Simply put, eCommerce is the sale or purchase of items from, or between, online retailers. The advances of technology as well as the circumstances of life have continued to push the world of eCommerce forward. Between the availability of an endless amount of products, the ability to shop from home, and near-instant delivery, the convenience and advantages of eCommerce has caused the industry to become like an unimpeded train. However, issues such as supply-chain concerns have begun to rear their ugly heads. Some view eCommerce as interdependent with traditional retail. Between this and the unfamiliarity of the industry due to how recently it has taken off, it brings into question the long-term durability of eCommerce. Jean Paul Ago, the CEO of L’Oreal, countered the idea that eCommerce is complementary in any capacity, “Ecommerce isn’t the cherry on the cake, it’s the new cake.”
There is a lot that goes into the field of eCommerce and there is no silver bullet to answer the question of, will the eCommerce bubble burst anytime soon? For that reason, we connected with 10 different business executives for their opinions regarding this.
It is getting harder
Ryan Brown is the integrated marketing director of Kenra Professional. They are a beauty product brand geared towards serving stylists. He believes that the eCommerce industry is not going anywhere but it is becoming more difficult to exist or succeed in.
“New websites appear in droves online everyday and there’s no stopping that. The same can be said about the online customer – they are here to stay. Yet, all of that doesn’t equate to success for an online retailer, especially new or established ones. If the internet is the ocean and the businesses are fish, it’s easier to spot the bigger fish than the smaller ones. In fact, those big fish may be so large that they draw all the attention away from the smaller fish.”
Look at the societal trends
Apothecanna is a CBD company featuring products in the form of oils, tinctures, sprays, and more. Their president, Jeff Henretig, considers it wise to view what is happening in the world in order to evaluate the current state and future of eCommerce.
“Our world is, and continues to trend towards, a remote and digital existence. The pandemic has only served to accelerate this process. People are working from home. Many countries have travel or social gathering bans. We’ve seen a variety of brick and mortar retailers have to close temporarily or permanently. Because of all this, the consumer has become almost reliant on eCommerce. As generations grow up surrounded and guided by technology, this will continue to be the case probably even more aggressively so.”
The personal experience
It is very common to visit a handful of stores in search of a specific brand or product. If one store does not have it, another might and the hunt continues. One of the biggest perks of online retail is that the customers’ specific desires are available at their fingertips and are tailored to them. Birthdate Co is a company specializing in personalized gifts. Their co-founder and CEO, Ajay Mehta, suggests that this perk will advance eCommerce.
“Companies, regardless of product type, continue to adapt their appearance, offerings, and experiences for their potential customers. These people are acutely aware of this change and are much more inclined to seek out exactly what they desire instead of combining multiple outlets for something close to their desires. This shift in consumers’ thinking and brand appeal will continue to result in eCommerce growth.”
Trisha Bantigue is the CEO of Queenly, the leading marketplace and search engine for the formalwear industry. She believes that eCommerce is going nowhere as it is accessible as ever, much more so than traditional retailers.
“A physical location without the internet is almost like a foreign land at this point with how widespread connectivity is. Whether you’re in your home, on a plane or on a walk in the woods, you very likely have the ability to make purchases from your device of choice. Gone are the days of making a dedicated trip to the mall – it’s simply not necessary. On top of this, the expansion of mobile device specific shopping practices like with brand-dedicated apps makes a consumer’s favorite items even more readily available.”
The influence of marketing
Lillie’s Q is a southern barbeque brand boasting a variety of family-made products like sauces, rubs, and chips. Their chef and founder, Charlie McKenna, considers the presence of creative marketing to be a reason why eCommerce will continue to flourish.
“Marketing practices directed at specific consumers are now a staple within eCommerce. Due to the information companies have about the consumer gained through cookies and personal data submissions, most companies have the ability to create advertising which would be most appealing to these consumers. When you see commercials or poster ads, they can be very generic, which is great in certain scenarios. However, the personal connection offered through these marketing practices allows companies to display exactly what a consumer is searching for which is a distinct advantage.”
Flexibility
A larger advantage eCommerce has is the flexibility provided by the technology behind it. As people change, eCommerce can rapidly adjust with them. HIDE is a beauty company specializing in foundation and concealer. Amanda E. Johnson, Chief Marketing Officer of HIDE, fully supports sustainability due to adaptability.
“The eCommerce bubble will absolutely not burst anytime soon. Indeed, in today’s world of convenience and expeditiousness, eCommerce is a tech-first vertical that will continue to adhere to the changing needs and wants of customers. With that being said, something we will continue to see over time is the increased overlapping between in-store and online experiences. Whether that be virtual in-store experiences, brick and mortar AI integration, or even shared inventory levels to enable same-day or next-day pickup, the in-store and online experience will continue to coalesce with each other for the benefit of the customer.”
Social media
Chris Hetherington is the founder and CEO of Peels, a ground-breaking CBD brand which sources its products from oranges. He considers social media and the presence it has within eCommerce to be a key reason why the industry is not disappearing.
“Social media boasts the largest gathering of people in one space and that’s nothing to be trifled with. Every modern generation has its unique grouping of users present on one or more social media sites. Businesses are often started solely through social media and some of those never need to expand beyond that. With how many people are interacting on social media, so long as your marketing is strong, it can become a feeding ground for eCommerce endeavors. Social media has nearly become a basic need at this point and that will only support eCommerce moving forward.”
Easy does not mean successful
Healthy Directions is a health and wellness company offering a variety of products geared towards aiding numerous types of circumstances. Their president and CEO, Ben Teicher, believes the public opinion of eCommerce may be altered by success levels.
“The internet has made it incredibly simple to do so many things including starting your own business. The amount of hoops to jump through to begin making money could not be less. This has caused so many people to venture into the world of eCommerce. However, not everyone has a successful business plan or product which ultimately means failure. Individual failure is not the same as industry failure and that’s where I think people can become a little lost. eCommerce as a whole will continue to boom.”
Minor regression
Just as eCommerce is changing because of the environment in which it exists, commerce altogether is doing the same. Change does not always result in positive growth and that may be the case for the commerce industry. Nugenix male testosterone brand featuring numerous product types. Their co-founder and CEO, Brandon Adcock, suggests this.
“The bubble is not projected to burst, but there will be a drop in eCommerce growth. As brick and mortar drops, the manufacturing opportunities will also drop. The projection at the moment is that Asian eCommerce will continue to grow and the US will drop behind. It should not be a huge drop, less than 10%, but it will still have an impact.”
Efficiency
Max Spielberg is the president of Genexa, a medication brand specializing in products free of artificial additives. He proposes that eCommerce will become even more of a staple as it is highly efficient now and that will only improve.
“Consumers place a high level of emphasis on the value of their time and the nature of eCommerce suits this need. Next-day or even same-day shipping is the new norm. The ability to quickly browse fascinating products at a user’s convenience is not met elsewhere. Technology surrounding the industry will likely push the efficiency of eCommerce forward causing even more growth.”
As seen above, there is a common belief that the eCommerce bubble will not be bursting soon or even at all. In fact, innovation and growth seem to be common themes amongst those with experience in the industry. Yasuhiro Fukushima, the honorary chairman of Square Enix Holdings, summed up the future he expects, “Thus, in the future, instead of buying bananas in a grocery store, you could go pick them off a tree in a virtual jungle.”
