Forecast: Ecommerce Trends for 2017
MultiSafepay on online marketplaces, ‘mobile only’, Pay after Delivery and cross border commerce in the new year.
The year 2016 brought us several ecommerce innovations, including the rise of mobile payments, the ban on geoblocking and of course the release of Magento 2. What can the Dutch ecommerce market expect in 2017? MultiSafepay on online marketplaces, m-commerce, Pay after Delivery, and the (r)evolution of cross border ecommerce.
1. Third party marketplaces
The trend of selling products through an online marketplace has been going on for a while on the international ecommerce market (Amazon, Rakuten, Asos Marketplace) and in the Netherlands (Bol.com, Nextail). A lot of merchants, however, are starting to experience the downside of this trend: the marketing channel of third party marketplaces take in a competitive position against the merchant's own online shop.
Additionally, a consumer's search results are based on price rather than relevance. As a merchant, you could therefore end up competing with several other merchants and the marketplace itself. MultiSafepay expects that merchants will be more discerning when choosing additional sales channels and that they will embrace good alternatives.
2. ‘Mobile friendly’ is so 2016…
As previously stated in our blog, an increasing number of consumers search and buy online using their smart phone, tablet, or wearable. In line with this development, Google is gradually implementing their mobile-first index; websites that are not mobile friendly will rank lower in search results. This is a clear sign of the shift toward m-commerce. The demand for ecommerce apps will likely only increase. MultiSafepay has been preparing for the rise of m-commerce in previous years with mobile responsive design for payment pages and is preparing for the launch of the next generation ‘mobile first’ payment pages. Mobile friendly is shifting towards mobile first, so it is important for online businesses to prepare for the changes ahead.
3. Simplifying online payment processes and enhancing flexibility: ‘buy now, pay later’
Although iDEAL currently still holds a dominant position as a payment method in the Netherlands, payment methods such as Pay after Delivery are quickly gaining ground. The process of ordering products and paying after the order is delivered, is considered to be secure as well as customer-friendly. Consumers can place their order without filling in any payment details online, so this payment option is a popular choice on desktops as well as smart phones and tablets. MultiSafepay offers three different payment options under the ‘buy now, pay later’-concept: with Pay after Delivery and Klarna the administrative processes and debt collection is managed by MultiSafepay (or another party), whereas E-Invoicing is more suited for entrepreneurs who want to manage the complete payment process from order to payment. Additionally, E-Invoicing is suitable for both B2C and B2B.
4. Cross border ecommerce
Last year the European Commission published new proposals which should simplify and stimulate cross border ecommerce in the EU. The VAT ‘structure’ in the EU should be simplified so that it will become easier for online entrepreneurs to do conduct business throughout Europe. Although the proposals still need to be implemented, it is a clear indication that cross border ecommerce will play a more significant role in the (near) future. MultiSafepay expects that local online shops will gradually express more interest in the possibilities of cross border ecommerce as a result.
Expectations for 2017 run high. Online shops will stand out based on their (international) reach, customer care, and available payment methods. MultiSafepay wants to set the bar and provide merchants with the means to make the most of their online businesses.