The new economy technology solutions have brought about several benefits to the eCommerce industry, including personalized data in the B2B sector, the use of AI in eCommerce, and the redefined customer experience through the integration of VR and AR. The benefits of new economy advancements have transformed the eCommerce industry, offering customers a more immersive and personalized experience. It is crucial for businesses to adopt these technologies to remain competitive in the ever-evolving eCommerce landscape.
The kitchenware and home furnishings retailer Williams-Sonoma, Inc. is a publicly traded American company. Its headquarters are in San Francisco, California, in the United States.
Before switching to online shopping, Williams-Sonoma operated a successful catalog company. Even more than the previous two businesses, the high-end home furnishings expert gets more of its revenues from online channels.
In fact, with eCommerce sales accounting for 51.8% of total revenue last year, Williams-Sonoma now gets most of its business online. The company, which also owns Pottery Barn and West Elm, increased online sales by just 4.4% last year. Meanwhile, sales in brick-and-mortar stores were essentially flat.
Williams-Sonoma is adopting new economy technology solutions for forging its marketing plan to boost online shopping as it reduces the number of catalogs sent and makes digital its main investment channel.
These three businesses target affluent consumers, which may account for their superior eCommerce divisions as wealthy people frequently shop online.
Source: The Motley Fool
The Growing Influence of New Economy Technologies on the Global eCommerce Market
In 2022, the size of the global eCommerce market was US$ 16.6 trillion. IMARC Group projects that the market will increase at a compound annual growth rate (CAGR) of 27.43% from 2023 to 2028, reaching US$ 70.9 trillion.
By the beginning of 2023, 5.16 billion individuals will be utilizing the internet worldwide, or 64.4 percent of the world's population. Owing to COVID-19 and more individuals purchasing online, mobile commerce sales took off in 2020, expanding by 18% from the previous year due to the influence of mobile technology and mobile commerce. Additionally, M-commerce sales are anticipated to surpass $510 billion in 2023 and $710 billion in 2025.
The degree of personalization now heavily influences how the eCommerce sector expands. The benefit of tailoring products, services, and communications in accordance with buyer personas is exciting for the new economy industries. Around 40% of consumers wish brands were more aware of their personal style preferences. Similarly, 80% of consumers are willing to provide personal information for tailored discounts or offers.
A software product engineering company can help in leveraging the advantages of AI in eCommerce. The fastest-growing industries for artificial intelligence adoption in 2022 include eCommerce, finance, and online media. The eCommerce AI market is anticipated to reach $45.72 billion by 2032 and expand at a CAGR of 18.45% between 2023 and 2032. AI solutions are either actively being implemented by 84% of eCommerce organizations or are given top priority.
Top Benefits of New Economy on eCommerce
The last decade has seen the evolution and the rise of ecommerce industry. As a result, we witnessed increased consumer interest and participation, and the industry also recorded humongous sales figures and increased demand.
Consumer centricity is one of the features of the new economy eCommerce companies. Adopting technologies such as Artificial Learning and Machine Learning has enabled these new economy companies to extend personalized offerings to their customers. In addition, technology has played a crucial role in ensuring seamless communication between the online retailer and the customer.
"Communication is at the heart of ecommerce and community." – Meg Whitman, former CEO of Hewlett-Packard
Here are some of the positive impacts of new economy technology solutions on the eCommerce industry -
- Personalized Data in B2B Sector:
- Real-time procurement data will be gathered more and more as businesses transition to B2B eCommerce. This information will aid B2B eCommerce firms provide data-driven insights and better understand business customer behavior.
- B2B eCommerce businesses will use this information to offer each firm a customized experience.
- AI in eCommerce:
- In the future, B2B eCommerce will serve as a significant model for Artificial Intelligence. Unlike B2C eCommerce, which has a vast user base and a variety of use cases, B2B eCommerce has fewer people carrying out high-value transactions. This makes the use and deployment of AI both simple and effective.
- Businesses will benefit from AI-based software product engineering solutions ability to make decisions about purchases, automate a number of tedious processes, provide crucial insights, free up several labor hours spent on procurement, and make intelligent, low-cost purchases.
- Redefined Customer Experience:
- The eCommerce sector's consumer experience has transformed thanks to technological advancements. A realistic user experience can be provided by combining the power of VR and AR.
- It can help customers to view things in 3D, try them on digitally, and see how they appear in actual locations thanks to VR and AR technologies. As a result, customers can shop in a more immersive and exciting way, which supports their decision-making process.
Transform your digital platform with Tntra's Content Marketplace App. Read our case study to see how we helped businesses monetize their content effectively. Start exploring now!
Conclusion
The new economy has brought about a significant transformation in the eCommerce industry by adopting cutting-edge technologies. The use of personalized data in the B2B sector, AI in eCommerce, and VR/AR for a redefined customer experience are among the many benefits.
As the eCommerce new economy industries continue to evolve, businesses need to embrace these technologies to remain competitive and meet the ever-changing needs of their customers. The future of eCommerce looks promising, and the new economy is playing a vital role in driving its growth.
Tntra new economy experts have built several new economy companies, leveraging a unique approach that is built around user-centric design. If you are looking for new-age new economy technology solutions for your eCommerce business, contact Tntra innovation experts today.
No comments yet