Everything You Need to Know to Build E-Commerce Business in 2024

“E-commerce isn’t the cherry on the cake, it’s the new cake.” — Jean-Paul Ago, CEO of L’Oréal.

The retail industry has witnessed transformations lately, which have been truly impressive. One of the reasons behind this transformation is the surge to shop online.

It is projected that by 2023, 2.89 billion people will engage in purchases, accounting for more than 36% of the global population. Experts predict that the online shopping market in the United States could reach $940.9 billion within the same timeframe.

Furthermore, let’s not forget that financial technology is the hero contributing to this e-commerce boom. It ensures that online purchasing is not feasible but a seamless experience for users with the possibility to make purchases in just a few clicks.

As the CEO of the fintech software agency DashDevs, I’ve seen first-hand how the integration of fintech solutions in the e-commerce businesses of our clients significantly grew their revenue. 

The larger picture also reflects this trend, with the global e-commerce market revenue projected to reach a remarkable $3.64 trillion in 2023 and the growth rate expected to hover around 8% in the subsequent years, showcasing the intertwined growth of e-commerce and fintech integrations.

Source: International Trade Administration

In this article, I will share the e-commerce industry analysis, emphasizing the crucial role of fintech integrations. Through a real-world case study, I’ll also provide a glimpse into effectively launching and managing an e-commerce venture.

Ecommerce Industry Overview: A Data-Based Snapshot

The e-commerce industry is not confined to specific geographies; it’s a global phenomenon that has penetrated every nook and cranny of the world. From bustling urban centers to serene rural locales, online retail is omnipresent, bridging geographical and cultural divides.

The prowess of the global e-commerce market is epitomized by key players like Amazon, Alibaba, and Shopify, whose digital platforms have become synonymous with online shopping. As of mid-2022, Amazon alone accounted for 37.8% of the U.S. e-commerce market, showcasing its substantial lead over other online retailers. 

These market leaders exhibit innovative business models, customer-centric approaches, and robust digital infrastructures that set industry standards and inspire a plethora of emerging e-commerce ventures. 

Their success stories provide a roadmap for other aspiring e-commerce entrepreneurs, highlighting the potential for innovation, customer engagement, and global reach in digital commerce.

While the giants dominate the broader market, the advent of niche e-commerce markets is a testament to the industry’s versatility and the endless opportunities it harbors. 

From eco-friendly products and artisanal crafts to bespoke apparel and specialized tech gadgets, niche markets cater to a discerning clientele seeking unique, high-quality products. These markets are not merely surviving; they are thriving, carving a space for themselves in the vast digital marketplace.

Here are some niche markets that are expected to grow according to the available reports’ data on e-commerce market trends:

Sustainable and Eco-friendly Products

Environmental awareness has been heightening among consumers during the last years. For instance, 75% of product categories saw better market share performance for sustainable products sold online compared to in-store. Additionally, 67% of surveyed millennials were willing to pay more for eco-friendly goods​​.

Digital Products

The shift to remote working and learning propelled the demand for digital products like online courses and digital subscriptions. Experts anticipate the remote working trend to endure, with 70% of the workforce opting to work from home for at least five days a month, thus suggesting a continued demand for digital products and services​.

Pet Products

The popularity of pet products is growing, with pet owners increasingly investing in organic foods and wellness products for their pets. A survey found that 43.6% of respondents are more discerning about their pets’ diet compared to their own, indicating a niche market for high-quality pet products​​.

Subscription-Based Models

Fueled by digitalization, subscription models offer consumers convenience and provide businesses with a steady stream of revenue. The subscription e-commerce market doubled in size from 2011 to 2016 and is expected to continue growing, driven further by the pandemic’s push towards online shopping​.

Interestingly, the appeal of subscription-based models extends beyond traditional online retail. The fintech sector, for instance, is seeing a surge in subscription-based offerings, ranging from financial planning tools to investment platforms.

You can read more about subscription-based and other business models of fintech startups in another our article. 

As technology integrates deeper into our daily lives, the right integration of subscription models becomes paramount. Businesses need to ensure that their subscription offerings align with their customers’ needs, providing genuine value, flexibility, and a seamless user experience.

Based on the data shared, I can confidently state that the e-commerce industry’s dynamism is a fertile ground for innovation, offering a playing field for both established key players and new entrants. 

As technology continues to evolve, so does the e-commerce landscape, opening doors to novel business models, customer engagement strategies, and a horizon of possibilities yet to be explored. Experts predict continued growth in social commerce, personalization, and AR/VR technologies as critical trends to watch in 2023.

The Backbone of Online Retail: Fintech Integrations

In e-commerce, the importance of a smooth transaction process cannot be overstated. It’s the pivotal point where browsing transitions to purchasing, determining whether a business gains a customer or loses a potential sale. An intuitive, secure, and efficient payment system not only enhances user satisfaction but also builds trust, which is crucial for customer retention and brand loyalty.

Evolution of Payment Solutions

The journey of payment solutions in e-commerce is a testament to technological innovation. From the rudimentary payment gateways to sophisticated fintech integrations, the evolution has been significant. 

Early e-commerce platforms relied on basic payment gateways, which often led to cumbersome user experiences. However, the advent of fintech brought about a plethora of payment option, including digital wallets, mobile payments, and cryptocurrency transactions, each with its unique advantages catering to diverse customer preferences.

Moreover, fintech integrations have enabled real-time payment processing, automated fraud detection, and compliance management, making transactions faster, safer, and more compliant with regulatory requirements. 

These advancements have not only enriched the e-commerce experience but also expanded the horizons of global commerce, allowing businesses to reach a wider audience across borders. For instance, 49% of worldwide e-commerce transactions are made via digital wallets, showcasing consumers’ preference for modern fintech solutions​.

The integration of digital wallets into e-commerce platforms can significantly enhance the customer’s checkout experience, reducing the time spent on transactions and minimizing cart abandonment rates.

Based on the experience of our software agency, I can state that creating and implementing a digital wallet in e-commerce involves intricate software development, security measures, and integration capabilities. It is essential to ensure that the digital wallet system is not just user-friendly but also fortified against potential threats. 

Source: WPastra

Challenges in Payment Integration

Despite the strides made, integrating payment solutions in e-commerce platforms comes with its set of challenges. Some of these hurdles include:

• Security Concerns

Ensuring the security of financial data and transactions is paramount. With the rise in cyber-attacks and data breaches, e-commerce platforms must invest in robust security measures to safeguard sensitive information.

An integral part of these security protocols involves “Know Your Customer” (KYC) and “Anti-Money Laundering” (AML) measures. E-commerce platforms, especially those that process significant transaction volumes or deal with high-value items, often find themselves in the crosshairs of illicit financial activities.

KYC procedures enable businesses to verify the identity of their customers, ensuring that they’re transacting with legitimate individuals. This involves collecting data such as names, addresses, and government-issued identification numbers. By understanding who their customers are, businesses can mitigate risks associated with fraud and other nefarious activities.

AML policies, on the other hand, are designed to prevent the conversion of illegally obtained funds into legitimate assets through online transactions. E-commerce platforms, therefore, need systems that can monitor transaction patterns, flagging suspicious activities for further investigation.

• Regulatory Compliance

Adhering to the myriad regulatory requirements across different jurisdictions can be daunting. Compliance with laws such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR) is crucial for operating legally and maintaining customer trust.

• Technical Glitches

Technical issues during payment processing can lead to transaction failures, negatively impacting the user experience and potentially resulting in lost sales.

• Cross-Border Transaction Complications

For e-commerce platforms operating internationally, handling currency conversions and navigating foreign transaction fees are additional challenges requiring astute management.

When executed effectively, Fintech integrations can ease these challenges, offering tailored solutions that enhance transaction efficiency, security, and overall user satisfaction. 

As e-commerce platforms continue to burgeon, integrating robust fintech solutions will remain a cornerstone for success, facilitating a conducive environment for both businesses and consumers alike.

Launching Your E-commerce Venture: Steps to Consider

Stepping into global retail ecommerce sales entails meticulous planning and a well-thought-out strategy. The burgeoning digital marketplace offers a fertile ground for innovative entrepreneurs, yet navigating through the initial phases requires a robust blueprint. 

Let me share with you key steps to consider while launching your e-commerce venture. This list is based on the experience of dozens of e-commerce businesses that we’ve helped to perform a successful launch. 

1. E-commerce Market Research

Understanding your market is the cornerstone of a successful e-commerce venture. It entails identifying the target audience, gauging market demand, and analyzing competitor strategies. A thorough market research helps craft a value proposition that resonates with your potential customers and sets you apart in the competitive landscape.

It’s fundamental to find a niche that is underserved by the market to make your e-commerce venture more viable. Utilizing tools like Google Trends can help in identifying emerging trends and potentially underserved markets.

Furthermore, delving into a product discovery phase can be invaluable. This process allows businesses to validate product ideas, gather feedback from potential customers, and refine offerings based on real-world insights. By profoundly understanding consumer needs and adapting based on this feedback, you can ensure your products genuinely resonate with your target audience.

2. Legal Compliance

Ensuring legal compliance by adhering to the regulations of the regions you operate in is crucial for avoiding legal repercussions and building trust with your customers. This includes compliance with consumer protection laws, data protection regulations, and other relevant legal requirements.

3. Tech Stack Selection

Choosing the right set of technologies is crucial for building a scalable and efficient e-commerce platform. Your tech stack should align with your business goals and be adaptable to evolving market trends. It encompasses selecting the right e-commerce platform, payment gateways, security protocols, and other essential tools that form the technical backbone of your online store.

However, if you lack the technical expertise, finding a contractor who can address all technical concerns expertly is essential. It’s crucial to ensure that they have specific experience working with e-commerce cases. Feel free to contact DashDevs team for a consultation. We’ll be happy to share our knowledge gained by experience in launching e-commerce products.

I can share with you some insights on how to go about it gained from my practical background in building e-commerce solutions:

• Choosing an E-commerce Platform

Select a robust e-commerce platform that aligns with your business size and goals. Platforms like Shopify, Magento, and WooCommerce are popular choices. Consider factors like scalability, ease of use, and community support while making your decision.

• Payment Gateway Integration

Choose a reliable payment gateway that ensures secure transactions. Look for gateways that support various payment methods to cater to a broader audience.

For instance, popular options like PayPal, Stripe, and Square provide top-notch security and support multiple payment methods, making them favorites among many e-commerce platforms.

• Security Protocols

Security should be a priority in your tech stack selection. Ensure that your chosen technologies comply with industry security standards like SSL for data encryption and PCI DSS for payment security.

• Mobile Responsiveness

With the increasing trend of mobile shopping, ensure that your tech stack includes mobile-responsive design. It’s important that your online marketplace provides a seamless shopping experience across all devices. 

As mobile commerce continues to grow, retail m-commerce sales are projected to account for 43.4% of total retail e-commerce sales in 2023, up from 41.8% in 2022, ensuring mobile responsiveness is no longer optional but necessary. 

Such statistics underline the imperative for retailers and online marketplaces to create well-designed, easy-to-use experiences for both their mobile websites and apps.

• Customization and Scalability

Opt for technologies that allow for customization to meet your unique business needs. Additionally, ensure that the tech stack is scalable to accommodate your business’s growth over time.

• Consider Future Trends

Be forward-thinking in your tech stack selection. Consider the evolving trends in e-commerce like AI, AR/VR, and blockchain, and see how they can be integrated into your tech stack.

For example, a survey by First Insight that asked more than 1,000 consumers about AR revealed that more than 71% of respondents would visit a retail shop that offered AR more often.

ASOS, a leading online fashion retailer, has pioneered AR technology to enhance the shopping experience on its platform. 

ASOS launched an AR trial to help customers visualize how garments would fit their body type. This AR tool was designed for mobile devices and desktop sites, providing a more personalized shopping experience by giving customers a better understanding of product fit.

Source: Ecommerce News

3. Product Development

Before moving forward with marketing and other aspects, the development phase kicks in. Here, you’ll bring your e-commerce platform to life based on the selected tech stack. 

This process involves coding, creating the platform’s user interface, back-end development, and ensuring the platform’s functionalities align with your business requirements.

Collaborate with experienced developers, designers, and other specialists to ensure the platform is user-friendly, feature-rich, and aligned with the market needs. The development phase is iterative, with regular adjustments made based on feedback and testing.

4. Payment Integration

Integrating reliable fintech solutions not only facilitates smooth transactions but also builds trust with your customers. It’s imperative to choose payment solutions that comply with regulatory standards and are capable of handling diverse payment methods to cater to a global audience.

5. Testing and Optimization

Before launching, you must thoroughly test your e-commerce platform to identify and fix any bugs or issues. Post-launch, continuously monitoring the performance and gathering customer feedback for optimization is crucial for ensuring a seamless shopping experience and long-term success.

4. Marketing & Branding

Building a recognizable brand and devising effective marketing strategies are fundamental for driving traffic and converting visitors into customers. It involves creating a compelling brand story, designing an intuitive user interface, and employing digital marketing strategies like SEO, social media marketing, and email marketing to build a strong online presence and foster customer engagement.

6. Customer Support

Providing exemplary customer support can significantly enhance customer satisfaction and loyalty. Establishing multiple communication channels, being responsive, and promptly resolving issues are critical to delivering superior customer service.

Additionally, finding a partner who can provide post-launch support is imperative. Since e-commerce platforms often handle high traffic volumes, sales heavily rely on the website’s quality and speed. Partnering with an unreliable firm can lead to financial losses and damage your reputation.

Overcoming E-commerce Challenges with the Right Fintech Partner

In the dynamic e-commerce market, businesses constantly face challenges ranging from payment integrations to localization. Overcoming these challenges often means forging strategic partnerships. 

A well-chosen fintech partner can streamline operations, enhance user experience, and drive business metrics upward. 

In this chapter, we dive deep into the most popular e-commerce challenges and how DashDevs has solved them for our clients.

Challenge 1: Seamless Integration Across Multiple Regions and Currencies

E-commerce businesses aiming for global outreach often must cater to diverse currencies and local preferences. 

The case of our client Hunkemöller, epitomizes this challenge. 

Hunkemöller application is a mobile app from a popular lingerie and swimwear brand. The brand sought to launch an app offering a consistent shopping experience across various regions, each having its own currency. 

By partnering with DashDevs and leveraging its extensive fintech experience, Hunkemöller was able to successfully integrate intricate payment processors and offer a localized touch in multiple languages across 12 countries.

As a result, the app was awarded the prestigious “2021 Best Mobile Application of the Year,” reflecting its excellence in providing a seamless, rewarding shopping experience. 

Challenge 2: Meeting Tight Development Deadlines

In the fast-paced world of e-commerce, time is of the essence. 

Our client Rituals, a Dutch cosmetics and beauty brand, had strict deadlines for their app releases, needing a solution in just 4 months. DashDevs demonstrated how a fintech partner with proven expertise can ensure high-quality delivery even within compressed timelines.

As an outcome of our collaboration, the client reported an increased user base, customer retention, and overall revenue.

Challenge 3: Ensuring Scalability for Future Business Growth Strategies

An e-commerce solution should address the present and be adaptable for the future. 

The solution to this challenge can be illustrated by the story of client HEMA, a business to consumer mobile loyalty app for a European department store chain. The app allows customers to earn and redeem loyalty points while shopping at HEMA stores.

HEMA’s app needed to be scalable to accommodate future business expansion. With DashDevs at the helm, HEMA received a solution that was pertinent to its current needs and flexible enough to adapt to future growth and market dynamics.

The result — now HEMA has 5M+ active users worldwide with 4.5-star ratings in the AppStore & Google Play market.

In summary, these challenges underline the intricate nature of e-commerce app development and highlight the importance of choosing a fintech partner with the right expertise and experience. Each challenge, when addressed correctly, becomes a stepping stone to creating an app that resonates with users and drives business growth.

Conclusion

The journey through the e-commerce landscape in 2024 reveals a dynamic and promising sector, ripe with opportunities yet fraught with challenges. 

Central to navigating these challenges and harnessing the potential of e-commerce is the integration of adept fintech solutions.

If your venture is looking for tailored fintech solutions or you aspire to launch an e-commerce platform, having an experienced software development partner is invaluable. 

Contact us at DashDevs, and let’s turn your e-commerce vision into a successful digital reality.