitors targeted ads?
Provide testimonials and reviews – while you may not be able to collect and display as many product reviews as Amazon, you can still tap into the strategy of social proof by prominently displaying testimonials. Recent research suggests that 85% of online shoppers trust online reviews as much as friends’ recommendations.
2. Lessons from Shopify
Shopify has built a platform that makes it possible for now almost 1 million eCommerce merchants to sell directly to consumers. Shopify has invested in tools and applications that make it possible for merchants to differentiate their brands while still optimizing the online shopping experience for customers.
Here are some lessons your business could learn from some of the most successful stores on Shopify:
Highlight your Uniqueness and Brand Values – why do your customers choose you over competitors? What makes your brand special? What do you stand for? Take the time to craft and clarify your Unique Selling Proposition (USP) and make sure it is clearly conveyed across your site.
Capitalize on Digital Advertising and Social Media for Brand Awareness – it’s not enough to simply have a website where consumers can buy, you have to generate interest and drive traffic to your offers. How can you engage with your ideal audience where they’re already at, and inspire them to interact with your brand? Both paid search and social media ads can help boost your business.
3. Lessons from Etsy
Etsy has been especially successful in adapting to new consumer behavior in the wake of COVID-
19. For example, they were able to quickly identify and serve the new demand for masks – including rewriting algorithms so the query for “mask” wouldn’t generate Halloween-themed results and then working with sellers and distributors to deliver results.
Best of all, Etsy is thinking beyond the pandemic, using the opportunity to get set for long-term growth. Here are two ways they’re thinking ahead:
Introducing AR experiences – curious how a piece of art might look, not just on the screen but on your wall? Etsy is investing in augmented reality technology to create new and exciting customer experiences. Are you thinking ahead to new AR/VR tech?
Partnering with influencers and experts – a strategic partnership can enhance your brand image. For example, Etsy recently announced that Drew Barrymore will be a celebrity judge for its design awards competition. Luckily, you don’t need an A-list movie star sponsor to augment your brand reputation. Who are the niche influencers and/or thought leaders in your field who can help enhance your business?
If you’re looking for ways to successfully grow your business online in our post-COVID world, we’d be happy to chat. As a Google Premier Partner, our team here at JXT group can help you set up for eCommerce success – and save money on ad campaigns. To learn more, give us a call at 718-690-7302.
