The history of ecommerce demonstrates that online stores have certainly come a long way in the past few decades!
While ecommerce has both advantages and disadvantages, it has undoubtedly transformed the shopping experience and is increasingly preferred by many customers over the traditional experience in brick-and-mortar stores. As consumer preference has shifted, many retail businesses have adjusted their business models to embrace online sales.
Though there’s no questioning the importance of ecommerce in today’s market, it now often includes digital commerce to meet the needs and expectations of consumers. While this is a relatively new term, it’s starting to become more relevant to modern businesses.
Read on to learn all about digital commerce and why it's essential for online retail today, regardless of what product or service you sell!
What is digital commerce?
Digital commerce covers all aspects of the consumer’s online experience. Given the prevalence and evolution of technology, digital marketing efforts now span from product promotion and competitive pricing to content development and even customer retention.
With digital commerce’s broad reach and the detailed analytics accessible due to improved technology, it’s easy to see why entrepreneurs are opting to incorporate it in their strategies for growing their businesses.
What is the difference between digital commerce and ecommerce?
While digital commerce and electronic commerce sound like interchangeable terms, they are substantially different. Retail businesses that engage in ecommerce have a website that facilitates online transactions.
These websites often list product or service descriptions and support the entire purchase being completed online, such as through a shopping cart feature. This is generally where the ecommerce experience ends.
Some companies continue to function simply in the ecommerce realm. However, many are taking full advantage of all that technology now offers to help optimize the ecommerce customer experience and to maximize profitability.
This is accomplished through a migration from simple internet commerce to digital commerce.
Digital commerce expands to cover digital marketing activities that involve the full customer experience rather than only the purchase experience. This begins with customer acquisition through various digital marketing efforts.
It continues through product promotion and even identifying the most effective pricing strategy possible via data determined from in-depth analytics.
Digital commerce extends to cover marketing functions related to content development, customer retention, and detailed analytics of all stages of the customer journey.
Why is digital commerce important for your business? Top advantages
Using digital commerce is increasingly relevant to businesses across various industries and niches. It applies to both business-to-business and business-to-consumer activities. Today’s customers don’t simply visit a website, select a few items, and finalize their purchases.
Online retail shoppers instead utilize a range of online sources, services, and data to research products and services before making a buying decision.
The ability to connect with your target market through all of the outlets that they’re availing of for research is only one aspect of digital commerce.
Modern shoppers are interacting more frequently with their favorite brands online. A business’s ability to embrace digital commerce can help build the brand’s image and foster loyalty.
Connection with customers through traditional methods is progressively becoming obsolete. For this reason, companies will have to adapt or risk missing out on sales opportunities.
As you dig deeper into the data supporting the profound benefits associated with digital commerce, you will come across several other critical factors. These are directly related to the customer experience, customer expectations, and competition in the marketplace.
Deliver a consistent customer experience
The full customer experience is more and more becoming a digital one. Successful digital commerce businesses must create cohesion and consistency throughout all aspects of the experience.
For example, a customer’s first experience with an online retailer may be through ads on social media platforms or through shared content.
The message conveyed through that experience should be directly supported by the customer’s online interaction on the business's website from start to finish.
This holds true regardless of whether the customer is shopping on a desktop browser, a mobile browser, or the store’s app. For this reason, it’s absolutely essential that your chosen online store builder provides your website with all of the functions required for successful electronic commerce.
In addition, these various online experiences must be linked in a fluid manner. For instance, customers shopping on a smartphone should be able to continue on a desktop without losing items from the shopping cart after logging in.
Consistency must go beyond the purchase to cover email marketing campaigns, social media touches, loyalty programs, and more. Digital commerce supports consistency through the entire marketing spectrum across the customer journey.
This consistency is based on the fact that marketing takes center stage every step of the way.
Meet expectations
With all of the ecommerce options available, customers understandably have high standards for an excellent online shopping experience.
Their expectations begin with the first interaction that they have with a brand, continuing throughout their journey with the business. Furthermore, a company’s ability to meet those expectations will directly affect conversion rates, brand loyalty, and store sales.
What happens to a retail business that fails to meet shoppers’ expectations in these critical areas, such as by lagging behind in the management of its digital commerce strategy?
Customers may feel out of touch with the brand, as though it doesn’t care about them, or even confused about what it represents. These are difficult challenges to overcome once they’re established, no matter the products or services a company is selling.
Because of this, the best time to strategically move into the digital commerce world is as soon as possible if a business wants to increase its sales.
Keep up with competitors
Digital commerce has the power to help transform the customer journey and to bolster sales in the process. Many of your store's market competitors may already be embracing digital commerce in various ways in order to sell more.
As a result, they might be more knowledgeable about customers’ needs and wants. They also may be expanding loyalty and market share, meeting consumers’ expectations with the items they sell, and benefiting in other essential ways.
When you consider that customer referrals are directly linked to loyalty and a positive experience, your competitors may be growing stronger by the day.
Digital commerce supports deep analytical insights, and these insights can further improve how your competitors interact with customers.
The bottom line is that you may be losing traction rather than simply treading water if you are not embracing digital commerce.
Top trends shaping the future of digital commerce
The digital commerce landscape is rapidly evolving, driven by innovative technologies and shifting consumer expectations. In this section, we explore the key trends shaping the future of online shopping, from personalized experiences powered by AI to the rise of mobile and social commerce, redefining how businesses engage with customers globally.
Artificial intelligence and machine learning
Artificial intelligence (AI) and machine learning are being used to deliver highly personalized shopping experiences. By analyzing vast amounts of customer data, AI can learn more about the people visiting your website and recommend products tailored to individual preferences, enhancing customer satisfaction and driving sales.
In addition, AI-driven tools like chatbots and virtual assistants are improving customer service by providing instant responses to queries, guiding users through their shopping journey, and handling post-purchase support.
Omnichannel commerce
People increasingly expect a seamless shopping experience across multiple channels—online, in-store, mobile, social networks, and more. Omnichannel strategies ensure that customers have a consistent experience, regardless of where or how they interact with a brand.
Retailers are also integrating data across all channels to better understand customer behavior and preferences, allowing for more targeted marketing and a more streamlined inventory management process.
Sustainability and ethical shopping
People buying goods and services around the world are becoming more conscious of the environmental impact of their purchases. Brands are responding by adopting sustainable practices, such as eco-friendly packaging, carbon-neutral shipping, and transparent supply chains.
There's also a growing demand for products that are ethically sourced and produced. Companies are highlighting their fair trade practices and commitments to social responsibility as key differentiators to help them stand out from the crowd
Mobile commerce
As mobile devices dominate online traffic, ecommerce platforms are increasingly prioritizing mobile-first designs. This includes faster load times, simplified checkout processes, and mobile-specific features.
Furthermore, digital wallets and mobile payment options like Apple Pay, Google Pay, and others are becoming more prevalent, offering secure, one-click payment solutions.
Social commerce
Social networks are increasingly used by people for all kinds of reasons, so it comes as no surprise that buying and selling goods here are growing in popularity.
Social media platforms like Instagram, Facebook, TikTok, and Pinterest are becoming major ecommerce hubs. With integrated shopping features, users can discover and purchase products directly within these apps.
With this ecommerce marketing trend, influencer marketing is also being used by more and more retailers as an effective tactic. Social commerce is heavily driven by influencers who promote products to their followers, leveraging their trust and reach to attract a wider audience and drive sales.
Augmented reality and virtual reality
Augmented reality allows customers to virtually try on clothing, accessories, or even makeup, serving as a sort of digital fitting room, enhancing the online shopping experience by reducing uncertainty about fit and style.
In addition, virtual reality is being used by retailers to create immersive shopping experiences on the web, where customers can explore virtual showrooms or stores from the comfort of their homes.
Subscription-based models
Subscription services, whether they involve the selling of physical goods (like subscription boxes) or digital products (like streaming services), are growing in popularity. These models provide a steady revenue stream for businesses and convenience for consumers.
AI and data analytics are being employed to help tailor subscription offerings to individual customer needs, improving retention rates and customer satisfaction.
Voice commerce
As electronic gadgets such as smart speakers and voice assistants like Amazon Alexa, Google Assistant, and Apple's Siri become more common, voice commerce is emerging as a new way to shop. Consumers can use voice commands to search for products, place orders, and manage purchases.
Voice-activated shopping is appreciated by consumers for its convenience and efficiency. It allows users to quickly search for products, place orders, and manage purchases hands-free, making shopping faster and easier, especially in multitasking situations. This seamless interaction enhances the overall customer experience and accessibility of buying products on the web.
API-based and headless ecommerce
API-based and headless ecommerce separates the front-end (user interface) from the back-end (content management and ecommerce functionality) of an online store.
In this model, APIs (application programming interfaces) connect various services and components, allowing businesses to deliver content and products across multiple channels—like websites, mobile apps, social networks, and IoT devices—without being tied to a single platform. This approach with APIs offers greater flexibility, enabling brands to create highly customized user experiences and integrate with various third-party tools.
Headless ecommerce supports faster innovation, as changes can be made to the front-end without disrupting the back-end, and vice versa, making it ideal for businesses looking to stay agile and responsive to customer needs.
Blockchain and cryptocurrency
Blockchain technology is being explored to provide enhanced security, transparency, and trust in transactions.
Blockchain's decentralized ledger reduces fraud risk for retailers, ensures data integrity, and streamlines supply chain management with verifiable records. On the internet shopper's side, it offers greater confidence in product authenticity and transaction security, as blockchain enables tamper-proof verification of product origins and secure, transparent payment methods.
Cryptocurrency payments are additionally becoming more prevalent when it comes to web sales. The acceptance of cryptocurrencies as a payment method enables fast, secure, and cost-effective transactions.
This means reduced payment processing fees, eliminated chargebacks, and open access to a global customer base, including those without traditional banking services, for retailers. For people shopping on the internet, cryptocurrencies offer enhanced privacy and security, the potential for lower transaction costs, and the ability to make purchases without currency conversion, making cross-border shopping more convenient and accessible.
Buy now, pay later (BNPL)
BNPL services, like Klarna, Afterpay, and Affirm, allow customers to purchase items upfront and pay for them over time in installments. This trend is particularly popular among younger shoppers who prefer more flexible payment options when it comes to buying items on an ecommerce website.
These trends are driving the evolution of digital commerce, making it more personalized, accessible, and aligned with consumer values. Companies that adapt to these changes will be more likely to thrive in the increasingly competitive online marketplace.
The time to elevate your digital commerce strategy is now!
As is the case with so many other aspects of technology, digital commerce and consumer expectations related to the digital experience continue to evolve rapidly. Retail businesses that are only slowly delving into digital commerce may be falling farther behind in the market.
There’s no time like the present to up your digital commerce game and further develop your marketing strategy with the content you share.
Doing so will help you to provide better services for customers, leading to a better overall shopper experience and likely a boost in sales!
