HotWax Commerce Blog

Magento is a big name in the retail technology business, widely known as one of the most popular, legacy open-source platforms. However, since all versions of Magento 1 will become end of life (EOL) beginning in July of this year, many retailers are considering either migrating to Magento 2 or a new platform altogether. In this blog, we help you determine whether Magento 2 is a good fit for your business and introduce you to alternative solutions.  

With retailers embracing digital transformation strategies, companies’ tech leaders (VP of Digital, Chief Digital Officer, and Head of eCommerce) are now tied to their brands’ key performance indicators (KPIs) like never before. These decision-makers must invest in eCommerce solutions that form a strong foundation to support a broader digital strategy, rather than just serving as a way for customers to purchase items online. Without this foundation, retailers’ digital success will come crumbling down like a house of cards.

The retail industry has changed forever. The advancement of technology, especially mobile devices, has ushered in a new era of how customers prefer to shop. A 2017 Harvard Business Review study found that 73% of people prefer to use multiple channels during their shopping journey, and this has since grown to more than 90%. All retailers must now have omnichannel strategies in place to take advantage of ever-evolving consumer preferences, or they risk being left behind more digitally savvy brands.

The retail industry continues to evolve with the times, and the growing popularity of the buy-online-pick-up-in-store (BOPIS) sales model is contributing to the market’s rapid growth. BOPIS blends the best of physical retail with the online experience, which allows both brick-and-mortar and e-commerce sales to thrive. Still not convinced how BOPIS has ushered in a new era of the retail industry?

Businesses and brands across the globe are scrambling to respond to the so-called “Amazon Effect”, whereby consumers now expect deliveries within two days of placing their orders. Amazon Prime in particular aims to maximize customer satisfaction and convenience by offering one-day, same-day, and even 2-hour delivery. Many big-box retailers, like Walmart and Target, have followed suit, leveraging their extensive brick-and-mortar store networks to fulfill online orders within a shrinking delivery window. But customers aren’t just expecting this lightning-fast service from the big players in the retail industry. Brands of all sizes have begun offering fast and free delivery options in order to increase purchase rates for online shoppers and reduce shipping costs.

Many young brands launch their businesses on Shopify, and for good reason! Shopify allows business owners to cheaply and swiftly create an eCommerce storefront to begin building a client base and fulfilling orders. However, as these businesses mature and expand into new channels, they often face a multitude of challenges, particularly related to order management.

The COVID-19 pandemic has forced retailers across the globe to close their brick-and-mortar stores and quickly turn their focus to digital commerce. When this pandemic does end, whether in a few weeks or a year, retail operations will certainly not return to the pre-pandemic status quo. Most governments will continue to restrict large gatherings, and consumers will likely be apprehensive about shopping in-store for months to come. 

We are living in a mobile-first world. Millennials and GenZ have foregone the window shopping of their parents’ generations and are instead browsing storefronts on their mobile devices, constantly on the hunt for their next purchase. Studies show that, in the US, more than 50% of eCommerce website traffic comes from mobile, and this number jumps to as much as 80% in China. These numbers are only expected to grow year over year, yet surprisingly very few brands are prepared to meet and capitalize on this demand.

Everybody hates waiting in line. If you’re not convinced by your own personal experience, studies show that 32% of shoppers quit a long checkout line and search for a better shopping experience elsewhere. While some may order online instead, others will abandon their purchase altogether and head to a different store. This means every dollar you’ve spent on developing quality products and generating demand for those products has gone to waste. 

As the retail apocalypse continues to rage and some of the world’s most iconic brands retreat into bankruptcy, it’s time to start seriously re-evaluating and re-defining commerce. The future is clear to anyone that’s been paying attention: omnichannel retail.