Tag Archives: E-Commerce

ecommerce product

25 eCommerce Product Ideas to Sell Online in 2026

The eCommerce market has been growing dramatically in the last few years, particularly during the pandemic. According to eMarketer, worldwide eCommerce sales exceeded $5 trillion for the first time in 2022 and are expected to climb past $7 trillion by 2025. Starting a business in 2026 centered around selling eCommerce products is more relevant than ever.

However, succeeding in eCommerce takes more than just selling anything online. You need to choose the right product.

In this article, you’ll learn about 25 eCommerce product ideas that have the potential to be big winners in 2026. In addition, there are also tips for choosing the product that works best for you and suggestions for places to continue looking for more ideas.

Top 25 eCommerce Product Ideas to Start Selling Online

There’s a wide variety of products you can sell that are in great demand. The key areas to target are related to personal care, eco-friendly alternatives, work-from-home solutions, or tech gadgets. Take a look at this product list to find your next eCommerce project:

1.     Home office solutions

Home office solutions

Working from home has never been more popular, possible, or accessible. So naturally, products oriented towards creating your own home offices are in high demand.

In 2022, 16% of all companies have shifted to fully remote work, and 58.6% of the U.S. workforce works remotely. The circumstances of the pandemic caused the vast majority of Americans to switch from in-person jobs to remote work. And this phenomenon was seen all over the world.

Office chairs, seat cushions, and desks are good alternatives to offer comfort at home, while Wi-Fi repeaters and range extenders are great products that improve connectivity.

2.     Home decoration products

home decoration products

With more people than ever working from home, it stands to reason that they’ll be interested in making their personal spaces more appealing, and the data supports this. The home décor market was already trending back in 2020, and it’s forecasted to have a constant growth of 4.8% between 2022 and 2026.

Carpets, beddings, and storage containers are just some of the products you can offer in this space. The benefit of these products is that their appeal is not limited to remote workers, which explains the projected constant growth of the sector.

3.     Candles

Candles

If you are looking for a home décor product that is consumable and can be bought repeatedly by the same customers, candles are a great choice. They fill that desire to beautify your personal space and are easy to dispose of once all the wax has been consumed.

One great thing about candles is that they don’t need to be your entire business. You can easily sell them as part of a more extensive line of products, like beauty or meditation brands.

4.     eLearning courses

elearning courses

Subscription-based products have been on the rise for a while now.In that category, eLearning courses are shining due to their low setup cost, as well as their ability to be sold over and over with little to no additional input. There’s only one significant investment with this product, the time and energy required for the initial creation. Once the course has been created, you don’t need to do anything else other than selling it.

You most likely already know enough about a topic to create your own course; you only need to arrange that information in a digestible package.

5.     Subscription boxes

Subscription boxes

Building on the previous point of subscription services, one popular idea is selling subscription boxes that cater to specific interests. With these products, you get money so long as the customers remain subscribed.

A subscription box can take many forms, from catered snacks to food delivery kits, comics, toys, and even cosmetics. There are a lot of different approaches you can take to this idea, which makes it easier to tailor it for a specific niche.

If you can find one market that hasn’t been tapped by the subscription box craze, you will likely hit a gold mine.

6.     IoT Devices

iot devices

We’ve evolved from smart devices to those that interconnect to create a unified ecosystem of convenience. IoT, which stands for Internet of Things, is the term used to describe these types of devices. More and more people are looking for products that can synergize with those they already own and create a sort of “smart home” that they can control through one device or even their voice.

Smartphones are an obvious one, but there are also smart refrigerators, cars, and air conditioners. If this sounds out of your price range, you could go smaller with smart light bulbs, speakers, or watches.

7.     Smart Lighting

Smart Lighting

Continuing to build on the IoT point, smart lighting is anexcellent choice for a smart product that is budgetfriendly for the seller and the buyer. The market for smart light bulbs has been growing incredibly fast and is expected to continue growing at a rate of 20.4% annually.

It gives customers a way to upgrade their home with a smart device that’s convenient, and even fun, at a reasonable price.

8.     Software as a Service (SaaS)

Vertical Software-as-a-Service

With the increased evolution of our marketplaces and workplaces, businesses have felt the need for software options that are flexible and fulfill a wide variety of requirements, or just concrete ones. Customers, too, have demanded services that some of the current software solutions can’t provide.

That’s where Software as a Service, or SaaS, comes in. For people that have coding skills, selling a software solution that’s created specifically to solve the needs of a business or individual. But SaaS isn’t about a one-and-done deal.It’s about providing continued support to the end-users through tech support and additional changes.

9.     At-Home fitness equipment

home fitness equipment

One of the other trends that you will notice on this list is an increased interest in products oriented towards improving your health and general wellbeing.Within that space, at-home fitness equipment has become particularly popular. Thanks to the ease with which we can look up exercise routines online, it’s easier than ever todo your own workouts at home. Plus, people are flocking to their own in-house gyms,thanks in part due to the effects of the pandemic.

Yoga mats, stationary bikes, and resistance bands are some popular products in the home fitness equipment area. You’ll want to target something that’s convenient, easy to use, and doesn’t require too much space.

10.    Shapewear

Shapewear

Foundation garments, more commonly known as shapewear, havebecome so popular that even Kim Kardashian launched her own line, Skims, back in 2019. What started as a trend for women to look more fashionable has evolved into a culture of empowerment, body positivity, and inclusivity. These products are no longer about looking good but instead feeling good in your own skin. This continues the trend of products targeted at taking care of yourself gaining popularity.

Another similar product is athleisure, a type of hybrid clothing meant to provide comfort while still looking good. Both markets are expected to see continued growth in the future.

11.    Skincare products

The skincare industry has always been popular. It’s been estimated before that the average American spends over $300 on skincare every year. With the increased awareness of physical wellbeing, this is likely to go up.

However, this isn’t an easy industry to get into, as there are a lot of safety regulations and tests to pass. On the other hand, these same barriers make it so competition is more limited than other products on this list.

12.    Air quality appliances

Continuing the healthcare trend is the rise of interest in products that improve air quality. Air humidifiers, dehumidifiers, and purifiers are the main products in this category. These threefocus on different aspects of the air we breathe and, as such, don’t compete directly with each other.

Humidifiers increase the humidity levels in a roomthrough the use of water vapors or steam, while dehumidifiers do the opposite. The former is meant to help with issues like dry throat, nose, and skin, while the latter handlesallergies caused by mold and bacteria.

Lastly, purifiers remove air pollutants like pollen, spores, and pet dander through the use of a filter.

13.    Air Fryers

air fryers

Another product that’s on the rise thanks to increased health consciousness is air fryers. More and more people are looking to lower their use of oil to fry foods, in a bid to lower cholesterol levels. Not only that, but a lot of people find air fryers significantly more convenient, thanks to their “fire and forget” approach to frying.

With the technological advancements in this space, they are easier to use and more energy efficient than ever, which is a great selling point.

14.    Pandemic-related items with longevity

The pandemic saw a meteoric rise in interest formany products. While some of these, like toilet paper, have come back down to reasonable levels, other products continue to remain popular.

For example, oximeters to help keep track of your health and board games to have fun with folks at home.Anything pandemic-related that has use outside of the pandemic is a potential high seller.

15.    Baby products

There are products that will always be popular, such as those targeted at mothers and babies. This is a market that will always exist, but also one that has been growing thanks to increased spending around the world. Parents are more concerned with safety and convenience than ever before, and products that answer those needs can carve their own spot in the market.

Currently, baby carrying straps, bouncers, and breast pumps are particularly popular products. Toys meant to help babies develop can also be a good choice.

16.    Pet Products

Another market that is unlikely to go away anytime soon is that of pet products. The demand for online stores centered around our animal friends has continued to grow. Pet food is one product that will always be needed, but you might find it easier to offer other items like bathing tools, toys, or carriers.

The last item, in particular, has become more popular over time, with people looking for ways to travel with their pets while ensuring their safety and comfort.

17.    Cannabis products

The cannabis industry is absolutely massive, even though its legal status in several countries across the globe remains a touchy subject. The market is projected to grow to $70.6 billion by 2028, and society’s views surrounding its recreational and medical uses are quickly shifting.

In the United States, cannabis is considered legal for medical purposes in Washington D.C. and 35 states. It’s also legal for recreational use in 16 states. In the U.S., CBD products can be legally sold in any state. THC products, however, are not legal in all states yet.

While cannabis is slowly being decriminalized in several other countries, including those in Europe, Africa, and South America, it still carries harsh punishments in many countries.

Make sure you are following your local laws and regulations if you decide to sell this product.

18.    Biodegradable products

Thanks to an increased consciousness of the impact of climate change, eco-friendly and biodegradable products have gained popularity. Products that use environmentally friendly materials, or that are easy to recycle, have gained interest in the eye of a customer base that is more concerned with their ecologicalfootprint.

For example, some vendors are offering laptop sleeves and phone cases made out of compostable materials. There are even compostable yoga mats made out ofcork, which would allow you to tap into two markets simultaneously.

19.    Reusable water bottles

reusable water bottles

Another product idea that targets those worried about the environment is reusable water bottles. It continues to build on the interest in sustainable products that current and upcoming generations have.

One significant aspect of this product is how much personality can be given to it through changes to its shape, color, design, or logo. You can customize your bottle to fit the image of your brand.

20.    Phone accessories

All over the world, smartphones are one of the most common devices people own. And in the world of phones, accessorizing is second nature. It’s estimated that 83.7% of the world owns a smartphone, with 97% of the U.S. having a cellphone of some sort. That’s a gigantic customer base for phone accessories.

There are a lot of different products that you can sell to phone owners, which can help provide better functionality to their phones, make them last longer, or make them more visually appealing. For instance, in the convenience area, you can provide power banks, wireless charging stations, tripods, and wireless headphones.

21.    Car accessories

While working from home is on the rise, people still spend a significant amount of time commuting to work, or just driving around in their cars. Not only that, but thanks to apps like Uber and Lyft, working from your car has turned into a popular job alternative.

And just like people enjoy customizingtheir home offices, they love personalizing their cars. Some of the products for car customization offer additional features or convenience, such as USB chargers, phone holders, or rear cameras.Other products target the comfort aspect, like air fresheners and seat covers.

22.    Drones

The drone market is growing and evolving rapidly. Drones are used extensively in the military for their surveillance capabilities but have also been adopted for commercial and personal use thanks to improvements to the technology, and its price.

The drone market is expected to grow at a compound annual rate of 16% between 2022 and 2026, so the potential for this product is significant.

Nowadays, it’s not uncommon for people to own a drone. This has opened the market to hobbyists that want to have the latest and the best.

23.    Jewelry

In this day and age, personalization is the name of the game. This has been highlighted by several prior entries in this list and can be seen very plainly in the evolution of the jewelry market.

Jewelry has moved from being more of a high-end product to one that’s more accessible to all. Marketplaces like Etsy have given rise to more personalized jewelry items that are still affordable.

24.    Hair scrunchies

hair scrunchies

This might sound out of place with other products on the list, but thanks to a recent comeback, hair scrunchies are a strong candidate for eCommerce product. According to Pinterest, scrunchies outranked all other beauty trends in their platform by 6,309% back in 2020. While they aren’t as popular as during that year, they are still an appealing prospect thanks to their popularity and low cost.

25.    Sex toys

While in the past such a product proposition might have seemed outrageous or out of place, societies changing sensibilities towards sexuality have given rise to increased adoption of sex toys as mainstream purchases. It’s even considered an aspect of self-care.

And the market is evolving with technology, with new toys having more tech-based functionalities and even falling into the area of IoT devices.

How to Find the Right Idea for You

With so many product ideas to choose from, selecting one might seem like an impossible task. However, it’s not one to be taken lightly. While all of the aforementioned products have a lot of market potential, they might not all be the right fit for you. When looking to choose which product to sell, consider the following:

  • Your location and the type of market regulations that you’ll face there
  • The offerings of your current competitors or potential competitors
  • The channel you would use to sell the product
  • Whether you will be drop shipping or wholesaling.

Places to Look for When You Need More Ideas

Top Places to Look for When You Need More Ideas

If you didn’t find an idea in this article that resonated with you, you could try looking for inspiration in other places. Here’s a brief list of spaces where you might find inspiration for a new product idea:

  • Consumer trend publications like TrendWatchingor Trend Hunter.
  • Product review websites like Uncrate, Cool Material, or Bless This Stuff.
  • Social curation sites like The Fancy or Wanelo.
  • B2B wholesale marketplaces like Alibaba or DSers
  • Online consumer marketplaces like Amazon or eBay
  • Crowdfunding websites like Kickstarter or Indiegogo.
  • Social media networks like Instagram or Pinterest.
  • Your competitors.

Closing Thoughts

The best time to jump into the eCommerce market was five years ago. The second-best time is now. This market is growing more and more every year, and the business opportunities keep increasing with this growth. If you target products that satisfy the public’s increasing interest in personalizing their spaces or taking care of their health and environment, you will be on the right path, given the current trends.

credit card processing trends

Trends in Mobile Credit Card Processing for Fall 2021 and 2022

Over the last 12 months, almost every retailer felt the need to shift from the in-store traditional payment methods to the new-age digital methods. Businesses have also understood that this shift has a vast scope – it is not just a momentary reaction to the prevailing coronavirus pandemic, but a long-term trend. IBM’s U.S Retail Index study revealed that the transition to digital payment was speedy due to the pandemic, which otherwise would have taken five years. E-commerce purchases are predicted to grow by 20% this year. 

Even in these uncertain economic times, retailers can be confident that online and hybrid shopping will continue to grow. Today, the customers have become more aware and want more flexibility and security in mobile solutions from these brands. And therefore, brands cannot just sit quietly. 

We know that even if the pandemic ends, the e-commerce growth and related customer needs are here to stay. For businesses to keep up with the competition, they must shift to modern payment methods. This article will discuss six trends in mobile credit card processing for fall 2021 and 2022 that will make their way into the future.

#1 E-Wallets

With the increasing number of smartphones, e-wallets have become the most convenient mode of payment for consumers. A mobile wallet syncs your bank accounts and credit cards and turns your smartphone into a contactless payment device. According to some statistics, the global estimate of smartphone users in 2021 was 3.8 billion, compared to 2.6 billion in 2016. A smartphone has become a necessity as it gives you apps for every need from banking to driving, social to nutrition tracking related to all aspects of your life. 

55% of Americans use their smartphones when shopping, all due to the increasing use of e-wallets like Google Pay and Amazon Pay. With mobile wallets becoming popular and the growing use of peer-to-peer transfers, the security of these apps has also increased. E-wallets are going to change the way how we pay now. It is one of the most significant trends in mobile credit card processing that cannot go unnoticed. 

#2 Social Shopping

A retailer’s most remarkable ability is being able to use personal relationships to his advantage and engage their customers in their business. More than 78% of customers trust the recommendation of their friends and family for shopping, so brands can count on social media sharing and engagement as a better proof of purchase than a direct message to the consumer.

Retailers can hire social media influencers for promotion and make use of social media tools to get to know their customers better. They can further promote positive reviews, give better customer service and sell directly on the platform where their customers spend substantial time. 

#3 Contactless Payments

During the pandemic time and earlier, we would hesitate to touch cash as we did not know how many hands the bill was exposed to. With credit cards, handing them over to the cashier for a swipe and typing your card pin is avoided to minimize the touch. Things have changed much over the past months, and Mastercard’s survey suggests the same. The survey says that more than 51% of people use cashless payment in some form. Contactless payments are now more secure than the traditional swipe method with scanning technology to complete the transactions. All this is possible because of the encrypted microchips and mobile apps.

#4 Mobile POS Devices

As more and more consumers use contactless payments, retailers align their shopping experience with POS technology. With the help of mobile POS, retailers can accept payments anywhere as these are wireless devices and not connected to checkout locations. This gives even the smallest brick and mortar storse the flexibility to offer customers multiple checkout locations. With various payment solutions, customers can safely pay in line with social distancing norms. More than 73% of customers want more checkout options with advanced technology. Having said this, mobile point-of-sale devices are fast becoming a necessity for retailers large and small.

#5 Biometric Authentication

If someone had talked about authenticating a process using biometrics five years ago, it would seem like a scene from a futuristic movie. Now this process is everywhere and most of use this technology daily to unlock our phones. Biometric authentication consists of fingerprints, face, and voice recognition that we use today to unlock e-wallets. Biometric authentication gives more security as it is unique to each customer, and due to this trust, the technology attracted huge investments. According to a study by Mobile Payment Authentication & Data Security, by the year 2024, the use of biometric authentication is expected to grow more than 1000%, with a transaction value of more than $2.5 trillion. By the end of 2019, transactions valued at $228 billion were already authenticated by biometric technology.

#6 Flexible Payments

With consumers demanding more convenience and security while using mobile wallets for payments, the pandemic has also forced them to maintain and stick to a budget. Retailers now offer options like installments or Buy Now Pay Later to their customers. With enhanced security, convenience, and accountable spending, consumers have accepted these offers enthusiastically. Consumers get maximum flexibility with the zero-interest installment schemes which the retailers offer at the point of sale. It helps the customers to make large purchases easily without worrying about the having the full payment up front. The popularity of e-commerce and online shopping is growing drastically. The mobile payment strategy of the retailer will play a significant role in the purchase pattern of their customers. This strategy is almost 80% responsible for the rise or fall in sales. If the customer is getting complete flexibility in payments, multiple payment choices, and a streamlined checkout process, nothing can stop him from completing the decisive step of the final purchase. 

Bottomline

As the digital world is changing fast, all kinds of e-commerce stores and other retailers need to adapt to the latest payment trends as soon as possible. With contactless payments and e-wallets offering complete convenience to consumers, they are becoming popular at an unimaginable speed. If your customers get absolute security along with seamless checkout, they will keep coming back to shop at your store. Therefore it is important for all fintech companies to keep a watch on. One thing is certain – that even if the pandemic ends, the e-commerce growth and the related customer needs are here to stay. For businesses to keep in the competition, they must shift to modern payment methods.

2 1

Direct-to-Consumer Brands Flourished in 2020, 2021 Looks Even More Promising

The COVID-19 pandemic has been tough for a whole lot of industries, and in fact, some have yet to recover from the hurt inflicted. However, the previous year has unexpectedly accelerated the growth of some sectors, including the direct-to-consumer (D2C) markets.

2020 witnessed a sudden shift in the consumers’ behaviors, preferences, and purchasing patterns, compelling brands to implement major changes in their marketing strategies to cater to their unique needs. E-Commerce has been growing rapidly in recent years, especially in 2020, and the trajectory shows no sign of dropping, at least for the next few years.

A majority of the e-Commerce market is occupied by the D2C sector, mostly in response to the need for maintaining social distancing norms. For example, D2C brands like Casper and Warby Parker have been flourishing continually for quite some time now.

What is the D2C Business Model?

workers office use cad software design house interior 1

As opposed to the B2C (business-to-consumer) model, D2C companies manufacture and deliver their products directly to the end-user without involving any middleman or traditional stores.

B2C companies manufacture the goods and pass them over to a retailer who then delivers them to the customers. In B2C models, there is typically an intermediary retailer, such as Walmart or Amazon, who sell the products of various manufacturers.

The best part about D2C models is that buyers can enjoy a more simplified and streamlined shopping experience. Moreover, retailers no longer need to worry about meeting another company’s policies and standards or stocking up their shelves.

As a result, D2C merchants can develop more meaningful relationships with their customers and build a stronger brand image. This new business model also enables retailers to receive instant feedback on their products and services, thus creating more positive reviews and testimonials.

The Rising Popularity of Online Shopping

The pandemic has greatly accelerated growth in online sales and the D2C movement. After the WHO declared COVID-19 a global pandemic in March 2020, e-Commerce stores and retailers have witnessed a surge in online shopping.

In May, some businesses started reopening, which further gave a significant boost to page views and order counts. The next month saw a steady growth with order count and page view up by 57% and 75% respectively over the previous year.

Since people avoided stepping out, and most of them were working from home, they were ordering their daily essentials online. Since consumers were shopping online and didn’t have to worry about limited cash issues, they were spending more while purchasing online. And this was a huge plus point for retailers, especially the D2C businesses.

Why 2020 Was a Year for D2C Brands

The obvious answer to this is that brands are realizing the benefits of creating direct sales channels to connect with their consumers better. D2C strategies focus on enhancing customer relationships by offering more personalized solutions.

Further, the new business model is encouraging the development of more advanced recurring revenue systems, such as through subscription payments. Some of the key reason behind the success of D2C include:

  1. Creating customized experiences. Direct-to-consumer business models are flexible enough to offer more personalized services to buyers. One can have complete control over the entire experience chain, be it product delivery, sending personalized messages, or offering a seamless website browsing experience. In short, D2C brands aim at providing more value-added services by building an emotional appeal around them.
  1. Improvement of profit margins. D2C brands are now able to cut down distribution costs by eliminating all intermediaries. This further enables them to have greater control over their profit margins.
  1. Taking control of data. If you are maintaining an excellent customer relationship, then you probably have access to all your buyers’ data in real-time. For example, tracking and analyzing vital consumer data like purchase histories, patterns, behaviors, trends, unique needs and preferences, etc., allow you to understand your shoppers better.

Since you know your customers’ tastes and have an idea about what they are likely to purchase next, you can explore new strategies to address their requirements at the right time. For instance, you can implement new marketing automation tools and workflows or try clustering new audiences.

  1. Digital-first marketing opportunities. D2C brands are exploring various opportunities and possibilities of the digital world, getting global control over all their channels. They are working on regulating their brand and merging all their conversion efforts under one funnel. The journey towards D2C models might be through the development of more intelligent workflows throughout the product cycle.

Some Tips for a Better Future!

Now that D2C is going to take center stage for at least the next few months, here are some tips you can try to grow your D2C brand.

1.   Don’t Close Your Physical Doors Entirely

Although online portals have a stronger presence within your target group, there are ways you need to improve your customer relationships. Offering efficient services and quality products at your brick-and-mortar store is among them. In fact, some brands are also providing the option of order pick-ups from a nearby retail store.

2.   Cultivate the Right Talent

Adopting the new D2C model might mean a shift to a new business environment, mindset, and even talents. Whatever your strategies and upgrades, make sure each of your plans is centered around your customers. Use the right talent and hire the right teams to create engaging customer experiences.

3.   Look Beyond SEM and Social Media

Consumer

No, we are not saying that you must abandon special media marketing and SEM strategies altogether. In fact, try to look for better ways to promote your brand side-by-side, making social media strategies.

For instance, try to tie up with the latest streaming and smart TV services to attract your audience better and in more engaging ways. These advertisers are able to reach wider audiences than expected due to the pandemic.

4.   Have a Specific Purpose

The pandemic crisis and lockdown restrictions have forced people to explore new hobbies and talents, which is why the previous year has seen a drastic change in customers’ behaviors and buying trends. Also, people have started to go for less expensive options and alternatives.

So, try to have a specific purpose, a unique value proposition, and a stronger way to engage your consumers.

Frequently Asked Questions

  1. Are direct-to-consumer (DTC) brands growing?

    Yes, DTC brands have experienced significant growth in recent years and continue to thrive. In 2020, they witnessed a surge in popularity, and the trend is expected to continue in 2021 and beyond. This growth can be attributed to various factors such as changing consumer preferences, advancements in e-commerce, and the ability of DTC brands to establish direct connections with customers.

  2. Why are direct-to-consumer brands growing?

    DTC brands are witnessing a surge in their expansion for various compelling reasons. Firstly, they provide customers with a seamless and tailor-made shopping journey, cutting out the middlemen typically found in conventional retail channels. Secondly, DTC brands prioritize delivering superior products at pocket-friendly prices, striking a chord with budget-conscious consumers. Lastly, the advent of social media and digital advertising has empowered DTC brands to efficiently connect with and captivate their desired customer base, cultivating brand allegiance and propelling revenue.

  3. What are direct-to-consumer (DTC) brands?

    DTC brands are enterprises that directly sell their goods or services to consumers, circumventing the involvement of middle entities such as wholesalers, retailers, or third-party distributors. By eliminating intermediaries, DTC brands have full command over the entire customer experience, encompassing production, distribution, and marketing. They predominantly operate through online platforms, harnessing the power of e-commerce and digital promotional tactics to connect with their intended clientele. DTC brands encompass diverse sectors, including fashion, cosmetics, culinary delights, household items, and beyond.

  4. What are the benefits of direct-to-consumer (DTC) brands?

    DTC brands offer several advantages both for businesses and consumers. For businesses, DTC eliminates the need for costly distribution networks and allows for direct customer feedback, enabling faster product iteration and improvement. It also provides greater control over brand messaging, customer experience, and data insights. For consumers, DTC brands often offer competitive pricing, unique product offerings, and personalized shopping experiences. Additionally, the direct relationship between DTC brands and customers fosters a sense of trust, transparency, and community engagement.

  5. How do direct-to-consumer (DTC) brands benefit consumers?

    DTC brands bring numerous advantages to consumers. Firstly, they help save money by cutting out the extra costs typically associated with traditional retail channels. This enables DTC brands to offer top-notch products at more reasonable prices. Secondly, DTC brands prioritize enhancing the customer experience by providing personalized recommendations, hassle-free returns, and prompt customer support. Thirdly, DTC brands often place a strong emphasis on sustainable and ethical practices, allowing consumers to make informed choices that are transparent and mindful. In summary, DTC brands empower consumers by offering greater convenience, value, and alignment with their preferences.

  6. Are direct-to-consumer (DTC) brands limited to specific industries?

    No, DTC brands are not limited to specific industries. While they gained initial popularity in sectors like fashion and beauty, the DTC model has expanded into various industries, including health and wellness, home goods, food and beverages, electronics, and more. The DTC approach is adaptable and can be applied to almost any consumer product or service. As long as there is a demand for direct purchasing and a brand can establish an online presence, DTC brands have the potential to succeed in different market segments.

walmart store exterior 107850615

Walmart and Shopify Team Up On E-commerce Marketplace

The collaboration between Walmart and Shopify is all set to conquer the e-commerce industry. They will provide fierce competition for Amazon, as around 1200 companies selling on Shopify will now be able to sell on Walmart U.S by the end of this year.

shopify payment processing

Shopify’s vice president of product, Satish Kanwar, considers Walmart of size and scale that only a few companies manage to match. He sees the deal as lucrative and fruitful for small and medium-sized businesses that will provide easy access to a whopping 12 million customers visiting Walmart every month.

The partnership between the world’s largest retailer, Walmart, and the e-commerce giant, Shopify, is an attempt to diversify the range of products and expand profitability. Other than this, it is a calculative move by both the companies to have a firm grip on the surge in online shopping because of the COVID-19 pandemic. According to a blog post by Satish Kanwar, their expertise in multi-channel commerce, coupled with Walmart’s reach, will storm the e-commerce industry. Furthermore, the alliance will lead to a better online shopping experience, both for merchants and consumers.

Walmart is No.2 to Amazon in U.S e-commerce space, but it has still suffered losses on occasion. The collaboration will boost both the scale and size of the business and generate more revenue.

Previously, Walmart CEO Doug McMillon expressed dissatisfaction with the way the marketplace was performing and appointed a new executive, Jeff Shotts. He also believed that the company had not done enough to support the marketplace sellers. The restructuring is an attempt to give the marketplace business a sound direction and provide sellers with all the necessary tools and services. In addition to this, he deemed it essential to successfully integrate the online business with its physical stores.

walmart apps online ordering

Both of the companies have been discussing this idea on and off, but only for the past six months have the talks intensified allowing for the plan to finally come to its fruition. They conducted a pilot test before the announcement with numerous Shopify sellers. The experiment turned out well, and Jeff Clementz saw potential in terms of thousands of sellers making their way to Walmart.

The partnership comes with its fair share of risk, but is likely to prove successful considering that Walmart is invite-only. This means it can vet the sellers to avoid any suspicious sellers. In addition to this, it also uses keyword recognition technology and uses machine learning to spot fraudulent sellers.

The Shopify merchants in the U.S will send out their application to Walmart to seek approval of selling. Once approved, their Shopify store will connect to their Walmart Seller Account. This will tie their product catalogs there and create product listings on Walmart. This way, it will be easier to track, monitor, and upgrade the inventory. Moreover, order and inventory management, in addition to the listings, will be in complete harmony.

covid 19 coronavirus white background isolate 176915203 scaled 1

How Is COVID-19 Transforming E-Commerce Merchants?

How Is COVID-19 Transforming E-Commerce Merchants?

There is no doubt COVID-19 has redefined our life, and its impact could, presumably, last for years. The way we socialize, work, and function has rapidly changed, and so has our buying behavior. Online shopping has become the new norm as consumers are finding it safer and more reliable. Even local businesses are turning to online platforms for sales and services, but the non-essential industry has suffered dramatically. Grocery, medical supplies, healthcare items have experienced a sudden boom while the tourism industry has collapsed. Meanwhile, beauty items, fitness products, and tech retail have seen slow but steady growth.

Many big brands have restructured to meet the changing demands and increase their endurance during the pandemic. Here are a few practical ways to transform in the wake of COVID-19.

1.   Entering New Markets

Corporations such as commercial airlines have entered new avenues to ascertain stable earnings. The unprecedented drop in commercial flights has led to large airlines like Virgin Atlantic, Lufthansa, and many others to switch to cargo flights. Passenger cabins are available for the transportation of grocery and healthcare items.

merchant covid19 e-commerce buying

COVID-19 is rapidly transforming e-commerce by affecting consumer buying patterns.

2.   Switching to Online Platforms

Grocery e-commerce soared during the pandemic as 72% shoppers used their mobile phones to buy household items. Due to this, many retailers and brands have launched user-driven apps and revamped their online stores to improve the online shopping experience. Encryption of personal details has become stringent to support safe and secure payment methods.

3.   Offering Sales and Other Incentives

Many beauty and skincare brands are offering sales and discounts. Around 72% of the top online retailers are running promotional activities to attract consumers. Many luxury brands, including exquisite jewelers, have slashed prices to recoup sales. At departmental stores, markdowns are even steeper for steady revenue.

4.   Setting Up Curbside Pick-ups:

Amidst the COVID-19 outbreak, many businesses have switched to BOPIS (buy online pick-up in-store) and curbside delivery methods. Since early January, around 55% of the consumers placed online orders and opted for BOPIS for convenience and safety. However, the industry is still in its developing stages as we can often see long queues at pick-up points. Digital check-ins and scheduled pick-up times could be a few ways to enhance the experience.

5.   Strengthening Customer Relationships

To strengthen their brand image, many companies are supporting front-line fighters by providing them various incentives. Many cosmetic and alcohol brands have distributed hand sanitizers and protective gear among front-liners such as healthcare providers, law enforcement agents, and other essential workers. It is to show gratitude to those who are putting their lives at risk for our safety.

However, it is still too early to predict the implications as the circumstances are uncertain. The shopping behavior of millions of consumers has changed within just a few months. Besides, time-saving and convenience has put considerable strain on e-commerce merchants. Many are striving to remove friction in online shopping to build a loyal customer base. Nevertheless, there is a consensus among buyers and retailers that old shopping habits will resume once the lockdown ends. This would slow down the growth rate of e-commerce sales, thus giving them ample time to adapt to the new retailing landscape.

Last Minute Holiday Shoppers Used Store Pickup

in-store pick up illustration

There’s been a new trend among shoppers when it comes to online shopping this holiday season: make the last-minute purchase online and pick it up in-store. It has, in fact, become so popular that both consumers and retailers alike have come up with a trendy new anacronym: BOPIS (buy online pick up in-store), and according to Adobe, BOPIS orders were to see a surge of 39 percent over the 2018 holiday season.

According to Target CEO Brian Cornell, this also leads to more shoppers leaving their shopping to later in December, which led to stronger retail sales overall due to the increase in physical brick and mortar shopping as opposed to shopping that was otherwise done exclusively online. In total, Target saw an increase of more than 5 times in the number of items bought for in-store pick up during the 2019 holiday season than they did in 2018.

According to data put together by Salesforce, when a store’s online site offers in-store pickup as an option, shoppers will start to become more active. In total, retailers who are offering in-store pickup can expect to attract an increase in customers of as much as 48 percent against those that don’t in the final 5 days running up to Christmas.

order online, pick up in storeOverall, a company such as Walmart, for example, will be losing out on money for each digital order. If they are able to convince a customer to make their own way to an actual physical store to collect the item themselves, however, it can start to save Walmart some money. And it all soon adds up.

One of the first companies to adopt the concept of in-store pickups was Nordstrom. Nordstrom’s co-president Erik Nordstrom found that by allowing customers to pay online with their credit or debit card and collect in-store, they could greater engage with their customer base. Recently, Nordstrom has increased its openings of local smaller stores which, while not actually selling any products, allow customers to collect their digital orders.

Major big-box retailers like Target, Walmart and Best Buy are all now offering customers the option to pay online with their credit or debit card and pick up in-store at their convenience. Ultimately, for large name retailers such as these, offering their customers the option to make their purchases online and pick their items up in-store opens up the ability to leverage already existing store infrastructure, teams and tech against any losses made through their digital sales.

In total, holiday sales this year saw a rise of 14.6 percent over the 2018 holiday season, which, according to the NRO (National Retail Federation), way above what was expected and predicted.

Frequently Asked Questions

  1. What is store pickup and how does it work for last-minute holiday shoppers?

    Store pickup is a convenient option that allows last-minute holiday shoppers to reserve items online and collect them at a nearby store. Simply select the items you want, choose the store pickup option during checkout, and wait for an email or notification confirming that your order is ready for pickup. Head to the designated pickup area in the store, present your identification and order details and collect your items hassle-free.

  2. Can I use store pickup for all items available online?

    Store pickup availability varies depending on the retailer and the item you wish to purchase. While most retailers offer store pickup for a wide range of products, certain items may be excluded due to size, weight, or other restrictions. It’s best to check the product page or contact the retailer’s customer service to confirm if store pickup is available for your desired items.

  3. What is the estimated time for my order to be prepared for pickup?

    The duration required for your order to be prepared for pickup can fluctuate, contingent upon the retailer and their operational efficiency. Typically, retailers aim to have orders ready within a few hours or by the following business day. However, during busy holiday periods, the timeframe may be slightly extended. Once your order is prepared, you will receive a confirmation email or notification containing the estimated time for pickup.

  4. Are there any additional fees associated with store pickup?

    In most cases, store pickup is a complimentary service offered by retailers. However, it’s important to note that some retailers may charge a small fee for certain items or if expedited pickup options are available. These details are typically provided during the checkout process, so you can review any potential fees before finalizing your purchase. Keep in mind that any applicable sales taxes or other standard fees may still apply to your order.

  5. What do I need to bring when picking up my order?

    When picking up your order, it’s essential to bring a valid form of identification, such as a driver’s license or government-issued ID, that matches the name on the order. Additionally, it’s a good idea to have a copy of your confirmation email or order details readily accessible, either printed or on your mobile device. This helps ensure a smooth and efficient pickup process, allowing store staff to quickly locate and verify your order.

  6. Can someone else pick up my order on my behalf?

    Yes, many retailers allow someone else to pick up your order as long as they have the necessary information and identification. If you wish to authorize someone else to collect your items, provide them with a copy of your confirmation email or order details, along with a signed letter or note stating your permission. The authorized person should bring their identification as well as a valid form of identification for you, matching the name on the order.

Plenty of Cheer During the 2019 U.S. Holiday Shopping Season

The numbers are in for the 2019 holiday shopping season, the final one of the decade, and retailers were pleased to learn that overall sales increased by nearly 3.5% compared to last year. Starting on Black Friday and culminating with last-minute shopping on Christmas Eve, retailers were definitely in the black this season, and this is despite the period being shorter than last year by six calendar days. E-commerce was the biggest winner with an increase of 18.8%, and the payments industry was pleased to see a greater volume of credit and debit card transactions along with digital payments.

e-commerce merchant optionsEven though online shopping accounted for a little less than 15% of the overall sales volume, it should be noted that the Cyber Monday shopping event continued to grow, particularly in the consumer electronics segment, which experienced a boost of 10.7% on a year-over-yer basis. Specialty apparel was the segment that shoppers expressed greater interest in compared to 2018, but even department stores posted a nice growth of 6.9% despite industry analysts warning that the heyday of American shopping malls is behind us.

According to the MasterCard Spending Pulse survey of retail activity during the holiday season, stores were prepared for the shorter shopping period this year; many retailers stepped up their omni-channel marketing efforts starting in early November. It should be noted that department stores actually saw a decline in their brick-and-mortar transactions, but they posted a 6.9% increase of their online sales.

Now that Christmas has come and gone, retailers are gearing up for the post-holiday blues, which tend to feature many gift returns or exchanges; a typical example is footwear, which tends to see a lot of exchanges because of size issues. Clearance and special discount situations will likely see a migration towards e-commerce channels, but brick-and-mortar retailers are ready to welcome more store traffic that should last through the first week of the New Year. Physical storefronts located within shopping districts have an advantage in this regard when merchants get together to organize entertainment and family events; the idea is to increase foot traffic at a time when many shoppers have time off work.

Wall Street Investors Also Enjoyed Holiday Cheer

The Santa Claus rally on Wall Street was delayed by just one day this year. According to market analysts at Nasdaq.com, exchange-traded funds that focus on the banking sector soared when traders returned to work after Christmas Day. This is good news for the payments industry, which does not exclusively rely on banks to stay busy. Consumers are warming up to alternatives to the traditional banking system; increased regulation and oversight along with a lack of flexibility by banks are driving consumers towards payment systems that they can manage from PCs and smartphones. Since providers of alternative banking services work closely with payments processors and clearinghouses, the future looks good for the payments industry.

US to Spend Record

US to Spend Record 126 Billion Online This Holiday Season [2023 Update]

According to recent data released by Adobe Analytics, American shoppers will be going online to spread the holiday cheer among retailers in 2019. The Adobe study was published a few weeks ahead of Black Friday and Cyber Monday, two of the most active and lucrative shopping events in the United States. As has been the case in recent years, e-commerce activity will once again expand this holiday season, and even brick-and-mortar chains will be processing more digital payments than they did in previous years.

Online E-commerce Mobile Payments

Retailers in the U.S. got an early start on their holiday offerings because the season will be a few days shorter in 2019. Once the e-commerce extravaganza known as Cyber Monday wraps up, shoppers will only have 22 days to complete their lists before Christmas. As for digital payments, some shoppers will likely be eager to try out new methods such as the Apple Card on their iPhones. One trend that analysts believe will rise sharply this holiday season is the “buy online to pick up in-store” (BOPIS) method, which is attractive to retailers because they can launch strategic marketing displays near pick-up counters.

Black Friday was displaced by Cyber Monday as the busiest online shopping event of 2018, and this will probably happen again this year. All the economic elements seem to be in place for a busy holiday shopping season: the economy continues to show signs of stability thanks to low unemployment, and consumer confidence remains positive despite a few concerns related to delinquency in subprime auto loan payments. Reaching the projected $126 billion sales target should not be a problem unless political uncertainty in the White House reaches an overly critical point.

For brick-and-mortar retailers, even those that operate a single location, being able to offer a diversity of payment options will be crucial to their success this holiday season. Some financial institutions such as Ohio’s KeyBank are offering cashback rewards to shoppers who make online purchases, and this is a smart move to entice individuals concerned about the trade war between the United States and China, which has resulted in items such as toys and holiday decorations being priced higher this year.

microsoft all access 1 1

Citizens Bank Partners with Microsoft for Xbox All Access

With 2020 looking to be the year that all the next generation games consoles will begin to hit the market, it won’t come as a surprise to learn that many eager consumers are starting to put money aside. For many, a lack of immediately available funds will direct attention to credit, but this past week, Citizens Bank has released details of a brand-new funding option for consumers ready to buy new Microsoft products.

Xbox All Access Program

Mobile Payments For Video GamesCitizens Bank and Microsoft have joined forces to provide financing for the Xbox All Access program, offering consumers the choice of Xbox One X, Xbox One S, or the Xbox One S All-Digital Edition console bundles paired with a 24 month subscription of Xbox Game Pass Ultimate. This gives customers access to more than 100 games and online multiplayer via Xbox Live Gold. In addition, Xbox Game Pass Ultimate features multiple new Xbox exclusives, with new content added constantly, along with reliable and fast online multiplayer gaming. This will be predominantly available via Amazon, and will have a complete point-of-sale experience as well as 0% APR financing.

For the time being, the program is limited to just the current generation of Xbox consoles. Consumers who do pick up a current-generation Xbox through the Xbox All Access Program, however, will be eligible for an upgrade once what is currently only known as Project Scarlett launches, presumably next year.
Citizens Bank president of consumer deposits and lending Brendan Coughlin, said about the integrated payment solution, “Consumers want affordable ways to make purchases without taking on additional credit card debt. Xbox All Access bundles hardware, services and software with affordable and predictable financing delivered through Amazon’s online check out process. Xbox All Access represents the first time a lender, manufacturer and retailer have come together to offer a seamless way for consumers to buy, and we believe that it will be the model for how purchases are made and financed in the future.”

Looking Toward the Future

While it may not seem right now that this type of payment solution will send Xbox sales soaring, it’s worth remembering that Microsoft have very definitively lost this generation of the console wars, so this could be a cunning plan for the next generation. By offering potential future customers an easy way to pick up a console now while holding their place in line for the next console, Microsoft seems to be hoping to snatch away a few Sony supporters ahead of the game. Also, with each new console generation, or any new generation of any technology, supply issues tend to be a bit of an issue in the early days. This has by no means been confirmed by Microsoft, but perhaps those who buy under the Xbox All Access program will have priority access to Project Scarlett when it releases.

Early in 2019, Microsoft announced it was ending its mobile payments solution Microsoft Wallet. Support for the mobile payments app ended in February 2019 less than a year after Microsoft announced it integrated Microsoft Pay with Masterpass which allowed users to use the Edge browser to make online purchases with retailers who accepted Masterpass. The decision was inevitable since Microsoft Pay had a low user rate and the company discontinued support for its Windows 10 Mobile operating system which had just 2.4% of the market share of US mobile operating systems.

diamond retailers 1

Online Retail Fraud on the Rise

According to the 2019 Fraud Attack Index by e-commerce security company Forter, attempts at defrauding online retailers have, for the second year consecutively, increased with online electronics and food and beverage retailers seeing the biggest hits.

After going through merchant and transaction data, Forter determined the rate at which e-commerce fraud attacks occur has increased between 2017 and 2018 over several different verticals.

Electronics

Electronic Retail Fraud SecurityFraud targeted at electronics retailers shot up by a huge 73% in 2018 compared to the year before. Electronic devices often come with hefty price tags, and they can be easily resold, making them so appealing to fraudsters. Forter’s analysis showed that customers are more than prepared to purchase their electronic goods from third-party sites in order to score a better deal, and many fraudsters will list their stolen items as “refurbished” items.

Food and Beverage

Fraudulent attacks against food and beverage companies saw an even bigger increase between 2017 and 2018 with a 79% increase in attacks. This comes following a 60% increase between 2016 and 2017. Forter’s analysis suggests that lower-priced online food and beverage items will be where fraudsters typically test out stolen cards or e-wallets, before then going onto more expensive higher-ticket items.

Clothing

Fraud attempts in the online clothing world rose by 47% between 2017 and 2018. Clothing has always been an appealing and attractive option to criminals, with bulk items being resold with relative ease. Much as was the case with electronic items, many legitimate buyers will be eager to purchase their clothing from third-party resale sites.

Bots can also be used by fraudsters to buy up large quantities of any limited edition clothing runs which they’ll then sell on with substantial mark-ups.

Jewelery and Luxury Items

Jewelry Retail Security MerchantsIt goes without saying that criminals have always been attracted to the high value of jewelry. 2018 saw a 19% year-on-year increase in attacks towards online sellers of jewelry and other luxury items.

The security company Forter’s study looked into many often undertaken means by which fraudulent attacks are typically launched upon online retailers. Account takeovers, whereby criminals will unlawfully gain access to an unsuspecting customer’s account with the aim to make illegal purchases, or even redeem loyalty points, grew by 45% in 2018 when compared to 2017. Fraudulent attacks coming from fraud rings, or even online criminals grouping together to commit fraud together grew by 26% year-on-year.

What saw the sharpest increase was policy abuse, which entails cheating retailers through discount codes and coupons, creating multiple accounts, or overusing referral reward programs. This saw an increase of a whopping 170%, whereas stricter e-commerce returns policies saw the more historically traditional fraudulent returns abuse drop by a huge 90%.

As of 2019, these are the 10 U.S. states with the highest rates of identity theft and fraud:

  • 1. District of Columbia
  • 2. California
  • 3. Nevada
  • 4. New Hampshire
  • 5. South Carolina
  • 6. Delaware
  • 7. Louisiana
  • 8. Texas
  • 9. New York
  • 10. Florida

And one last thing to consider if you are a merchant and you are worried about data breaches or fraud affecting your bottom line: Host Merchant Services Data Breach Security Program. Click that link to download a PDF explaining the value-added service HMS provides its merchants that goes above and beyond just simple PCI Compliance and helps ensure a merchant’s peace of mind.