NCR VOYIX’s State of the ecommerce Sector Report for 2022 some of the key benefits of ecommerce including:
- Growth: Our data shows that stores which went from zero ecommerce to a fully integrated experience enjoyed a 10.3% increase in overall weekly shopping revenue.
- Increased revenue per customer: Customers tend to spend more on online purchases. The average basket size for an ecommerce transaction ranges between three to five times of in store sales.
- Greater convenience: The convenience of shopping online any time of day gives people more flexibility (according to NCR data, 72% of consumers say a top pain point of in-store shopping is time spent in the checkout line) and lets them control their experience from ordering to fulfilment.
- Meeting expectations: As ecommerce becomes more common customers increasingly expect it. Our data shows that 33% of customers will not buy from retailers unable to offer click-and-collect shopping.
Ecommerce can also expand the reach of a store. In a brick-and-mortar environment, stores can only serve those who travel to their locations. Online allows people to buy from anywhere as long as they have a connection, and the store can fulfil deliveries to their locations. Developing an ecommerce presence is also extremely beneficial in building your profile and enhancing the reputation of your business.
Digital innovation is also self-sustaining. The more outlets which develop the capacity to offer online sales, the more customers come to expect it. That expectation drives their buying behavior. As our report showed earlier, people will increasingly avoid those retailers which can’t offer online options such as click and collect or curbside delivery. With other businesses upping the number of channels they sell through; customer expectations are growing. It is amazing how quickly new options go from something which is advanced and nice to have, to something which is expected as a bare minimum.
Those online retailers will be able to reach customers, giving them an experience, which attracts them even when making purchases offline. For example, if you’re a retailer which does not have a particularly advanced online option, and your competitors do, your competitors could reach your customers in their home, persuading them to switch their buying behavior even when buying in-store.
In other words, while having an ecommerce presence for your store might have once been considered one way in which people could generate a clear point of difference, today it’s often simply about keeping pace with the rest of the market.
At the same time, digital innovation also makes it easier for stores to get online. While ecommerce websites would previously have been large, complicated and expensive affairs, today they can be done with simple plug-ins. Payment gateways which handle all the financial aspects of collecting and processing payments are easy to implement for retailers of all sizes.
Meanwhile, fulfilment is less of a problem with the number of services operating that handle that process for retailers. Rather than going to the expense of having expensive logistical infrastructure, you can rely on the fulfilment company.
Cloud computing services are also transforming the game by bringing digital innovation to businesses of all sizes. With these, it is possible to access the latest, state of the art technology with nothing more than an online login. There’s no need to purchase expensive or cumbersome software or hardware solutions.