As we all know, 2022 is also an extraordinary year. The entry into force of the RCEP (Regional Comprehensive Economic Partnership) agreement, the continued spread of the COVID-19 epidemic, the Russian-Ukrainian war, and natural disasters around the world, all kinds of these natural and man-made disasters seem to indicate that the course of human history is constantly being challenged. But if you think 2022 is not the right time for eCommerce development, you’re in the wrong insight. Opportunities in e-commerce have never been so greater in 2022, it’s the year of opportunity for eCommerce.
In this article, we’ll explain why 2022 is the year of opportunity for eCommerce and show you how many consumers are expected to switch to online consumption in 2022. We’ll also give you advice on how to boom your eCommerce business and grasp the “windfall” to achieve huge growth for your online shop. Moreover, we also provide an opportunity for you, click here to find it.
What happened to eCommerce in 2022
RCEP formally takes effect, cross-border eCommerce grows fiercely
The Regional Comprehensive Economic Partnership Agreement (RCEP), a regional trade agreement with government procurement commitment responsibility obligations signed between countries, entered into force on January 1, 2022. RCEP aims to establish a free trade agreement with a unified market by reducing tariff and non-tariff barriers. After ratification and entry into force, tariff concessions among members will be based on the commitment to reduce tariffs to 0 immediately or to 0 within 10 years. RCEP agreement will greatly boost confidence in economic recovery in the context of the epidemic. And it is of great significance to the construction of a new development pattern for the world economy.
You can come to Wikipedia to check the countries that attend the RECP. Trade between countries is encouraged and the trade barriers encountered by cross-border eCommerce are greatly reduced. More high-quality consumer goods will be available at lower prices in the markets of the countries of the agreement. And a uniform system of rules will be formed between countries. It reduces the operating cost of enterprises, expands the sales market of enterprises, and accelerates the development process of world eCommerce.
High global inflation slows as Fed raises interest rates
In addition to announcing an increase in the federal funds rate, the Federal Reserve has also laid out a more aggressive plan. Interim Fed Chairman, Jerome Powell even said he would raise rates by 25 basis points at each of the six remaining policy meetings this year, bringing the target range for the federal funds rate to 1.75%-2.00% by the end of 2022. The Fed opened the interest rate hike cycle. On the one hand, the global scope of inflation upward will play a certain relief inhibiting effect. This helps to ease the input inflationary pressure. On the other hand, the dollar asset yields rise is conducive to attracting global capital back to the United States, which can solve the problem of capital shortage. Anyway, inflation situation is becoming better, which is a very beneficial thing for the U.S. domestic e-commerce business.
Multiple factors lead to the transportation crisis
Because of the proliferation of the COVID-19 epidemic around the world, especially in free trade zones such as Hong Kong, there are great difficulties in transporting goods between countries. What’s worse, the Russia-Ukraine war broke out, many countries have imposed economic sanctions on Russia which is the major oil exporter, causing oil prices to soar. And more factors can be found in this article: How Russia-Ukraine war affects the oil price and e-commerce logistics. All these factors lead to the transportation crisis, which is reflected in the crazy rise in freight costs and the increase in shipping time.
According to CNN, the worldwide supply chain remains tangled and the situation isn’t getting any better. Companies have to spend more on deliveries, which might affect the cost of goods and the global sales volume. The World Container Index (a global indicator of container freight rates) shows that the price for a 40ft container is currently around $9,900. That’s 283% higher than that of the previous year.
Why 2022 is the year of opportunity for eCommerce
To keep up, merchants are being forced to make strategic changes to their supply chains—from how and where goods are produced, to where they’re warehoused, to how they’re shipped to customers.
In 2022, global e-commerce sales are expected to top $5 trillion for the first time, accounting for 1/5 of overall retail sales, And in 2025, that figure is expected to top $7 trillion. The epidemic has brought uncertainty to the global economy, but the e-commerce market has seen a period of rapid growth in between the yin and yang. In the eyes of consultants and data research companies, the e-commerce market has a bright future. The e-commerce market is likely to continue its growth trend through 2025.
This is the opportunity for logistic companies to adjust the chain structure and also the opportunity for eCommerce. Because of the increase in shipping costs, which will lead to inflation and higher prices in brick-and mortar stores, people rely more on online shopping and online stores will get huge growth.
How many consumers are expected to switch to online consumption in 2022
By 2022, 2.56 billion online buyers will exist globally. Global e-commerce sales are expected to increase by 12.2% in 2022. A 12.2% increase would still mean $603.68 billion more in online spending in 2022 than in 2021, the largest increase on record.
– Chinese online buyers will represent 32.9% of the global population, or 843.3 million.
– India will have 312.7 million online buyers (an increase of more than 100 million compared to the pre-epidemic era).
– The United States will come in third at 214.1 million, an increase of 4.5 million from last year.
There will still be many more online buyers coming to the market worldwide for a long time to come. So for you, 2022 is also the best year to expand and develop your eCommerce business, don’t hesitate to chase the opportunity!
How to boom your eCommerce business
Step 1: Build your brand impression
A brand is an important intangible asset that has extraordinary value. It’s a good way to highlight your unique differentiators and values at every customer touchpoint. Today, it’s not enough to have a great product or service. Customers see the brands they interact with as people and tend to choose to buy products from brands that echo their values, lifestyles, and interests. Establishing your brand image helps to build lasting and trusting relationships with your customers and draws them closer to you.
You can use the easiest and most cost-effective ways to build your brand, such as branding your product packaging, designing your own thank-you cards, anthropomorphizing and visualizing your products by adding some storylines to increase the appeal of your products, etc.
Step 2: Explore new channels to reach target audiences
Now Google ads are no longer the only way to advertise, social media promotion is also very popular, such as Facebook ads, Tik Tok ads, and so on. Ads are one of the ways to reach your target audiences, but it may cost a lot. There are also free ways for you to build a connection with audiences. For example, if you are an iPhone seller, you can publish posts on Instagram with the hashtag #best iPhone 2022 #iPhone products. And the robot will push your posts to the people who want to learn about iPhone, these guys are your potential customers.
In addition, you can also collaborate with influencers and creators (KOL) on social media. You can contact them and ask if they can help you promote your product. What you need to do is to send them a sample, and they will take some feedback pictures and send posts on their account. This is also a good way to make your products reach the audience.
Step 3: Conduct promotional activities
Nothing sparks an impulse purchase like instant savings or a free bonus. Yes, we’re talking about ecommerce promotions. Promotion activities can help you sell products largely. Most consumer decisions in FMCG consumption are made at the time of purchase. Promotion can directly stimulate purchasing actions. Consider what type of promotion would best complement the products you’d like to push. Some examples include:
- Buy one, get one free – For high-volume items that people often buy one after the other, a BOGO promotion pulls double duty: customers get each one at half its regular price, and they don’t need to buy another one so soon. This promotion is also great for overstocks or to clear out last year’s models or styles to make room for new stock.
- Free shipping – If shipping charges aren’t always free on your site, providing free shipping can be an excellent promotion option. Likewise, you can set up free shipping to kick in if the customer buys more than a certain quantity or value.
- Free gift – Including a free gift with every purchase can be a fun way to add a little extra connection between your brand and your customers. It could be a simple trinket with your logo on it or a little surprise from the catalog that complements the item they’re buying.
- Sale price – You can’t beat the old standby. Just tacking “20% Off” next to an item’s reduced price can often be all it takes to make the sale. Many eCommerce platforms offer this as a standard element in their product detail pages, allowing you to enter a “list price” and “sale price” so the customer can see how much they’re saving by buying today.
Step 4: Optimize the order fulfillment process
Due to increased competition, consumers are expecting more and more speed in the delivery of goods. To keep pace, you have to make strategic changes to their supply chains – from how and where goods are produced, to where they are stored, to how they are delivered to customers. The 3PL market is expected to grow at a CAGR of 8.5%, with the Asia Pacific the fastest-growing region. Globally, 37% of merchants plan to hire or change 3PL or fulfillment providers in the coming year. Working with a 3PL might not eliminate shipping surcharges, but it will insulate you from them and diversify your risk because 3PLs typically have relationships with multiple carriers.
Coupled with the volatility of the current shipping situation, fulfillment of orders has become even more difficult. You may consider using our fulfillment service to push your business, because we have many overseas fulfillment centers so that we can react to the changes timely. We guarantee significant savings on shipping costs at the same time ensuring fast order fulfillment for your customers.
Step 5: Create excellent customer services
Excellent customer service means following best practices like valuing customers’ time, having a pleasant attitude, and providing knowledgeable and resourceful resources, but that you also take things a step further to exceed — rather than just meet — expectations. And here are some suggestions for you on how to create excellent customer services.
- Know your product well
To provide good customer service, you need to know what you’re selling, inside and out. Make sure you and your customer-facing staff know how your products or services work. Be aware of the most common questions customers ask and know how to articulate the answers that will leave them satisfied.
- Maintain a positive attitude always
Attitude is everything, and a positive attitude goes a long way in providing excellent customer service. “The right attitude changes negative customer experiences into positive customer experiences,” says Flavio Martins, VP of Operations and Customer Service at DigiCert, Inc. Since most customer interactions are not face-to-face, your attitude should be reflected in your language and tone of voice. Don’t be afraid to use emojis to convey warmth and good humor, or pick up the phone if you find an email or chat conversation getting tense.
- Respond quickly
There may be nothing worse than non-responsiveness to a customer who is trying to get help, resolve an issue, or find out more about what you’re selling. It’s important to respond quickly to all inquiries, even if it is only to say you are looking into the issue and will be back in touch. Some response is always better than none so the customer doesn’t feel ignored. Get back to your customers as quickly as possible, but don’t be in a rush to get them off the phone or close the ticket without resolving the issue completely.
- Personalize your service
40% of customers say they want better human service. Customers want to interact with a person — not a company. It’s part of the reason why many businesses send gifts to their customers on their birthdays. Show your customers you know them and you care. For example, use some emoji and stickers that can indicate you are not a robot to give them a response that has been set for everyone. You can also try to send some warm words or some positive emotional words to make customers feel like they are talking with a real guy. In this way, you can build stronger trust with customers.
- Solve problems creatively
There will always be problems to solve. Over 80% of customers have churned because they experienced bad customer service. That’s why you must thrive on solving problems creatively. Everyone has heard of the legendary customer service at Zappos. For example, they once sent a best man free shoes the night before the wedding after his order was sent to the wrong location due to a mistake by the delivery company. Zappos solved a problem and exemplified excellent customer service — they won a customer for life and gave the man a story that he couldn’t wait to share.
You could also just fix the issue and be on your way. But by creatively meeting their needs in ways that go above and beyond, you’ll create customers that are committed to you and your product.
Step 6: Collect Reviews and Feedback
Collect reviews and feedback from your customers and then you’ll find that’s so helpful! You may be surprised what you learn about your customers and their needs when you ask them what they think of your business, products, and services. You can use customer surveys, feedback forms, and questionnaires. But you also can make it a common practice to ask customers first-hand for feedback when they are completing their orders. And then you shall make use of those reviews, which is more useful than other marketing methods. Take time to regularly review feedback, identify areas for improvement, and make specific changes in your business. This is one of the most important parts to boom your ecommerce business.
Step 7: Generate customer loyalty
In the current competitive market, maintaining and generating loyal customers has become one of the very important marketing strategies. The higher the customer loyalty is, the higher your core competitiveness is.
And here are the ways that help you create customer loyalty.
- Cultivate customers’ trust
Frequent visits to customers to follow up. Maintain a sense of familiarity with customers. Many companies have worked with customers after the customer does not care about the customer, resulting in customer dissatisfaction. And over time, customers will look for other peers, and get into the arms of competitors. The cost of investing in an old customer is equivalent to the cost of investing in five new customers. Therefore, it is very important to maintain the relationship with old customers. This requires constant regular follow-up visits to old customers, active in front of customers so that in the next cooperation customers will want to get you.
- Explore new customer needs
In the process of following up and returning to customers, you can understand their needs through communication with them and analyze their needs to find other products that you may cooperate with, reducing the cost of customer acquisition while creating greater benefits for the company.
- Send care to customers to improve customer satisfaction
While actively visiting and following up with customers, you can also send information and care to customers on important days such as important holidays or customers’ birthdays, which not only makes customers more satisfied with the way the company provides services but also deepens the impression of the company in customers’ hearts.
It is never too late to get started on a new path of success. Many people only see the epidemic, war, and other negative factors, and then they think that the development of eCommerce will be hampered this year. But to be honest, every year there are wars, and every year some disasters happen. But have you seen eCommerce stop growing? No, it never stopped increasing and booming.
So it can be predicted that eCommerce is an unstoppable trend in the future. The sooner you understand this, the farther you run ahead of others on the road to business success. 2022 is still the year of opportunity for eCommerce, you shall believe in it. If you wanna learn more about eCommerce and dropshipping, you can come to our site for more posts to read. Hope you have a good journey to eCommerce.