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News Article

Technology To Fully Transform the Future of Commerce

By Rodrigo Andrade | Wed, 11/09/2022 - 14:13

The increasing shift to digital shopping channels, brought in by the pandemic’s e-commerce boost, shows no sign of reversing. From user experience to product pages and other strategies, new challenges are shaping the future of Mexican businesses and their role within the economy. In 2022, companies are expected to settle into a “new normal” where disruption is always around the corner. To keep up with these changes, tech can help them to rethink what they produce and how. 

While digital commerce has its perks, maintaining all aspects in place and developing the voice of the brand online has become the decisive point between companies that bloom and those that do not. Physical stores maintain a place for the public that prefers to touch, smell and try on their clothes or products. The challenge for brands relies on how to connect the perks of physical stores with the world of e-commerce, said Ricardo García Betancourt, VP of Enterprise Sales Mexico and Central America, VTEX. 

Prioritizing user experience is essential to excel in the e-commerce game, according to e-commerce platform VTEX. A flawless product page is also key. Content-wise, the shopper is always happy to see a fast-loading product page with easy and fluid navigation, high-quality, detailed photographs and clear and accurate information. Keeping customer experience as a priority will lead to great results and regular clients, according to VTEX. Thus, maintaining a flexible, scalable and customizable platform has become a must. 

E-commerce not only benefits the customer; it also increases the efficiency of all operations, reduces human errors and operational costs, provides safer data storage in the cloud and enables data analysis. In the current commerce climate, without digital technologies companies would not get even close to the level of data analysis the market needs to keep moving. However, to enjoy the perks of e-commerce, a digital presence is the most important trend to keep up with and develop. Online marketplaces are now filled with options for the customers to decide, each providing better rates and discounts than the next. 

In China, over 50 percent of the sales are made through live shopping interaction. This tool allows businesses to reduce the gap between traditional retail stores and e-commerce platforms. Live shopping offers a real-time broadcast where businesses showcase their products through different digital channels, such as their website, social networks or marketplaces. 

“When we take this physical experience to the digital world, we can offer the advantages of both sides. It is expected that by 2026, over 20 percent of the total global sales will be made through a live shopping experience,” said García. This is why marketplaces play such an important role within digital commerce. For users, it is extremely convenient to be able to compare all available options within one place, which is why over 50 percent of the digital sales take place within marketplaces. 

Inside the e-commerce world, there are key players who are collaborating to obtain better results and provide comprehensive platforms to manage their entire supply chains, having their entire system layout, including suppliers, warehouses and beyond, mapped in a single place. “Thanks to the pandemic, we learned that there is strength in unity. By 2024, marketplace sales are expected to reach US$3.6 trillion,” said García. 

Customers expect same day delivery to the disadvantage of companies without the logistics to provide this service. Clients increasingly value their ability to measure the time it takes to acquire and receive a product or service. They also have less time available to shop around, so it is critical for companies to provide clients the information they want. “The world is used to immediate interaction. If I want my digital system to be chosen over others, I must be able to offer an immediate experience, while reducing the conversion gap in the purchase,” said García. 

To remain relevant, businesses must forecast how the clients will interact with them in the next few years, added García. Forecasting potential trends is key to ensure that the company will be able to adapt to the new demands. Companies need to collaborate with the strongest marketplaces to create an integral ecosystem for their customers, who are seeking the shortest waiting times available and the best experience when buying. 
 

Photo by:   MBP
Rodrigo Andrade Rodrigo Andrade Journalist & Industry Analyst