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In the midst of the Covid-19 epidemic, businesses have to adapt in order to continue operations. According to the research firm, retail sales are expected to increase by 25% by the year 2025. By the end of 2021, ecommerce is projected to grow 17.9%, making it the future of retail.
Retailers are having a hard time keeping up with the rapid changes in the industry. The key to success is adaptation. Retailers need to understand and navigate the new landscape to sustain revenue.
Theemic economy has made Ecommerce more indispensable than ever.
Logistical cross-border.
Logistics and supply chain play a major role in any business. In retail, it's important to provide a low price for consumers while using successful logistics. A cross-border model is one way to navigate success.
This model uses direct-to-consumer shipping, where a retailer ships products directly from an overseas warehouse to the consumers. The need for middleman in the shipping process is eliminated. This approach reduces the costs of warehousing for retailers, which in turn leads to lower prices for consumers.
Direct-to-consumer retailers have lower prices than traditional retailers, but they have longer delivery windows. Current cross-border retailers often have delivery times of up to 45 days with a lack of quality assurance. Major players such as Amazon are successful because shoppers prefer 1-2 day delivery service over any other shipping speed. Consumers value the flexibility of fast logistics, even though prices may be higher than cross-border sellers.
Businesses in the retail and online space need fast logistics. Cross-border retailers have a competitive edge because consumers value expedited delivery and quality products. Businesses can tap into a market of consumers looking for low-priced, quality goods without the hassle of lengthy delivery times. The cross-border model is being reinvented by modern players by using a factory-to-consumer model and a quality guarantee to deliver goods quickly and at a lower cost to the consumer.
With the right use of cross-border logistics, ecommerce is set to be the future of retail, as long as these businesses can provide a positive user experience.
There is a reason why you should bet on the future of Ecommerce.
Open and closed markets.
Negative customer experiences and poor quality products have become a hallmark of cross-border retailers. Third-party sellers are able to list items without regulation from the retailer. There is little to no regulation over what is being listed and the quality of the products that are listed. Consumers see poor quality as there is no quality control and instead focus on quantity. According to Nosto, a product does not match the description is the reason for almost 70% of returns.
Retailers were predicted to lose $550 billion in 2020 due to high return rates. Many platforms are turning to closed marketplace models because of the high cost. A closed marketplace gives retailers control over their product selection and allows them to work directly with factories and suppliers. Retailers can conduct a thorough process to ensure that the products they offer are in line with the brand's quality values.
The factory-to-consumer model and quality assurance allow the retailer to present a consistent and unified front to its customers. With a closed marketplace, retailers can make sure product listings, images and descriptions are consistent. This helps secure trust with customers and allows the retailer to support its product listings. Negative experiences related to product quality and satisfaction can be eliminated, working to create a positive customer experience.
The projected growth of the market shows the success companies can have. Cross-border and factory-to-consumer models will likely grow as retail and ecommerce companies continue to develop. With the rapid transformation of the space, players need to understand the hurdles standing in their way, and how fast logistics and a closed marketplace can create lasting success.
What the future of Ecommerce looks like is related.
