E-Commerce Trends for 2021 According to Nordic Experts

During unprecedented and uncertain times such as these, it c   an be useful to listen to the perspectives of those who have adapted to the “new normal,” are thriving, and looking to the year ahead with subsequent confidence and authority. With this in mind, the following insights provided by some of the Nordic region’s top experts, operating across various aspects of the supply-chain, paint a vital, holistic picture of the e-commerce landscape for 2021.

Exponential growth for ecommerce

Fredrik Hamilton

Fredrik Hamilton is the CEO and Founder of Budbee – the Swedish logtech company which offers a sustainably-focused delivery service committed to maximising the efficiency of ‘the last mile’: the final step in the process of a product’s journey from the warehouse shelf to the customer’s doorstep. For Fredrik, one thing will be certain for the ecommerce industry in the year ahead, “It will continue to grow,” perhaps, he says, “even faster than in 2020.” This, he believes, is because “more and more consumer groups have found – and will find – their way to ecommerce, and services such as ours will continue to make it possible for them to order products to their doorsteps, even if the pandemic persists. When people try these kinds of convenient services, they start to form new habits, which reallocates consumption, shifting it away from traditional offline shopping and towards digital channels.”

“The most important factor” that ecommerce entrepreneurs and online store owners must consider if they want to benefit from this ongoing growth, “is the focus on, and obsession with, the consumer.” Moreover, Fredrik argues,  it is vital “to be unique” and to “make sure what your brand offers can’t be found anywhere else.”

The digitalisation of global supply chains

Deniz Chaban

Deniz Chaban is the CEO and founder of Touchtech – the Swedish technology company enabling global brands to digitalise their retail work-flows through interactive solutions such as virtual showrooms and in-store digital platforms. By working closely with fashion brands and seeing how they utilise his company’s technology, he believes “many retailers are planning on entirely rethinking the presence of physical products in their stores by retaining more stock in warehouses and fulfilling orders digitally.” This, he says, “makes sense, when you consider the ongoing e-commerce sales boom.”

“I believe this trend will have a profound impact beyond COVID-19. Although, somewhat surprisingly, the majority of sales during the pandemic continued to take place in physical stores, the overall decline of face-to-face sales means the existing business model for brick-and-mortar retailers is no longer profitable or viable, and retailers will have to move away from using physical stores as hubs for stock and distribution, and instead deliver a brand and buying experience.”

“The greater the fulfillment and distribution of orders at decentralised warehouses, the easier it will be for retailers to accurately plan production output. This avoids the expensive mistake of ending up with surplus stock that has to be sold on sale at heavily reduced prices. Tech is driving the transition and if brands and retailers can get over the initial pain points, it makes it easier for them to plan and control their global supply chains accordingly – and ultimately, make more money.”

Challenges and how e-tailers can overcome them 

Henrik Müller-Hansen

Henrik Müller-Hansen is the CEO and Founder of Gelato – the Norway-born print-on-demand solution which allows e-commerce entrepreneurs to localise the production and delivery of customised products to customers based in any location in the world. For him, “Entrepreneurs sometimes fail because they don’t stay consumer-focused and/ or they don’t take the leap and release and ship their product – challenges that can seem even bigger at a time of unprecedented economic instability and mass unemployment.”

However, he believes “in the face of these challenges, it’s never been a better time to be an entrepreneur and launch your business. Although the challenges will remain – with or without the presence of COVID – the toolbox available to entrepreneurs in the e-commerce space has never been stronger or more granular in its structures than it is right now. If harnessed effectively in response to an emerging and enduring demand, these technologies can be extremely empowering in pursuing entrepreneurial goals and success  in 2021 and beyond.”

Acknowledging the flipside of the e-commerce experience

Haider Abdo

While there are plenty of tools presenting solutions to specific and visible aspects of the e-commerce journey, Haider Abdo, CEO and founder of Returnado – the Swedish startup revolutionising the reverse e-commerce process through technology – believes that there is still work to be done when it comes to solving the last piece of the puzzle – returns. He comments “for too long, this part of the e-commerce journey has been ignored and underutilised. In making returns part of the e-commerce journey, what has long been a challenge to e-commerce store-owner and recipient alike insteadbecomes an opportunity for retailers to preserve income, and play their part in keeping tonnes of unwanted items out of landfills, all the while ensuring the individual customer experience remains central to these processes.”

“As e-commerce sales reach an all-time high this year, returns have proven an even bigger issue for retailers to tackle than ever. The effect of getting this wrong, to their bottom line, is becoming increasingly apparent – and that’s before even considering the wider damage that can be had on customer loyalty. With up to 50% of all items being returned, many are already having to play catch up to improve this service.

What’s more, with consumers’ shopping habits having a dramatic shake up this year, the ability to get items delivered to one’s door or, indeed, the least crowded post office in the area has become more important than ever. Allowing customers to select both where to have their orders delivered and from where their returns should be picked up has already become and will continue to be a key factor in driving growth and capturing market share.”