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I first learned about the world of ecommerce through a friend’s hostel. He was working at an ecommerce storefront that sells headbands for girls designed and made by his wife. They made 2 million in their first year. When I asked them how they did it, I learned that their success came not only from the quality of the headbands, but also from extensive data research on how to reach the right customers and purchase them.
At the time, the use of data science to scale ecommerce programs was innovative. But now, it is becoming the stock of the table for brands that want to direct their fair share in the bursting $ 6 trillion global ecommerce market.
What exactly is ecommerce acceleration?
Ecommerce acceleration is the process of applying data-driven technology and skills to drive revenue growth across major online commerce channels, including ecommerce marketplaces such as Amazon, Walmart, Target, Tmall and eBay. Companies that specialize in providing such services are called ecommerce accelerators.
While the term is new, top global brands are already using many practices and technologies involved in ecommerce acceleration to achieve unprecedented growth.
Related: 5 Reasons Your E-Commerce Business Is Tanking
How does eCommerce Accelerator work?
It emerges in a simple (but strong) equation: revenue = traffic x conversion x value.
The job of an accelerator is to maximize traffic and conversions in product listings using data to uncover the relationship between any number of compatible on-page and off-page variables between on-page and off-page variables available in each marketplace or digital channel. As these relationships unfold, brands can apply the technology and skills of an accelerator to drive traffic and conversions.
While a brand can achieve acceleration on its own, the general ecommerce team lacks access to leading technology to achieve smaller, less resourceful and profitable scales. And to do that they have to compete in a brutal recruitment battle for the right talent.
Related: 3 Mistakes to Avoid with Your First E-Commerce Store
Those who look closely at online commerce know that 2021 was a banner year for e-commerce aggregators, sometimes referred to as rollups. Last year, these aggregators raised billions of dollars. However, 2022 is the year of the accelerator.
Aggregators purchase small-to-medium marketplace brands in the hope that they can apply their investment and operational skills to achieve scale. With acquisition options dwindling, many aggregators are now looking at new frontiers, partners and technologies for growth. This is where the accelerator comes in.
Ecommerce Acceleration is systematic, data-driven and able to create more value for any brand with quality products over time. Accelerators help brands take advantage of patterns in data to discover the relationship between on-page and off-page variables that enhance the revenue effect, effectively strengthening the acceleration process over time.
What’s more, when marketplaces change their ranking algorithms (as they don’t want to), AI-powered technology that powers many accelerator platforms will quickly adapt – a valuable capability for any brand, whether they be part of a rollup or stand out. .
Related: Why you should bet on the future of ecommerce
The future of ecommerce is incredibly exciting, especially since there are many companies that democratize access to powerful, data-backed tools that help brands, both large and small, reach customers around the world.
Want to understand how customers like to interact with products or services before making a purchase? Or find out what kind of imagery, content and experience motivates people to buy? Or discover how to create ultra-accurate and adaptive inventory forecasts that ensure products are never out of stock? The world’s leading ecommerce accelerators are currently tackling such issues for brands.
These new frontiers are helping brands achieve unprecedented growth. Now the only question is: Do you want to be left behind?