Table of Contents
Online Shopping vs. In-Store Shopping: The Future of Fashion Retail 1
The Rise of Online Shopping – A Brief Timeline. 1
How has COVID worked as a catalyst for the e-commerce industry?. 3
Side-By-Side comparison – Online Shopping vs. In-Store Shopping. 3
Why Online Shopping Is Becoming Popular?. 4
Laser Focused Marketing. 4
Digital Literacy. 4
Faster Shipping. 5
Advance Technology. 5
Influence Style Marketing. 5
Full Control 5
Top Ecommerce Stores and Their Net Worth. 5
When was the last time you went to an actual retail store to buy something?
Most people, including me, will tell you they have stopped going to shopping malls altogether. In fact, shopping malls are slowly becoming recreational places where you can enjoy your meals, look around, window shop with friends, or just check the latest collection.
In the modern world of the World Wide Web, where thumbs do the talking, a single click is enough to buy something as big as a car or as small as a hair clip. As per a survey, Gen Z makes up the biggest chunk of online shoppers, with a whopping 40%. Their annual estimated purchase is equivalent to nearly $150 billion. The number just does not stop here; as per an estimate by 2040, it is predicted that 95% of purchases will be made online compared to less than 5% of online sales in 2010 .
These states show that it is only a matter of time before shopping malls are completely replaced by warehouses.
So what went wrong in just one decade that convinced the whole generation to shift completely to online shopping? Access to reliable and affordable internet, better technology i.e., AR, latest mobile, marketing tactics, convenience, or something else? Let’s figure it out together.
The Rise of Online Shopping – A Brief Timeline
A common misconception about online shopping is that it is a new thing. Surprisingly, the history of online shopping can be traced back to 1982 when the first e-commerce store was launched.
So what changed?
Well, the answer is simple – convenience.
While online shopping was present in 1982, it was not convenient. To shop online, shoppers needed a computer, a stable internet connection, and a payment mode. All this investment for what? Just one online store?
To make matters worse, the options were limited and the graphics were hardly an option. So the customers were required to blindly purchase an item and trust the process.
In the modern world of online shopping, these issues seem like a unicorn. Everyone has access to the latest technology, lightning-fast internet, unlimited shopping options, countless discounts, and much more. In fact, the biggest issue of modern-day online shopping is to navigate through countless options.
Now, customers are using software for price comparison, finding dupes, searching for discounts, and whatnot. To sum it all up, online shopping has come a long way and this evolution was not seamless but definitely persistent.
Here is a quick timeline of online shopping to help you understand the evolution of e-commerce over the years.
How Has COVID Worked As a Catalyst for the E-commerce Industry?
Online shopping was popular even before COVID. However, no one can deny that COVID-19 worked as a catalyst for e-commerce. Now, customers are more confident while shopping online, businesses are willing to invest in better tech infrastructure, and tech experts are pushing for a much-enhanced user experience.
This brings us to a pesky question: how did a lockdown with closed borders, slow economic activity, and minimum transportation options unleash a huge beast of e-commerce?
To answer this question, here is a simple explanation:
When markets closed during the pandemic, social distaste ruled the world. Customers in need of goods and utility supplies relied heavily on online portals and e-commerce stores to fulfill their needs. This, as a result, enhanced the confidence of customers in online processes.
It was the first time businesses, customers, online tech, and courier services went through a tough time. While most of the business, courier services, and tech experts struggled, within a few months, the fracture saw a significant improvement.
While occasional “online shopping nightmares” and “what I ordered and what I got” comparison distresses shoppers, it is still important to mention that e-commerce has surely evolved for the better.
Side-By-Side Comparison – Online Shopping vs. In-Store Shopping
| Online Shopping | In-Store Shopping | |
| Pros | · Convenience
· Easy Price comparisons · Easy to navigate with No crowds or Pressure · Flexible payment options · More Variety · Access to reviews and recommendations · Easier refund process · Online tracking · Save time and energy · At home Delivery · Great discount and cashback offers |
· Personalized experience
· Immediate gratification · Experience your product before buying · Pay by cash or other options · Personalized and human customer service · Reduced returns cost · Tangible atmosphere |
| Cons | · Risk of fraud
· Cybersecurity threats · Delivery delays · Lack of interaction · Lost shipment issue · Returns can be complicated · Customers cannot experience products before purchasing · Does not support local retailers · Hidden or extra shipping costs |
· Time-Consuming
· Extra charges for commute · Limited products · Payment issues · Difficult Return process · Fewer impulse buys |
Why Online Shopping Is Becoming Popular?
Currently, the largest population of online shoppers consists of Gen Z’s, for obvious reasons. This generation has a better digital literacy; they are aware of technology, have access to faster internet, and prefer convenience. Internet companies also offer economical rates for their services – Spectrum Internet prices are worth mentioning here.
Since Gen Z has finally entered the workforce, they also have the buying power – something that was missing just a few years ago.
GenZ and millennials are more open to new things; they are raised to believe whatever they see online. Therefore, they do not expect any shoddy shopping practices. Their high level of acceptance and willingness to buy things online has created an opportunity for businesses to invest in overall infrastructure. Now, businesses invest heavily in digital marketing; they have more sophisticated tools and access to big data so they can reach out to their target audience.
Here are some of the reasons online shopping will continue to see growth in the future:
Laser Focused Marketing
Mass marketing died in the era of TV dominance. Now, businesses believe in laser-focused target marketing that can easily help them reach out to customers already looking for their product or something similar.
Big marketing platforms like Google, Meta, Bing, etc., spend billions on data keeping, data scrapping, and data mining to ensure that businesses can reach their target audience and get maximum results. From social media to online portals and even learning platforms, everything has now turned into a huge billboard trying to convince the user to buy something.
This information bombard has helped the online business flourish and customers get anything, anywhere anytime right at their doorstep.
Digital Literacy
The current generation was raised on Cocomelon and is now getting entertained by Twitch streamers. Their idea of entertainment, dining, and learning is all about the internet. Ask for anything from Gen Z-er or Alpha, and they will search for it online.
They are familiar with advanced tools that can help them find the product they want at a fraction of the price, they are aware of authenticity checks and ways to report business with shady practices. Moreover, they are much better at online communication, which offers them a competitive edge over their predecessor generation.
Faster Shipping
The online shopping infrastructure has become so much better over the years. Just a few years ago, ordering a product and then waiting for it to reach the customers would take months; now, this is possible in days even in hours.
Companies like Amazon that sit at the forefront of e-commerce innovation have made online shopping so simple and quicker with Amazon Prime. Prime subscriptions have become so popular that most people see it as a status symbol convincing others to jump on the bandwagon.
Advance Technology
Online shopping is addressing all the issues that any online shopper had before with the help of technology. The industry has become tech-savvy, from designers to developers and even business owners, everyone is trying to cater to the customers.
Businesses are now offering personalized options so that users can have a more immersive experience. With AR and VR features, businesses are now offering a try-before-buy experience that is very similar to the in-store try-on experience.
Influence Style Marketing
Marketing has now shifted from performance style to influencer style. Businesses are no longer selling products; instead, they are selling relatability. People want to fit in with the crowd, and to make this possible, online shopping is the key.
Customers now check online trends and then buy things via e-commerce stores. Moreover, the influx of unboxing, must-have lists, and haul-based content is also pushing people to seek comfort in online shopping.
Full Control
Online shopping offers more control to the shopper by giving them an easy exit. Most people simply like to visit e-commerce stores and fill in their carts without buying anything. This works as a therapy for most people and gives them relief, coining the term – retail theory.
In the real world, abandoning a cart in the middle of the shop or exiting a shop without buying anything can be quite embracing. However, with online shopping, this is possible, and there is no stigma attached to it. In fact, nearly 70% of the online shoppers abandon their carts.
Leading E-commerce Stores and Their Net Worth
- Amazon: Market Value: $867.58 billion
- Walmart: Market Value: $387.72 billion
- The Home Depot: Market Value: $324.85 billion
- Alibaba: Market Value: $226.76 billion
