Along with the rise of social commerce, virtual marketplaces
and automation in the logistics space, the e-commerce
sector will experience more changes that will be explored below.
Online and offline will converge
The current era is already witnessing the convergence of online and offline businesses. For instance, Amazon has acquired the physical grocery chain Whole Foods. In the same line, the Chinese giant Alibaba has revealed that it is planning to open bricks and mortar grocery stores and pop up shops. Smaller firms are testing out this strategy as well. The fast fashion retailer Zara has created an omnichannel experience at its new London concept store. It is believed that this convergence is key in determining the success of a company.
The current era is already witnessing the convergence of online and offline businesses. For instance, Amazon has acquired the physical grocery chain Whole Foods. In the same line, the Chinese giant Alibaba has revealed that it is planning to open bricks and mortar grocery stores and pop up shops. Smaller firms are testing out this strategy as well. The fast fashion retailer Zara has created an omnichannel experience at its new London concept store. It is believed that this convergence is key in determining the success of a company.
A growth in returns
The growth in the online shopping sector is not always good news. It also
implies an increase in returned goods and this would greatly impact warehousing
in the US. To handle returned items, companies in the US have to look for 700mn
sq. feet of warehouse
space. When someone buys something at a store, the likelihood of it
being returned is less than 10%. On the other hand, with internet purchases the
rate can be more than 30% and this figure is predicted to keep on increasing.
Companies
will merge online and offline experiences
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