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Home  >  Business • Marketing • Web design  >  How e-commerce changed retail forever
Posted inBusiness Marketing Web design

How e-commerce changed retail forever

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E-commerce has revolutionised the retail landscape, reshaping consumer habits, expectations and the strategies businesses employ to meet market demand. From its initial beginnings to the industry-changing events of recent years, e-commerce’s impact has been transformative. Let’s take a look at the history of e-commerce, the significant growth it saw during COVID-19, how it has changed the way we shop and the big winners and losers in the shift to online retail. Below is a brief study of how e-commerce changed retail forever.

The history of e-commerce

The concept of e-commerce has roots that stretch back several decades, with the first electronic transactions taking place as early as the 1970s. However, it was the invention of the World Wide Web in 1989 by Tim Berners-Lee that made commercial online retail possible. The internet allowed for the establishment of online platforms where businesses could interact with consumers, making digital shopping accessible to the masses.

In the mid-1990s, companies like Amazon and eBay launched pioneering e-commerce platforms that were initially dedicated to specific niches. Amazon, founded in 1994, started as an online bookstore before expanding to sell a wide array of products, ultimately becoming a global leader in e-commerce. eBay, launched in 1995, offered an online marketplace for consumers to buy and sell goods directly, creating a new model of online auction-based commerce.

E-com’s exponential growth

Over the last decade, e-commerce has experienced exponential growth due to advancements in technology, from increased internet speeds and mobile connectivity to secure online payments and data-driven marketing techniques.

Also, Customer Relationship Managment (CRM) platforms have played a pivotal role in expanding the scope and use of e-com in today’s ever-changing retail landscape. Using CRM systems, companies can now track (and respond to) every step of the purchasing journey – from initial contact right through to purchase and after-sales support.

Today, online shopping has moved beyond simple desktop transactions to encompass mobile shopping, social media commerce and app-based purchasing. These developments have been powered by advanced data analytics, AI-driven recommendations and highly personalised consumer experiences, making e-commerce an indispensable part of modern retail. The digital marketplace has evolved into a complex ecosystem where businesses can reach customers 24/7, from any location worldwide.

If you’re looking to start an e-commerce venture, you should consider working with an established business mentoring company that will be able to hand-hold you through the entire process of setting up online and building your customer base. Business incubator firms have vast experience of building ventures from the ground up, including branding, sourcing funding, establishing business models, developing online sales platforms, generating online marketing strategies and accelerating growth.

E-commerce’s rapid acceleration due to COVID-19

The COVID-19 pandemic was a tipping point for e-commerce, propelling its growth to unprecedented levels. With brick-and-mortar stores forced to close, people turned to online shopping in record numbers, reshaping consumer behaviour almost overnight. The immediate shift to digital transactions was driven by the need for convenience, safety and access to essential goods, resulting in massive growth for e-commerce businesses. Indeed, it’s estimated that take-up of e-com was accelerated by four to five years through the pandemic.

Companies that had e-com in place thrived through COVID

Amazon, already a giant in e-commerce, saw a substantial increase in its user base as it became the go-to platform for purchasing household essentials, electronics and more during the lockdowns. Its infrastructure allowed it to scale quickly, delivering goods while other retailers struggled to adapt. Similarly, Walmart expanded its online operations rapidly, enhancing its e-commerce presence to cater to the surge in online shoppers. In the UK, grocery chains like Tesco and Sainsbury’s increased their online delivery capacities to meet soaring demand for home grocery deliveries.

Food delivery services also boomed, with companies like Deliveroo, Uber Eats and Just Eat seeing an exponential rise in orders. Many consumers relied on these services to access food from their favourite restaurants or even for grocery shopping, further embedding the role of e-commerce in daily life. Companies that could adapt to digital transactions and delivery grew significantly, while businesses that couldn’t pivot quickly enough struggled to survive.

How e-commerce has changed how we shop

E-commerce has drastically transformed how we shop, with online retail offering unparalleled convenience and flexibility. Experienced web developers like Deepbluemedia have the skills to build online shopping experiences that truly grab the attention of customers and keep them coming back for more.

Today’s consumers have grown accustomed to the immediacy of online shopping (note the importance of fast page-load times), along with the personalised experiences that e-commerce platforms provide. This shift in expectations has reshaped the entire retail landscape in many ways, including (but not limited to).

  • 24/7 Shopping
    Unlike traditional stores, e-commerce is available round the clock, enabling consumers to shop at any time.
  • Greater Product Variety
    Online platforms can offer a much broader range of products than physical stores, including international items.
  • Personalisation
    Advanced algorithms provide personalised recommendations based on past purchases and browsing habits.
  • Price Comparisons
    Consumers can easily compare prices across different retailers to find the best deals.
  • Customer Reviews
    Shoppers can access product reviews from other customers, aiding their purchase decisions.
  • Enhanced Convenience
    From fast delivery to easy returns, e-commerce has set a high bar for convenience.
  • Lower Overheads
    E-commerce allows businesses to operate without the high overhead costs of physical stores, which can result in lower prices for consumers.

The big losers of the e-commerce revolution

Not all companies have adapted successfully to the e-commerce revolution. Many that failed to embrace digital transformations have struggled or disappeared altogether.

  • Blockbuster
    The video rental giant failed to compete with online streaming services and ultimately went out of business.
  • Borders
    This bookstore chain couldn’t keep up with the rise of online book sales through Amazon and closed its doors.
  • Toys “R” Us
    Despite being a beloved toy retailer, Toys “R” Us could not compete with online options and went bankrupt.
  • Sears
    Once a retail powerhouse, Sears struggled with the transition to e-commerce and gradually lost relevance, leading to mass store closures.
  • RadioShack
    The electronics retailer was unable to keep pace with online competitors, leading to the closure of most of its stores.

The big winners of the e-commerce revolution

On the other side, several companies have successfully leveraged e-commerce to grow and capture new markets.

  • Amazon
    Originally an online bookstore, Amazon became the world’s largest online retailer through rapid expansion and innovation.
  • Alibaba
    This Chinese e-commerce giant has become a global leader by offering a massive online marketplace and expanding into digital payment services.
  • Walmart
    Traditionally a brick-and-mortar retailer, Walmart embraced e-commerce, successfully competing with Amazon through online sales and fast delivery.
  • Shopify
    Shopify provides small businesses with e-commerce tools, making it easier for entrepreneurs to set up online stores.
  • Zalando
    A European online fashion retailer, Zalando has grown through e-commerce by offering a wide selection of fashion products and seamless online shopping experiences.

The future of e-commerce

The future of e-commerce is poised to bring even more innovations as technology advances and consumer expectations evolve. Emerging trends like automated delivery through robots and drones, dropshipping and virtual reality (VR) shopping are set to become increasingly common. Big Data analysis will continue to refine customer targeting, offering more personalised shopping experiences and predictive marketing.

Automated delivery systems using robots or drones will reduce shipping times and logistics costs, making same-day or even hourly delivery a viable option. Dropshipping, where retailers sell products without holding inventory, will enable more businesses to enter the e-commerce market with minimal overhead. VR shopping could provide a new way for customers to experience products virtually, creating immersive shopping experiences that closely mimic in-store browsing.

Final thoughts

With competition in e-commerce showing no signs of slowing down, businesses that want to succeed will need to embrace these new technologies and innovations. Those that adapt quickly and strategically will be best positioned to thrive in an increasingly digital retail world. In many ways, having a structured e-commerce store could mean the difference between merely surviving or thriving into the so-called fourth industrial revolution. E-commerce offers so many opportunities for firms both in terms of growth but also from a productivity and streamlining point of view. Bottom line – those companies that don’t embrace the e-com revolution are unlikely to survive into the future.

Tags: e-commerce e-commerce revolution online shopping
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