E-COMMERCE SECTOR
Compiled by Allaam Ousman
RESHAPE THE RETAIL DOMAIN
Ashik Bari shares insights into e-commerce and customer experience trends
Q: What impact does the e-commerce segment have on the retail sector?
A: E-commerce is impacting the global retail sector in several ways. Traditional bricks and mortar stores must adapt or risk obsolescence. In Sri Lanka, online shoppers are increasing steadily.
However, the local retail landscape has yet to experience the full impact seen internationally.
The appeal of e-commerce lies in its convenience, offering 24/7 access to a vast array of products, often at faster speeds than physical shopping. Moreover, online platforms provide a wider product selection.
Special offers, discounts and deals enhance affordability, appealing to a broader spectrum of consumers. Additionally, businesses benefit from bulk ordering and resale opportunities from e-commerce platforms.
Apart from convenience and affordability, e-commerce is reshaping the retail sector by redefining customer experiences. These platforms leverage advanced technologies such as personalised recommendations, virtual try-on features and interactive customer service, enhancing the overall shopping experience.
This customisation fosters brand loyalty and encourages repeat purchases.
Q: How would you describe the development of e-commerce in Sri Lanka?
A: The 2023 report ‘E-commerce: A Driver of Inclusive Growth in Sri Lanka’ by Daraz and the Sri Lanka Association for Software and Service Companies (SLASSCOM) provides insights into this.
It illustrates that e-commerce is an islandwide phenomenon that’s youth-oriented and driven by households with monthly incomes of Rs. 100,000 or less.
Over 50 percent of survey respondents say they engage in e-commerce to buy and sell goods. E-commerce is dominated by goods and several services, including phone, data, taxi and food delivery services, and new goods categories such as groceries are trending.
Moreover, e-commerce use is gender neutral with both men and women shopping and selling online.
However, purchasing patterns vary by gender: men make purchases related to entertainment, and pay their phone, data and utility bills online; women purchase items related to groceries, education and healthcare.
A smartphone is the preferred device for online shopping, which means access to these devices is important to e-commerce development and growth in Sri Lanka. Progress needs to be made in digital payments as 72 percent of respondents say they prefer cash on delivery.
However, 61 percent who abstain from e-commerce cite a lack of know-how and confidence as barriers. Therefore, fostering investment in education and awareness is imperative for the advancement of Sri Lanka’s e-commerce sector.
Additionally, users anticipate cohesive, anticipatory and supportive policies to drive growth, particularly concerning cross-border transactions, educational initiatives, regulatory frameworks and support resources for sellers.
Q: And how can local e-commerce businesses enhance the user experience?
A: A user’s e-commerce journey commences with exposure to the business’ marketing or branding, igniting his or her curiosity and motivation to delve deeper by visiting the platform.
To ensure a holistic journey, users should have the option of returning items if dissatisfied for legitimate reasons. Ensuring customer satisfaction at each stage is essential to creating a positive user experience.
Trust encompasses the belief that a brand will promptly address queries and swiftly resolve any issues that may arise, fostering long-term relationships and loyalty. Ultimately, prioritising the customer experience in e-commerce creates a sense of confidence and satisfaction, growing addressable markets where the sector is still maturing – such as Sri Lanka.
Q: What are the latest trends in customer experience in relation to e-commerce?
A: The customer experience revolves around creating personalised and meaningful relationships. Technology plays a crucial role in making this happen.
With e-commerce offering global market access, all online businesses in Sri Lanka should expand their focus beyond domestic customers to cater to a worldwide audience.
Certain aspects of the customer experience need to be digital in nature to efficiently manage operations across different locations. For example, AI-powered chatbots can handle simple customer inquiries and provide real-time assistance, ensuring prompt responses regardless of location or time.
Moreover, personalised product recommendations based on browsing history and purchasing behaviour can enhance the online shopping experience for customers worldwide.
However, some aspects of the customer experience still require human interaction. Customer support representatives can engage in live chats or phone calls to address specific categories of inquiries or concerns, offering a personalised touch that enhances the overall experience.
Leveraging technology for digital customer experiences while maintaining human interaction where necessary is essential for online businesses in Sri Lanka. By striking the right balance between digital innovation and personalised service, companies can create a seamless and meaningful experience for customers around the world.
