What is Digital Commerce? Importance, Trends and Examples

Digital commerce a term that now prevail around the global, it’s dimension is more complicated and vast than ecommerce as ecommerce is just the subset of it. When we use the word digital commerce, it encompasses all, including online payments, online marketing, and more. Additionally, nowadays, its trends change in just few day or weeks, due to which B2B and B2C customers will see digital commerce explode in the latter part of 2023 and 2024 as making eCommerce smooth and easy for customers is a must in the modern business world.

Digital commerce goes beyond purchasing a product at the end of the funnel. As a result, buying is a seamless and anticipated process, making it enjoyable and easier for customers. Digital commerce and e-commerce continue to grow, so keeping pace with the costumers requirement and bringing new technology is essential.

This article will cover the statistics, needs, challenges, and importance of Digital Commerce. Let's get started.

About Digital Commerce

Digital commerce refers to exchanging products or services online, usually through websites. Digital technology allows buyers to buy products and services without having to travel. Using it, businesses can expand their reach and reach customers, improve distribution efficiency, and increase order fulfilment speed.

Although we can’t completely agree on the concept that digital commerce is confined to buying and selling online when any customer sees an ad on social media or search any keyword on Google, it’s above then that, it’s also about holistic process how customer data is collected and utilize to offer better and better experience.

Digital Commerce: Statistics to Know

According to a recent report, these are the digital commerce predictions 2023.

• Artificial intelligence is part of digital commerce strategies for about 80% of companies. In the coming months, they will likely see approximately 25% or more improvements in key performance indicators, such as revenue, customer satisfaction, or cost reductions.
• About 15% of big digital commerce brands will launch their own marketplace.
• Exceptional Application Platform-as-a-Service (aPaaS) innovation, an imminent release of new features & functionalities, and extensive ecosystems of technology among different parties will allow digital commerce vendors to take over the market.
• The US B2B market is expected to reach $1.8 trillion by 2023.
• Online searches account for 89% of the B2B purchase process.
• Around 95% of purchases will take place online by 2040.

Why is Digital Commerce Important for Businesses?

Since digital commerce is becoming more popular with consumers, failing to adapt will result in businesses leaving. Furthermore, digital commerce is vital to your business' growth.

Increasing visibility

There is no longer a channel-specific buying process. It doesn't matter what platform you use; consumers want frictionless shopping. Social media, marketplaces, brand websites, apps, and many others are ways to communicate with customers. Thus, several sales opportunities arise.

Delivering the best customer experience possible

Customers can shop from home without having to deal with salespeople who are pushing their products. A crowded shopping environment does not stress customers. In addition, they can avoid congested traffic and the headache of finding a parking space nearby. For customers, there is no need to stand in long check outlines. It is easy to browse, order, search, return, and exchange products online at any time of the day or night.

Customer service is also done digitally by companies, such as follow-up support. Customers nowadays expect omnichannel fulfilment when they buy a brand.

Over the past few years, merchants and shops have found this trend a powerful solution to increase sales. Follow some tips to improve customer experience in your online business.

Increasing revenue

Omnichannel tactics increase revenue and visibility with digital commerce. The revenue of businesses that take advantage of online purchasing trends (and offer unique, customized purchase options) increases.

Process of buying quickly

Fast-paced living is catching everyone up. Purchasing follows the same rule. Customers search online for the product they want, get immediate results, read reviews, add the item to basket, and purchase it.

In addition to taking little time, these processes are straightforward, making placing an order easy and eliminating hassles experienced by offline customers.

Expanding the business

The physical location of brick-and-mortar establishments constrains their growth, whereas digital and eCommerce businesses can grow without a brick-and-mortar location.

Businesses that operate in brick-and-mortar locations often spend a lot of time, energy, and money on expansion tasks. However, digital commerce streamlines the process of developing a business.

Analyzing customer data

In digital commerce, keeping and collecting customer information is quite easy. Email addresses, ages, or preferences aren't necessary to obtain. People naturally get to know you when they buy from your store or browse.

Analyzing and tracking consumer behaviour is possible. The items consumers look at but do not purchase can provide actionable insight and improve the overall customer experience.

Read more:- The Ultimate Guide On Mobile Commerce

Types of Digital Commerce

Digital commerce comes in many forms, just like online shopping. Here are some types of digital commerce:

• Business-to-Business (B2B)

Businesses-to-business eCommerce revolves around online transactions between companies, not between consumers and companies. The B2B eCommerce market usually facilitates transactions between wholesalers and retailers or manufacturers and wholesalers.

Also read:- Top B2B Ecommerce Trends And Statistics For 2023

• Business-to-Consumer (B2C)

The B2C model involves businesses and consumers. Traditionally, the term refers to doing business directly with consumers, like shopping in-store or eating out. It's the stuff online retailers do with their customers.

• Consumer-to-Consumer (C2C)

Consumer-to-consumer is a business model where one customer buy goods and services from another customer, and almost all C2C business is done online, without corporations. This business model allows consumers to sell used goods or services online, where C2C companies work as mediator.

• Consumer-to-Business (C2B)

Consumer-to-Business (C2B) is the contrast of B2C businesses, and works on reverse auction in which consumer creates some kind of value like idea, product or service and business consume that. The C2B model includes referral programs, paid testimonials, and data sharing.

Functions Of Digital Commerce

In digital commerce, all aspects of the purchase decision are considered. Unless the consumer experiences all these functions, digital commerce can't succeed.

Digital strategists usually plan out the journeys of end users, whether they're designing products or services, designing smooth user experiences, and figuring out what each milestone means. These are some of the things digital commerce entails:

• User Experience Mapping
• Social media, marketing campaigns, and promotional campaigns
• Customer Services
• Pricing
• Customer Acquisition
• Content marketing uses product descriptions, photos, and other material
• Analyzing data and KPIs
• Supply chain management and order fulfilment

Trends in Digital Commerce

The digital age has brought about a constant evolution of everything, including digital commerce. Having a presence across several channels may have sufficed in the past. However, today, the urge to go further is ever-present. Below is a list of some of the latest digital commerce trends:

Digital-First

Digital will have a significant influence on 58% of retail sales by the year 2023. A digital-first strategy is an essential component of a successful business strategy.

You should implement your digital strategy in response to every customer interaction with your brand to successfully engage prospective customers.

Let us take an example of a customer visiting your brick-and-mortar location to ensure the product they are interested in is available. Afterward, you can send them an SMS with a promotion for online purchases. Linking all your channels into one strategy will help your brand succeed.

Personalization

A personalized experience refers to enhancing a user's overall experience through creating tailored interactions. Personalization provides customers with customized interactions based on their preferences and needs.

Embrace a user-centred approach throughout the entire journey of the user. Site search results, browsing data, landing pages, and product suggestions should work together to give site visitors a complete picture.

Commodity Trading Using APIs

It's tough for brands to expand and innovate with rigid commerce and content solutions. By connecting APIs to business systems, API-based commerce can overcome these challenges.

It is possible to send data between systems using a lightweight API without requiring front-end code that might otherwise interfere with development.

Artificial Intelligence

Artificial intelligence is the dominating trend in digital commerce that allows businesses to customize customer needs depending on the user data.

The growth of AI in eCommerce is insane, with more than $9 billion revenue already surpassed in 2022.

Utilizing the potential of Machine Learning (ML), you can determine and automate interpreting the information using advanced analytical and logic-based approaches.

Also read:- Best Headless ECommerce Platforms In 2023

Examples of Digital Commerce

Digital Commerce is not a new term. This has helped larger businesses and Entrepreneurs to experience unreal growth. Here are the examples of Digital Commerce

Amazon

Amazon is a market giant in the eCommerce industry that allows customers to shop for their favourite at a click of a button. Amazon has integrated digital commerce that helped them boost up their business growth and bring transformation to the industry.

Alibaba

Alibaba is another company with a prime reputation in the market. This company also touches digital commerce that has helped them get their product easily available for customers. It is basically a Chinese company that revolves around operating an online marketplace, retail sites, and payment systems.

Uber

Uber is another significant example of the company following digital commerce. They are basically a ride-sharing service that allows you to book the cab for the designated destination.

Uber allows you to track drivers, book rides and pay directly from the app.

Building Customer Trust in Digital Commerce

Digital commerce has been the finest addition to the business world that helped many businesses to make the most of it. By integrating key trends in Digital commerce, you can take complete leverage of it.

Following the right approach allows businesses to stay on top of the mind to ease customer satisfaction.