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Trade: eCommerce market could grow 30 percent this year
The eCommerce market may grow by 30 percent this year amid the increased confidence in the online commerce, according to VTEX. Yet, investments in IT and marketing departments are less than 2 percent of revenues, below the 7 percent global average.
According to VTEX, a global provider of eCommerce solutions in the cloud for large companies, the share of Millennials generation customers is growing in the total number of customers who order online, and this is also one of the important factors in the growth of the Romanian e-commerce market.
A change in mentality among players in Romanian eCommerce is so necessary in the current global context. To provide the best experience to the Millennials generation, to turn customers into promoters and increase their loyalty, companies need to invest more in technology, which is the core of any omnichannel strategy. Technology is not a cost, it’s an investment. Retailers in Romania who identify and adopt this mentality, specific to mature markets, will have a huge competitive edge and great chances to highlight and attract more customers,” says Rafael Campos, Sales VP for Europe at VTEX.
However, the market may have an even greater advance, directly influenced by the level of investment in technology. Currently, local online stores invest less than 2 percent of revenues in technology, well below the 7 percent average, as it is in the world. The 2 percent share will increase in the coming period, as online stores increase technology investment budgets to get a better conversion rates and sales.
Top 5 trends of the ecommerce industry in Romania
Currently, the Romanian electronic commerce market is in the first stage of maturity, according to VTEX. At this stage, online retailers are primarily concerned with revenue growth. Over the next two, three years, the market will evolve to reach the second stage, which will be marked by a significant increase in acquisition costs. Thus, to stay competitive, online stores need to focus on:
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Checkout and payments – amid the actions of industry leaders, the market will improve significantly in user experience. And technologies that allow a quick and transparent checkout and one-click payment will be implemented by more and more online stores;
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Cross border – the Romanian market is more developed than other markets in the region, such as Bulgaria, the Czech Republic, Macedonia, Turkey, etc. Now is the right time to explore these markets, and online stores can find the right supplier to export products to these countries;
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Marketing tools – to remain competitive in the second stage, where the purchase cost will be higher, stores need to invest in marketing tools. The eCommerce platform, product recommendation tools based on navigation history, search filters, etc. will not be considered as costs but investments.
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Marketplace – Developing your own marketplace is not just the convenience of big stores. According to global estimates, the online store market can generate up to 82 percent of the gross margin. This is a strategy adopted around the world to increase profits;
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Infrastructure – Large shopping events, such as Black Friday, also bring problems to online retailers, which also have the effect of temporarily suspending shop activity. These issues include infrastructure, hosting, servers, etc. And improving the quality of the infrastructure means a faster and more reliable online store and, ultimately, a better user experience for the end customer