Trends That Can Shape The Future Of Online Retail

Tuesday, 27 July 2021, 5:50 am
Press Release: Kalkine

Summary

• The retail sector has observed some peculiar changes during the pandemic, with the most notable shift being to online retailing.
• Current retail landscape demand developing a user-friendly experience for customers, allowing them to have a smooth shopping experience.
• The swift adoption of technology in the retail space has created room for new tools and techniques that can be easily integrated.

The COVID-19 pandemic and resultant lockdowns have been wreaking havoc on most industries since last year. However, the retail sector has managed to keep its head above water despite heavy cutbacks in demand. In fact, New Zealand’s retail sector has continued to remain buoyant throughout the pandemic and weathered the virus-driven challenges by retaining flexibility.

The past year has taught New Zealand retailers how to keep up with ongoing developments and maintain a stable pace. In keeping with these dynamic trends, businesses have broadly developed competitiveness in an increasingly globalised scenario.

Meanwhile, the sector has seen some unprecedented changes over the past year, including a gradual shift to online retailing and digital building capabilities. This transition has not only benefitted consumers from a convenience standpoint but also provided a much-needed contemporary revolution to the retail sector.

Must Read: Do you know some of the largest companies in e-retailing are Chinese?

At a time when digital commerce is empowering some businesses like never before, it seems to be an ideal time for retailers to embrace digital innovations and tactics to sail through future challenges. With that said, let us take a look at some remarkable trends that can shape the future of online retail:

Integrating BNPL setup into business

The Buy Now Pay Later (BNPL) business setup has gained considerable attention during the pandemic amid the increased adoption of the digital marketplace. Since its launch in 2016, BNPL’s growth has only bolstered over time, with 2020 providing it the ultimate push.

Integrating BNPL into retail would provide customers with an option to spread out their payments instead of depending on credit purchases. In addition, the switch to BNPL payments can potentially boost retail sales among the younger audience due to the increased popularity of BNPL payments among them.

No doubt, retailers may be compelled to overcome some initial integration challenges while embracing the BNPL setup. However, post smooth assimilation, retailers can cater to a wider audience and provide a better consumer experience. Having said that, it might not be feasible for every business to adopt the model as specific criteria must be met to qualify for BNPL payments.

Implementing voice-based technology

Voice commerce has enabled users to limit their dependence on hardware and utilise voice commands to search and shop products online. The hands-free approach provided by voice assistants like Apple’s Siri and Amazon’s Alexa can be used to improve customer experience online.

Additionally, for customers, physical interaction in the retail space has been a challenge during the pandemic. With voice commerce, it will be possible for consumers to get a personalised experience that is quick, convenient, and available at any hour of the day.

Nevertheless, the technology used to develop voice assistants is still being developed. Besides, issues such as language barriers, breach of privacy, and the lack of knowledge about the capabilities of a voice assistant can pose major challenges to businesses. Some customers might be hesitant to opt for voice commerce due to the lack of a human touch that makes conversations look intuitive and natural.

Improving the virtual sales experience

In the COVID-19 era, competition is brewing among retailers to develop an online retail platform amid a rising number of online shopping apps. Amidst growing competition, it seems essential for businesses to provide the user with a place to seamlessly shop online and an experience that they enjoy.

Towards this end, businesses can embrace virtual selling, which allows them to interact with consumers from the comfort of their homes, offering a shopping experience that feels more real. Businesses can also explore video-based sales calling and virtual trial rooms as a method to enhance their marketing.

Though virtual engagement can make for a great marketing tool, businesses might face some challenges. As users cannot see the salesperson face-to-face in virtual selling, businesses may encounter difficulty in retaining the audience’s attention for long. Moreover, technical challenges pertaining to the video calling platform can further decrease the customer’s interest in the product.

Promoting the audience-specific product

With increased globalisation in the contemporary world, customers have a more comprehensive range of options to choose from in the retail landscape. To sail through increased market competition, it has become increasingly important for businesses to market products based on the local preferences of the target audience.

In fact, customising a user’s experience based on cultural preferences, location, and specific demographic preferences can be a stepladder to a successful e-commerce business. This includes knowing what type of merchandise is popular among consumers and keeping track of their shopping preferences while checking whether they prefer online shopping through desktops or mobile apps.

Besides, businesses must ensure that the online experience is fully localised by enabling payments in the local currency and adopting payments methods that the target audience is familiar with.

Despite these best efforts, businesses may encounter some logistic issues in the initial operational stages. To wade through these challenges, businesses should ensure proper planning and management at the early stages of development.

These efforts towards e-commerce transition and digital transformation can pay off retailers over the mid to long run. Moreover, these strategies may also help retailers emerge as market leaders in a post-COVID world, given the shift in the way we buy products online is here to stay.

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