North America is an abode of 5% of the world’s population, known as the economically developed region with luxury living standards and large trade ecommerce. Ecommerce in this region has witnessed steady growth in the initial years. Over the past few years, internet-penetration brought a robust change in the market.
Market experts believe that internet-savvy shoppers in the 90’s and the leading base of technical experts have been the most influential factors for the boom of ecommerce in North America.
E-retail of North America is expected to grow by $1 trillion by 2022 & the Fashion category will be the highly demanded category.
Amazon has been the most dominating marketplace in the North America market with 49.1 % of the total ecommerce sales. This market has a growth rate of 13% per year with a worth of $912 billion. An average e-shopper of this region spends approximately $3500 annually which covers 14% of all retail sales in ecommerce. Product quality, composition and price are the factors that encouraged them to go for foreign brands and products via online shopping.
To quench the rising requirement of digital consumers, North America has emerged as a market equipped with the largest user base, the most active cross-border supply chain and tip distribution hubs. These significant trends brought a noteworthy revolution for the North American e-commerce market. Still, some factors play a major role to augment the North American eCommerce market trend and growth. Let’s have a look at those factors:
Store & Malls Progressing Ahead With an Urban Makeover – The rise of online shopping has been the cause of the retail apocalypse. According to the New York Times, US retailers have shut around 5994 stores in the first half of 2019. Still, stores and malls are adopting urban makeover to reshape their brick & mortar to enhance customer experience, interaction and convenience. It ensures that store shopping is a long way from being ruled out completely. They are now transforming into touchless solutions with conversational interfaces and mobile point of sales (PoS). Retailer Ecommerce Giants like ‘Amazon Go’ are progressing ahead to provide omnichannel convenience with flourished online presence by offering multiple features:
- Buy Online and Pick In-Store (BOPIS)
- Curbside deliveries
- IoT sensors
- Automated vending machines
- Self-service kiosks in malls
Small & Mid-Sized Retailers Carved an Online Niche – Today, many small and midsized retailers in North America have carved their online and offline niche to upscale the stores steadily with a strong internet presence. Now, they can seek and compare the multiple versions of the conversion rate through traditional, interruption-based, PPC and campaigns. Reaching the targeted audience with a steady return on Ad spends, cost per acquisition and click-through rate presents healthy key performance indicators. By 2024, Tier 1 retailers in North America will have improved free cash flow with reduced inventory costs by 30%. Brands are moving ahead by leveraging omnichannel analytics with dynamic creative optimization to recognize the opportunities and monetize the funnel of customer activity with optimum satisfaction.
Adoption of Direct 2 Consumer Business Model – Today, marketplaces have transformed into a big scenario where brands endeavour to bring consumers on their website rather than accompanying them on the ecommerce giant’s portal through D2C. Social media penetration played the most prominent role to increase the higher profitability and better brand-consumer interaction. Retailers like Nike made great efforts to draw shoppers to their website not only to gain sales but also to win brand loyalty. Data revealed by Invespcro, 1 out of 3 consumers prefer to buy from the brand’s website rather than other platforms.
Above mentioned trends demonstrates the transformation and success of ecommerce in the North America region. Reshaping of offline stores and the omnichannel marketplace has encouraged the retailers to pivot their business towards the market’s behaviour. They are capturing the market with modern trends and emerging as the new leaders of the global market.