Being relevant in an era of digitization and rapid growth has never been harder. This is due to several factors that include technological advancement and the creation of additional operational and economical strains.
The change in the consumer’s behavior due to prolonged restrictions has led to rising consumer demand across e-commerce platforms. The sudden onset of the crisis also fuelled rapid digital innovation.
How can you stay relevant and optimize the usage of your storage spaces? What can you do to stay afloat and compete with other e-commerce platforms in the same space?
Current Scenario
The mandated lockdowns and safety concerts have led consumers to switch to e-commerce for their needs. Service providers choosing to accelerate their digitization efforts are in sync with this behavior.
Experts of the retail industry suggest that such a change inspired by a crisis can lead to a permanent shift in the choice of the channel. However, the chief question that crops up is can this boom lead to sustainable growth in the days ahead?
The projected numbers for e-commerce sales of goods stand at around nine percent CAGR for the period 2020 to 2025. This number looks to be more moderate in comparison to the twenty-four percent growth in the crisis phase. An interesting analysis also suggests that online sales will account for twenty-one percent of total retail spending.
The return of consumers to physical stores is on the rise after vaccination. However, the crisis will always remain the biggest catalyst that holds most people from using e-commerce to order their daily essentials or other stuff.
The shift to an online mode of retailing has given rise to automated delivery, micro-fulfillment centers, and dark stores. This phenomenon is due to the intent of the retailers to cut down costs for the ancillary services that come with selling more online.
Growth Through Optimization
Achieving growth is possible through optimization without choosing to expand logistics or supply chain networks. Some of the markets are capable of delivering higher e-commerce sales than they saw during the crisis. Thus they can sustain the surge beyond this phase.
Research data suggests that the global retail market can additionally support seventy-eight billion dollars of e-commerce sales. It can take place without any further expansion of infrastructure. It is due to the prevailing market dynamics after the pandemic.
The categories that are currently underbilled have the potential for significant upward movement. These can include alcoholic drinks or fresh and packaged food. The well-developed categories like apparel can still show growth prospects.
It is also worth mentioning that the countries where e-commerce is developing can exhibit prospects shifting to online. Growth can come from various geographies. It can be from matured markets like the US or China and developing markets like Brazil and India.
Power of Online Grocery
Among all the retail sectors, the grocery space lagged the most in terms of e-commerce penetration, before the pandemic. However, the Asia Pacific market showcased green shoots and also contributed to the majority of global sales. The markets are also known to serve as an innovation hub.
Such a sector needs special care for packaging as groceries and fresh vegetables are susceptible to infestations. The use of shrink wraps can help to keep the products fresh and protected for a long time.
The differentiating factor between automatic shrink wrap machines and shrink wrap machines is the volume that they can handle. If your regular packaging volumes are high, it is wise to go for an automatic shrink wrap machine. Otherwise, you can choose the semi-automatic model. Crucial to note, you get the speed and accuracy for different shapes and sizes of packaging in both options.
The shrink wrap companies ensure that their usage can help protect the product. This strong means of protection helps to act as a barrier against any surface damage or contact with anything unwanted. It also allows the packaging of multiple products together.
Therefore, choosing to be relevant at a time when businesses are juggling between economic turmoil and financial instability can mean optimizing your efforts. The e-commerce industry has been experiencing a boom post the crisis. It is mainly because of customers opting to buy more online due to their fear of safety and prolonged restrictions.
The behavioral shift of the customers presents an opportunity for you as an e-commerce business owner. You can choose to leverage the developing spaces on e-commerce that have shown prospects for growth. Choosing the right category and geography can help ensure your company enjoys prolonged phases of growth.
You must pay proper attention to the packaging of your products. You can choose to abide by the most often used packaging techniques for e-commerce. Such methods can involve the use of strong shrink wraps that enable protection and multiple packaging.
