A Comprehensive Guide On How Brick-&-Mortar Stores Can Compete With E-commerce Platforms Using AI
- Dikshita Phukon
- 23, Jan 2023
A Comprehensive Guide On How Brick-&-Mortar Stores Can Compete With E-commerce Platforms Using AI
We have reached the era of e-commerce, and it is evident that it isn’t going away anytime soon for anyone who keeps their finger on the retail industry’s pulse. The proportion of retail transactions that are made online as opposed to in-store is progressively increasing with each passing year, with e-commerce experiencing year-over-year growth of between 12% & 16%, according to the United States Census Bureau. The idea to work on the starling effect of e-commerce on brick-and-mortar stores becomes more significant, especially after the pandemic. The pandemic saw a fast shift towards online retail stores, keeping aside the old holy grail of enjoying physical store experiences. Customers were not left with any option but to rely on e-commerce. Before the pandemic, in 2019, only 25% of total retail stores relied on e-commerce. But with the advent of the pandemic, a spike of 40 to 60% was seen in customers’ intent to purchase goods online, be it essential goods, apparel, or accessories. A McKinsey study on growth and profitability in e-commerce suggests that by the year 2024, online sales will account for nearly half of all retail revenues. Customers have jumped onto the online bandwagon and continue to remain there even after the pandemic. In a recent study, it was determined that 67% of shoppers prefer retailers with mobile technology because it