In today’s digital age, e-commerce has undergone rapid evolution, driven by the search for easier shopping experiences without sacrificing the excitement consumers experience when purchasing new products. Retailers have focused their efforts on incorporating elements of the physical store shopping experience into the digital environment.
This trend seeks to provide consumers with the fun they find when shopping in a physical store through virtual stores, which offer a combination of online exploration and entertainment. On dates such as Black Friday and Cyber Monday, which in Ecuador takes place at the end of November, retailers have the opportunity to apply innovative strategies to attract new consumers to the online shopping experience.
In Ecuador, according to the Ecuadorian Chamber of Electronic Commerce (CECE), online transactions will continue to rise during 2023, with an expected increase of 25% in sales, which would reach 5 billion dollars by the end of the year. of the year.
Virtual stores are shopping experiences that combine the traditional exploration of physical stores with the convenience of e-commerce. Its main objective is to create shopping experiences that connect consumers, while increasing loyalty and encouraging recurring purchases through digital channels, a purpose for which technology is one of the main pillars.
“The digitalization of shopping experiences has been marked by what consumers prefer… They are the ones who set the rules,” highlights Daniel Arias, SAP solutions specialist, who explains that new consumer trends have given way to the concept known as ultra convenience. “This trend is being able to buy the products I want at the time I choose, through the channel that I prefer as a consumer.”
This type of customer behavior, based on new technologies, has led to the development of tools through which companies can determine more clearly what type of product to recommend to a customer, what is the most effective alternative for send a purchase or what is the best time of day to launch a promotion, among many other examples.
Using technology as their main ally, virtual stores provide advantages to businesses by allowing more complete monitoring of customer purchasing behavior. This allows them to personalize content and offers to meet the individual preferences of each platform user.
Unlike physical stores, where collecting this data is more challenging, virtual stores provide more complete visibility that helps retailers better understand their customers. Additionally, by capturing vital information such as email or phone number, businesses can establish new communication channels to generate future transactions.
Virtual stores face challenges, such as the consumption habits of some customers who prefer the experience of visiting a physical space and interacting with the product before making a purchase. Furthermore, the development of electronic commerce requires effort, creativity, innovation and technological development, aspects in which an ally like SAP is key to guarantee the scalability and sustainability of the virtual store.
Despite these challenges, experts consider that virtual stores will become increasingly relevant in the world of electronic commerce. They are more accessible than physical stores and offer the opportunity to personalize the shopping experience to meet the needs of each customer.
Interview: Exploring the Future of E-Commerce with Daniel Arias
Time.news Editor:
Welcome, Daniel! Thanks for joining us today. The evolution of e-commerce seems to be moving at a breakneck speed, especially as we see more consumers shifting towards online shopping. Can you give us an overview of how the retail industry is adapting to this digital age?
Daniel Arias:
Absolutely! The shift to digital has transformed how consumers shop. Retailers are increasingly looking to blend the tactile experience of physical stores with the convenience of online shopping. This means creating virtual stores that are not just transactional but also experiential—incorporating elements of exploration and fun into the online shopping journey.
Time.news Editor:
That sounds promising! With major shopping events like Black Friday and Cyber Monday around the corner, how can companies utilize this trend to attract more consumers?
Daniel Arias:
These shopping events provide an excellent platform for retailers to innovate. They can use gamification, social media integrations, and personalized recommendations to enhance the online shopping experience. By making the experience interactive, they not only draw in consumers but also create a sense of excitement that mimics physical shopping.
Time.news Editor:
In Ecuador specifically, the Ecuadorian Chamber of Electronic Commerce anticipates a 25% increase in online sales this year. What factors do you think contribute to this growth?
Daniel Arias:
There are several factors at play. Firstly, internet penetration and mobile accessibility have improved dramatically. Additionally, consumers have become more accustomed to online shopping, especially during the pandemic. The concept of ‘ultra convenience’ has emerged, meaning consumers want the ability to shop anytime, anywhere, and through channels they prefer. Retailers noticing this shift have adapted their strategies accordingly.
Time.news Editor:
Interesting! You mentioned ”ultra convenience.” Can you elaborate on how this trend is shaping consumer behavior?
Daniel Arias:
Certainly! Ultra convenience means customers want seamless shopping experiences tailored to their preferences. They expect real-time recommendations based on their browsing history and personalized promotions. With advanced algorithms and AI-driven tools, retailers can deliver on these expectations, thus fostering customer loyalty and increasing repeat purchases.
Time.news Editor:
As technology plays a crucial role in this transformation, what innovations should we keep an eye on in the coming years?
Daniel Arias:
We are likely to see advancements in augmented reality (AR) and virtual reality (VR) that make online shopping more immersive. Imagine trying on clothes virtually or visualizing furniture in your home before purchasing! Additionally, as AI technology advances, we will see even smarter personalization, making the online shopping experience not only more engaging but also highly relevant to individual consumers.
Time.news Editor:
That’s a fascinating perspective! Do you think there are any potential pitfalls for retailers as they navigate this digital transformation?
Daniel Arias:
Certainly. One challenge is maintaining a balance between personalization and privacy. Consumers are becoming increasingly aware of data security, so retailers must tread carefully and ensure consumer data is handled responsibly. It’s also crucial that they invest in robust infrastructure to support these technologies. Failing to do so can lead to subpar experiences and lost customers.
Time.news Editor:
Thank you, Daniel! Your insights into the future of e-commerce and consumer behavior are invaluable. As we continue to navigate this digital landscape, it will be interesting to see how retailers adapt and innovate.
Daniel Arias:
Thank you for having me! I’m excited to see where this journey takes us, and I believe the evolution of e-commerce will lead to remarkable experiences for consumers in the years to come.