“You just can’t open a website and expect people to flood in. If you really want to succeed, you have to create traffic.”

– Joel Anderson, CEO, Walmart

Digital transformation defines the contemporary face of the e-commerce market. The digital affinity of a business is suggestive of how much that business has evolved. But what is digital transformation? Why is it important for the e-commerce industry?

What Has Driven E-commerce Towards Digital Transformation?

There were times when wholesalers used to send out catalogs while the retailers gave each other competition on the high street. Following are some factors that have eventually brought e-commerce and digital technology together:

• The research shows that nearly 87% of the shoppers look for products and their reviews online.
• Gaining customers is vital but maintaining the customers by meeting their expectations is the primary goal. Omni channels play a very important role here. Connecting a business to the apps has made e-commerce easier by redefining the B2C relationship. Thus, more companies are opting for technologically advanced software in the contemporary retail sector.
• The value of a product or a certain brand is judged by its online presence in the market. As a result, companies are investing in digital integration to expand their digital presence and reach a wider customer base.

The rise of global e-commerce can be undeniably attributed to :

• The growing use of the internet and mobile by the consumers.
• Digitally transformed businesses in the e-commerce sector.
• Integration of tools such as CRM to ensure customers’ satisfaction and meet their demands.

Modern business strategies are governed by digital integration tools. Speaking of the e-commerce industry, this transformation has not only refined a customer’s views regarding a brand but has also refined the entire business conduct procedure.

How Has Digital Transformation Changed E-commerce Industry?

The digital revolution has transformed and remodeled the entire e-commerce sector. The current success definition of a business lies in its pace at which it evolves and adapts. Several start-ups stand as a live example of the statement,

“It is no longer the big beating the small. But the fast beating the slow.”

– Eric Pearson

Digital integration has reformed the retail industry in the following ways:

• It has brought agility in the customers’ insight. 68% of the businesses prioritize promptness above other aspects.
• The consumers’ journey has been digitized and customized, thereby changing the complexities of traditional B2C dealings into a simple customer-centric approach.
• It has helped in establishing a collaborative approach among various departments of an organization.
• The willingness to constantly improve and a grown penchant for innovation is one of the major accomplished goals of digital transformation in e-commerce.
• It has served to widen the knowledge and skill set of the employees.

How to Strategize Digital Transformation in E-commerce?

The outdated solutions and silos are no more sufficient to maintain a growing organization in the e-commerce industry. Personalized solution methodologies are now being implemented in various sectors, including retail, to improve the back end and data analysis. In an e-commerce business, the following is the ideal stepwise adoption of digital technology:

• Before adopting this transformation, it is important to understand the goals which a company intends to accomplish with this radical change. This involves:
• Aim to improve the end-user experience.
• Looking towards managing the operational costs.
• Controlling the tech stack to combat complexity in the business operations.
• Aim to adopt measures that would help in improvising infrastructure and operations. This in turn will help in achieving cost-effectiveness.
• Plan the goals pertaining to customers’ experience such as customer acquisition strategies, CRM strategies, gaining insight into customers’ expectations, understanding customers’ needs, and gaining their loyalty.
• Understand the ways to leverage maximum benefit from digital transformation in the sphere of B2B. This includes integrating AI tools across various departments, task automation software, etc.
• In the digital innovation process, understand the difference between disruptive and role-specific technology.

E-commerce and digitization are all about extracting the most out of every opportunity. It is not about adopting the change at an astounding rate, but adapting to it as well. Research has shown that 60% of the employees do not feel adequately prepared to accept the transformation which makes the implementation of the digitally learning environment a pre-requisite. Needless to say, the digital revolution is here to reformulate the e-commerce industry for good.