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Have You Heard About The New Generation Of eCommerce?
B.Duncan, 2022
If you haven't heard already, there's a new generation of eCommerce platforms on the online market. You might’ve noticed a huge shift in consumer demands and what platforms are facilitating these demands. Whilst traditional eCommerce platforms still hold their ground, the newer generation is gravitating towards a completely different format of e-commerce, often with different intentions too. Let’s dive into 3 platforms that are thriving at the moment and why.
1. Tiktok
How did this app take over the digital marketplace?
Using the term ‘take over’ isn't an exaggeration when referring to the mark Tiktok made and will continue to make on the eCommerce industry. The incredibly complex algorithm behind Tiktok allows entertainment content and targeted ads to appear indistinguishable to a seasoned user. The algorithm is continually up to date with user preferences to ensure that when they promote influencers to sell a product, it’s one that the user has formed some sort of parasocial relationship with. It’s one of the few video apps that has its algorithm prioritised above anything else regardless of the context, that’s what makes it so eerily brilliant for the demographic and time period Tiktok was released to. Tiktok also understands this new generation won’t bat an eyelid at failed attempts from household celebrities trying to pitch a new diet shake, so they got creative.
What are they doing to stand out?
Not only is their eCommerce platform structured around personalised content and features, Tiktok also promotes problems knowing they’ll be answered with a transaction. An example is the popular Tiktok trend of using Gua Sha massage tools to slim and sharpen your jawline. Instead of advertising only the product, Tiktok makes it important to advertise the lifestyle, why?
Because buying the lifestyle means replicating the influencers lifestyle, did she use a serum with her Gua Sha? It’s almost guaranteed she did and the likelihood is there’s plenty of items to purchase to get close to mimicking her lifestyle. Still, the app will notice a pattern and all of a sudden #selfcare is trending on Tiktok so it’s even more justifiable. This dedication to understanding your platform's demographic at its deepest level is what makes Tiktok not only successful but incredibly unique as an eCommerce platform.
2. Pinterest
How does Pinterest function as an eCommerce platform?
Pinterest founded in 2009 opened the doors for digital scrapbooking, you’d search for something and it’d show you thousands of images you could pin to your digital corkboard and link to whatever you wanted. It worked amazingly as a scheduling tool and source of inspiration, but how could it possibly be the next Tiktok or Depop when it comes to eCommerce ?
- Pinterest users proactively search for content as opposed to aimlessly scrolling unsure of what they want, so organic sales growth is far more likely to increase.
- In the last few years Pinterest has improved their functionality as an online marketplace by introducing a shop tab that appears when you pin content with something for sale.
- A ready to go business profile that will provide users data and analytics regarding their store, whether it’s popular items or growth percentage they’ve got it covered.
Why should I try it for my business?
The best part about Pinterest as an eCommerce platform unlike its competitors is that it still remains true to its original intentions and doesn't drive leisure-oriented users away, something that seems to be a common issue and a cause of collapse within social media and eCommerce hybrid platforms. The more users means the more traffic and the more of those users who had a great online experience, the more free marketing. With so much talk across other platforms about Pinterest becoming the next big thing in the online world of eCommerce , now is an ideal time to start researching how to incorporate Pinterest into your own online marketplace.
3. Depop
What exactly is it?
Founded in 2011 Depop was originally created as an app that allowed readers of PIG magazine to purchase items featured in the magazine, it’s worth mentioning that the co-founder of PIG magazine founded Depop. With such an innovative approach to e-commerce and a close relationship with their consumers through PIG as its own stand-alone product, Depop began to expand from an exclusive audience. In 2021 Depop became a fully owned subsidiary of Etsy, a well-known global marketplace for creatives to monetise their skill that began over a decade ago in 2005. Depop not only wanted to expand in scale but in what the Depop app could offer, even prior to their deal with Etsy Depop would be self-described as a community-oriented, sustainable and social eCommerce e platform. With an estimated $1 billion made just by Depop users buying and selling to each other, over 26 million users in more than 150 countries and 90% of their active users remaining 26 or under, they seem to be doing something that’s working for the new generation.
What separates Depop from other eCommerce platforms?
First is the social attributes of Depop, the new generation of online consumers love to interact with their seller and have direct access to ask for more information, images or even ask if they can haggle for a cheaper price. Depop succeeds in mimicking a digital version of your local market, except with algorithms and guidelines in place to make sure their items will catch the user's eye. Depop frequently intertwines designer pieces with with affordable items in their digital marketing campaigns, giving a young audience access to some very innovative and high fashion items. I could go on but one of the biggest factors in their success is Depop’s approach towards sustainability and why it’s making Depop the popular choice for the new generation of eCommerce .
There’s a huge focus in 2022 on dismantling companies that produce or promote fast fashion items and Depop does one better by structuring their platform to allow users to sell and buy worn items at discounted prices. Their algorithm promotes a mixture of curated items, polarising pieces and the function of a search bar if you’re on the hunt for something specific. Which in turn allows you access to pieces from decades ago and those unique to an upcoming designer who is looking for exposure in the eCommerce space. I can definitely see the appeal.
Summary
There’s definitely a shift in consumer knowledge as the new generations delve into eCommerce whether it be deciding to run their own, or just who’s doing it best. The next generation of eCommerce is going to have to be nothing short of perfect with plans to further develop and expand always on their way. If you need help with figuring out the best e-commerce strategy for your business, feel free to reach out to our Melbourne based digital agency team to talk about how one of these surprising options could build your online sales!
