E-commerce is one of the most dynamic and profitable ways of doing business in the digital age. With the Covid-19 pandemic, e-commerce has gained even more strength, as it has become a safe and convenient alternative for consumers who need to buy products or services without leaving home.
But how did it come about and what are the strategies for success in this competitive and constantly changing market?
In this article, we'll address these issues and show you how you can improve your e-commerce results with the help of CMLO&CO, your strategic partner in marketing and advertising. Let's go?
When did e-commerce emerge and why has it become so popular in recent years?
E-commerce is the sale of products or services over the internet. This type of business uses digital platforms such as websites, apps, social networks and marketplaces, among others.
The concept emerged in the 1970s, with the appearance of the first computer networks that allowed information to be exchanged between companies.
However, it was only in the 1990s, with the popularization of the internet and credit cards, that the business model became a reality for the end consumer.
Since then, e-commerce has grown exponentially worldwide, driven by factors such as:
- Technological evolution;
- Diversification of sales channels;
- Expansion of internet access;
- Changes in consumer behavior;
- The globalization of markets, among others.
E-commerce in Brazil has seen an impressive leap in recent years, especially in 2020, when it recorded revenues of R$ 87.4 billion, an increase of 41% compared to 2019. This is what the data from Ebit/Nielsen published on the Exame website.
At the time, the number of orders also grew by 30%, reaching 194 million. In addition, the number of active e-commerce consumers rose by 29% to 79 million.
Challenges and opportunities
Despite the favorable scenario for e-commerce in Brazil, there are also several challenges that need to be overcome by entrepreneurs who want to stand out in this market. Some of the main ones are:
- High competition, which demands differentiation by offering added value to the customer, whether through the quality of the product or service, a competitive price, fast delivery or personalized service;
- Poor logistics infrastructure in many regions of Brazil, which makes it difficult to deliver products to customers, generating high costs and dissatisfaction;
- Concerns about information security, as e-commerce involves the exchange of sensitive data between the customer and the seller, such as personal, bank and credit card information;
- Customer loyalty, which requires investment in actions to create a lasting relationship with the customer, such as offering exclusive benefits, requesting constant feedback and frequent contact via social networks or the e-mail marketing.
On the other hand, e-commerce also offers countless opportunities for entrepreneurs who want to take advantage of this business model:
- The low barrier to entry, as you don't need a physical store or a large stock of products. All you need is a website or a page on social media where you can showcase your products or services and take orders from customers;
- Possibility of expanding the market, selling to customers anywhere in Brazil or the world, without being limited to your geographical region;
- Reduced operating costs for your business, as you don't have to pay rent, water, electricity, employees and other fixed costs for a physical store;
- Flexibility to manage your business, as you can work from wherever you want and whenever you want, as long as you have internet access.
How to improve your e-commerce results? 11 strategies for success
Faced with these challenges and opportunities, how can you improve your e-commerce results?
In fact, there are several strategies that can help you achieve success in e-commerce. Here are 11 of them:
1. Do a market analysis
Before starting or expanding your e-commerce business, it is essential to carry out a market analysis, which involves knowing your target audience, your competition, your suppliers, your competitive differentials, among other factors that could influence your business.
This analysis will help you define your market positioning, your niche, your customer segment, your value proposition and your business objectives.
This way, you can define your objectives, your competitive advantages and your marketing strategies.
2. Select your product mix carefully
The product mix is the set of products or services that you offer in your e-commerce.
It must be selected carefully, taking into account market demand, profitability, seasonality, availability, quality and variety of products or services.
So choose products or services that are relevant to your target audience and cost-effective. They should also be easy to store and transport.
3. Use social networks to promote your products or services
Social networks are powerful tools for promoting your e-commerce and attracting more customers.
You can use platforms such as Facebook, Instagram, Twitter, YouTube, TikTok and others to create interesting content about your products or services.
You can show behind the scenes of your business, interact with your followers, answer customer questions and complaints. As an advantage, you will generate engagement and create a community around your brand.
4. Bet on the influencer marketing trend to boost your e-commerce sales
The influence marketing is a strategy that consists of using influential people on social networks to promote your products or services.
These people can be celebrities, bloggers, youtubers or micro-influencers who have an affinity with your niche market and your target audience.
Influencer marketing can increase your brand's visibility, generate credibility and consumer confidence. And, consequently, stimulate the decision to buy.
5. Invest in branding to generate brand awareness
Branding is a set of actions aimed at creating and strengthening your brand's identity on the market.
Branding involves aspects such as your company's name, logo, colors, slogan, tone of voice and values. Its aim is to create an emotional connection with your customers and differentiate yourself from your competitors.
6. Embrace the content marketing strategy
The content marketing consists of creating and distributing relevant, useful and educational content to your target audience in order to attract, engage and retain your customers.
The strategy can be applied in various formats, such as blogs, videos, podcasts, ebooks, webinars, etc.
Investing in content marketing can help you generate more traffic, authority and trust for your e-commerce. In addition, it can help educate your customers about your products or services.
7. Put the customer at the center of your marketing actions
Remember that the customer is your e-commerce business's main asset. Therefore, they must be treated with respect, attention and personalization.
This means understanding their needs, preferences, behaviors and desires in relation to your product or service. With this information, you can segment your audience into groups with similar characteristics and offer solutions that meet their expectations.
In addition, create a lasting relationship with them by sending personalized messages, offering fast and effective support, asking for feedback and rewarding their loyalty.
8. Offer gifts, discounts and promotions
Another thing to pay attention to is that everyone likes to save money and get something in return.
For this reason, offering gifts, discounts and promotions can be a great strategy for attracting more customers to your e-commerce store and stimulating impulse purchases.
You can offer these benefits on commemorative dates, during periods on the customer's or website's birthday, for example.
But remember to calculate your profit margin carefully and not to compromise on the quality of your product or service.
9. Use live broadcasts to benefit your business
Live broadcasts are part of the rise of e-commerce in Brazil and represent a trend which is gaining more and more attention from consumers.
They consist of making videos in real time on social networks or platforms
specialized to showcase their products or services, answer questions from
customers, demonstrating, giving tips, interacting and generating a sense of urgency.
This type of sale is known as live commerce or live shop. Its main objective is to encourage customers to buy on the spot.
But creating a sense of urgency is not the only aim of live commerce. Live broadcasts can humanize your e-commerce, increase interaction, trust and sales for your online business.
10. Don't forget information security in e-commerce
As has already been said, information security is one of the major challenges facing e-commerce in Brazil today.
However, this is an essential factor for the success of your online business, as it guarantees the protection of your customers' personal and financial data, preventing fraud, leaks or intrusions.
So how do you overcome this challenge? In this case, the best way is to use SSL (Secure Socket Layer) certificates to encrypt the information circulating between your site and the customer's browser, use reliable payment platforms, an up-to-date antivirus, an efficient firewall and a clear and transparent privacy policy.
In addition, it is important to follow the guidelines of the LGPD (General Data Protection Law), which regulates the use and processing of personal data in Brazil, among other measures.
11. Analyze and monitor results
Finally, it's essential that you monitor the results of your e-commerce so that you know if your strategies are working or if they need to be adjusted.
To do this, you must define performance indicators (KPIs) that reflect your business objectives, such as: conversion rate, average ticket, customer acquisition cost, retention rate, cart abandonment rate, among others.
You should also use analysis and monitoring tools, which allow you to collect and visualize your e-commerce data in a simple and intuitive way. With this data, you can make evidence-based decisions, optimize your processes and improve your performance.
What can we expect from e-commerce in the coming years?
As we've seen in this article, e-commerce is a sector that is constantly evolving, keeping pace with changes in technology, society and the market.
That's why it's important to be aware of the trends and opportunities that may arise in the coming years.
According to a report by Worldpay from FIS, e-commerce revenues in Brazil are expected to reach US$ 79 billion in 2025This represents an increase of 95% compared to recent years.
These figures show that e-commerce is a promising sector that offers many possibilities for those who want to start or expand their business.
However, it also shows that the market is competitive and demanding, and that you need to differentiate yourself in order to win and keep customers. And to do this, you need a strategic partner which will help you plan, implement and manage your e-commerce efficiently and with quality.
CMLO&CO, marketing and advertising agency, offers complete communication solutions for your online business.
With the help of a qualified and experienced team, we help you at every stage of the process of creating and managing your e-commerce: from choosing the ideal platform to optimizing your digital marketing campaigns.
Talk to our expertsguarantee the best online shopping experience for your customers and be part of the rise of e-commerce in Brazil with excellent results.
