5 Trends to Implement in E-commerce this 2021
In November ecommerce, online sales volume grew 1.579% compared annually.
Faced with another long period of closure of physical stores due to the pandemic, retail companies have an alternative to the digital and e-commerce path to grow their businesses and even internationalize in some cases.
According to KPMG’s latest telecommunications and industry study CEO Outlook, the importance of digital transformation and technology is clear, as 79% of CEOs argue that their investment in digitization has accelerated significantly due to the pandemic.
It shows the interest of company directors in e-commerce is the case of Ecomsur, a leading company in full commerce and omnichannel, which in November 2020, according to internal data, showed growth of 1.579% compared to the same month of 2019. This was not an isolated phenomenon, as in June and August they also had growth above 1,000%.
“In 2020 multiple companies turned their business model to the world of online sales and saw unmeasured growth in the sector, Statista figures claim that online sales reached $18.8 billion in Mexico. However, believing that entering the virtual world of retail is sufficient is wrong, must be constantly innovated or the business will be affected and can lag behind; e-commerce is constantly evolving and adapting all the time to the new needs of its audience,” said Jorge Fernández-Gallardo, CEO for North Latin America at Ecommerce.
In this sense, Ecomsur Mexico highlighted the five most important trends within online sales in the country for this 2021:
Strength of electronic payments
this will lead to flexible payment concepts, which is that eCommerce and new solutions from some marketplaces enhance access to electronic payments to make purchases online. So far, a study conducted by Mercado Pago and Ipsos reveals that the most widely used means of payment by Mexicans on the Internet are: debit card (54%), online payment platforms (52%), credit card (50%), bank transfers (48%) cash (16%).
Omnichannel focus on the operation to optimize the last mile
since traditional models of distribution centers or to centralize deliveries to large companies will be complemented by in-store retirement strategies and/or office from stores. Innovations come for delivery such as high-tech robotics for products or meals to the consumer’s home, and processes such as curbside pickup will be strengthened.
Dark Stores and Ghost Kitchens
looking at all outlets or kitchens (which for now are closed to the public) as warehouses to bring a product to the final buyer in an agile way, can even reduce costs and delivery times. It should be noted that consumers will increasingly demand better delivery, cheaper and faster.
Extended returns, because
the trend is to put fewer locks on the consumer to make it easier to change clothes or objects in stores. Retailers should seek to create extraordinary consumer experiences that will strengthen relationships with brands. The simpler and smoother the return process, the better.
Working with Marketplaces
it is almost an obligation to play on marketplaces, it is essential to have a solid digital strategy, but it is important to enhance the channel itself in conjunction with external display cases that also support the sale. Healthy participation in third-party channels for a powerful brand should not exceed 30%. Otherwise, it is risky to leave the brand’s relationship with the consumer in the hands of an outsider.
Post-COVID, a new trend line for this industry is displayed in the following years. Previously, different analyses expected that by 2023, 12% of retail would be done through e-commerce, now expected to be at least 15%. Euromonitor data indicate that online sales will take into account for 21% of total retail spending globally.
Growth began in the pandemic with basic necessities, but now there are also shopping in fashion, electronics and home remodelling as part of the Mexican’s day-to-day online shopping. For this reason, Ecomsur visualizes that the projections will continue upwards and that the actual percentage is even higher than the projected one.
Euromonitor expects Latin America to be the success story in terms of growth for this sector in 2021, with a 16% increase in sales of e-commerce products. Mexico is projected to lead this expansion, narrowing the gap between Mexico and the region’s largest e-commerce market, Brazil.
“While the numbers are really attractive to e-commerce in Mexico, we cannot be distracted and we must focus on what is coming by 2021; we will continue to see an evolution within retail that is linked to digital transformation,” said Rodrigo Cerda, Deputy Business Development Mexico.
In 2021 it will be necessary to look at these trends in order to meet an increasingly demanding consumer and in a more competitive market. It is definitely necessary to know how to play in the retail of the future, where having a clear strategy is essential to better adapt to the changes that we will be facing.
