In 2012 ecommerce accounted for 5% of total retail sales. By 2021, that number had steadily grown to 16%. With ecommerce sales continuously on the rise, businesses are faced with the question of how to successfully create and maintain ecommerce platforms.

Ecommerce apps offer a fantastic opportunity for retailers to cater to a robust demand for mobile shopping options. But with apps and web shopping growing in prevalence, it’s easy to speculate about the fate of in-store retail.

The fact is, despite ecommerce growth, in-store retail will always serve an important purpose. Let’s examine the ways that ecommerce and in-store differ and how we might utilize them in tandem––not competition.

The pandemic and ecommerce

Unsurprisingly, 2020 saw a record breaking 31.8% year over year growth in online sales. With COVID-19 mandates limiting options for in-store visits, ecommerce took center stage. Beyond the obvious need for social distancing, COVID-19 saw more people staying home for work and therefore more people spending those extra commuting or recreation hours shopping on their phones and computers.

Not only are people shopping online more, but with more time at home, they’re also more frequently checking on deliveries. Ecommerce apps should offer solid options for accurate package tracking and time estimates.

Another result catalyzed by the pandemic is an accelerated trend cycle. Products are moving into and out of fashion so quickly, that it can be difficult for in-store retailers to keep up with demand. Online retailers are better able to compete among the rapidly moving trend cycle, while in-store retailers might still have two-seasons-ago options.

Security and building trust

One of the biggest concerns for ecommerce shoppers is security. Between inputting information online and waiting for delivery, consumers are putting their personal fate in the hands of the retailer. According to Webscale’s 2021 Global Ecommerce Security Report, ecommerce security incidents grew by a notable 20% in 2020.

A whopping 72% of businesses report security as their biggest concern. Not only do security issues cause immediate business loss, but they contribute to consumers' distrust of specific companies. Successfully building loyalty requires repeated secure transactions and deliveries.

Ecommerce security breaches can even affect attitudes towards a business’ in-store retail. If a company fails to maintain security or deliver goods through an ecommerce retailer, trust will be shattered across the board. Maintaining trust across both online and in-person platforms is essential.

To combat security breaches, companies should be (and are) focusing on better fraud detection techniques. More businesses have also been using Real User Monitoring (RUM) that tracks data on the front-end in real time to create an optimal user experience.

There is a common misconception that apps allow for more security breaches because they save your personal information. In reality, your information is either already saved on your phone or on the web backend of the app. Many apps also offer apple pay––which also already has all your information.

That means that apps present no increased risks over web browsing. It also means that increasing overall web security automatically increases app security.

Ecommerce and in-store retail can work in tandem

With customer behavior ever-changing, it can be easy to disregard the old in favor of the new or to stubbornly deny the adoption of the new. Instead, retailers should seek to evolve with the times and integrate old and new methods to best suit consumer needs.

Despite the growing ecommerce trends, in-store isn’t going anywhere. The fact is, people will still always want to try on clothes, sit on their prospective sofa, and pick something up on the way home from the gym.

Ecommerce and in-store retail don’t need to be at odds, but can work in tandem. One great example is mobile ordering. Food service businesses are already utilizing apps while maintaining storefronts. Many fashion retailers also allow for online ordering with in-store pickup.

Another excellent way to combine ecommerce and in-store is by having store clerks encourage app downloads. This effectively extends an in-person visit into a mobile app experience. Reversely, retailers can push promotions and rewards on their app that can be used in-store, encouraging in-person visits.

BILDIT’s mission is to make great ecommerce apps achievable and affordable for retailers. If you’re looking to create or improve upon your company’s ecommerce app, you can request a demo of our fully customizable CMS here.

[image by Mike Petrucci]