There is no doubt that today, e-commerce is on the rise and represents the future of commerce in the world to come.
The COVID-19 crisis has accelerated its expansion to new businesses, customers and product types. E-commerce has allowed customers to access a wide variety of products from the comfort and security of their homes, and has given businesses the opportunity to continue to operate and grow their sales, despite the challenges. movement restrictions and other containment measures.
Some of these changes in the e-commerce landscape are likely to be long-lasting, given the possibility of new waves of the epidemic and the convenience of new shopping habits.
The speed at which e-commerce is shrinking the market share of traditional retail is amazing.
And here are some figures to illustrate this phenomenon:
In the first quarter of 2010, only 4.2% of retail sales in the United States were made online. In the first quarter of 2019, it was 10.5%. The pandemic and the Jordan Phone Number List various confinements brought this percentage to 16.1% in the second quarter of 2020.
According to research by the University of California, 95% of the global retail market will be online by 2040.
This movement is unlikely to be stalled, given that nearly 70% of Millennials prefer e-commerce to traditional retail, while 58% of Gen Xers prefer to shop online. And even 40% of baby boomers have been won over by e-commerce! Only seniors are still resisting this tidal wave.
But physical outlets have not said their last word!
Many predicted the death of brick-and-mortar stores and the relentless rise of e-commerce a little too soon, with online sales gradually overtaking mainstream retail.
To further complicate the situation and bring a little more confusion between e-commerce and traditional commerce, there is a resurgence of traditional points of sale. Indeed, the pure players in the online sales sector who were previously content to limit their activities to the digital domain are now diversifying into the physical world with their own showrooms or pop-up stores.
If they do, it is good that there is a demand for this type of sale demanded by consumers.
It’s a trend that is being fueled by a number of factors – and that will have far-reaching consequences in the “Stores vs. Ecommerce” conflict.
So, even as e-commerce and mobile commerce continue to rise, physical storefronts will continue to be an indispensable basic tool for retailers of all stripes.
In this article, we will not go through all the advantages that e-commerce provides, and that make it successful (available 24 hours a day, 7 days a week, generally lower costs than traditional retail, ease of online payments, ordering from home, etc.).
Let’s first see why traditional commerce is still alive and well, by analyzing its main strengths. And then let’s try to see how e-commerce and traditional commerce can complement, or even merge.
Traditional commerce is not dead
Despite dire predictions and the terrible pandemic that is hitting the whole world, and retail in particular, traditional stores will not cease to exist.
If physical stores adapt to the changes and challenges of our times, they will never go away.
Why ? Because shopping is a visceral experience.
People love to smell and touch the things they buy – whether it’s a sweater or a bottle of perfume, the shopping experience is obviously much better in a store.
Second, shopping has always been and will continue to be a social experience. It can be seen as an activity of spending time with friends or family, and giving the opportunity to discuss, for example, the appearance of an item before buying it.
Also, with “real” shopping, there is no frustration associated with shipping. It must be said that the delivery of parcels has progressed a lot and that delivery times are shorter and shorter, but by buying directly in a store, you eliminate the problems of delays or damaged or missing parcels. And then you have the joy of leaving directly with your purchase.