If there was any uncertainty over the importance of ecommerce to retailers and the wider world economy, the sheer speed of its breakout growth is quickly dismissing that doubt.
A study conducted by OC&C and Google set the six-year growth of online retail at the $130 billion mark by 2020, taking into account major Western markets including Germany, Britain, and the U.S.
The figure may not surprise those of us who see first-hand the amount of physical goods flowing through the supply chain thanks to orders originating online, but there are many retailers whose ecommerce platforms need some fine-tuning at best, or a complete overhaul at worst. The order fulfillment process lies at the heart of this improvement, but there are also implications for the customer service, sales and marketing functions right behind getting the order correct and in the hands of the customer.
Interestingly, despite the vast consumer base and the fact that many technology solutions originate here, the U.S. is not the world’s most advanced ecommerce market. That distinction goes to the considerably smaller U.K., which nonetheless has an online trade surplus of more than $1 billion.
The U.S. still has a healthy $180 million by the same measure, but will be expected to catch up with its European counterparts as more of the population owns one-click consumption devices like tablets and smartphones. North American businesses need to be ready to transition to taking a majority of orders online as that happens, again referring back to that expected fivefold increase in ecommerce by 2020.
This latest study is proof positive that consumers are moving to the 24/7 ordering model, with all of the associated opportunities and challenges that come with it. If you have questions about how the supply chain of your business must change to rise to the ecommerce boom, get in touch with us!