With Online Retail on the Rise, E-commerce is Essential, says Jonathan Shokrian

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According to a recent study by invesp.com, 10 percent of all retail sales in the United States will be made online by 2017, and e-retail experts like Jonathan Shokrian, of MeUndies, have taken note.

Shokrian believes that it is crucial for companies to invest in their e-commerce infrastructure because, he says, online marketplaces are the future of retail. He thinks that if companies do not aggressively invest in their e-commerce platform, they will fall far behind.

“Traditional retail is dying, and the emergence of direct to consumer brands is becoming more and more popular everyday,” Jonathan Shokrian says. “New brands are more inclined to launch websites than brick and mortar stores. There’s no denying that.”

The study released by invesp.com revealed that U.S. digital retail sales are projected to increase to more than $434 billion, and 25 percent of these sales will be made through a mobile device by 2017. In 2013, mobile purchases only accounted for 15 percent.

Shokrian points to a similar Forrester-led study, in which it sought out the drivers behind the substantial growth in e-commerce. It revealed two distinct factors. First, Forrester identified the escalating use of mobile devices, like tablets and smartphones, which have increased the time consumers are likely to spend online. Over 50 percent of American e-consumers have smartphones, and many are using these devices to find stores, the best prices, and to research purchases. Oftentimes, they are conducting transactions on their devices, as well.

Another factor Forrester identified was the augmented investments that traditional retailers have made in their online sales divisions. More specifically, bigger retailers have built out omni-channel customer purchase experiences. They are also helping sales associates close a sale by allowing them to order out-of-stock goods online, as well as allowing Web shoppers to pick up their items in stores.

At present, the majority of online shoppers are veteran e-consumers. A mere four million people were expected to be first-time shoppers last year. It appears that the major online sales spurt is headed up by existing Web shoppers. According to Jonathan Shokrian, these consumers are spending more money and time in more categories across the Web.

Forrester expects these sales to continue increasing, especially as more retailers build out international e-commerce approaches. Additionally, e-consumers’ purchase habits will evolve, and will present retailers with new opportunities to make sales. Within the report, Forrester found the arrival, as well as the crucial nature, of a variety of e-commerce elements. It also identified a few new trends that are expected to become more prevalent as 2014 progresses.

Mobile sales and traffic will continually grow. This year, the amount of traffic, as well as the overall number of orders made online through mobile channels, are expected to grow in nearly all marketplaces around the world. Forrester predicts that a larger number of companies will also introduce new mobile apps and websites to directly respond to increased mobile use.

Retailers will more frequently look to online marketplaces. Another trend expected to take place in 2014 is that retailers will continually enter into online marketplaces to improve their Web presence. They are expected to quickly see growth in revenue after making the move. For example, Business Wire points to Tmall, a Chinese online marketplace, as a popular entry point for retailers looking to increase their e-commerce. 

Retailers will need to develop sales plans for high-sales holidays. Both European and American brands are expanding into global markets. That means they need to prepare for e-commerce sales, as related to high-volume purchase days, like Valentine’s Day in the United States, or Singles’ Day in China. Last year, this Chinese holiday realized more than $5.5 billion in e-commerce sales alone.

As brands introduce new offerings, initial market entry will become easier. A growing number of companies are expected to act as a sole point of contact for brands looking to enter into e-commerce. They will help introduce these new products and services into markets worldwide.

More affordable, faster shipping options will become available. Annie Jie Xu, the United States general manager for alibaba.com, also made a few predictions for e-commerce trends this year. She asserted that there will be more innovations as related to delivery options for consumers. Many companies will find it necessary to offer improved shipping options, like faster times or lower (or no) cost shipping. Companies are more frequently having the opportunity to team up with other businesses that work hand-in-hand with retailers to provide shoppers with improved shipping experiences.

Jonathan Shokrian points out that many smaller companies may not be able to afford these faster or free shipping options, though. But they can still differentiate themselves and provide more value to shoppers by getting creative. Writing a personalized note to customers, for example, is just one way that businesses with tight budgets are circumventing the consumer demand for better delivery when they cannot feasibly provide faster or cheaper shipping.

As more and more research on e-commerce is finalized, it becomes increasingly clear that retailers must invest in their online purchase plans. As a CEO, Jonathan Shokrian has placed growing emphasis on enhanced consumer experiences within his online marketplace and says that this emphasis is absolutely necessary in being profitable in a digital age.