Commerce Blending Conventional Retail Sales with Digital Market
The year 2017 according to many was touted as the year that will bring a catastrophic end to the retail market. More than 8,000 stores were closed and some bigger brands reported going bankrupt. However, spending in retail has gone up despite the impact of e-commerce. Hardly a few years ago, adding physical stores was the only way to expand the retail network. However, things have changed dramatically of late with the invasion of digital real estate. Any retailer who is switching over to a digital platform is growing heavily. They gain millions of dollars in few months or years rather than decades. A concrete observance and integrated approach to retail sales help in propelling brands to success. The next step for digital real estate revolution is social commerce.
Customer behavior towards online shopping needs to be changed. This can be brought about by bringing in awareness through social media, as customers are glued to various social platforms that drive purchasing decisions.
Statistics derived from Business Intelligence (BI) state that top 500 retailers around the world took home an estimated $6.5 billion in 2017 from social shopping, i.e., the social transactions that occurred or were conducted through social media platforms. So, the sale went up by 24 percent from the figures measured in 2016. This changing scenario represents a huge opportunity for the large retailers and small businessmen to leverage the power of social media so as to cater to the needs of larger audiences.
While shopaholics are more inclined towards online shopping through mobiles, departmental stores, and search engines, desktops are losing sheen. Moreover, customers’ physical and social habits are changing and that they demand greater synergy between the two modes of shopping. These days customers are drawn more towards validated products on platforms like Facebook and Instagram. These platforms provide the “word-of-mouth” justification for a purchase.
According to Shopify’s Q4 2017 earnings, mobile transactions account for 73 percent of purchases made out of 600,000 merchants’ stores globally. This steep increase is simply because customers save a lot of valuable time while opting for online retails.
Social commerce will continue to give equal opportunities to both consumers and businesses, harnessing an era where technology will rule the roost in commerce domain. These experiences will immensely help consumers in discovering a new path thereby giving retailers neo-tech ways to foster transactions. Thus, it can be summed up that retail isn’t dying rather evolving.