Digital Commerce Development: Everything You Need to know (2023)
Competition in the business world is growing continuously and it is becoming essential for enterprises to implement several new techniques like digital commerce development for staying ahead in the competition.
Today’s era is the digital one and the enterprise needs to use the digital eCommerce platform for marketing different features like product promotion, analytics, pricing, customer acquisition and retention, content development, etc.
Implementing a digital commerce platform allows for understanding the current trends, determining customer demands, monitoring high-level metrics, etc. for enhancing the business. Digitalization will help in better understanding of the audience thus increasing sales by enhancing customer satisfaction.
What is Digital Commerce?
Digital commerce suggests using digital tools and techniques for eCommerce like buying and selling in the online store usually through the website. This process involves the buying and selling of products and services without any human intervention. It enables full automation of the process starting from the marketing and sales to the product delivery.
Digital commerce includes the information regarding the online channels and allows for seamless connection of the different applications, devices, or data sources. It also manages and stores real-time data and is useful in order management. It stores the store or location information and allows the customers to get unified data for better access, trust, and control.
The different aspects of digital commerce include content marketing, product description, images, statistics, and other details, promotional campaigns, social media engagement, analytics, user experience mapping, customer services, order fulfillment and supply chain management, etc.
Visit A Brief About Digital Commerce & Trends to Watch to get exclusive insights into every aspect of digital commerce and the latest trends in digital commerce. It explains the essence of a digital commerce platform in the success of your online business.
Fascinating statistics of Digital Commerce
The interesting details for the digital commerce predictions for 2023 based on recent reports are listed below, take a look.
- Around 80% of the companies implement the use of Artificial Intelligence as the active tool for designing digital commerce strategies. This will allow for accessing and improving the key performance indicators like customer satisfaction, revenue, cost reduction, etc. by 25%.
- About 15% of big digital commerce product brands will launch their marketplace
- Digital commerce vendors will rule the market by the faster release of features, providing extensive Application Platform-as-a-Service (PaaS), a vast ecosystem, etc
- US B2B market will reach 1.8 trillion USD by 2023
- Around 89% of buyers will prefer online search in the B2B purchase process
- Ecommerce will facilitate more than 95% of purchases by 2040
What are all the aspects of Digital Commerce?
Digital commerce considers all the elements involved in the purchase decision. The digital strategists help in mapping the complete consumer journey for the product or services. It defines the level of importance for each purchase milestone and enables providing a seamless experience to all their end-users.
Several aspects involved in digital commerce include:
- Creating marketing content
- Enriching the product details like description, technical specification, images, videos, other media, etc.
- Marketing features include promotional campaigns, social media engagement, mobile marketing, email marketing, video marketing, etc.
- Analytics to understand the inventory, demands, and sales of the products
- Mapping user experience to understand the customers and implement changes to enhance their shopping experience
- Search engine optimization
- Provide customer services with help of reviews, feedback, etc.
- Tracking of the material shipment
- Order fulfillment and supply chain management, etc.
Why Should Companies Go for Digital Commerce?
Digitalization has a greater impact on increasing the B2B and B2C strategies. There are extreme changes in customer behavior, expectations, shopping trends, demands, etc. The customers tend to search for the product of their choice across the different channels and then compare these products based on the available product information like description, technical specifications, costs, etc.
1. Better Customer Experience
Customers prefer online shopping as compared to purchasing the products from the physical store after an online search. Digital commerce enables providing a better customer experience by:
- Customers shop online while relaxing in their homes
- Do not have to deal with the salespersons that try to upsell their products
- It leads to an easy process for exchanges and returns
- It is easy for the customers to browse, search, and order the products of their choice
- Digital commerce allows in providing support to their customers using live chats round the clock for resolving their issues and queries, etc.
2. Easy Business Expansion
Digital commerce is for online store expansion as compared to brick-and-mortar businesses as there are no limitations involved like the availability of the location. The physical market expansion involves the different facets involved like the selection of the location, hiring the in-premise personnel, and investment of time, money, and energy. The expansion of the digital commerce business is comparatively simple and straightforward.
3. Excellent Customer Data Insights
Digital commerce makes the collection of customer data and its storage. As the customers browse through the website, many customer-related details get saved including browsing details, customer behavior, etc. It also allows for monitoring customer interactions, buying frequencies, etc. The details regarding the items viewed by the customer but not purchased also assist the business in gaining insights and allows in organizing the customer experience.
4. Keep Up with Evolving Competition
The competition in business is always increasing and the enterprise needs to keep their business ahead by providing the best to their customers. For this, the enterprise needs to stay ahead of its schedule for providing improved products to its customers. The enterprise should understand the needs of its customers. The happy customer will recommend the brand experience to their friends, family, relatives, neighbors, etc. Enhanced customer interaction will help in maintaining brand loyalty.
5 Advertising & Marketing at An Affordable Price
Digital commerce involves several approaches to the advertising and marketing of products. Visual channels have a significant way of marketing in eCommerce marketplaces. Several advertising tools assist in making products attractive by providing them with aesthetically good and pleasing quality images. This helps in visualizing minute details to the customers, helping them to connect with the product and make their purchases.
6. High-focus On Target Audience
Having better customer insights will help in providing better products to the customers with the help of targeting or personalization. It is observed that the customers are willing to pay more for personalized products as compared to normal products. Digital commerce allows for tracking the purchase habits of their customers thus giving insights for better promotional campaigns.
7. Improves Business Processes
Customers browse on the internet searching for the products of their choice, this digital commerce helps in understanding the customer’s needs and providing them recommendations based on their previous search history. This helps in improving the buying process for the customers and business.
Digital commerce helps in saving a lot of money on several aspects like the lower cost for human resources, space allocation, rent on office space, etc.
9. Better Customer Experience
Customers make their purchases based on the product reviews and descriptions provided to them, adopting digital commerce allows for reaching out to a larger crowd compared to the marketplace and makes the purchase process easier.
10. Attracts New Customers
Digital commerce allows reaching more buyers as compared to the physical store owners. Digital commerce allows for reaching global customers at a lower cost. It also allows us to reach the customers based on the details of demographics and accordingly targets several segments.
How Does Digital Commerce Work?
The main added advantage of digital commerce is the process of automation as it allows for easy processing of the data and makes it available to the customers for initiating the purchase. For reaching the global market, the supply chain and timely deliveries are affected by several factors like weather, pandemic situation, political unrest, etc. In such cases, digital commerce helps in providing the data by predictive analysis and helps the retailers to foresee the adverse events in advance.
Digital commerce is a complex process and depends on the availability of the vastness of the data and the specialized analytics capabilities. This digital commerce can reach all the places where there are customers for the business. It can reach any location with the support of various teams that can control the various processes like inventory movement to customer satisfaction.
While making the online purchase, the customers do not think about the location from where their product is coming. They are not concerned about how it will be packed or shipped. These customers are concerned about the quality of the product, the monetary value for what they are paying, the timely delivery of the product, and the product relevance that the product should match the expectations of the customers as observed while making the purchase.
To reach out to global customers, the enterprise should fulfill the purchase orders and this can be done by implementing the automated process at the supply chain and warehouse levels. This will help with faster and timely delivery of the products to the customers.
Difference Between Digital Commerce & eCommerce
Several aspects can be considered when differentiating digital commerce (D-commerce) from Ecommerce. Take a look over the few listed below.
- In digital commerce, the products are intangible which means they are present only in the digital format for the customers to view on their digital devices. In e-commerce, the products can be digital, tangible, or services.
- On the digital commerce platform, the product available in the digital format can be used repeatedly by providing the same link for its online store and in the case of eCommerce, the product is involved in a single transaction.
- The products involved in digital commerce include eBooks, photography, learning courses, multimedia content, themes, digital assets, templates, software and software components, extensions, digital arts, mobile application development, etc. The products included in the eCommerce include any type of product that is available in any brick-and-mortar store.
- For digital commerce, the services and products are delivered online. These products are uploaded on hosting platforms like mobile applications, websites, etc., and thus do not require any warehouse for their storage, inventory, and shipment management. In the case of eCommerce, all these requirements are essential and include a higher overhead expense.
- In D-commerce there are no product-related issues like damage, perishing, wear and tear, etc. eCommerce has to face the issues related to refunds, returns, etc.
- The disadvantage of D-commerce includes that it requires extensive customization based on the audience’s needs depending on the user interface, functionality, and features.
- The main reason that led to shifting from the eCommerce business to D-commerce is the change in consumer behavior. As the competition in the market is increasing tremendously, the demands of the customers are also changing drastically. To meet the needs of the customers that prefer buying the products from the platform that provides them with better products, and fulfills their demands.
Challenges of Digital Commerce
The several potential obstacles or challenges faced by digital commerce, take a look over the few listed below.
1. Delivering consistent customer experiences
The demands and the expectations of the customers are dynamic and it keeps changing constantly. The retailers should adopt a strategy that will help in monitoring the customer data for identifying the areas that need improvement. It is important to understand customer behavior for providing a personalized experience.
Implementing advanced technology will help in better understanding. The several analyzing tools and algorithms will assist in tweaking the digital commerce platform and ensure consistency across the different areas of the online shopping experience. This will help in improvising on the factors like search options, shipping preferences, product types, etc.
2. Meeting new technology expectations
Meeting the expectations of the customers has been a tricky task due to the different ongoing digital marketing trends. Due to digitalization, several devices have been used for shopping; as the devices are constantly upgraded there is a need for updating the digital commerce campaign for efficient service to tech-savvy customers.
The customers tend to check the product of their choice on several different channels and compare it based on all the available product information like specification, costing, etc. Customer behavior is difficult to predict in the fast-changing technological era thus it is necessary to provide a seamless purchase experience to the customers.
For this, the enterprise should implement the use of advanced tools and techniques like artificial intelligence, personalization, conversational marketing, visual search, video marketing, etc.
3. Generating enough traffic
In the traditional shopping experience, retailers used to depend on a single source of traffic coming to their eCommerce websites. In this digital commerce era, they are tapping different techniques for targeting the traffic to the website and these include PPC, SEO, display ads, mobile applications, retargeting, shopping engines, emails, etc.
The different ways of generating traffic for the eCommerce business through the digital channel include hosting social media prize gateways, creating Instagram galleries, optimizing product images for Google search, securing influencer collaborations, etc.
The best and the easiest way for overcoming these hurdles include investing in a software solution for merging all the essential elements of digital commerce development.
4. Converting and retaining customers
The implementation of marketing automation strategies has helped in converting potential buyers into customers. It is important in retaining these valuable customers by focusing on keeping their interest. It is essential to provide the best services to the customers to gain their confidence.
Digital commerce should make efforts to retain its customers. This can be done by re-engaging the existing customers by adopting several digital commerce tools like education webinars, feedback, survey, etc.
5. Expanding business with technology
For consistent growth sing digital commerce development, there should be a firm foundation for development. This includes the integration with several advanced features including analytics, email software, shopping cart solution, inventory management software, CRM system, etc.
Integrating the digital commerce development store with new technology and getting feedback from the customers can help in growth and development.
5 Effective Strategies for Shifting to Digital Commerce Development
The five- most effective strategies for shifting to digital commerce development for business growth include:
1. Channel Blurring
It is important to get beyond the dual-channel capabilities for eliminating the idea of rigid channels. The purchase process involves various steps like awareness of the product, selection of the product by comparing it with similar ones across the different channels based on its properties or descriptions, and completion of the purchase.
It involves different touchpoints across different channels. The customers do not view these as distinct channels. It is important to focus on customer engagement and enhancing the customer experience.
2. Predictive Engagement
Predictive engagement involves providing relevant and personalized interactions between the prospective customer and the business. The customer should be provided with all the necessary information that includes the full contextual awareness of location, inventory, real-time behavior, comparative pricing with past purchase records, etc.
3. Experienced-based Commerce
It is important to incorporate experience-based commerce with digitalization. The involvement of the hybrid experience will help in emerging as one of the most dominant characteristics.
4. Seamless Ecosystems
The customer’s demands for the products and services will always be dynamic and keep changing. Thus, a combination of insight of availability and location of the inventory will provide the ability for seamless connection for delivering products and services to the customers.
This will help in creating a longer-term digital commerce development ecosystem benefiting the customers as well as the business.
5. Demand-driven Supply
It is important to have a balance between the investments in the supply with the customer demands. Digital commerce requires a higher level of availability of the items in combination with a more sophisticated ability for the personalization of the merchandise.
Digital Commerce Development Trends in 2023
There are several digital commerce development trends that the enterprise can incorporate in the future for the growth of the business and these include:
1. Omnichannel Content and Commerce
Digital commerce professionals need to create meaningful engagement opportunities for the customers across all the channels. Development and providing the right content at the right time and place help in creating brand awareness.
Providing consistent data across the different channels enables us to gain customer confidence thus enhancing the customer experience across all the channels. It also leads to improving customer understanding based on the details gathered from cross-channel analytics.
Personalization is one of the leading techniques that helps in enhancing the customer experience. At first, it is important to understand the customer based on their behavior and then provide relevant recommendations to the customers and increase their engagement.
This personalization can extend to cross-channels, onsite, application-based, etc., resulting in improving brand awareness. Also, it leads to an enhanced customer journey. Personalization is possible by understanding customer interaction with different touchpoints.
Details like site search, product recommendations, browsing data, landing pages, etc., help in building a complete picture of visitors across their journey.
3. API-based Commerce
The different factors that hold back enterprises from building a unique experience include the legacy, content solution, and inflexible commerce. API-based commerce will help in solving these issues through the easy transmission of data between the systems.
This includes data like product details, customer information, financial details, etc. Retained can gain the advantage of omnichannel design and deliver relevant and consistent products to their customers across all the sites, applications, and any touchpoints for interaction.
4. Artificial Intelligence
Artificial intelligence will be helpful for advanced analytics, event interpretation, logic-based techniques, support, automated decision, etc. This technique will help in site search optimization, shopping journey personalization, adequate product recommendation, etc.
5. Customer Analytics
For enhancing the customer experience, it is important to understand their requirements, and these various details are collected from the customers like their browsing history, previous logs, etc. Along with providing good service, it is important to protect the customer’s privacy.
6. Enterprise Marketplace
The service providers and vendors use customer data and analytics for fine-tuning their services. It is important to understand the customer’s priorities and preferences for providing the best possible services.
In this growing competition, it is important to understand the behaviors of the target audiences and make sure that their needs are fulfilled. Digital commerce development has the power of reaching a larger crowd on a global scale and fulfilling the requirements of digital consumers of the modern age.
Implementing the right digital software will help the enterprise to connect to potential customers through several distinct touchpoints. The different modern techniques like personalization, artificial intelligence, and budget optimization will help in enhancing the digital commerce development journey.