Are your e-commerce sales down? Here is why - Insight of the Week

Описание: Since 2020, there has been a boom in e-commerce sales. This makes total sense. We were all locked up, could not go anywhere, and the only option was to finally plant that garden, binge-watch your favorite shows, and.. shop online.

At that point, if you were a company that figured out the online game, you were in the game. Your company's survival depended on your website, online booking functionality, swift and clever adjustments to your business model, and the ability to sell your product online. You adjusted to the changes in human behavior, as all smart companies do.

Well, the direction of the wind has changed since then. People are more willing and prefer to go back to in-person interaction. Starting last year, US consumers shopped equally online and offline, with an estimated 83% of shoppers visiting both physical and online stores.

Let's look at the following:

Online retail sales dropped again in early 2022, reverting to the pre-pandemic levels.
Shopify, the Amazon alternative to e-commerce, whose market value has fallen by almost 80% last year, expects more losses ahead as e-commerce sales slow down.
For the second consecutive quarter, the e-commerce giant, Amazon, sees its sales drop by 4%.
Small merchants are actively digitizing and scaling their businesses worldwide, while big tech companies are reaching into retail while massively collecting consumer data and personalizing user experience.

Don't get me wrong, online shopping and e-commerce are still the way to go for the American market, but it has experienced some serious transformation. People are more willing to return to stores to get higher-quality service, rather than just buying products online. They want to try that dress on, smell that perfume and jump on that mattress while store employees are away.

What can you do to stay ahead of the competition and remain profitable?

Improve customer experience at in-store locations. Offer unique high-quality service and exceed your users' expectations. Don't forget about personalization, loyalty gamification, and reward programs. Pay close attention to feedback.
Merge online with offline. Create a shopping experience that combines the best of both worlds. Develop mutually beneficial partnerships with local retail brands. Let people touch and smell your product at one of the local stores.
Build a strong brand. Be memorable, make a statement, add value, and positively influence your customers' lives.
Is this why you started your business in the first place?

Online or offline, "may the force will be with you"!