E-commerce has been one of the most significant innovations during the past decade. It has made life a lot easier for many consumers, and it has even reached industries never reached before. Moreover, it will reach heights that no sector has gone. But it begs to question, what drives e-commerce, especially in the United States?
There are many drivers of e-commerce in the United States. In this article, you’ll learn the unique drivers this year. Two will discuss the leading industries driving sales, and two will be technologies driving e-commerce. Let’s start with the dental market.
Interestingly enough, one of the most significant drivers of e-commerce in the United States is dentists. There is a growing need for dental equipment in the country. Experts value the market at $36 billion with an astounding CAGR of 6 percent. Even the pandemic will stop this growth because dentists are taking the e-commerce industry by storm to get the equipment they need to get functioning.
Dental equipment is vital for dentists to function. No dentist can work on a teeth implant operation without implants. Nor can they work on braces without the stainless steel required to build them. Materials and tools are critical for dentists and orthodontists to function, and e-commerce is bridging the gap that the pandemic has caused the industry.
E-commerce is giving various dentists and orthodontists control over the product they buy. Different e-commerce sellers even give dental professionals a way to design their products through 3D software. Customizable kits are great for professions that require attention to detail. Moreover, the customizable kits can accommodate the varying skills of each professional.
The greatest gift that e-commerce has given to the dental industry is convenience. Many dental professionals require some of these materials the day they order them. However, before e-commerce, many have to wait for them for many days before they arrive. But because of the convenience of online purchases, those bygone days are over.
The dental market is taking up a decent chunk of e-commerce sales. But it doesn’t come close to the main market driving e-commerce sales: the fashion industry.
The Fashion Industry
The online fashion industry is worth a staggering $752 billion. Many experts expect it to reach one trillion dollars in the coming years. It seems that physical retail is no longer an option for many buyers in the industry, considering it only took a couple of years for online retailers to reach this market value. Because of this massive increase in sales, the fashion industry is easily one of the biggest drivers of e-commerce.
Fashion is in the of the beholder, which is the main reason the online fashion industry is thriving. Gone are the days when one fashion store, such as Zara, Forever 21, and Louis Vuitton, could take over the industry. Now, even small fashion retailers can thrive in the online industry, giving customers more options to choose from.
Another reason why the online fashion industry grew so fast is because of the convenience they bring. People can swipe through various online retailers, choose the product they want and get it delivered on the same day. Apparel might not be as crucial as dental equipment, but for many consumers, time is of the essence for the products they buy online. They no longer have to visit physical stores for their clothes, and if it doesn’t fit them, they can get them immediately exchanged the next day.
However, industries aren’t the only drivers of e-commerce. Emerging technologies and software are also driving it.
Chatbots are becoming the next big thing for many online retailers, especially those that are only starting quite recently. They drive sales and handle customer service all at the same time. Many experts believe that chatbots will make customer service jobs more specialized.
It’s pretty inconvenient when a customer receives the wrong product. It’s even more problematic when they can’t contact the seller. This inconvenience can lead many online retailers to lose loyal customers, but this rarely happens with the use of chatbots.
Chatbots can entertain customers and handle the problems they might have 24/7. For reports or complaints that are too complex for the algorithm, the bots can submit a ticket so a customer service representative can get in contact with the consumer. It does one thing that many retailers fail to do is that chatbots don’t leave customers hanging.
AI and Machine-Learning
Lastly, AI and machine learning contribute to driving sales for consumers. Their job is to create a consumer profile and find ways to reach consumers without using an absurd amount of funds. For the most part, these two technologies are doing their job well. Sites like Amazon and eBay know their consumers better than before. Moreover, those that spend money on this technology can certainly grow their small online retail stores.
E-commerce will be the primary way we purchase the products we need in the future. Knowing about the industries driving it and the technologies aiding its growth is essential for anyone entering the market.