Dennis OConnell | BORN Group

Building eCommerce For The Greater Good

Posted on April 6, 2022April 7, 2022 by Dennis OConnell

Building eCommerce For The Greater Good

As eCommerce reshapes the modern marketplace, many shoppers are spending more time and money online, leading eCommerce to grow, with sales expected to reach $5.5 trillion in 2022.¹ The accessibility of online shopping and the growing use of digital payment options have resulted in a dramatic shift in consumer shopping habits. While there are advantages to expanding online, the rapidly changing landscape has also created financial, economic and social benefits.

eCommerce Encourages Entrepreneurship

The eCommerce industry encourages entrepreneurship by reducing start-up costs. An eCommerce site can be launched for as little as $1,000, depending on the necessary features for business.² Whereas a significant amount of time and money is needed to open a physical store, an eCommerce store can be operational in just a few short weeks or days. Fewer barriers to start and a more significant market share encourage businesses of all sizes to compete. As more retailers enter the marketplace, sustained growth and competition lead to more innovation and online experiences. To keep customers coming back, retailers must focus on the customer experience and create compelling products that stand out. This focused attention helps attract new customers and incentivizes current customers to return to online shops, driving economic growth.

Widely Available Goods and Services

Businesses can connect with customers through online channels and have far greater reach than physical stores. It’s estimated that 2.14 billion people worldwide, roughly a quarter of the world’s population, will make an online purchase in 2022.³ ECommerce ensures customers can find everything they need in one place. Without the limitations of a brick and mortar store, online retail stores can offer a greater number of products to their customers. In addition to increased purchasing options, customers can browse and make purchases at their convenience. Online stores enable customers to spend their time shopping instead of driving to physical stores or waiting in long lines. Online stores are always open and provide 24/7 access to vital goods and services. Secure payment options, including digital wallets, credit or debit cards and crypto, facilitate payment and encourage sales.

More Affordable Products

The increasing number of online storefronts has resulted in competition among retailers to provide the best deal to consumers. This gives consumers the ability to compare prices and quality. Additionally, lower operating costs allow online retailers to sell products for less than traditional retailers. The demand for certain products encourages companies to create more affordable alternatives. With so many online options, consumers can find products at their desired price point, encouraging even less affluent customers to shop. Retailers can also offer deferred payment through Buy Now, Pay Later platforms that make purchases more achievable for customers. Giving customers the option to pay later can boost sales by making larger purchases more obtainable.

A Lifeline During Uncertain Times

A key benefit of online retail is that it is a lifeline for businesses and customers during turbulent times. As the world went into lockdown in response to COVID-19, commerce habits shifted to online purchasing. Shortages of essential items on store shelves resulted in many customers turning to eCommerce. Online shopping boomed because it was a safe and viable option to obtain necessary items. Companies that focused their efforts on online selling were more likely to survive and grow. Expanding their online presence also meant some businesses could continue to provide jobs to workers during a period of record unemployment and uncertainty.⁴

Career Opportunities

The growth of online retail translates to increased career opportunities. According to the data and analytics company GlobalData, the number of eCommerce jobs has increased by 180% from September 2020 to September 2021.⁵ Jobs in marketing, sales, design, web development and IT positions are vital to keeping an eCommerce company operating. While online websites automate many processes, the human element cannot be eliminated. Talented IT professionals are necessary to create and keep websites up and running, while creative sales and design teams contribute content to educate and connect with customers. Lastly, skilled customer service departments are necessary to handle customer queries.

Why Should Businesses Care

The eCommerce industry has revolutionized commerce worldwide. Entrepreneurs can now set up shop easier than ever, providing new opportunities. The increased number of online retailers has generated more diversity in goods and services, which helps keep costs manageable. During times of uncertainty, eCommerce offers a lifeline that enables consumers to find much-needed supplies. Businesses that shift to eCommerce can continue to expand while helping the greater good by providing employment, goods and services to everyone.

Footnotes:

1.https://www.emarketer.com/content/global-ecommerce-forecast-2022

2.https://www.bigcommerce.com/articles/ecommerce/ecommerce-cost/#conclusion

3.https://www.oberlo.com/statistics/how-many-people-shop-online

4.https://www.forbes.com/sites/johncaplan/2021/05/03/ecommerce-has-been-a-lifeline-for-small-businesses-during-the-pandemic-where-do-they-go-from-here/?sh=e85d61235871

5.https://www.globaldata.com/ecommerce-hiring-increases-180-y-o-y-social-commerce-trends-increasing-hiring-activity-finds-globaldata/

How WFH Culture Has Changed Commerce Habits

Posted on March 21, 2022March 23, 2023 by Dennis OConnell

How WFH Culture Has Changed Commerce Habits

When the lockdown order came at the height of the COVID-19 pandemic, businesses scrambled to convert their daily operations to remote workspaces. Luckily, we live in an age that offers enough technology, such as high-speed internet, online payments, and video conferencing, to make work from home (WFH) successful. Although WFH was difficult for some businesses, it proved to be a practical and sustainable business method for eCommerce companies. With the WFH culture in full swing, commerce habits switched heavily to online purchasing and affected consumers’ purchasing. As the Covid-19 public health crisis enters its third year, political leaders and business leaders are in the process of reframing Covid-19 as an endemic disease, one that society must learn to cope with indefinitely. As restrictions lift and case numbers decrease, employers must navigate unfamiliar waters as they attempt to return to normal business operations and embrace changes in the workplace. As companies adapt to fully or hybrid work arrangements, it seems WFH is here to stay. Therefore, the eCommerce industry will need to focus more of its efforts on B2C and D2C.

What Goods Are Consumers Buying Online?

A 2020 study by J.P.Morgan states that eCommerce made up 16.1% of all U.S. sales in the second quarter, compared to 11.8% in the first quarter.¹ This trend continues upward even as the majority of stores have reopened to the public. Remote and hybrid work schedules may result in permanent changes to how Americans work, live, and spend. So, what is the average consumer buying? More time at home has allowed the workforce to create unique spending habits.

Cleaning products

Covid-19 case numbers may be on the decline, but consumers are still spending money on cleaning supplies, including disinfecting wipes and sprays, gloves, masks, soap, and other essentials. Even as demand for cleaning products decreases from our stockpiling days during the height of the pandemic, people are still purchasing these items more than before. Shortages of essential items due to supply chain breakdowns resulted in many customers turning to online shopping to stock up. This forced eCommerce platforms to get creative with the increase in online shopping and logistics of delivery. A study out of IEEE discusses the impact of COVID-19 on digital platforms and how eCommerce is an effective method of buying and selling essential goods. With the help of machine learning (ML) and artificial intelligence (AI) technology, route mapping makes it possible for deliveries to occur quickly and safely.³ Digital platforms have leveraged technology to help everyday consumers purchase essential goods online.

Home Improvement

With employees spending more time at home, it’s no wonder that homeowners are completing projects they have been putting off. WFH flexibility makes getting projects done either by DIY or hiring a contractor easier. A study by Harvard University notes that in 2020 the economy shrank by 3.5%. However, spending on home projects was up 3%, almost $420 billion.2 How are consumers shopping for the materials needed to complete these home projects? Whether it’s a kitchen redo, home office build, or something else around the house, eCommerce provides the perfect B2C and D2C solutions to get the job done. However, the materials used in home improvement typically have a higher cost ratio. So, with more shopping done through eCommerce, businesses need to ensure consumers feel safe completing transactions online. The study out of IEEE also states how eCommerce businesses have adapted the use of secure digital wallets and blockchain technology. Blockchain technology allows eCommerce businesses to cut out intermediaries and distribute directly to the consumer.³

What Lessons Can Businesses Learn From WFH Culture

It seems WFH is here to stay as many employers continue to offer hybrid work schedules. Recent studies suggest 25% of all professional jobs in the U.S. will be remote by 2022, and opportunities to work remotely will continue to increase through 2023.⁴ It’s safe to say that some form of WFH will stick around for years to come, and with the continued flexibility of being home more often, eCommerce will only become more popular as an option for consumers. So what can businesses learn from pandemic era consumer habits? More consumers feel safe making purchases online because of improved digital wallets and blockchain and enhanced delivery with help from ML and AI. However, there are more lessons to be learned, including the importance of website optimization. With the influx of online shoppers, a business’ website is its most important asset. If the site cannot handle a large number of transactions each day, companies will lose sales. So, updating performance through user experience, omnichannel options, and bandwidth is a must. Business owners will need to start spending less on their real estate and more on the online marketplace.

It is undeniable that COVID-19 and WFH culture have changed the commerce landscape. Even businesses that have traditionally done well as solely brick and mortar need to prepare for an increased number of online consumer shopping. When businesses learn to embrace the recent changes in commerce habits rather than try to ignore them, they will be better suited not only to adapt to a new reality but to thrive in it. That’s why now is the perfect time for businesses to develop an effective eCommerce strategy for B2C and D2C.

Footnotes:

We Have Reached Cruising Altitude: Why Airports Need To Elevate Their Experiences

Posted on March 2, 2022March 2, 2022 by Dennis OConnell

We Have Reached Cruising Altitude: Why Airports Need To Elevate Their Experiences

Airports are undergoing an evolution to improve the customer experience and generate profits. Realizing their potential to be more than just travel hubs, airports are exploring innovative ways to make guests feel safer, provide unique shopping experiences and make time in the terminal more meaningful. Imagine a space similar to a lounge or upscale shopping mall where travelers can relax, eat, drink and shop as they wait for their flights. Airports can provide a personal and stress-free experience through physical and virtual interaction based on passenger data. Deeper engagement made possible through digitalization and modernized infrastructure would allow airports to improve relationships with travelers.

Improving Airport Infrastructure

The airport experience should be an enjoyable part of the journey rather than a processing station getting passengers to their destinations. Though many airports around the country are dated and offer limited shopping and dining options, there is a renewed focus on updating existing infrastructure as travelers return to airports following the COVID-19 pandemic. In 2021 the U.S. Department of Transportation released US$76 million in grants to upgrade airport infrastructure. Although the offerings apply to only three U.S. airports right now, these are just the first of a series of more than 1,500 grants that will infuse US$3.2 billion into hundreds of airports around the country.¹ Even without the grants, many cities are reimaging existing facilities to support an ever-growing number of travelers.

Focus On Health And Safety

In addition to improving airport facilities, lessons learned from the COVID-19 pandemic play a significant role in enhancing customer experience. Features such as automated passenger processing and touchless services have become increasingly popular. Passengers also desire a sense of space instead of overcrowded lines and limited seating. Airports, including Changi, are implementing bright colors, natural lighting, and large open spaces.³ With a focus on health, contactless TSA checkpoint entry and more open spaces have already begun changing the passenger experience.

Improving The Customer Journey With Data

Airports can provide a more enjoyable customer experience by better understanding the movement of passengers through their airport journey. Data from WiFi, cameras, people counters and other data sources provides real-time information about movement, occupancy and standing time in various airport areas.² These insights can help airports optimize staff schedules, reduce waiting times, reduce stress and encourage spending in retail locations. Additionally, data collected from guest WiFi networks enables targeted marketing from nearby retailers to be sent directly to passengers for an increased chance of making a sale.

Business Opportunities In Travel Retail

Modern airports recognize the critical economic role of travel retail for growth and development. They have the advantage of a captive audience looking for ways to pass the time. Airports offer brands an opportunity to maximize visibility and customer engagement. While most retail has shifted transactions and fulfillment online, physical airport storefronts can provide strong customer interaction.³ These retail spaces can display products and engage with customers in meaningful ways to aid in conversion and retention. By creating personalized and unique experiences, brands can expect further engagement and sales after customers leave the airport.

Aligning Luxury With Everyday Products

Airports are undergoing renovations by designing footpaths and atriums to maximize exposure to retailers. Mass-market and luxury retailers are now joining popular duty-free stores, newsstands and gift shops. High-end luxury retailers see airport storefronts as a way to market their products to international audiences and generate more sales. According to Allied Market research, airport retail sales are expected to top US$40 billion by 2027, with perfume and cosmetics leading the way, then wine and spirits following.⁴ Luxury retailers have a massive potential for profit by opening shops within airports and targeting travelers who are shopping to pass the time.

Technology And Automation

Nowadays, most brands generate sales through digital marketplaces, and it’s the same for airport retail. However, airport storefronts benefit most from digital marketplaces that enable remote ordering and automated check-out. Currently, retail giant Hudson Group is testing Amazon’s Just Walk Out technology in select locations. These Hudson locations allow customers to tap a credit card on entry, pick out items, and exit, all while avoiding check-out lines.⁵ Automating the process allows for easy transactions and reduced labor costs. However, retailers must have a robust digital marketplace to handle all transactions. During the 2020 Black Friday holiday, customers spent US$160 million shopping on digital marketplaces powered by Mirakl, which maintained 100% uptime, showing the importance of having strong technology as demand increases.⁷ It’s also about using a combination of technology that gives retailers an edge. Other providers, including FetchyFox, offer intuitive digital marketplaces that enable speedy contactless shopping and features artificial intelligence (A.I.) for data collection.⁶ Using a digital marketplace with automation and data capabilities will help airport retailers keep up with demand and modernize their business strategy.

The Future Is Now

Airports worldwide are starting to elevate the travel experience. As COVID-19 fears are dissipating, passengers are eager to travel, and airports are busier than ever. Government funding is being used for improving infrastructure and health safety. Passengers want fewer crowds and more open spaces to relax while waiting for departures. They also want to shop, and the time-honored tradition of duty-free isn’t going away. In fact, airport retail is growing faster than ever and now includes high-end luxury brands. However, the traditional storefront is changing, and customers can now shop from digital marketplaces that offer more options, automation and no lines. This is the time for airports and consumer brands to join forces to create an unbelievable experience for everyone.