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The retail industry has undergone a significant transformation over the last decade. While the rise of e-commerce has been the main factor that has affected this transformation, other factors still play a role. Factors such as competition and technological change have also contributed to the changes.

An e-commerce acceleration process is a process that involves identifying and implementing the necessary technology to increase revenue growth across various online commerce channels, such as Amazon, eBay, Target, and Walmart. These companies are referred to as e-commerce accelerators.

Despite the developing nature of the term e-commerce acceleration, leading global brands are already using the various practices and technologies designed to help them achieve unprecedented growth.

Acceleration

Due to the increasing number of customers and the changing demographics of the retail industry, e-commerce has become a significant factor affecting the industry’s growth. Although it only accounts for 16 percent of the global retail value, it is expected to continue growing and eventually take the majority of the industry’s revenue.

The COVID-19 pandemic has added to the pressure that retailers feel. An increasing number of customers are shifting their purchases to online channels. 

Regarding the number of orders placed online, some retailers have reported that they have seen a two to three times increase in their sales compared to last year. Online grocery, which is still relatively new to the industry, has also seen a considerable increase in popularity due to the increasing number of customers looking for a convenient and personalized shopping experience.

Transitioning to E-Commerce Strategy

To effectively compete in today’s environment, retailers need to develop a strategy geared toward addressing the various challenges they face, such as the need to create a compelling and unique customer experience. The first step in establishing an effective e-commerce strategy is identifying a winning target customer. The second step is to design the supply chain that will deliver against the promise of the customer. Finally, the third step is to enable the rapid execution of the strategy.

Despite the various challenges that retailers face, most consumers are still ready to embrace the changes in the e-commerce industry. This is because many industries that have already started to transform are already at the point of change.

The rapid emergence and evolution of fast-moving companies are expected to help the industry continue to grow. E-commerce is a holistic process that requires retailers to align their commercial strategy with the operational execution of their business. To create a sustainable and profitable e-commerce platform, they need to invest significantly in their infrastructure and technology.