In recent years, the shift from traditional brick-and-mortar shopping to online e-commerce has been well-documented and studied. However, as technology continues to evolve, a new trend is emerging: the transition from e-commerce to local commerce, or L-commerce.
According to market research, the e-Commerce industry reached a value of $2,837 billion in 2022 and is expected to grow at a rate of 12% in the next year to reach $3,183 billion. Despite global economic challenges, the trend towards increasing internet usage and smartphone adoption is projected to continue driving growth, with the industry projected to reach $4,902 billion by 2027. The rapidly growing number of internet and smartphone users globally has solidified the trend towards digital retail, also known as e-Commerce. With a current user base of over 5.07 billion internet users and 5.48 billion smartphone users, the future of retail looks to be increasingly digital. Despite this growth, a large portion of the population remains unconnected and untapped by e-Commerce platforms, especially in developing countries where coverage is still low. Despite significant investments in advertising and product offerings by tech companies, major e-Commerce platforms in India, for example, only reach a small fraction of the potential customer base.
The growth of e-Commerce has brought about convenience for consumers, but it has also resulted in added costs for producers in the form of transportation expenses. The longer the distance between the producer and the consumer, the higher the transportation costs, which can impact the overall value provided to the consumer.
However, the government’s Open Network for Digital Commerce (ONDC) protocols aim to change this by fostering the growth of hyperlocal commerce, or L-Commerce. This digital marketplace enables buyers to connect directly with local sellers, reducing the distance between producer and consumer, minimizing wastage and providing both parties with greater value. As more local businesses operate in the digital world, the profits and business value increase, with the benefits staying within the local community, unlike in e-Commerce where profits are centralized. The direct connection between producer and consumer in L-Commerce can also lead to increased opportunities for long-lasting business relationships.
In conclusion, the shift from e-commerce to L-commerce marks a positive change in the way people shop and interact with their communities. By emphasizing local businesses and products, L-commerce provides consumers with a more personalized and community-driven shopping experience, which in turn helps to strengthen the local economy. With the increasing popularity of L-commerce, it is clear that the future of shopping is local, and Insperme are at the forefront of this movement.
In today’s fast-paced and highly competitive market, having a digitally enabled business is crucial for success. This is where Insperme comes in – with digital at the core of our services, we help brands establish, evolve, and grow their online presence.
Our services include:
E-commerce Web Development: Our team of experts will help you create an effective and user-friendly e-commerce website that meets your business needs and provides a seamless shopping experience for your customers.
We help you manage your product catalog, ensuring accurate and up-to-date information is displayed on your e-commerce website.
Our content management services include creating and managing your product descriptions, blog articles, and other website content, to keep your customers informed and engaged.
Social Media Management:
We help you create and manage your social media presence, ensuring you connect with your customers and build your brand.
Explore the full article to learn about the transition from e-Commerce to L-Commerce and stay ahead in today’s rapidly evolving market.