Cork Board

4 E-Commerce Takeaways From 2021

What we learned in 2021, and what we expect in 2022 in the e-commerce market.

The global e-commerce market is expected to total $5.55 trillion in 2022, a 12.25 percent increase from 2021. The industry is not close to slowing down anytime soon, and it’s increasingly vital for e-commerce businesses to keep up with the newest market as it continues to grow. Here are some of Flying Cork Media’s e-commerce takeaways from 2021 and why they matter to 2022.

1. More Competitive Market

One of the biggest e-commerce takeaways of 2021, and the past five years, is how much more competitive the e-commerce market has become. Product niches that used to only have a couple of players are now inundated with different products and companies.

This hyper-competitive market means that differentiating yourself and your products is more important, but also more difficult. As a result, the branded content you upload alongside your product such as videos, testimonials, and photos must be expertly crafted.

In 2021, more than ever, the content you create for your products must be completely professional in order to compete with similar products. For example, the listing content will need to be expertly crafted to contain the right number of keywords, be informative about the product and its benefits, and be attention-grabbing enough that customers will want to purchase your product. It doesn’t matter how good your products are—if it doesn’t look good on Amazon, the products will struggle.

Another way that products stand out is in the reviews. Reviews have always been important to the success of sales, but due to the ultra-competitive market, they have become even more vital to product sales. However, there are no cutting corners with reviews. It’s almost painfully simple: the only way to get good reviews is to build superior products.

Reviews are particularly important in competitive product niches. If you have a product that is unique and satisfies a need, you can get away with lower review scores—until a competitor comes in and improves upon your design, that is. When there are lots of similarly priced competitors, the one with the most reviews and the best review score is going to win 9 times out of ten.

Takeaway 1: You must have professional product photos, videos, and written content to compete in today’s e-commerce world.

2. Reviews Are King

Another way that products stand out is in the reviews. Reviews have always been important to the success of sales, but due to the ultra-competitive market, they have become even more vital to product sales. However, there are no cutting corners with reviews. It’s almost painfully simple: the only way to get good reviews is to build superior products.

Reviews are particularly important in competitive product niches. If you have a product that is unique and satisfies a need, you can get away with lower review scores—until a competitor comes in and improves upon your design, that is. When there are lots of similarly priced competitors, the one with the most reviews and the best review score is going to win 9 times out of ten.

Takeaway 2: Focus on making quality products, and reviews will follow.

3. Social Media Influences

Another thing that has been around for many years but increased dramatically in 2021 is the influence of, well, influencers. Amazon and other e-commerce platforms like Walmart and eBay have affiliate programs for influencers and content creators who provide recommendations via social media to drive traffic to the products on the e-commerce platform.

One of the biggest affiliate programs is Amazon Associates which started in 1996 when Amazon only sold books. Today, Amazon’s associate program is one of the biggest and most popular in the world. After qualifying for the program once Amazon approves the application, influencers can monetize their social media content by sharing their storefront URL or through affiliate links. The amount earned is based on the products sold.

Even though affiliate programs are not new to 2021, their unprecedented growth is notable. According to Statista, affiliate marketing will reach $8.2 billion in 2022, a 20 percent increase from 2020.

A major reason for this is the increased popularity of the social media app TikTok. TikTok, founded in 2018, provides a new platform that takes affiliate marketing to a whole new level due to its algorithm allowing anyone to become an influencer. With its audience reaching over 1 billion users in September 2021 (becoming the seventh-ranked social network worldwide to do so), TikTok’s influence is no joke.

Takeaway 3: Don’t underestimate the power of social media.

4. Supply Chain and Inventory Issues Remain

As for the more behind-the-scenes aspect of e-commerce, COVID has had a massive impact on the supply chain and inventory in 2021. From how much inventory sellers are allowed to have on hand at Amazon to periods where you have to fulfill orders yourself because you can’t get inventory into the fulfillment centers, everyone has had to quickly adapt to the new supply chain world.

Unfortunately, retailers, government officials, and other experts agree that the global trade system issues will continue well into 2022—and possibly longer.

Takeaway 4: Always be prepared for any supply chain disruptions that can (and will likely) occur. 

Looking ahead to 2022

Here at Flying Cork, we understand that 2022’s e-commerce market will continue to get more competitive and cutthroat. The number of third-party sellers on Amazon is growing exponentially, and differentiating yourself as a brand will get increasingly more and more difficult. You need to have professionals on your side who can tell your story and compel people to spend their discretionary income with you instead of your competitors.