After a decade of growth, eCommerce is facing headwinds.
But, history gives us a good sense of what lies ahead.
Looking back, the barriers that historically made entering the e-commerce space costly—such as expensive traditional marketing and custom technology infrastructure crumbled, allowing the industry to rapidly evolve post-2010.
Online-first companies such as Warby Parker, Casper, IPSY, Dollar Shave Club, and others burst onto the scene with similar foundational approaches to building their businesses.
Each exploited the increasing abundance of open-source or otherwise readily available technology to build momentum.
Consider just the simple task of creating a website that could power online transactions.
Rather than having to build from scratch, market entrants were launching online stores on platforms like Magento, WooCommerce (WordPress), and Shopify at a fraction of the cost of their e-commerce predecessors.
At the same time, other solutions surfaced for streamlining email, customer service, and logistics – all of which provided a set of cost-effective tools that completely changed the economics of an online start-up.
With newly acquired capabilities to “stack” one solution on top of the next, the agile e-commerce universe was in bloom.
Today, it’s not expensive tech hurting online companies …
eCommerce is faced with a new set of challenges: inflation, rising COGS, supply chain woes, high CPC/CPM rates, and a looming recession.
What does this mean for the next phase of eCommerce?
History is a good teacher.
Great companies will be started. Others will innovate. New solutions will surface. Partnerships and collaborations will emerge.
eCommerce will rebound in 2023.