Tag: eCommerce Development

What is Digital Transformation?

Digital transformation means using technology in every part of a business, which makes a significant change in how it does things and serves its customers. It’s also about creating a cultural shift where organizations keep trying new things and are fearless in failure.

With the evolution of new technology trends, digital transformation has penetrated deep into every industry, helping them offer better customer experience while lowering their operational costs.

Most industries are getting better because of digital transformation, but technology, energy, and eCommerce companies are getting the most benefits. During the COVID-19 pandemic, technology and energy companies made the most changes quickly, with 78% and 77% improvements, while eCommerce and retail companies also improved by 70% after the pandemic. One of the best examples of digital transformation is how it’s changed how we shop online.

It’s a whole different experience from going to a physical store. But with digital transformation, comparing products online has given us access to a much more comprehensive range of items at better prices. Nowadays, even when we visit a physical store, we often check eCommerce websites for product options, variety, and price comparisons.

In this blog about “Digital Transformation and the eCommerce Industry,” we’ll talk about the positive changes that digital transformation has brought to eCommerce, future digital transformation trends, and how you can accommodate these trends in 2024. But first, let’s take a quick look at the need for digital transformation in the eCommerce industry.

What Was The Need for Digital Transformation in the eCommerce Industry?

With easy and affordable eCommerce website development, shopping online has become a regular activity today for end-users. eCommerce industry is one of the most happening industries where customer engagement is higher and financial transactions are record-breaking every year.

Thus, to offer an enhanced shopping experience, there was a need for digital transformation in the online shopping industry. Furthermore, customers’ expectations of online shopping have raised the need for digital transformation in eCommerce development.

Below are the top 3 reasons that are driving digital transformation across the eCommerce industry:

1. Increasing Demand of Customers

   Today, convenience is more important than sticking with one brand when it comes to online shopping. Customers want reasonable prices, easy pick-up and delivery, on-time orders, and simple returns. All these growing demands make companies use new technologies to meet customers’ expectations. And that’s where you desperately need digital transformation. It helps store owners meet every need of the digital generation.

2. Powerful Delivery Systems

   Online shopping made it easy to return items if they were wrong or defective. But now, customers expect to get their correct orders on time from the beginning. Getting the incorrect orders might upset customers and hurt business. So, having a solid delivery and supply system is a big reason why companies choose digital transformation. Digital Transformation allows businesses to integrate powerful and flexible delivery systems into their online stores.

3. Direct-to-consumer (DTC) Strategies

   As competition grows, brands try to sell their products directly to customers, using strategies that go straight to the consumer. By letting customers connect directly with the brand on its own platform instead of through online shopping middlemen, companies can save money, provide better prices to customers, and make more money. Customers also get a better experience when they interact directly with the brand. Digital Transformation has made it easy for brands to stay connected with their customers and build a loyal customer base.

How Digital Transformation Is Revolutionizing The eCommerce Industry?

Digital transformation is reshaping eCommerce website development in profound ways. It’s not just about shopping online; it’s about a complete overhaul of how businesses operate and connect with customers. The shift towards convenient and personalized shopping experiences, driven by technologies like AI and data analytics, has become the new norm. The good thing is that even the eCommerce app development company is open-handedly welcoming the digital changes and offering eCommerce solutions accordingly.

From seamless ordering and fast, reliable deliveries to advanced recommendation engines, digital transformation enhances every aspect of the eCommerce journey. This revolution is not only redefining customer expectations but also allowing businesses to adapt quickly, stay competitive, and thrive in the ever-evolving digital landscape.

Below are some of the main aspects where digital transformation is making a significant impact in the eCommerce development, and they are:

1. Introduction of Augmented Reality

   Augmented reality is the technology that allows users to help visualize the product in the place it is intended for. For example, Rebecca Minkoff, an industry leader in accessible luxury handbags, accessories, footwear, and apparel, has been using 3D images and AR features since the end of 2019. With 3D modelling and AR features, potential Rebecca Minkoff customers can understand how big their wanted purse actually is and if the colour truly matches their taste and style. At Albiorix, we have helped many eCommerce business owners by providing AR/VR-compatible web solutions for higher customer engagement.

2. Contactless Shopping Experience

   The pandemic pushed retailers to offer safer, contactless shopping experiences, which improved online shopping and led to the adoption of contactless payments. It has also highlighted the importance of giving customers a personalized online experience, showing dedication to the end user and creating a satisfying customer journey.

3. Improved Understanding of Customer Needs

   Data is the key resource for digital transformation strategy. Algorithms can help retailers prepare better by forecasting demands more accurately and seizing new opportunities. Seamless interfaces enable the eCommerce business to simplify the process, gaining more insights into various stages of the eCommerce process, from market demand to inventory to supply to productivity and more. Data can also reveal more details about customer behaviour at a granular level.

4. Inventory Management with AI

   Artificial intelligence has penetrated deep into the eCommerce industry. It is a game changer. AI goes beyond optimizing prices; it offers valuable insights and efficiencies that keep businesses competitive. Store managers, by using AI in their operations, enhance the customer experience. This is achieved by tailoring products and services to the unique needs and preferences of each location. It allows them to keep track of everything happening in and around their warehouses, ensuring success in today’s fast-paced market.

Digital Transformation Trends in 2024 for the eCommerce Industry

Digital Transformation is expected to reform and revolutionize the eCommerce website development industry drastically. It will extraordinarily change the face of online shopping for both – customers and online store owners.

If you own an online store and want to step up with Digital Transformation, then here are the top trends to look for in 2024:

• AR/VR: As we’re aware, AR/VR is making waves in the tech world, and eCommerce is embracing this trend. It represents the future of online shopping, elevating the experience to be more immersive and engaging. AR allows customers to visualize how a product will appear or fit before buying it. Moreover, adding personalized recommendations to the shopping journey enhances its value and boosts customer satisfaction. Notably, this also decreases the number of product returns, saving time and reducing frustration for both customers and retailers.
• Automation: Automation has become an essential strategy for businesses across various industries, and eCommerce is no exception. It’s rapidly extending its reach to every aspect, including marketing, warehousing, and supply chain management, among others. Take supply chain management, for instance, where automation ensures that there are no product shortages at any time. Automating your marketing strategy can enhance lead generation and conversion rates. Automated marketing has led to 77% of marketers generating more leads and 56% achieving higher conversion rates.
• Chatbots: In the same way, AI and chatbots have become integral in the process of digital transformation. They make it simpler to offer personalized experiences by quickly addressing customer inquiries, creating a sense of uniqueness for each customer. This trend is expected to persist, adapting to market changes to meet customer needs consistently. According to data, eCommerce customers are the most receptive to chatbot responses, with 34% of users finding chatbots useful in providing personalized experiences.
• Progressive Web Applications (PWA): This technology is quite like a regular mobile app but is constructed using web technologies such as JavaScript, HTML, and CSS. Its main features include push notifications, the ability to access it even when offline, and quick access from your smartphone’s home screen. Big players in eCommerce, like Alibaba and Walmart, serve as successful examples of digital transformation. They have seen increased revenues and better conversion rates by using progressive web apps. Implementing these apps can boost conversion rates by an impressive 93.3%.
• Social commerce: Social networking platforms are more than just places to chat; they’re also becoming eCommerce hubs. Online stores now let you do everything from ordering products to making payments right on platforms like Facebook. This trend is expected to keep growing. Statista predicts that revenue generated through social media platforms will reach $2.9 trillion by 2026, a substantial increase from the estimated $992 billion in the current year.
• Buy-now-pay-later (BNPL): Buy Now, Pay Later (BNPL) is a popular choice among millennials, offering them shopping flexibility and various advantages. Customers can avoid credit card interest fees by choosing this payment option and also have the freedom to buy items that might not typically fit their budget. According to a report, the global BNPL industry is expected to reach $680 billion in transactions by 2025.
• Mobile Shopping: Mobile shopping is not going anywhere! As technology advances, online shopping through mobile has become a common choice for consumers. Recent studies show that eCommerce, or retail mobile shopping, will reach $270 billion by 2025. eCommerce has become a popular way for people to shop online as more people use mobile devices. The convenience and accessibility that eCommerce offers consumers are the main reasons for its growth.

How an eCommerce Development Company help You Accommodate Digital Transformation

Digital transformation is the process of using digital technologies to create new or modify existing business processes, products, and customer experiences. An eCommerce website development company plays a pivotal role in facilitating your journey through digital transformation.

They bring the technical expertise and innovative solutions required to modernize and optimize your online business. These experts create robust eCommerce development solutions that seamlessly integrate cutting-edge technologies such as AI, chatbots, and progressive web apps, enhancing the customer experience.

Furthermore, they enable adopting strategies like Buy Now, Pay Later (BNPL) and implementing social commerce capabilities, adapting your business to changing market trends. In essence, an eCommerce app development company acts as a crucial partner in leveraging digital transformation, ensuring your business remains competitive and future-ready in the evolving online landscape.

If you have any questions related to digital transformation or how it can help your online store flourish, get in touch with our eCommerce development experts. For a free consultation, call us at +1 (912) 528-5566 (US) & (+61) 489-940-484 (AUS) or share your details with us using the contact us form on the website. You can also share your contact details on LinkedIn and Facebook as well.