The Future of e-Commerce are the United States and China

The Future of e-Commerce are the United States and China

One of every two human beings on the planet, currently, is regularly connected to the Internet. Half, two billion people, live in Asia. And China, with seven hundred million Internet users, leads the world ranking. In 2007, China had as many Internet users as the United States. Now, more than ten years later, it has the double

In 2018, at least 1.6 billion people will make an online purchase. And half of them will be made in Asia. However, in relative terms, only developed countries have 50% or more of the population that usually buys over the Internet. Denmark, Germany or the United Kingdom reach 80%. And in Latin America, for example, the regional leader in Brazil, with barely 25%.

Online retail sales represented, among other traditional channels, 10% of the total in 2017. By 2021, however, this percentage can end up reaching 18 %, almost five billion dollars (with twelve zeros). And global sales of fast consumer goods, or convenience, will reach 150 billion dollars by 2025, according to data from the Institute of China Electronic Commerce Center, revealed to DIRECTORS.

According to CB Insights, the countries that offer the best conditions to retail electronic commerce (in terms of size, consumer attitude, growth, and infrastructure); They are United States, China, United Kingdom, Japan, and Germany. However, among the top twenty is also Spain (18), along with another Latin American country such as Mexico (17).

Within the infrastructures chapter, they get the highest score Hong Kong or Singapore, which act clearly as hubs to re-export (especially to the booming Asian market). But, according to the World Bank, Panama or any other Latin American country is among the first thirty nations with better logistics infrastructure for the e-commerce sector; while Singapore or Hong Kong is now “top – ten”.

The five e-commerce multinationals with the largest revenues, within the retail or business-to-consumer segment (B2C), are Amazon, JD.com, Apple, Alibaba, and Walmart. JD is the first Chinese, doubling in revenue to Alibaba, as the latter is a business essentially business-to-business or B2B (no retail or B2C). Alibaba, however, seeks to increase the share of its international retail sales over the total, which now barely reaches 6%.

In Latin America, far from the “big five”, the leading e-commerce companies are B2W, Cnova, Netshoes or Saraiva, among others, all of the Brazilian. Brazil, with 38%, leads Latin American retail sales in e-commerce. Mexico, with sales of around 8 billion dollars, maintains a 19% share. And the third in discord, far from the rest, is Argentina (8%).

In China, by comparison, electronic retail sales amounted to 105 billion dollars (a quarter of the total of all transactions, both online and offline). And the first electronic export market destined for final consumption was Japan. Towards the United States, for example, the Japanese export almost two billion dollars a year through e-commerce.

In total, international transactions within electronic commerce, B2C segment, amount to 190 billion dollars. According to the UN, this figure will multiply to almost two trillion dollars in 2021. And the country that offers the best prospects for retail electronic commerce, in Southeast Asia, is Indonesia (it expects to increase its volume up to 2021).

China has 44% of the applications of the segment known as “collaborative economy” worldwide. The growth of all these tourist, educational, health or transport services, called online-to-offline or O2O, will also contribute significantly to the growth of e-commerce in China. Private consumption is, for a long time, a new reality that no one should ignore in China. It already exceeds 50% in the proportion of GDP. And, at this time, it contributes 60% to the GDP growth rate.

Annual eCommerce study 2017 conducted by SEMrush

By way of summary, the most important findings of the study carried out by SEMrush were the following:

  • The most significant source of traffic in the eCommerce sector, with 42.1%, is direct traffic.
  • The desktop devices have more presence than the rest of the elements.
    Most eCommerce businesses do not invest in paid advertising.
  • The electronics category is the undisputed leader in the PLAs formats.
  • The eCommerce industry in the United States leads the international market with 42.9% of organic traffic, followed by countries such as the United Kingdom, Germany, and France.
  • ” Free shipping ” is the most popular keyword used in ads in English-speaking countries, such as the United States and England.
  • In Spain, the discount that is most offered in eCommerce is 70%.
  • The study, SEMrush has shown that e-commerce strategies and customer behavior vary widely across sectors and countries. Therefore, adapting the strategy to local markets is a key step in international positioning.

To help companies in the online retail sector to understand the characteristics of each of the markets, SEMrush has compiled different tips and opinions from eCommerce experts, who give their point of view on the reality of e-commerce in some of the main markets. Worldwide. Let’s see some of the most interesting!

Does eCommerce Harm or Benefit the Globe? The Amazing Growth

e-commerce

Online shopping soars and several studies disagree on whether they affect more or less the environment than the traditional retail model.

More and more people are distributing things on our streets, from clothes to mobile phones, from records and books to furniture or precooked food. They do it in trucks, vans, motorcycles, electric bicycles or not, even on a scooter.

Ecommerce does not stop growing and the consumption, often compulsive, of what is so attractive that is offered on their screens, under the promise of rapid delivery , is a temptation to which millions of people throughout the world succumb daily world.

The undisputed leader of the sector, Amazon, proclaims on its website that “Online shopping is intrinsically more environmentally friendly than traditional retail.” But that is not so clear. It would be necessary to analyze case by case, and, although there are arguments that support this affirmation, there are also, and more than abundant, that point in the opposite direction.

What does not admit discussion is that to go on foot to buy products of proximity in the market or the store of the neighborhood is the best option for the planet. But, since the other models exist, it is worth analyzing which one is the least bad.

And finding the answer is really complicated, given the disparate conclusions of the still few existing studies, often commissioned by one or another sector of the distribution. For the moment, it seems undeniable that more purchases on the internet involve more delivery vehicles traveling more kilometers through the cities , which results in an increase in polluting emissions. And many more packages, often absurdly excessive.

But there are also advantages that allow saving energy and pollution, such as the disappearance of physical stores, with their needs for electricity, heating or cooling , transportation of their employees and travel, often in private vehicles, of customers, especially when we talk about large shopping centers (to which the new digital model is condemning closure in more and more cities). And that without counting the environmental impact of the building itself. The question is whether one thing compensates – environmentally speaking – for the other.

A study by Deloitte Consulting, do purchasing behaviors affect sustainability? a couple of years ago he concluded that the physical purchase has an impact of 7% less than the purchase online measured in terms of carbon footprint, mainly due to the enormous need for logistics of electronic commerce, its greater amount of transport and packaging, and the high energy consumption of the servers.

Less Unnecessary Packaging

Among its main conclusions are the obvious that traveling to the mall as a group reduces the environmental impact per product purchased and that the packaging for online orders (corrugated cardboard boxes, bubble wrap) have a higher environmental impact than plastic bags. or paper that consumers bring from stores.

But also that the volume of returns in electronic commerce, which generate a greater traffic of vehicles, is much higher: 33% of items purchased online is returned , compared to only 7% in the case of purchases made from face-to-face before a dependent can see and even touch the product before paying for it.

It must be taken into consideration that the study was disseminated by The Simon Property Group, which has numerous shopping centers around the world. Its director of sustainability, Mona Benisi, affirms not without reason that “in a time when consumers demand faster deliveries every day, which requires more resources and fuel to meet, it is likely that the negative impact of online shopping will worsen “

In contrast, Carnegie Mellon University (Pittsburgh, United States), specializing in electronics and robotics, came to the opposite conclusion: buying online is less harmful to the environment, because the impact of construction and energy needs are eliminated and of the individual transport of the personnel and the clientele of the physical stores.

The considerable consumption of paper and ink from traditional commerce is also greatly reduced . And the impact of transport to the home is less than the much less efficient, energetically speaking, road traffic of individuals coming in their private cars to make their weekly purchases.

The Green Design Institute of this university ensures that electronic commerce reduces energy consumption and carbon dioxide emissions by up to 35% . But in this case we must also assess that the study was done in collaboration with the online retailer Buy.com, with whose data the analysts worked.

Although, “obviously, same-day delivery and other tight delivery schedules make it more difficult for the delivery company to combine shipments in the same neighborhood, which increases the distance traveled per item.and, consequently, the carbon footprint “, as do the returns, says Patricia van Loon, a researcher at Viktoria Swedish ICT, a Swedish non-profit institute focused on sustainable mobility.

Another positive impact of the Internet would be that, thanks to platforms such as eBay, millions of people sell used items, mainly clothing, books and all kinds of household items, which before this way would have ended up in the waste containers. This has allowed to endow many consumer goods with a longer lifespan , reducing the impact of the manufacture of new ones.

In addition, several transport companies are betting on the electric vehicle to cover part of its distribution network. UPS already has 1,500 electric vans, and DHL plans to work with the same mobility system. Tesla recently introduced a powerful electric truck. Although as always nothing is white or black before congratulating you would have to analyze the origin of the current that will charge your batteries.

“Unfortunately, there is no conclusive answer to the question of whether shopping online or in stores is better for the environment,” admits Dr. Van Loon. “Electronic commerce generates lower total emissions because customer trips are considerably reduced , but each situation is unique, so you can never say that electronic commerce is always better for the environment,” agrees Alexis Bateman, of the Center of Transport and Logistics of the Massachusetts Institute of Technology (United States).

The Best way To Use YouTube To Do e-Commerce Marketing

The Best way To Use YouTube To Do e-Commerce Marketing

The easiest way to improve a digital strategy is with the help of digital tools, as many of them are focused on improving the structure of web pages, or to optimize social networks . Especially when you do e-commerce because you can project sales in a way.

However, it is known to many that cyberspace has many secrets that can be exploited, especially before making an expenditure on digital advertising through the different channels to which they have access. Even one of these tricks can be applied to YouTube. As a video platform, it can be an unlimited resource to improve and optimize your e-commerce model for free.

According to figures from the page itself, visitors watch almost 5 billion videos a day. This means that within the platform you have a perfect vehicle to promote brand awareness and create loyal followers through videos, one of the most used formats by brands and companies today.

But its popularity can be a double-edged sword. Having billions of visitors can attract many content creators that can make highlighting more complicated. Fortunately, with the right strategy, you can excel above the YouTubers and generate revenue.

After all, YouTube is the third most visited website in the world and you can definitely take advantage of its potential as a sales mechanism. According to eMarketer, 63 percent of marketing specialists say that their main challenge is to generate new leads.

For its part, the Digital Marketing Institute indicates that consumers want to see more video content, at least 43 percent of them. Having a video platform like Youtube is the perfect way to connect and meet those needs.

Aspects to consider

The first thing that must be addressed is the competition and the positioning of the message: it competes with more than 50 million videos. The best thing is that there are more than one billion active users; This means that the public is there, you just have to know which segment to go to.

Staying true to the brand can be the best because it is the way to express naturalness. Your channel is an extension of your website and should have the right look so that your potential customers recognize it immediately, no matter where they find it.

Be consistent and create a cohesive story that creates a cognitive and emotional link between what you offer to the client. your reader Also, do not overlook the importance of publishing on a regular schedule.

Create instructional videos to teach other people how to use your products because they explain (in two minutes or less, ideally) what it means.

Take advantage of product reviews, because reviews of authentic and honest products generate credibility. Remember that the best product reviews focus on solutions, not sales.

China Continues to Promote Green Express Delivery

delivery

In recent years, with the rapid development of e-commerce in China, the development of express delivery services has exploded. According to the latest data published by the State Post Office of China, the volume of express deliveries in the country reached 40.1 billion parcels in 2017, up 28% year-on-year, ranking fourth in the world for four consecutive years.

At the same time, messaging packaging and take-away packaging are used in large quantities and waste pollution has become a social concern. Based on the standard of 0.2 kg for each package sent by the courier industry, solid waste produced in one year exceeds 8 million tonnes.

To improve recycling, it is necessary to promote the use of green packaging in the express delivery industry without delay. During this year’s two parliamentary sessions, some MEPs suggested improving laws and standards as soon as possible to promote and popularize the green packaging industry.

In February of this year, a “Provisional Regulation on Delivery Services in China (Draft)” was adopted. As the first administrative legislation for the express delivery industry in the country, this regulation has established a system oriented towards green production and consumption for the express delivery industry.

Last year, China also published “Guidelines for the Collaborative Promotion of Green Packaging in the Express Delivery Industry”, which proposed to increase by 2020 the proportion of degradable materials in green packaging. at 50%, to globally eliminate heavy metals and other special substances exceeding the standards in packaging materials, and to essentially complete the construction of Currently, the proportion of electronic mailing slips used by Chinese express delivery companies reaches 80%.

Compared to the traditional express bill of lading, the amount of paper used for this type of document is reduced by more than 70%. The adhesive tape used is thinner and narrower, and the amount has been reduced. The amount of tape used for a single shipment has decreased by 1/3 from one year to the next.

Meanwhile, China Express, Yunda, and other Chinese express delivery companies have launched green recycled canvas bags. This kind of canvas bag can be reused for 4-6 months. On average, the rate of use of a canvas bag is 100 times greater than that of woven bags previously used.

The company Cainiao, its logistic partners and traders jointly launched 20 “green warehouses”; all shipments from these green warehouses use delivery boxes without tape and 100% biodegradable mailbags. For its part, Jingdong launched a recyclable drawstring bag and Suning launched a total of 50,000 express boxes shared in 13 cities.

Some MEPs believe that the government and companies are increasing their awareness of green packaging, encouraging users to participate in the recycling of packaging messaging and green packaging through an incentive mechanism, and constantly raising awareness of green issues.

Ten cities like Beijing, Shanghai, Guangzhou, and Shenzhen have set up recycling activities for express mailboxes, which allow consumers to ask for 10 trees by donating 10 cartons. Once the old cardboard has been disinfected and processed, it will be converted back into packaging and reused.