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The Evolution of Digitalization and Its Impact on the eCommerce Industry

Last updated: 26 Feb, 2021 By | 6 Minutes Read

When the eCommerce sites were first introduced, many shoppers were hesitant to use them as they could not personally see or touch the products they were buying. They had to pay in advance and go through a long and tedious process of online payment.

Now, with the digital transformation, the eCommerce industry has drastically changed for good and offers quick checkouts and safer online transactions.

It is estimated that there will be about 2.14 billion global digital buyers in 2021. – Statista

Digital technology continues to be the core of the e-commerce industry and has employed its astounding capabilities to allow sellers to connect with their customers through the web and mobile platforms.

E-commerce Made Easy With Digital Technology

Digital transformation implies the adoption of digital tools and processes in your business to achieve strategic business goals. It is a multifaceted process that has the capability to bring a substantial cultural and organizational shift in the business. The eCommerce industry is not untouched by this digital tide.

Innovations in digital technology have helped in reducing the relevance of distance, whether geographical or linguistic. This has eased searching products, matching the preferences of consumers to products and verifying quality and reputation. It is because of this connection that the e-commerce stores have gained their importance in consumer’s life.

Research studies predict that worldwide online retail sales will go beyond $4 trillion by the end of 2020. – Statista

Without the help of advanced and sophisticated digital technology, such results would not be achieved. Let us discuss how digital technology impacts global eCommerce.

Ways in Which Digitalization Impacts E-commerce

1. Advanced Payment Services

Advanced Payment Solutions

For the unparalleled growth of the eCommerce market, fast, secure, and effective payment options are essential. Studies say that about 69% of shopping carts are abandoned on an e-commerce platform by the customers. A tedious and complicated payment procedure is one of the reasons why it happens.

Hence, an e-commerce platform needs to have an efficient and easy payment procedure. The payment mode usually varies according to the region, like in Canada and the US market, credit cards are popular, but digital funds and debit cards rule the European market. Though the developing economies are largely cash-based, they are rapidly making their way towards digitalization.

2. Personalization Through AI

Providing a better customer experience is the major goal of every e-commerce company and it can be achieved through personalization. This is where AI finds its importance.

With the use of AI, e-commerce stores get the ability to offer the products that a customer is more likely to buy based on the intelligent search history analysis. It delivers analytics that can be used for enhancing interactions with customers through texts or voice messages.

3. Effective Marketing with Social Media

It is because of social media that the customers and e-commerce platforms are closer than ever before. Social media platforms like Twitter, Facebook, and Instagram allow the customers to view e-commerce products via images and have links that direct to e-commerce platforms with a click.

The company profiles of various products also help the customers to check the reviews of the product and gauge its qualities and drawbacks, hence, giving them an option of a more informed purchase.

4. 24/7 Sales and Market Presence

As the use of mobile devices like tablets, laptops, and smartphones has increased, they have become a crucial part of a business’s day to day operations. Research says that over 90% of mobile device users keep them within their reach every time.

Hence, targeting these mobile devices paves the way for the growth of the e-commerce industry. With the development of faster internet networks, digital experience has reached new heights, and the global mobile e-commerce industry is unstoppable.

Customers get the ease to shop anywhere and at any time. Digitalization has provided e-commerce platforms the ability to have a 24/7 market presence and sales.

5. Digital Supply Chain and Data Management

For any store, eCommerce data management, and timely delivery of the products is the key factor for growth. Hence, optimizing the supply chain management of the market under spiked demands and digitizing data management is very important. Digital innovation has simplified every aspect of the supply chain including:

• Inventory Management
• Port Management
• Warehouse Management
• Brand Protection
• Delivery
• Infrastructure

E-commerce data management software like Looker and Shopify provide a digital platform where all the industry-related data can be managed effectively. This is important as a thorough understanding of the customer data facilitates informed business decisions and helps in the growth of the company.

6. Forecasting Based on Demands

Anticipatory shipping is one of the most interesting ways in which digital technology has influenced the global e-commerce sector. This is a unique approach where the e-commerce store predicts their customer’s next shopping list based on their purchasing trend and gets the items delivered to the nearest logistic partner before the order is made.

Hence, anticipatory shipping saves a lot of time and effort for both the customers and the e-commerce store. Forecasting the demands also helps the store in inventory management and makes sure that there is always adequate stock according to the market requirement.

7. Grabbing Customer Attention

That time has long gone when promotions were filtered out by the advance spam detectors or simply overlooked. Now, they have the power to grab the attention of the customers right at their home screen.

Several retailers use push notifications to inform the customers about upcoming offers and events. These push notifications pop up at the mobile devices of the customers or are present at the company website and is a great way to remain in the mind of the customer.


By reading the above article, we can conclude that digitalization has dramatically influenced the e-commerce industry and is expected to do so over the years to come. As digital technology is evolving, so is its impact on various industries. Technologies like artificial intelligence and automation have found their roots in the e-commerce industry and provide many benefits to it.

Recommended Blog: AI and E-commerce: How E-commerce Businesses Are Getting Smarter?

Are you seeking opportunities for business growth? Instead of investing in technology, you may consider investing in outsourcing. We, at Cogneesol, utilize industry-standard technology to provide complete support to our clients with our customizable eCommerce data management services. Contact us today and know how our experience and expertise can be advantageous for you. Call us today at +1 646-688-2821 or email at info@cogneesol.com.

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