In the late '90s and early 2000s, online commerce emerged with companies like Amazon that further laid the foundation. At that time, various challenges made it drastically difficult for online commerce businesses to stand in and make a promising picture of themselves. Challenges like inefficient inventory management, limited user insights, lack of data, and more propel the need for digital solutions.
This has led to technological advancements that have helped online retailers improve their store’s performance. Today, digital transformation services are a need for growing and just-started businesses. Investment in this becomes necessary for each store owner to stay competitive in the market.
The idea of spending can be understood by how actively eCommerce store owners invest. Globally, the graph is on the verge of an increment and is expected to grow by $3.19 trillion by 2027. This is all because of the power of this transformation to improve online store performance. Let’s understand what makes it so on top of the minds of business owners.
How
Beneficial is Digital Transformation for Online Retailers?
Businesses today want to be on the front lines of the market. Digital transformation is no longer a trend; in fact, it has become a necessity for modern-day retailers. Embracing it gives them enough chances to stay competitive and achieve greater heights. However, neglecting it makes it harder to make the most of the growing market. Here is how this buzzword is helping online retailers:
1.
Data-driven
Decision Making
Brick-and-mortar sellers traditionally were not able to gain a complete understanding of user’s demands, and they mostly failed to meet the expectations. One of the setbacks behind losing various customers for retailers. Considering this, the shift to online selling has turned out to be a boon for online store owners. How?
Now, with the introduction of digital transformation solutions, like data analytics, they can have a complete understanding of customer behavior. This means they can understand the likes and dislikes of a particular consumer. As a result, data-based decisions help online retailers to optimize their prices and marketing campaigns accordingly.
2.
Personalized
Customer Experience
As mentioned above, digital transformation allows a business to make data-backed decisions. This way, as an online retailer, you can tailor the shopping experience, from product recommendations to targeted promotions, to precisely match the needs of customers.
Also, you can train your AI agents to be more specific about the queries a user might ask or provide information to users about new offers, helping your might-be customers to get the right and accurate information. This personalization helps improve the customer experience on your site.
3.
Enhanced
Operational Efficiency
A thin line that separates the best from the rest is having a detailed understanding of your business and customers. Modern technologies and embracing change can help a business stand apart from the crowd.
Digital transformation allows retailers to check on the inventory quantity left in their warehouses and make decisions accordingly. Not only that, but real-time analysis also helps them understand which products are in demand and how quickly they have to refill the particular stocks to prevent understock issues.
Moreover, integrating IoT in eCommerce helps your business streamline order-related activities quickly.
4.
Improved
Website Functionality
No, users do not like to scroll or spend time on an eCommerce website that is non-responsive, irrespective of the quality of the products a store offers. Hence, it is wise to first improve the responsiveness of a website and make it highly accessible to different screens without losing its functionality.
Integrating the responsive website to modern-day eCommerce-first trends like augmented reality can outshine its presence among competitors. If you provide users the feasibility to virtually try on particular clothes or visualize how well the chosen furniture suits their surroundings, give them a valid reason to trust your services.
5.
Better Sales
and More Reach
A web store integrated with the advanced and right mix of technologies is all set to perform better than others. You can build user-specific marketing campaigns, enabling more clicks and conversions through a streamlined and easier checkout process. Also, you can reach your eCommerce store to users domestically or internationally. Furthermore, with digital transformation, the revenue options are not only related to product sales; more new opportunities, like subscription services, are there to earn more.
Key
Technologies That Power Digital Transformation in Online Retail
You might be curious about the technology that is fueling the digital transformation in the retail industry at a rapid pace. Getting a cleaner and more precise idea is all you need to make the right decision as per your business needs and budget.
1.
Artificial
Intelligence
Without any doubt, the technology that has taken the entire digital industry to a different level is AI. Its potential is way beyond one can imagine. A retail business owner can make better use of this to offer tailored product recommendations to users, build chatbots driven by data, and leverage advanced data analytics into operations.
2.
Machine
Learning
Though it is a subset of AI, its capabilities are vast and helpful in transforming the entire online retail industry to a new height. A business like yours can effectively manage its inventory level by ascertaining the market demands.
3.
Internet of
Things (IoT)
This network of interconnected technology helps a retail business in greater ways. The IoT sensors will be placed throughout the supply chain process to allow a business to gain real-time insight like the fleet location and more.
4.
Augmented
Reality
You let your customers virtually “try on” or “visualize” the products before purchasing them with the help of AR technology is in place. This bridges the gap between physical and digital retail, making shopping more engaging for users.
Conclusion
The bar for digital innovation is already high in the market, with giants like Amazon, Walmart, and more. For businesses that are or have not stepped into the wave of innovation through digital transformation, now is the correct time to make a move. The lucrative benefits of this process are widely evident to global businesses, and the stats speak for themselves. For a retail business, opting for digital transformation services is a strategic shift to be more efficient and customer-centric.