What Makes Retailers in the Fastest Growing Ecommerce Verticals Successful?

In our earlier blogs, we have covered the top 5 ecommerce platforms used by the world’s biggest brands, the best external integrations that can boost revenues for your ecommerce business, and best practices to run a data-driven ecommerce platform. 

Now, we’ll be looking at the fastest growing ecommerce platforms, and the trends that are driving its popularity and growth. 

Ecommerce businesses have seen a massive spike in the last three years. Data reveals that in 2020, only 17.8% of global sales were from eCommerce platforms. This number is set to reach 20.8% by 2023, and 23% by 2025. Moreover, when we look at markets which are leading in the eCommerce space, it is China (accounting for 46.3% of global online sales), the US, and the UK (which accounts for 4.8% of the global online sales as of mid-2022). 

What are some key trends driving up global ecommerce sales? 

While widespread Internet use and the global lockdown contributed significantly to turning people to the online world, there are several other factors that led to the spike. 

• Mobile commerce: The proliferation of smartphones and mobile devices has made it easier for people to shop online, anytime, anywhere. 
• Convenience: Ecommerce offers the convenience of shopping from home, saving time and effort in commuting and parking. 

• Broad product selection: Ecommerce sites offer a wide range of products from all over the world, making it easier for consumers to find what they need. 
• Competitive pricing: Online retailers are often able to offer lower prices than brick-and-mortar stores, due to lower overhead costs. 
• Improved logistics: Advances in logistics and delivery have made it easier and more efficient to deliver products to customers anywhere in the world. 
• Social media and marketing: Social media platforms offer powerful marketing tools to reach potential customers, shorten the sales cycle and increase sales. 
• Payment options: The availability of secure and convenient payment options has made online transactions easier and more accessible. 

• Globalisation: As the world becomes more interconnected, ecommerce has enabled businesses to expand their reach and sell to customers in different countries and regions. 

A Merit expert adds, “Aside from these, using data to create personalised shopping experiences, relying on technologies like AR/VR and voice assistants, and the emergence of contactless payments have also contributed in a big way to boost eCommerce sales worldwide.” 

When it comes to ecommerce verticals that are performing well, studies reveal that the top performing ones are; fashion and apparel, electronics and appliances, home and garden, beauty and personal care, and food and beverage.  

A study indicates that specifically in the UK, the fastest growing verticals in recent years have been toys, DIY and hobbies, followed by electronics and physical media, and food and personal care.  

Spending on toys grew 28% in recent years, while electronics increased 26%, and food and personal care, 23%. There are minor variations in demand verticals across each country, based on the culture, consumer behaviour and spending patterns, but largely, these verticals have taken the lead to capture the top 5 spots. 

So, what makes retailers in the top performing eCommerce verticals successful? 

The basics involve a powerful website, creating a strong digital presence, and the use of data to make sound business decisions. Having said that, there’s more to eCommerce than just a digital presence. Here’s a quick checklist we made on what makes an ecommerce business successful. 

• When building a website, continually focus on providing a seamless and enjoyable shopping experience for customers, with easy navigation, intuitive design, and quick loading times. 
• Make use of the terabytes of customer data you have to provide personalised recommendations and tailored experiences for each prospect or customer. 

• Prioritise customer service and provide multiple channels for customers to reach out for help, including chatbots, email, phone, and social media platforms. 
• Make sure that your business is offering high-quality products that meet or exceed customer expectations, with detailed product descriptions, reviews, and ratings. Transparency is key here. 
• Ensure your product pricing is competitive and in line with the current market, while still providing good value for customers. 
• Offer fast and reliable delivery options, including same-day or next-day delivery, curbside pick-ups, or drop shipping and provide customers with real-time tracking information. 
• Use data to create strong, relevant marketing campaigns, and make sure your customers see you across various marketing channels like social media, emails and search engine optimisation.  

• Ensure that your website and mobile app are optimised for mobile devices, which is increasingly important as more customers use their smartphones for online shopping. 
• Rely on data not just for customer experiences, but to also drive revenue by optimising supply chain, inventory, location, and resources. 
• Continuously innovate and adapt to changing customer preferences and industry trends. Introduce new products, features, and technologies to stay ahead of the competition. 

Merit’s Expertise in Retail Data and Intelligence    

Our state-of-the-art retail data harvesting engine collects raw data and provides actionable insights;  

• Three to four times faster than standard scrapers    
• At lower cost    
• With Increased accuracy (up to 30% compared to standard scrapers)  

Our powerful, new scraper engine can gather massive data sets from multiple sites and geographies in real-time so you can stay informed on customer behaviours and market trends. 

Merit’s eCommerce and retail data engine provides a high degree of confidence in insights generated from analytics – thanks to confidence in the data quality and access to enriched data.  

To know more, visit: https://www.meritdata-tech.com/service/data/retail-data/