Sometimes it seems like the usual malls and retailers are about to disappear. That is considered to happen because e-commerce gains momentum. Though, it actually does. But there are certain myths, which outweigh the common sense.

 E-commerce Will Represent 50% of All Industry Sales

The world is uncertain, things come and go. That is why it would be ridiculous to claim that e-commerce will soon take half of the retails. Of course, there are some categories that have already done that, like books and music. Other retailers are trending to grow, or at least maintain the level. Some brands, like Warby Parker, Indochino, expand really fast. Others - Williams-Sonoma, Neiman Marcus – know exactly what does the consumer need. They invest the money wisely. And eCommerce web hosting reviews is the good decision for those, who would like to become a part of the industry. Reliable hosting is a must to start.

There are two explanations for why the e-commerce will not settle half of the market.  Firstly, it must be obvious that the path for achieving this is not so effortless.  Current trends do not allow rates to grow fast. Such categories as home furnishings, grocery, and home improvement do not require the implementation of e-commerce. When the customer is able to touch, feel and try the product, the usual market will prevail. This is the most important reason, why Amazon bought Whole Foods, and why Wayfair and other brands are trying hard to start opening stores.

Matter of New Disruptive Models

Looks like the popular brands supply huge amounts of investments into e-commerce, and these actions are too inconsiderate. Not true.

When we mention e-commerce, it is usually about the Amazon. It forms for nearly half the entire sector. But there are also leaders, like Walmart, Apple, Home Depot, Best Buy, Macy's, Target, Kohl's, Costco, and Wayfair.

Wayfair, by the way, is likely to leave the top ten. But the market is also full of old-school brands: Lowe's, Staples, Nordstrom, Neiman Marcus, and Sears. Actually, eCommerce has lots of powers and possibilities.

Scaling of the Online Stores

One more top reason why money is poured into pure-play e-commerce recently: the idea about easy and efficient scaling of innovative brands. The new technologies are considered to be able to climb and expand. And the process of attracting new customers seems very simple and quick. Unfortunately, the path for money is far thornier. E-commerce is able to be economically productive, but it is still not. Remind, for example, One Kings Lane, Gilt.com, and other failed projects.

Brick & Mortar Become Less Beneficial than Online Shopping

Fun fact: Apple made more profit in the recent quarter than Amazon does for its whole history. So, Amazon is hardly making money in retails. It becomes harder to believe, that this sector is profitable. Why? As it was already mentioned, Amazon represents about the half of entire e-commerce. But, at the same time, there are some brands, which lose money at a breakneck speed. From this standpoint, we can say that for many the growth of e-commerce weakens comparatively to earnings.

Such brands as Walmart, Pier 1 and H&M are blamed for the slow growth of online capacities. They probably do not realize the importance of the digital role for customers independently on the purchase channel. But the reason why they hesitate can be also the fact they know typical features of their product range they are subscribing for decaying margins.

The Significance of Focusing on Channel Transaction

Retailers love talking about channels. But the customers barely do. Wall Street needs to know if e-commerce grows fast and what is happening with same-store sales. However, these channel-centric metrics are more useless. Channels help to organize many retail brands and also are examining customers’ needs using channels only. Furthermore, brands have marketing budgets and performance indicators based upon purchase channel. Such a scheme is not only incorrect but also deceptive, because it stimulates the behavior, which is not customer-oriented.

It is okay that there are still two types of customers: online shoppers; and those, who prefer physical channels. Consumers think of brand firstly, and then about the channel. Digital channels and brick & mortar affect each other. The studies of Deloitte and Forrester tell us, that the physical stores with the digital element are more profitable than the e-commerce. The exceptions are few brands, which exist exclusively online (number of such drops), the spotlight on the confrontation between e-commerce versus brick and mortar evolves into the distinction without a difference.

It is clear now that shopping trends are changeable. Strategies, which may seem senseless today, can turn into profitable ones tomorrow. We should think more about the details and nuances. It is kind of complicated to implement because of distraction from the hype cycle. But we should actually. On the grounds that the industry is fluctuating, it is very easy to miss something relevant in sectors and categories.