The global e-commerce market is booming. According to research, between 2021 – 2028, the B2C e-commerce market is estimated to grow in value from $3.5 trillion to $6.38 trillion, which translates to a CAGR of 8.97%. This growth is expected across all major industries, such as beauty, automobiles, electronics, footwear, personal care, and more.

Along with growing internet penetration, the increasing use of digital technology has been the prime driver of this growth.

For e-commerce businesses, utilizing digital technologies such as machine learning, digital marketing, APIs, and more provide various benefits such as:

  • Increased Revenue: Using software, tedious and repetitive tasks can be automated and completed in a fraction of the time. Leading to increased efficiency and revenue for the business.
  • Transparency in Operations: In addition to customer data, tools used by the business also collect data related to everyday operations, project performance, and resource utilization. Reviewing this data provides a clear idea regarding business strengths and weaknesses.
  • Competitive Advantage: Incorporating digital technology incurs a cost that many businesses choose to avoid. However, in the long-term, the returns in terms of productivity, growth, and revenue far exceed the initial expense and provide a competitive advantage to businesses that use new-age technologies.

Below, we explore three of the best digital technologies e-commerce businesses should choose to incorporate for everyday operations. 

  1. Machine Learning

Machine learning is the use of computer systems that analyze data through algorithms and statistical models to find patterns and draw inferences. A key advantage of using machine learning is that it can work without human intervention. Yes, you’ll need professionals to create algorithms, but then the software can be left alone to do its job. Here are a few ways machine learning benefits e-commerce businesses:

  • Increased Conversions: On reviewing customer data, machine learning can provide customers with accurate search results on each visit. This helps them find what they need faster and move on to checkout.
  • Customer Personalization: Providing each customer a personalized experience without machine learning is a near-impossible task. Using its learnings, the software can provide users with accurate product recommendations for repeat purchases or new products based on their buying behavior.   
  1. APIs (Application Programming Interface)

APIs are software that allows two applications to talk to each other. From creating reports to sharing information across computer systems, APIs can be used in all business tasks. One major advantage APIs provide e-commerce businesses is the ability to leverage headless commerce. 

The front-end of the system is referred to as the ‘head.’ For example, this could mean the theme or design you’ve chosen for the store. Without APIs, any changes to the front-end will demand tedious changes to the back-end as well. But, by utilizing APIs the ‘head’ can be customized independently, and all functionality changes can be handled by APIs. Additionally, traditional commerce platforms are restricted for use on mobile and desktop mediums. Using headless commerce, products, and payment gateways can be delivered on smartwatches, kiosks, and other mediums as well.

Additionally, APIs are great for internal use as well. For example, a loans API can be used to generate reports on debt payments, and account balances to be used for making key financial decisions.

  1. Mobile Application

According to research, in the year 2021 e-commerce sales from mobile applications accounted for more than 50% of all sales, amounting to $3.56 trillion. For e-commerce businesses, having a mobile app is key to being successful.

Compared to mobile browsers or desktops, mobile applications provide up to 3x conversions. Additionally, customer data can be collected easily through native applications and be used for personalization and marketing-related activities.

Providing customers the option to leave reviews and engage in forums on the app leads to increased engagement and interest in your brand.

Given its growth, the e-commerce industry is extremely competitive. Leveraging digital technologies holds the key to gaining a competitive advantage, meeting business goals, and working towards becoming a leader in your niche.

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*Guest post from Marcus Lansky / Image Source: Pexels