The key ecommerce trends in 2017
A new year is around the corner and we might see some new things in 2017. Four CEOs of leading Nordic ecommerce companies share their thoughts on what they think will be the key ecommerce trends in 2017.
According to Marcus Fredricsson from Swedish car service portal Mekster, dropshipping is over. Customers have stronger demands, which makes convenient shipping options more important. “Today more customers disqualify online retailers who send goods directly from suppliers, particularly in cases when the goods come from different suppliers since they then need to spend far too much time to collect the goods in different batches”, he says.
Focus more on logistics
The CEO also thinks smaller online retailers must be prepared to partially loosen the customer relationship and focus even more on the logistics so they can successfully offer their products through international marketplaces like Google Shopping and Amazon. “You need a tremendous control of the supply chain logistics to satisfy customers.”
Fredricsson also thinks highly of virtual reality. “Although the ecommerce industry hasn’t found a way yet to utilize the technology, I think they will take on VR in a big way in 2017.”
Cut out the middleman
Christoffer Tyrefors from Cykelkraft, Sweden’s largest online bicycle shop, thinks online retailers can do more themselves and only pay for actual delivery and thus cut out the middlemen. “Ecommerce players should find fundamental profitabilities of their core businesses and therefore needs to stop paying money to intermediaries.”
Rely less on Google and don’t get eaten
He also thinks Google has become way too powerful and online retailers are more dependent on the search engine than ever. “The ecommerce industry is feverishly looking for ways to reduce the importance of search, which in practice means to build brands. To build a brand requires something which happens to be the third major ecommerce trend in 2017 and that is: eat or get eaten”, he says, referring to large online market places that are being rolled out globally and the dominance of Google in the entire purchase process funnel. “Volume will become even more important. It translates to economies of scale, and with economies of scale it is easier to build the brand.”
Performance and sales will align more in 2017
Sven Hammer, CEO of monitoring platform Apica System thinks the B2B shopping experience will become more like B2C, as business-to-business retailers take advantage of all the actions the business-to-consumer industry took to improve their business models and shopping experiences. In less positive news, he thinks DDoS will continue to flood ecommerce website with disruptions and targeted. His third predicted trend is focused on analytics. “A platform that performs faster will lead to higher sales – a 100ms decrease in page load can increase sales by 1 percent. Performance and sales will align more in 2017 as organizations establish KPIs like web/cloud/app performance to increase profits”, he says.
The last CEO, Torkel Hallander from ‘ecommerce factory’ Nordic Etail, thinks SMR, “Sales Man Replication”, will become the new buzzword. “When ecommerce websites start acting like the world’s best salesman, shoppers will get a better experience and spread the world, but retailers will also increase their conversion rates and higher margins as result.”
Mobile engagement will increase influence over ecommerce
He also predicts mobile engagement will increase its influence over ecommerce. “Functionality for shopping mobile will reach new heights, selecting and choosing products, moving between devices, payments will be easier etc… but more importantly, the critical-mass hurdle for people to start realize they can do it in their phone has been passed: once you have purchased one thing in your phone, you will start wanting to do it all in the phone.”
Lastly, he thinks online stores and digital marketing will become even more targeted. In order to satisfy the customer and as a result maximize sales, online retailers will design their website presentation and their offering more for individual customer preferences, behaviors and purchasing power.