The e-commerce software market is going through unprecedented changes as it reaches maturity. Vendors are now focusing on advanced technology like artificial intelligence (AI) to tackle complex issues like supply chain instability, cross-border commerce, and online fraud.
To better understand what’s happening and why it matters to buyers and sellers, I decided to summarize and analyze e-commerce news every month, starting with April.
Difficult times ahead for e-commerce sellers, buyers, and software vendors
Other than slowing spending and supply chain disruptions, e-commerce vendors spend huge amounts of money to remain competitive in an oversaturated market with thousands of solutions. In April, Amazon acquired social commerce company Glowroad, Shopify invested in recommendations platform Crossing Minds and plans to buy fast shipping provider Deliverr, and Microsoft invested in B2B platform Udaan. Also, Eurora raised $40 million to automate e-commerce shipping compliance, and two e-commerce intelligence companies, PipeCandy and Netrivals, were acquired.
All these investments have one thing in common. They focus on technology and services to help sellers compete in a market where anyone can create a store and start selling online. When thousands of sellers offer the same or similar products, the only way to gain a competitive advantage is to adopt advanced technology and try creative business strategies.
Sellers need to revamp strategies to gain a competitive edge
Pay attention to inclusivity in e-commerce as buyers become more demanding
Understand the importance of packaging, as 63% of buyers prefer products with clearer recycling directions
Sustainable e-commerce growth won’t be driven by software but by buyers who trust brands, requiring sellers to focus on coopetition (cooperation with competitors) to put consumers first.
E-commerce trends to watch out for
I expect that other e-commerce vendors and sellers will perform less than expected. Unfortunately, some of them may also announce layoffs.
What I hope to see is more focus on fraud. While 78% of consumers experienced payment card fraud in an online store in March, I haven’t seen significant investments or acquisitions in this space in April.
Gabriel’s background includes more than 15 years of experience in all aspects of business software selection and implementation. His research work has involved detailed functional analyses of software vendors from various areas such as ERP, CRM, and HCM. Gheorghiu holds a Bachelor of Arts in business administration from the Academy of Economic Studies in Bucharest (Romania), and a master's degree in territorial project management from Université Paris XII Val de Marne (France).