The evolving technology has urged businesses in revamping their business strategy and one among them is digital transformation. Digital transformation consists of everything from IT modernization to digital optimization, to the invention of new digital business models. For businesses, especially those in ecommerce, digital transformation is crucial as it helps improve customer experience, innovate faster, stay updated, and learn more about customer behavior.
In this post, we’ll talk about the importance of ecommerce digital transformation, how digital transformation has transformed the ecommerce industry, and much more.
Importance of Ecommerce Digital Transformation
Changing Consumer Behavior
Gone are the days when consumers preferred hopping from one store to another to buy different products. Today online shopping is considered the most as it gives the flexibility to shop at your comfort. Online buyers expect seamless experiences, tailored recommendations, and fast delivery. To enjoy a competitive edge, ecommerce businesses must adapt to these expectations to remain relevant.
Technological Advancements
AI and ML are not just the words, rather are dynamic tools that help automate routine tasks and help make strategic business decisions. In order to have more streamlined and optimized operations, businesses have started using these advanced technologies to transform raw data into meaningful insights. For instance, retailers use AI and ML, etc. to analyze sales data to identify products having maximum sales, products with 5-star ratings, etc. and use the insights to create targeted campaigns.
Competitive Edge
If you are still managing your business in the traditional way, then you might end up losing your customers. Thus, ecommerce digital transformation has become important as it lets you stay competitive and offer unique and enhanced customer experiences. Companies who are digitally present have positioned themselves ahead of their competitors and expanded their presence into new markets.
How is Digital Transformation Transforming the eCommerce Industry?
Improved Customer Experience
For all businesses, having satisfied customers remains the top most priority, which is achieved through personalization. Artificial Intelligence helps ecommerce stores recommend products based on a customer’s recent search history, enhancing interactions through intelligent analysis.
Fast and Secure Payments
Ensuring the safety of customers’ money is something that cannot be compromised at all. To keep the ecommerce business growing, it’s crucial to integrate fast, secure, and easy payment options for online buyers as complicated payment processes result in abandoned shopping carts. Thanks to ecommerce digital transformation has made payments faster and easier regardless of the time and geographical location.
Different regions prefer different payment methods, such as credit cards, which are more popular in the US and Canada, while digital funds and debit cards are popular in Europe. Today even cash-based economies are moving towards digitalization.
Comprehensive Product View
The growing popularity of social media platforms such as Twitter, Facebook, and Instagram brings customers closer to ecommerce products. Customers can easily get an overview of your offerings, view products through images and easily access ecommerce platforms with provided links. Company profiles on social media allow customers to know more about the products, check other customers’ feedback, make informed purchase decisions, etc. This integration of social media and eCommerce makes your brand more visible.
Simplified Digital Supply Chain
Digital innovation has simplified various things related to supply chain, including managing inventory, day-to-day operations, and warehouse processes. With the help of eCommerce data management software, businesses can ensure effective management of industry-related data, facilitating informed business decisions.
Real-time data analytics let organizations optimize inventory levels, and lower overall costs while improving supply chain efficiency.
Predict Future Demand
Anticipatory shipping predicts customers’ next purchases as per their buying needs, delivering items to the nearest logistics partner before the order is placed. This way businesses can ensure quick delivery and save a lot of time. Forecasting demands not only help in fast delivery and satisfied customers but also help in managing the inventory and keeping the stock of most ordered items.
By accurately predicting demand, businesses can manage stocks, reduce excess inventory, and have more satisfied customers.
Trends in eCommerce Digital Transformation
Let’s quickly understand the main trends of eCommerce digital transformation:
Automation
Automation is one of the main techniques used by businesses in all sectors including eCommerce. From marketing to sales to supply chain management, all sectors use automation. For example, industries automate supply chain management for inventory management so that shortfalls, if any, can be taken care of in advance.
Automating marketing strategy helps in better lead generation and conversion. The Global Digital Transformation Market is anticipated to grow from USD 469.8 Billion in 2020 to USD 1,009.8 Billion by 2025, growing at a CAGR of 16.5% during the forecast period.
Chatbots
Similar to automation, AI-powered chatbots hold prominent place in the digital transformation process. E-commerce businesses use chatbots to provide tailored experiences to customer queries. This also improves users’ experience. According to statistics, eCommerce customers have the maximum number of receptive audiences of the chatbot responses. Most of the users consider chatbots as a useful tool to help the customer by providing a personalized experience.
Social Commerce
According to the report published by Statista, total revenues from social media platforms is expected to grow at a CAGR of 7.30% between 2022-2027, touching the US$189.50 billion mark by 2027. Social network platforms are not all about communication with the customers, it’s much more than that. Online retailers also showcase their products, offers, upcoming events, etc. on their social media accounts to educate customers about the upcoming events.
Begin your Ecommerce Digital Transformation Journey with Kodehash
If you look for a leading eCommerce app development company that can help you in taking a strategic approach towards digital transformation for your eCommerce business, then connect with the experts at Kodehash Technologies. Being a renowned company, we stay focused on offering an enriched customer experience to improve customer retention rates.
Since inception, we have collaborated with various startups and big-size companies to offer digital transformation solutions that drive results. Engaging an ecommerce development company like Kodehash can streamline the process in a more efficient manner, leveraging their expertise and experience.
Connect with our team today to start your eCommerce project! Our experts are ready to discuss your specific needs, provide valuable insights, and create a roadmap for your digital transformation success.