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Looking forward to expanding your eCommerce business and establishing a more fruitful relationship with your customers? Digital commerce is just the right strategy for you.
Digital commerce in this modern era has taken eCommerce businesses by storm. It is essential in every aspect- be it pricing, research, analytics, content development, customer satisfaction, and retention….the list is never-ending.
Digital commerce or let's say valuable marketing strategies in general is the sailor for your eCommerce business. Whether a potential customer will place an order or would like to engage on your website, all depends on the force of your digital commerce skills. This technique is solely responsible for the triggers that engage a visitor to make the transaction in the very first place. If all of this tactical information sounds alien to you, don't worry! You're on the right platform.
In this article, we’ll take you through all relevant information regarding digital commerce, its needs, challenges and so much more. So, let's start from the top, what actually is digital commerce?
2) What is digital commerce?
Basically, digital commerce is a technique through which one can buy and sell goods by using digital channels like mobile networks, commerce infrastructure, and most popularly, the internet. It's an amalgamation of elements bundled up into marketers’ efforts in order to fulfill digital commerce strategy.
Now don't get digital commerce confused with eCommerce, both terms might have somewhat the same functioning but still possess a slight difference. Digital commerce is an effective tool for marketing yet it still encompasses a wide variety of additional tasks that make this strategy a lot more effective.
Let's see it this way, just as a fuse provides energy to an electrical device similarly digital commerce is the power source to improve a company's sales and make it reach new heights. This type of commerce activity encompasses every single techpoint and procedure that compels a customer to make the final purchase.
3) Why has digital commerce become so important?
Why should eCommerce businesses embrace digital commerce strategies?
3.1) To improve visibility
The modern purchasing process is channel-agnostic. Regardless of the platform, customers appreciate hassle-free transactions. For online businesses, this aspect creates a plethora of opportunities that will let them reach their customers via brand websites, social media platforms, marketplaces, etc. Lastly, there are several chances to improve your sales.
3.2) Increase in sales
Digital commerce allows a firm to earn better revenues while increasing its visibility through multichannel methods. Businesses that mainly focus on the latest online purchasing trends and provide unique personalized purchasing alternatives end up scoring more sales and better revenues.
3.3) Establish Credibility
In order to be a successful business enterprise, you need to have a good image in the eyes of potential customers. Be it small businesses or flourishing large businesses, they only do well if they’re perceived, to be honest, and real towards their brand. Almost 70% of customers rely on feedback, reviews, and after-sale services provided by a brand, once they find the information authentic only then do they make up their minds to purchase a product.
4) What are the elements of digital commerce?
All aspects that fall under the category of purchasing decisions by a customer are taken under consideration in digital commerce. Even the smallest piece of information is treated with utmost sincerity and without them, the entire digital commerce experience won't be truly fruitful.
Generally, digital strategists map out an entire consumer journey, irrespective of being tangible goods or services, following that trail they study the entire consumer-building journey that provides the client with a smooth and memorable purchasing experience. So, what are those features that provide customer satisfaction?
Promotion of website or content.
Well-defined descriptions of products, high-quality pictures, and other media.
Understanding and research of effective user experience.
Ontime fulfillment of orders and active supply chain management.
5) What are the benefits of Digital Commerce?
There are numerous reasons why digital commerce is a need of the hour as it touches all parts of an organization, including strategies, costs, incomes, and much more. Here are some advantages of digital commerce that are attracting more firms to adopt this model:
5.1) Flawless processing
Almost every potential customer path is pre-planned and backed up by specialized content. In numerous aspects, digital commerce is the pinnacle of advertising automation, as it can predict following logical consumer demands and give them the encouragement to make a purchase.
This method dramatically reduces the buying time, specifically in the B2C arena, where most of the transactions are made impulsively.
5.2) Improvement in scalability
The digital commerce business model is significantly easier to grow as most applications available on the digital platform are automated. Most data-specified challenges like performance management, hiring, consolidating sales, and managing various regions can be alleviated via digital commerce.
5.3) Reduction in manpower utilization
As most parts of digital commerce are highly automated, it makes sure to eliminate the need to indulge volumes and expensive workforces. It also saves the workers a bunch of time to focus on other abstract problems while the data is recorded successfully by repetitive operations and software.
5.4) Better experience for users
Every customer wants a special and personalized experience while shopping online. This happens because every step and process is streamlined in a personalized manner for a better experience. This technique attracts customers more which later results in higher income.
6) What are the challenges of Digital Commerce
6.1)Verification of identity
When a visitor or a potential customer registers on an eCommerce platform, it's somewhat impossible to confirm whether the information they provided is authentic or not hence you can't tell whether they're actually interested in making a purchase.
For instance, cash-on-delivery transactions are one such example than can be done using forged contact and address details which leads to huge losses. As a result, it's very difficult to confirm the verification of every prospective purchase.
6.2) Increase in competition
Manufacturers and suppliers from which retailers and small business owners buy in bulk eventually start selling directly to the customers. Which ends up turning once your partners into rivals and dismantling the ongoing network of distributors.
6.3) Digital marketing is expensive
Compared to traditional marketing methods, digital marketing has been a more affordable promotion method. However, now the pattern seems to be rapidly changing as marketers have started to grasp the value of digital marketing in the expanding online market.
The basic cost of digital marketing has risen from approx. 12% across all channels, meaning that every dollar eCommerce managers have to pay now might have less impact as compared to the past.
6.4) Developing customer trust
Even the best-designed eCommerce platforms that offer a wide variety of items and easy functioning have to face the challenge of turning the potential into permanent customers as customer loyalty is extremely fickle.
Any organization that lacks customer loyalty has to suffer since obtaining new customers is five times more difficult and expensive than maintaining an existing customer. The reason is there's no face-to-face interaction between the client and the seller unlike in retail shops therefore, developing trust and loyalty on an online platform requires more time and effort.
7) What is the future of Digital commerce?
7.1) Introduction of audio and visuals
By now you all know, one of the most effective ways to grow your brand is via content marketing integration. This can be fulfilled in a lot of ways like videos, blogs, and even memes. And we can definitely assure you that the list will continue to grow as time passes.
Not only does this practice help in reaching out to the target customers and expand their knowledge about new inventions in the market but it also helps you bring traffic to your website. But in order to achieve that you need to undergo a lot of research, introduce relevant keywords, and might also hire a professional content writer to do all that for you.
7.2) Image recognition turned into product recognition
Most smartphones come with face recognition that helps you unlock your device within seconds. Now, what if we tell you this function has been taken up to a different level? Nowadays, these image recognition tools can also provide information about a particular product, assuming you point the camera toward the picture of that particular object and let it scan properly.
Wait, there’s more! Such tools can also scan and read labels meaning this practice might have full potential to greatly impact digital commerce. Within seconds you'll have all the information about a product on your device. If you own an eCommerce business, look out for this practice that might have the potential to grow your sales.
7.3) Fast-loading websites with a minimalistic look
Too much of anything is bad, similarly, too many designs, vague layouts, and loud colour choices makes your website look dramatic. Online shoppers want to access websites with quick loading times and soothing easy-to-access interfaces. Potential customers will only be attracted to your website if they are able to find their desired product with limited clicks. An overly complicated layout will only make them skip you. Therefore, shift your focus from aesthetics to functionality.
If you want your website to stand out, work on its loading speed and make the interface look more subtle yet appealing.
Having a clear understanding of what resonates with your customers will help you stay focused on succeeding with digital commerce. Working around the needs of the consumers while putting analytics solutions to work can be a total game changer for your business. From understanding the customer's search behavior to finding out what they like and what they don't- the right techniques will help you make the most of this data. When all these elements will combine together with new-age technologies, your commerce venture will be provided with new opportunities for reaching new heights. We hope you found this information highly useful.
9.1) Will digital commerce keep growing?
All the statistics done in the past two years point to the fact that eCommerce will continue to grow and prosper at an astonishingly fast pace. Online and mobile purchasing will take the industry by storm and become the new normal and the leading eCommerce states including Germany, Japan, and China will witness an exponential increase in sales.
9.2) What are the main challenges of digital commerce for SMBs?
Order fulfillment on time
Good customer experience
Finding the target audience
Return and refund policies
9.3) What is the difference between digital commerce and eCommerce?
Ecommerce is the practice that involves selling goods and services online. Digital commerce is a technique that allows clients to shop online by providing them with interactive and engaging practice.
9.4) What are the different types of business models that support digital commerce?
There are basically four different types of business models:
Business to business (B2B model)
Business to consumer (B2C model)
Consumer-to-consumer (C2C model)
Consumer-to-business (C2B model)