Amazon may rule the roost when it comes to online marketplaces and with net revenue of $25.36 billion in the last quarter alone, there is little evidence to dispute that fact. However, Amazon and similar marketplaces such as Ebay and Alibaba rake in big business because they cast a wide net. Such horizontal marketplaces cater to a very large number of people because they have an astronomical selection of products on offer.
If you have been in the eCommerce business for some time now, you are certainly aware how crucial it is to close the deal with your customers. While online shopping is hugely convenient, it denies shoppers the touch-and-feel experience and hence, abandonment of purchase takes place at different stages. However, you may not be aware that a significant percentage of your shopping cart abandonment rate is directly linked to a not so desirable returns policy of your marketplace. Yes, that’s a fact.
Why marketplaces? You may ask. Let me answer the question with an example, when Martin Cooper made the first cellphone call in the early 1980s, it started a revolution in telephonic communication. Forty years later, It has reached a point where today you cannot imagine a world without cellphones. Cell Phones today are a necessity rather than a commodity that you can do without. The key word here is revolution; and as cellphones revolutionized telephony, we know online marketplaces have revolutionized the world of e-commerce.
Setting up an online marketplace requires considerable time and effort and anyone in the ecommerce business already knows that. With the commendable surge in online shopping and popularity of marketplaces, everything looks so lucrative. However, the process of converting your marketplace visitors to actual customers has its share of obstacles. And one major glitch in the procedure is shopping cart abandonment. It is when your prospective customers add products to their cart but finally decide against purchasing the product at the very last moment. So, it turns out that after sorting out millions of issues such as product layout, shipping and more, you realize that your efforts are fruitless.
The primary forecast for 2016 looks promising, especially if you are in the eCommerce business. Sales are predicted to go up by 17% globally and approximately 10% in the United States. In other words, business is good. If you are looking to break into the scene this year, prospects look promising. On the other hand, if you have already built up a name for yourself in the world of ecommerce, you can always look forward to growing your business, implementing more efficient strategies and pushing down your bottom line some more.
It’s no secret that ecommerce is booming right now. Last year, North America’s B2C ecommerce revenue grew by 12.2% to $522.9 billion. With a 26.9% share of the global ecommerce market, overall revenues are projected to grow to more than $600 billion over the next two years with an expected share of 1.86% of the national GDP. That is a lot of money to be made! So if you are in the business of selling online, business is looking good.
The eCommerce landscape is an ever expanding territory in a state of constant flux. With every new piece of technology developed and introduced to assist sellers sell better, there is a significant shift in direction. However, with great opportunity comes a healthy margin of risks. Whichever direction you choose to veer towards, the opportunities are fantastic but the possibility of encountering any numbers of traps coexist.
Our plan is to write about serious, brainy stuff here on the WCMp blog, stuff that you can read and actually use. Deeply researched articles and reports which not only give you insight into current trends and practices but also gives you the much needed low-down in terms of e-commerce strategy, analysis and an odd anecdote or an interview here and there.