LONDON--(BUSINESS WIRE)--Technavio analysts estimate the global retail e-commerce software market 2015-2019 to reach USD 6 billion by 2019, growing at a CAGR of almost 13%, according to their latest report.
The increased adoption of advanced technology by consumers and small and medium sized enterprise (SMEs) drives the market for retail e-commerce. Increased investment in technology by these organizations further drives the need for better and faster delivery of services. This integration of mobile platforms with e-commerce software has increased agility in the solutions.
According to Amrita Choudhary, a lead research analyst at Technavio for enterprise application, “The growing competition in the market along with rise in requirement of flow of information will have a significant influence on the growth of the market. Increased use of smartphones and tablets and introduction of advanced technologies to ensure secure payment facilities will foster the growth of the market.”
Technavio’s lead ICT market research analysts have identified the following three factors that will drive the global retail e-commerce software market:
- Growing focus on high customer satisfaction
- Increased adoption of advanced technologies
- Shift toward digital commerce
Growing focus on high customer satisfaction
The changing demand of users and rising prices of products and services has increased the competition between local and foreign players. This has increased competition to serve customers better so as to achieve high customer satisfaction.
In order to achieve high customer satisfaction, many e-tailing vendors are developing innovative services. For instance, they offer flexibility in ordering products (including the option of placing orders through phone calls) and enabling various payment options. They also offer significant discounts and offers on products to attract more buyers. In addition, vendors provide information like arrival or availability of fresh stocks.
In addition, e-commerce software supports the growth of an organization by online presence in the marketplace and helps them gain a competitive advantage by improving operational efficiency.
E-commerce helps in strengthening overall CRM and allows loyalty tracking and better reachability through omni-channel strategies. This has increased the number of customer contact points through social networking sites and mobile devices.
Increased adoption of advanced technologies
According to Technavio, the adoption of latest technologies like 3G and the upcoming 4G, along with the increased use of tablets and smartphones, has led to a huge growth in the number of people using the Internet. This is directly proportional to the increase in the number of online buyers.
The rapid increase in the number of brick-and-click companies has added more options for online shoppers. Several industry verticals are adopting and turning to e-commerce to expand their business reach, stimulating e-commerce software spending. For example, manufacturing organizations are focusing on boosting supply chain efficiencies through e-commerce platforms and investment in new technologies like machine to machine (M2M).
Shift toward digital commerce
Some businesses have begun restructuring their business and revenue strategy by shifting from traditional to a digital approach. “In the past, commerce was only restricted to showcasing basic product details and simple merchandising. However, it has evolved and diversified, and now involves services like deploying interactive hubs for consumer marketing to handling associated services,” says Amrita.
The rapid adoption of Internet-enabled devices like smartphones and tablets allows consumers to access information across all digital channels from any location. This has increased the need to develop reliable solutions that integrate these technologies with other business applications such as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM) etc. These tools also help companies derive useful insights about individual customers and their buying behavior.
In addition, vendors can view customers' transaction histories to understand buying patterns and can predict customers' choices. This has led to a rapid rise in demand for e-commerce technology solutions with integration capabilities.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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