Global research and advisory firm Forrester Research has released their predictions for 2014.
2013 saw an increase in all things Ecommerce and according to Forrester Research’s “global eCommerce report,” 2014 will be no different. Forrester predicts more online brands will expand on a more global scale and begin to enter new markets. With more brands expanding their operations, customers are expected to also increase their use of the internet for their shopping needs.
The report showed 5 key predictions for Ecommerce in 2014.
1. The use of mobile devices for online purchase will continue to rise. As 2013 saw an all-time in mobile use, 2014 is expected to do so as well. With more smartphones and tablets entering the market, expect to see more companies to provide mobile web pages and applications to accommodate them. A similar prediction was given by PayPal President David Marcus.
2. More brands will look to marketplaces to expand their online presence. Pre-established marketplaces like eBay and Amazon will see new and old brands setting up shop to expand their online availability. These marketplaces bring with them an already working ecosystem with a large amount of return buyers. The report gave Alibaba’s Tmall as an example for a marketplace that serves hundreds of thousands of merchants, and for some of them is their only online outlet.
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3. Online retailers will have to accommodate themselves for international shopping days. 2013 saw sales days become the most lucrative days of the year. We even mentioned recognizing international sales days in our tips for getting your store ready for the holiday season. Sales days like Black Friday, Cyber-Monday, Mega-Monday, Boxing Day and China’s Single’s Day are all sales days that more merchants should participate in.
4. Entering new markets will be easier as more retailers and vendors rollout more offerings for brands. Partnerships, mergers, acquisitions, a combined market strategies will make it easier for brands to expand their online presence on a global scale.
5. Global market profitability will remain difficult for some brands. Companies who decide to launch their brand into international markets, especially those who plan to do so directly to customers will find it difficult to turn a profit. Going into a foreign market with no local credibility will be extremely difficult. Partnering with local brands should prove more successful, even if the profit margin is lower.
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