A New Day For Ecommerce
Turmoil brings rapid change in society. Speeds up changes already underway, while giivn birth to new movements and new paradigms. The global coronavirus pandemic has drastically accelerated ecommerce adoption. From 2010 to the first quarter of 2020, ecommerce as a percentage of total US retail sales went from 4.2% to 11.8%, owing to a constant upward trend. In the second quarter of 2020 that figure jumped to 16.1%. That’s a 36% increase in share of sales, virtually overnight. The distribution of those sales across industries also shifted dramatically, favoring things and services that make being at home more convenient and enjoyable – consumer packaged goods and home improvement, for example.
This is a unique time for online retail, when a huge shift in consumer behavior coincides with ongoing developments in the ecommerce industry, driven by improvements in technology and resources that facilitate selling online. This sea change in ecommerce technology is what I call the democritization of ecommerce. Access to better platforms and technology has drastically lowered the barriers to entry, making selling online PROFITABLY accessible.
Shopify has changed the game by creating an ecommerce storefront platform that is both robust and affordable for small businesses. More than any other platform, it has made it possible to sell online without costly corporate-level investments in technology, design and maintenance. Shopify offers a ton of plugins that are seamlessly integrated and wonderfully useful, such as Klaviyo email marketing, Nosto personalization, Yotpo reviews, Returnly customer returns optimization, Sellbrite marketplace integrations or Smile.io loyalty.
Marketplaces continue to be a vital path to reaching customers. However, it is a path fraught with potential pitfalls, such as lack of customer data acquisition, low margin and Return on Ad Spend, as well as the threat of outright fraudulent activity like counterfeit products and fake reviews.
Once upon a time and not long ago, retailers and customers faced each other across a store counter standing between them. Today that barrier has disappeared in every way. Not just in terms of digitizing the retail space, but also in rendering meaningless the divide between retailer and customer. Today the combination of platforms with monetization has blurred the line between buyer and seller beyond recognition. We can all be both buyers and sellers across an integrated ecosystem of blended content and commerce. Platforms such as Ebay, Amazon, Instagram, Shopify, Tradesy, Poshmark and countless others can make anyone a seller while revenue share platforms such as Rewardstyle, Shopstyle and Skimlinks enable influence marketers.
We see this as an unprecedented opportunity for makers and creators to reach a global audience and sell their products anywhere. This is also an opportunity for a new level of transparency that will transform the awareness of sustainability and environmental impact of consumption.
At Shiprock Digital, we see a clear way forward for our clients. We work with makers and small businesses in fashion, accessories and home goods to successfully navigate the ecommerce ecosystem. We help guide them through examining each area of their business to make sure they are digital-first and growth-optimized. We focus in particular on strategic planning, financial planning, operations solutions, merchandising, marketplace integration, marketing and ecommerce website design.