In recent years, the shift towards e-commerce is nothing new. E-commerce platforms stand as powerful tools for agency growth and provide businesses the opportunities to attract new customers. Consumer behaviour has been shifting online for years, with the global online shopping population reaching 2.14 billion, approximately 27% of the global population, so it’s no surprise that the e-commerce sector presents vast opportunities for businesses to expand and develop.
The E-commerce Boom
The e-commerce sector has witnessed a substantial boom in recent years. As of 2023, U.S. e-commerce sales are expected to grow by 12.1%, with a continuous growth trend observed until 2026. Platforms like Shopify, WooCommerce, and Adobe Commerce are at the forefront, offering unique features and extensive reach – Shopify, for example, catered to 649 million consumers in 2022. This growth is propelled by the increasing number of digital shoppers, which now accounts for approximately 27% of the global population, amounting to 2.14 billion online shoppers.
As you can see, many businesses have been responding to the e-commerce shift by embracing digital channels. Let’s take a look at how e-commerce platforms can support agency growth and why you should be using them in 2024:
Reach and Expansion
E-commerce platforms allow businesses to stretch further than traditional mediums. One of the most significant advantages is the ability to explore geographical boundaries. Agencies that leverage e-commerce platforms can tap into a global market, reaching clients and customers beyond their traditional reach. The global accessibility of an e-commerce platform can lead to brand recognition, larger revenue streams and substantial business growth, three significant goals for any agency or business to succeed.
Around the Clock Service
Traditional business hours only offer a limited amount of service, e-commerce eliminates the constraints of traditional business times, allowing agencies to provide out-of-hours services. 24/7 availability not only caters to a global audience but also enhances customer satisfaction. E-commerce can automate processes with streamlined transactions resulting in operating more efficiently, reducing costs and boosting productivity.
Data-Driven Decision Making
As a business it’s not beneficial to operate without a data-driven approach. E-commerce platforms generate large amounts of data on consumer behaviour, preferences and purchasing patterns, a gold mine for any businesses wanting to grow. Agencies can leverage this data to gain insights into market trends, customer needs and the general performance of their product or service. Using this data to then make informed decisions in real-time empowers agencies to adapt quickly to the ever-changing market dynamics, optimise their services and stay ahead of their competitors.
E-commerce allows agencies to create a personalised experience for their clients. Through data analytics and customer profiling, agencies can tailor their offerings to individual preferences, providing a more personalised and engaging experience. It not only fosters stronger customer loyalty but supports the retention of your consumers, increasing the likelihood of repeat business and word-of-mouth referrals.
Traditional marketing methods can be costly with uncertain ROIs. Incorporating e-commerce platforms enables agencies to deploy cost-effective digital marketing strategies such as social media campaigns, content marketing, and email marketing. These targeted approaches can reach a wider audience at a fraction of the traditional marketing costs, helping agencies allocate resources more efficiently and maximize their marketing efforts.
Diversifying your Revenue Streams
Integrating e-commerce into your approach allows agencies to diversify and expand their revenue streams beyond traditional service offerings, for example, digital products, training and courses. Diversification not only mitigates the risk associated with dependence on a singular revenue stream but opens up new opportunities for scalable income.
We’ve shared a few of some of our favourite success stories below to inspire, from businesses who have really optimised their ecommerce platforms:
Real-Life Success Stories
Ad Hoc Atelier
Ad Hoc Atelier, an Italian e-commerce platform specialising in exclusive clothing collections and accessories, faced a significant challenge with a high cart abandonment rate. Over 80% of carts on their website were abandoned, which was higher than the industry average. To tackle this issue, they implemented live chat tools, aiming for a more personalised approach to customer service. This strategy led to impressive results:
👉 Conversion Rate: Increased from 0.35% to 0.9%.
👉 Cart Abandonment Rate: Reduced from 83% to 73%.
👉 Response Time: Improved from 3 hours to just 1 minute.
👉 Customer Engagement: Enhanced by replicating the physical shopping experience online through direct messaging and quick responses.
Dollar Shave Club
Dollar Shave Club, a subscription-based company offering men’s grooming products, made a significant impact in the market with its unique marketing strategies. The company’s approach included:
👉 Viral Marketing: Their promotional video, “Our blades are f***ing great,” went viral, bringing massive attention to the brand.
👉 Unique Value Proposition (UVP): Emphasised affordable, high-quality razors delivered directly to customers’ doors.
👉 Subscription Model: Ensured customer loyalty and provided a steady revenue stream.
👉 Data-Driven Marketing: Optimized marketing efforts by tracking customer behaviors and preferences.
These case studies demonstrate how targeted strategies, whether in marketing, customer service, or website optimisation, can significantly impact e-commerce success. They serve as inspirational examples for other businesses looking to grow in the digital marketplace.
The e-commerce sector is not without challenges, such as logistics and customer service issues. Effective solutions include integrating shipping costs into product prices and optimising mobile experiences to reduce cart abandonment rates.
The future of e-commerce is shaped by rapid technological advancements and evolving consumer behaviours. Personalization and AI-driven experiences are becoming increasingly crucial, offering tailored shopping experiences based on individual customer data.
Additionally, the rise of social commerce, where social media platforms integrate direct shopping capabilities, is transforming how consumers discover and purchase products. Moreover, sustainability and ethical practices are becoming key factors in consumer decision-making, prompting e-commerce businesses to adopt more environmentally friendly and socially responsible practices.
These trends indicate a more interconnected, personalised, and conscientious e-commerce landscape in the near future.
The benefits and opportunities e-commerce presents make it a crucial element for any agency’s strategy. E-commerce presents a world of opportunities for agency growth. By embracing e-commerce, agencies can unlock new avenues for revenues, expand their market presence, and position themselves as leaders amongst their competitors.
Jeff Bezos, the founder of Amazon, once said, “If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.” This sentiment echoes throughout the e-commerce industry, emphasising the importance of customer experience in driving growth.
About the Author
Neha Panwar, Hubspot CRM Manager
Neha is the HubSpot Customer Relations Manager at Diginius, with over 9 years’ experience in Business Development and CRM across the SaaS and Finance sectors. Since joining Diginius in July 2022, Neha has specialised in improving customer touchpoints and refining CRM strategies with a focus on business growth. She is particularly skilled in using HubSpot CRM to make data informed decisions that benefit both customer relations and business efficiency.