Literature review
Roles of ecommerce
Consumers today expect precision and quickness, which has fueled trends like meal kit services
and grocery store online ordering and delivery. According to the Boston Business Journal, e-
commerce platforms account for 36% of specialized food and beverage sales. As the business
strives to stay up with consumer tastes and needs, this trend of fresh fruit, packaged items, and
ready-to-make meals delivered to the front door is only likely to grow (mrinetwork.com,2021).
Not only are more businesses seeking for ways to use e-commerce strategies, but research
reveals that these innovations are also assisting in the growth of the economy. According to a
2017 RSM Food and Beverage Monitor report, 64 percent of successful food and beverage firms
have established e-commerce technology. Many consumers want streamlined means of
browsing, selecting and ordering their favorite food products. This is where technology also
plays a role, Boston Business Journal explained. It is predicted that shoppers will do even more
online research this year before making a final purchase. As such, companies can benefit by
providing easy access to all nutrition labels and sourcing information and ensuring that it is
compatible with a variety of mobile platforms. Moreover, connecting to consumers through
social media channels can help improve accuracy, boosting buyer satisfaction and increased
sales. The specialized foods and drinks industry performed particularly well, with sales
increasing 15% from 2014 to 2017, according to SmartBrief. This trend has been driven in large
part by the habits of the millennial age, which not only prefers unique foods and ingredients, but
also enjoys the ease of online ordering and shopping. When it comes to e-commerce, this
industry has a lot of potential (mrinetwork.com,2021).
Impact of e commerce
Many people believe that as people migrate away from conventional brick-and-mortar businesses
and toward online food subscriptions and tech-savvy check-out systems, they will lose jobs.
According to Slate, the use of technology in grocery stores would certainly necessitate the need
for top talent positions with high-paying wages, a trend that is actually more advantageous to the
US economy's future. Rather than low-wage occupations, these advances might ensure better
work in fields like as engineering and software development, allowing many people to further
their careers. While lower-paying cashier positions may go, several businesses have stated that
these workers would simply be reassigned to other areas of necessity (mrinetwork.com,2021).
Unilever is one such firm that has already seen a job shortage as a result of the rising importance
of e-commerce. According to Chief Marketing Officer Keith Weed of the London-based
consumer products company, which is known for brands like Dove and Lipton, its e-commerce
business is expanding at a pace of 40%. Unilever has formed an 800-person team in order to
keep up with demand. Weed stated that great branding is not only crucial for creating
relationships with customers, but it also gives a lot of room for development and growth. “This
experience or interchangeability of in-store and online purchasing must be seamless, so
customers can purchase whenever and wherever they want on whichever platform they want."
(mrinetwork.com,2021).
Market growth (Covid-19 period)
The worldwide e-commerce industry for food and beverages is anticipated to rise from $14.9
billion in 2019 to $22.4 billion in 2020. Most individuals are now working from home and in
self-quarantine as a result of the COVID-19 epidemic. As a result, many choose to order food,
beverages, and other necessities from the comfort of their own homes. Through 2023, the market
is anticipated to steady and reach $34.6 billion, with a CAGR of 23.4 percent. In 2019, Asia-
Pacific was the largest region in the e-commerce industry for food and drinks. Food and
beverage (F&B) e-commerce sales have risen due to an increase in smartphone users throughout
the world (prnewswire.com,2021).
Smartphone users are the major online consumers for the F&B business, and as the number of
them grows, so does the potential for more online food and beverage buying. According to a k-
commerce article, the global smartphone user base hit 3.2 billion in 2019 and is anticipated to
expand by 600 million in the following two years, with 200 million of them coming from India
and China alone. General Mills, a grocery store chain located in the United States, currently sees
10% of its sales online, and online grocery shopping is anticipated to be a $100 billion industry
by 2022. As a result, the rise of F&B e-commerce is being driven by an increase in smartphone
users and internet penetration (prnewswire.com,2021).
Online shopping and web surfing for Food & Beverage (F&B) items or services has become
ubiquitous as technology has advanced and human connection with any product or service has
changed. This is having a good impact on F&B e-commerce; in 2019, there are anticipated to be
1.92 billion digital purchasers, and e-commerce sales account for 14.1 percent of retail
transactions worldwide, with the percentage expected to increase to 22 percent by 2023. In order
to make purchasing decisions, 80 percent of consumers desire thorough information regarding
purchases. As a result, this tendency will bolster and expand the opportunities for online food
and beverage enterprises (prnewswire.com,2021).
The cost of suppliers and manufacturers will be a major stumbling block for the food and
beverage e-commerce sector. Order fulfillment costs, shipping costs, adapting corporate
resources to changing market demand, and last-mile connection are among them. Aside from
that, there are the expenses of packaging cardboard boxes, petrol, mileage, and driver time to
consider. Despite growing online grocery sales, according to a Capgemini research from 2019,
merchants' net profit might drop by up to 26% in the next three years if they don't drastically
enhance last-mile solutions. Because the majority of items have a short shelf life, the supply
chain must be seamless, durable, and waste-free in order to reach sustainable margins. As a
result, the expenses borne by suppliers may limit the expansion of the food and beverage
industry. Amazon Fresh, Peapod, Google Express, Walmart, PepsiCo, General Mills, Nature
Box, Thrive Sector, Costco, and Kroger are all major participants in the food and beverage e-
commerce market (prnewswire.com,2021).
Technology in E commerce
There is seldom a component of an industry that is unaffected by technological advancements.
Big data and machine learning, in particular, are leading the way for robotics automation, data
transfer in real time, and a range of fascinating gadgets.
When it comes to utilizing technology, the retail business is no exception. In reality, by
incorporating artificial intelligence (AI), chatbots, and voice assistants into their operations,
successful firms are setting the standard. These technologies may assist deliver exceptional
customer experiences by allowing for rapid contact, giving support without the need of real
people, data management and security, and much more. Many online businesses currently have
e-commerce software incorporated, but to be competitive, every e-commerce firm must seriously
consider the following technologies to remain profitable and retain consumer happiness (sana-
commerce.com,2021).
Artificial intelligence (AI)
AI is providing useful information about client preferences that can be used to steer marketing
initiatives. It may also automate and transfer data management processes in order to improve
performance. Artificial intelligence (AI) is being used in the retail and e-commerce industries for
a variety of purposes (sana-commerce.com,2021).
Because AI can forecast client behavior patterns, it can provide customers with relevant and
helpful information about products and services, among other things. By incorporating a
customer's search history and other third-party data, AI and machine learning algorithms can
effectively anticipate this information. This can lead to more effective information and solution
proposals to meet client demands. User experience is essential to 74 percent of organizations
when it comes to increasing sales and conversions (sana-commerce.com,2021).
Customers think AI impacts their buying decisions because it delivers a tailored user experience.
Artificial intelligence can help customers have a better shopping experience based on their own
interests. AI, big data, and machine learning can provide insights and foresight into consumer
behavior patterns, which can be used to drive marketing campaigns, provide support and
services, and automate communication, all of which may help organizations boost engagement
rates (sana-commerce.com,2021).
Any marketing campaign's driving force is customer behavior patterns. Businesses may target
both new and existing consumers with AI by looking at data such as past behavior. These data
may be utilized to help firms develop a more targeted content marketing approach. The content
and advertising may then be written in a tone that appeals to a variety of people and published on
the appropriate media channel to get their attention. AI and marketing automation may provide a
company with the information it needs to run a strategic and tactical campaign (sana-
commerce.com,2021).
The Cloud
You'll be hard pushed to find a successful company that does not have at least one part of its
operations in the cloud. Managing and processing data in the cloud is critical for ensuring that
data is available to anybody who needs it, on any device, at any time. A cloud ERP may reduce
delivery times, make your store more flexible, and provide company stability and development,
especially for e-commerce firms (sana-commerce.com,2021).
Chatbot
Chatbots have transitioned from restricted use in contact centers to widespread e-commerce
website applications, thanks to their high customer satisfaction ratings and wide availability. E-
commerce websites that use chatbots may give a variety of services and solutions to customers
instead of asking inquiries and delivering information over the phone (sana-
commerce.com,2021).
Many businesses are unable to offer accurate answers when a potential consumer searches for
them. Customers may also become irritated if they are placed on wait because a company does
not have enough employees to handle a significant volume of calls. Chatbots are accessible 24
hours a day, 7 days a week to give any answers or solutions a potential consumer could need.
Businesses can benefit from automated communication since it frees up staff to focus on other
tasks, effectively communicates with consumers, and may even suggest products and services
(sana-commerce.com,2021).
A decision tree is included in the algorithm of a chatbot. Decision trees automate complicated
business processes using machine and deep learning, basically building, maintaining, and
constantly expanding on a complete network of if/then statements. Chatbots can grow their
decision tree by answering frequently requested questions and concerns from consumers. A
chatbot can use these information to determine whether or not they have assisted a client. If they
were able to assist the customer, this information might be shared with another customer who has
a similar query. If the chatbot has not sufficiently pleased the consumer, it may continue to ask
questions until the customer has the information they require. The chatbot now has additional
options in its decision tree to aid consumers in the future once they've responded the customer
(sana-commerce.com,2021).
Send shipping and tracking information
Imagine Amazon forgetting your address or credit card information and not informing you when
your item is expected to arrive. Customers dislike having to input their shipping information
every time they want to purchase something from your e-commerce site. Furthermore, giving a
client a timeline for when their product will arrive at their door is a recommended practice for
user experience. Chatbots can remember this information and offer consumers with real-time
delivery tracking information. This can also benefit warehouse operations, since they can
concentrate on the supply chain and completing orders through their order management system
rather than informing consumers about the status of their shipments (sana-commerce.com,2021).
Voice Assistants
In the digital era, not everyone uses a mouse and keyboard to look for items and information.
Businesses will need to embrace voice commerce to suit these prospective clients, which
involves employing speech recognition technology and allowing customers to use voice
commands to search and purchase items online. Voice assistants like Siri, Amazon Echo, and
Google Home are becoming increasingly popular because they make it easier to find and buy
items. E-commerce firms will need to supply this technology and its benefits in order to attract a
new generation of customers (sana-commerce.com,2021).
An audio brand signature is any corporate jingle, music composition, or aural tone. It's a method
for businesses to build a stronger brand identity and make it easier for customers to remember
their names. Businesses may tell voice assistants to play their audio brand signature to help
clients know where they can purchase their items from. Customers will recognise and remember
they are purchasing from your shop if you associate your brand with an aural signature – even if
they are lying on their sofa talking to a voice assistant (sana-commerce.com,2021).
Assistive technology and voice commerce are enabling marketers access a wide range of new
consumers, including not only the younger generation who are utilizing new gadgets, but also the
visually handicapped. The visually impaired can avoid the frustrations of traditional search by
employing speech-to-text technology to order what they need using new and growing assistive
technologies. AI, chatbots, and voice assistants are becoming increasingly important for every e-
commerce firm to succeed. Businesses must adapt to these new technologies in order to keep up
with the times and appeal to future and existing consumers (sana-commerce.com,2021).
Shopping List
Customers would prefer automate their monthly purchasing needs than visit a website (or
business) for their necessities every month. People may create shopping lists using voice
assistants, ordering what they need from whoever they choose. Many firms are able to profit on
brand loyalty because to this technology, which learns the preferences of the owners. A voice
assistant can add a product from your store to a person's shopping list if it recognizes that they
desire it on a monthly basis. Companies may find this useful in predicting sales and balancing
order management (sana-commerce.com,2021).
Innovation (Covid-19 period)
According to statistics, the six transformations described below will create opportunities for food
and beverage manufactures to gain market share in an increasingly uncertain business
environment (thepoultrysite.com,2021).
1. Gut health and immune function
Increased attention on the link between gut health and immune function COVID-19 has caused
57 percent of consumers worldwide to be increasingly concerned about their immunity.
Consumers are learning more about how the human microbiome supports the immune system
and general health as they try to improve their immunity. Probiotics, prebiotics, and postbiotics
are all beneficial to the microbiome and are already gaining popularity on the market
(thepoultrysite.com,2021).
2. Planet-based (vegetative)
During COVID-19, 18 percent of alternative protein purchasers in the United States bought their
first plant-based protein, and 92 percent of those first-time buyers said they are likely to buy
meat substitutes again2. 80 percent of customers in Germany, the United Kingdom, and the
Netherlands say they will continue to eat plant-based meat substitutes after COVID-19. Products
that provide great nutrition and a high-quality sensory experience will be set for success, with
health, safety, and convenience as top buy motivators (thepoultrysite.com,2021).
3. Weight management and metabolic health
Customers are concerned about being less active or gaining weight as a result of the pandemic's
effects on those with hypertension, diabetes, and cardiovascular disease. In fact, 51% of
consumers are concerned about being less active or gaining weight as a result of the epidemic.
This concern is anticipated to drive increasing demand for functional solutions that promote
metabolic health and weight control (thepoultrysite.com,2021).
4. Finding balance : self-care, emotional health and nutrition
COVID-19's tough conditions have raised feelings of worry and tension, with 35% of customers
expressing concern about their mental health. During these stressful times, people are seeking for
new methods to boost their mental health, including allowing themselves to enjoy decadent,
soothing foods and beverages. They are, however, balancing this urge with their weight-loss
goals and seeking a cautious overall balance of pleasure and appropriate nutrition. Food and
beverages that improve mood, provide energy, and decrease stress will become increasingly
popular in the months and years ahead. ADM also sees new potential for nutrient-dense
ingredients and functional health advantages in comfort meals, snacks, and baked goods
(thepoultrysite.com,2021).
5. Nutrition
Demand for goods that provide customized, highly personalized health and wellness solutions
will soar as COVID-19 raises consumer knowledge of individual health risk factors. According
to ADM study, 49% of consumers believe that each person is unique and deserves a personalised
approach to diet and exercise, and 31% of customers are already purchasing more health and
nutrition-related goods. Consumers will pay more attention to products that focus on boosting
nutrition, self-care, and overall wellness (thepoultrysite.com,2021).
6. Shopping values
Consumer health and wellness spending is surging as a result of the growing attention on health.
Consumers intend to spend more money on health and wellness products, with 48% planning to
do so. At the same time, mounting fears about general economic deterioration have driven a
move to value-based purchasing, with increased demand for basic pantry essentials, trade-downs
to private brands, and traffic to discount stores (thepoultrysite.com,2021).
After the pandemic crisis reaches its peak, these changes in behavior are likely to continue.
Reference List
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