ECOMMERCE INDUSTRY IS GETTING MORE SOCIAL

A new year doesnt mark an inflection point in the course of business, but it does prompt one to think about the journey ahead. In that spirit, lets see what 2014 has in store for global ecommerce. On the one hand, some of the trends I foresee are earlier trends gathering force. On the other hand, there are new winds blowing our way, and if these winds sustain, they could lead to a new tide in the ocean that is ecommerce.

Well See a Spurt in Cross-Border Ecommerce
So far, a lot of the cross-border ecommerce action has focused on the four BRIC countries: Brazil, Russia, India, and China. Together, these four account for 40% of the worlds population and 20% of its GDP. After one has serviced the single largest economy the US these four countries naturally show up on the ecommerce radar.

Setting up shop in a foreign locale may present serious challenges, but selling cross border is a relatively simpler proposition. I foresee a significant increase in in 2014, and more countries will come into the radar of mid- to large-sized ecommerce players.

If you have not yet taken cross-border ecommerce seriously, this is a good year to start .

Logistics Will Shine
One of the enablers of cross-border ecommerce will be reliable logistics services. More specifically, I see ecommerce logistics demonstrating:

• Shorter Delivery Periods: Some expect logistics to reach a point where those much-hyped drones buzz around the cityscape, delivering goods instantly. That piece of science fiction apart, delivery periods are indeed getting shorter be it next-day delivery in major cities or faster deliveries across borders.
• Lower Shipping Costs: With the growth in ecommerce volumes, many logistics players have achieved critical mass on an increasing number of routes. As a result, we will see more affordable shipping costs in 2014 especially when one factors in inflation of input costs for logistics providers.
• Not Just Delivery: Logistics has never really been only about delivering the product. There is planning, analytics, documentation, compliance, disclosure, taxation, and a whole lot more. In 2014, logistics players will provide even more value-added services specific to ecommerce.

If effective logistics is not your strength, then you need to make it one.

Ecommerce Will Get More Social
This trend manifested itself quite strongly in 2013. In 2014, I see an accelerated social influence on ecommerce. This will take many forms from greater integration of online purchases with social platforms, to a higher correlation between your purchases and those by others in your network.

As an ecommerce player, you cannot be seen as barely keeping up with expectations such as only allowing Facebook logins and displaying the Like button on your website. Far greater social integration is expected.

Advanced Analytics Will Become Accessible
Data analytics is not a new field. All ecommerce websites have some form of analytics installed. But while extensive data mining and advanced analytics were the previously the privilege of the biggest ecommerce players, I predict that 2014 will witness a clear trend of advanced analytics becoming accessible to small and mid-sized businesses.

Ecommerce players that harness the benefits of data analytics can develop a strong competitive edge.

The Ecommerce Industry Will Consolidate Further
I like to characterize the better part of the past five years as a phase in which ecommerce businesses bloated on investors money, and common sense economics took a back seat. 2013 demonstrated some correction to that insanity, and the ecommerce industry saw some consolidation. I see more consolidation in 2014.

If you are not specifically facing a liquidity crisis, look around for outstanding acquisition opportunities.

It Will Be About Multiple Devices and Multiple Channels
In the past 18 months, mobile ecommerce has seen a nice spurt, with the greatest growth coming from tablet devices. But this observation does not interest most ecommerce marketers, as they have categorized it as a foregone conclusion. As a result, it has now become silly to advise ecommerce businesses to ensure that their websites are responsive because that is obvious. What is not obvious is that classic physical retailers seem to have accepted ecommerce and showrooming (the practice of checking products at a physical store, while buying them online) as realities, and are now willing to explore multiple sales channels, with ecommerce being a big part of the plan.

In 2014, no ecommerce player will be forgiven for ignoring mobile devices. At the same time, dont think of the multi-channel approach as a strategy in itself. The real strategy is customer service. And since the customer buys through multiple channels, you need to be present in most.

Startups Will Continue to Mushroom; Most Will Perish
Setting up an ecommerce business for the domestic market was always easy; there are actually online guides that claim to help you set one up in 5 minutes. 2014 will continue the trend of more ecommerce startups opening shop and joining the gold rush. Sadly, I do not see most of them being able to deal effectively with the skyrocketing costs of customer acquisition.

Setting up an ecommerce website is nothing. Setting up a business that executes its mission while sustaining economic principles is the challenge.

Final Words
All in all, 2014 looks like a promising year for ecommerce. In fact, ecommerce promises to be an oasis in an otherwise lackluster business landscape.