When planning to start an eCommerce business, you are surrounded by many questions like:
eCommerce has shaped the global retail market. Today eCommerce across multiple categories like fashion, electronics, food etc accounts for trillions of dollars of sale globally and shows no signs of downtrend
Our Experts have performed an in-depth analysis and research on online fashion and apparel marketplace. Read the guide to know the global perspective,opportunities and platform checklist for this lucrative industry.
According to the Fashion eCommerce Report by Statista the market is expected to grow further at 12.2% per year and reach a total market size of US$991.64 Billion by the end of 2024. The report also states that a user bought at least one fashion item i.e clothes, shoes accessory etc item in the last 12 months. The reason behind the explosive growth in this sector is the innovative technologies that have created online shopping an experience worth count.
The global fashion industry is moving towards the decisive phase of digital adoption with growth in major countries across the globe. Here’s a quick overview of Fashion eCommerce Industry Statistical data:
Marketplaces like Amazon and ebay are undoubtedly the eCommerce giants with over 50% of eCommerce sales. In the fast growing economy, entrepreneurs are leveraging digital innovations to connect with their target audience with a better and enhanced customer experience. Offline fashion retailers are turning to digital platforms to encash the growing markets .
Why do fashion eCommerce account for growth and futuristic opportunity?
Due to these numerous opportunities in the eCommerce industry, entrepreneurs and business owners are able to tap the untapped markets, increase their customer base and ultimately increase profit margins.
The fashion eCommerce industry can be further segregated based on the products like:
Clothing and Apparel:The eCommerce market segment for Apparel covers all types of clothing items for men, women and children.Revenue in the Apparel segment is expected to be US$642,152m in 2020. With a market volume of US$222,822m in 2024, most revenue is generated in China followed by USA and Japan
Shoes: This segment includes all kinds of footwear e.g. casual shoes, slippers etc. Revenue in the Footwear segment amounts to US$135,136m by 2024. In the Footwear segment, 27% of total market revenue will be generated through online sales by 2024.
Accessories and Bags: The eCommerce market for Bags & Accessories segment contains various types of bags and accessories. Included are e.g. leather bags, suitcases and purses as well as jewelry, hats, scarves, and gloves, amongst others
Jewelry and Luxury items: The luxury goods marketplaces have shown an upsurge during the last ten years. , the Luxury Goods market is expected to grow at a CAGR of 4.9% between 2010 and 2023. This eCommerce segment comprises luxury goods like watches, jewelry, eyewear cosmetics and fragrances.
Like any other marketplace, the online fashion and apparel works in a similar manner. Here’s an overview of the functioning of such kind of marketplace:
Business owners can implement different commission rates for different products and to different sellers. An online marketplace can charge a membership fee for opening the online store in addition to the commission on every sale. There can be secondary sources for revenue such as:
We are witnessing a systematic shift in the commerce world. Today offline retailers are making steady moves to enter the online eCommerce arena. It comes as no surprise that Amazon and ebay command the majority of eCommerce sales. Here are some of the market leader fashion leaders across the globe that have shown exponential growth over the last few years.
Selling the best fashion brands cannot guarantee success of your online fashion marketplace. Success in online fashion or lifestyle not only depends on the products, every business owner needs to think beyond it. In order to make them stay on your website, here are some online fashion marketplace engagement tips to ensure that the audiences connect.These tips are ideas that top fashion brands are already following and sustaining greater profit from their marketplaces
Influencers Culture: Brands discovered that people who truly followed fashion loved to read and interact with influencer and creative designers. To engage customers, online fashion brands started catering out to the fashion industry, social media influencer, designers who would actually tell the idea behind their designs.
Personalization: This trend has been popular in the eCommerce industry. Tracking user behaviours through the purchasing history data, browsing behaviour, demographics and psychographics has helped brands to build across a different connection with the users. According to Statista, 19 percent of responding U.S. consumers said that personally relevant content significantly increased their purchase intent, with 59 percent saying that personalized content somewhat increased their intent to purchase. Today the majority of sales are influenced by personal recommendations or promotions. Personalized messages, offers and experiences have proved to increase revenues across the eCommerce industry. Whether the customer is new or returning it is very important to know the following factors to get the personalization right:
If we get these right , we can then focus on the kinds of personalization strategies we want to provide to the customers. Personalization in fashion eCommerce can be:
User Generated Content as a social proof: To underline the brands as more authentic and genuine, user generated content has become an ultimate saviour. Utilizing the user content to resonate with customers and show the use of products in real life. People trust reviews and take them closer to the decision making stage. One of the biggest eCommerce marketplace Amazon too runs a review process on everything a customer buys. Amazon has a huge user base, sending emails to customers to submit their reviews. These reviews improve the SEO of the product pages and drive social proof.
Here’s a checklist which you must thoroughly analyze before launching your platform to reduce complexities and ease the work for every user on the platform.
Customizability: Your eCommerce platform should be customizable according to the growing needs of the consumer. A future facing solution is the need of hour, customizing and scaling the business as per the current/ongoing marketing scenarios.
Payment Gateways: Payment Gateways play a significant role in the online retail environment as they are digital equivalent of credit card processors. Payment gateway conforms to safer payment transactions and safeguards against security issues. Multiple payment gateways make it easy for users to order products instantly online.
Product Catalog:The product catalog feature allows the eCommerce marketplace owner/admin to control and manage as many catalogs as possible. The vendors selects the product from the existing catalog and add it to their inventory and mention the pricing The feature helps to enhance the overall experience of the online shopping as the admin controls and optimize the product images, descriptions and specifications.
Multicurrency:The biggest convenience of a multi currency platform is easy accounting and global expansion. Providing the customers to get billed in their preferred currency unit
Analytics & Reporting:It is extremely important to review the performance of your marketplace. Based on the number, you can decide the future strategies and goals. Having a closed look at the visitor statistics, sales report and traffic analysis help you understand your customers & reduce Marketing costs.
Seamless Product Management: If you aim to scale your business rapidly and want millions of products , it is very imperative that your eCommerce platform has strong and robust product management that easily allows the marketplace owner to manage the products.
Review and Rating: Majority of people read reviews before making a purchase online. Review and ratings have become an innovative way to gain social proof that persuade customers to buy online.
Streamlined Checkout: A streamlined checkout process is directly linked with the conversion rate for an eCommerce marketplace.
Rewards and Discounts: Rewards and discounts are an extra way to win additional revenue and word of mouth for your eCommerce marketplace. They have been highly effective in encouraging customers to shop online and drive customer loyalty. Not only rewards and discounts are driving sales but are a great way to increase product awareness and reach.
Mobile Applications: Personalization is one of the major reasons why mobile apps are performing better than desktops. Mobile Applications help buyers to make purchases on the go and aware them about the real time discounts and sales. Mobile apps have been proven to increase customer engagement and retention. Developing mobile apps for your eCommerce marketplace will help in increasing the business with a convenient and customized shopping experience to the buyers.
Smart Recommendations: Including recommendations as a part of the user experience has helped in increasing the average order. Displaying a list of suggested products based on the browsing history helps in personalizing the user shopping experience and thereof increasing the conversion rate of your eCommerce store
Responsive Layout: A well optimized website will bring more visitors and conversions. A responsive web design allows a seamless user experience across multiple devices. Ease of use, better site speed and increased conversion rates are not only reasons why responsive designs, search engines too favour responsive stores online.