5 Tips for Your eCommerce Business in 2020
There is nothing more essential to brands and businesses in 2020 than growing an eCommerce presence. According to Shopify, global eCommerce is expected to exceed $4.2 trillion USD in 2020 and surge to $6.5 trillion by 2023. Forget the ‘e’ in eCommerce. In today’s marketplace, online purchasing is the new normal.
By the end of 2020, there will be 2.05 billion global buyers online. That estimate continues to grow as a result of COVID-19 which has caused a spike in global eCommerce sales since shelter at home orders began in March. Penetration rates for eCommerce are expected to increase from 15% in 2020 to 25% in 2025.
As of April 21, U.S. and Canadian eCommerce orders have experienced a 129% year-over-year growth and online retail orders have jumped an astounding 146%. In June, eCommerce sales grew by an additional 76%.
With the world staying at home, these sales are being driven mostly through mobile devices. According to PYMNTS’ 2020 Remote Payments Study, 72% of consumers are using mobile devices to shop online, making a mobile-ready strategy a necessity for 2020 and 2021.
Once you’ve already done the hard work of researching your business model and niche, validating target market and product ideas, registering your business and brand name, finalizing your ecommerce plan, and creating your online store, it’s time to attract customers with the experience and features they expect in today’s evolving marketplace.
Here are 5 tips on how to start your eCommerce business in 2020.
- Get Influencers to Recommend Your Products
The world of influencer marketing isn’t going anywhere. In fact, influencer marketing has climbed from a $4.6 billion industry in 2018 to a $6.5 billion industry in 2020. This number is expected to increase all the way to $15 billion by 2022.
On Instagram alone, influencer marketing is an industry worth $1.7 billion and that number continues to grow, with Instagram stories remaining the #1 format for influencer marketing followed by YouTube videos and Instagram videos. In 2020, 79% of marketers reported that instagram stories are the most effective content format for influencer marketing.
Marketers are now spending an average of $10k per year on influencer marketing in 2020, and 18% are spending $100k – $500k per year, a 65% year-over-year increase from 2019. In fact, over 17% of companies spend over half their marketing budget on influencers.
The reason? It works. Over 89% of marketers report that ROI from influencer marketing is comparable to or greater than other marketing channels, with every $1 spent resulting in an average profit of $5.20. As sponsored post prices continue to fall in the wake of COVID-19, influencer marketing represents an appealing alternative to big budget ads.
Customers love it too. Over 49% of customers report that they depend on influencer recommendations before making a purchase. Influencer product endorsements not only provide a cost-effective but a valuable form of social proof that your brand or business is legitimate.
- Incorporate On-Site Personalized Shopping Experiences
Boost revenue by creating a personalized shopping experience for your customers to help them feel more connected to your brand. Customers are 110% more likely to add additional items to their baskets and 40% more likely to spend more than they originally intended.
Offering value incentives for providing personal data is an easy method of offering a personalized shopping experience while also maintaining customer satisfaction. On average, best-in-class retailers invest .9% of their revenues in personalization today. Over the next three years, this number is expected to jump to a staggering 30%.
Businesses are finding new ways to introduce customization into their purchase platforms through the use of quizzes, chatbots, surveys, promotional offers, and pricing that responds to unique preferences and buying history. This allows business owners to more effectively market products that are specific to their customers’ needs.
While personalization is still in a nascent stage, it remains one of the most accessible and effective tools for small brands and businesses to convert shoppers into customers and increase customer lifetime value.
- Make Your Social Media Shoppable
The advent of shoppable posts and swipe up ads in 2019 changed the way customers view and purchase products. Social media is now one of the key touchpoints brand and business owners can use to drive sales. By 2021, global social commerce sales are expected to increase by 34%.
With advancements in personalized advertising and improvements to shopping UX, customers are becoming more comfortable with clicking buy without leaving the Instagram app.
In 2020, over 55% of online shoppers have bought a product through a shoppable social media post. With 84% of buyers examining social media before making a purchase, the most logical step for business owners is to offer purchase opportunities on their social media pages.
Platforms like Instagram and Facebook have become search engines of their own, offering new and convenient methods for customers to purchase products and services without visiting a website. In 2019, social commerce sales were estimated at $22 billion in the U.S., a number projected to increase to $84.2 billion in 2024.
- Create Flexible Payment Plans and Contactless Payment Options
Businesses that offer products on the expensive side should incorporate flexible payment plans for customers using systems like Afterpay, Final, and Affirm. Enabling customers to break up large purchases into smaller components over the course of several months increases the likelihood of purchase between 20% – 30%.
In western Europe and China, P2P and buy-now-pay-later systems have become the preferred method of payment over credit cards. Systems like Afterpay have been shown to mitigate cart abandonment and promote multiple purchases. By 2021, digital wallets are expected to surpass credit cards as the preferred method of payment in the U.S.
If your business relies on brick and mortar foot traffic, consider implementing a non-contactless method of payment so your customers can continue to shop during COVID-19. Since March, contactless payments have jumped 38% and 26% of consumers reported they wouldn’t patronize a business that didn’t offer a contactless payment option.
With brick and mortar sales down 14%, implementing a contactless payment method to keep customers buying is a must for Q3 and Q4 2020.
- Offer Free Shipping, Curbside Pickup, and Delivery
In the era of COVID-19, customers not only expect new methods of purchasing products, but better and more convenient methods of shipping and delivery. With government officials restricting dine-in options and in-store browsing, customers are looking for ways to receive their purchases safely and efficiently.
BOPIS, or buy-online-pick-up-in-store delivery options are also skyrocketing. Downloads for personal shopper apps like Instacart and Shipt have increased 124% as customers clamor for a way to avoid crowds and lines. Retail delivery orders have risen by 26% since April, climbing 67% rise since February.
For major retail businesses like Target, Best Buy, Kohl’s and more, curbside pickup has surged 208% between April 1 and April 20, a trend that is likely to become a permanent offering for retailers in the near future.
Offering free shipping is a must in 2020 as well. Not only does free shipping entice customers to buy, but studies have proven that high shipping costs are the #1 reason for cart abandonment on websites and third-party marketplaces.