Is Ecommerce Dead? What To Watch Out For In 2022

Article last updated on January 14, 2022

Ecommerce isn’t dead at all. It is growing more and more every day. Consumer decisions are changing and one of the aspects is ever-growing trend of online buying.

The question is whether you are ready for the future of eCommerce or not.

Are you busy or effective?
If your revenue is growing at a snail's pace it's time for a reality check.
Are you busy or effective?
If your revenue is growing at a snail's pace it's time for a reality check.

This post will discuss what to watch out for in 2022 and how to prepare yourself for a successful eCommerce business in the years to come.

Improve E-commerce Brand Credibility

When thinking about eCommerce growth, the first thing that comes to mind is using paid traffic to grow a business sustainably.

But that’s changing.

Nowadays, people want to buy products from brands they know and trust.

They don’t just want to be sold to random companies with unknown products.

It doesn’t matter if these brands are big or small, but they need a strong brand identity.

This can be a bit tricky for dropshipping business because they depend only on currently popular products, so this business model would not be ideal for long term brand-credible growth.

Dropshipping businesses should focus on building their own brand identity and reputation within the industry.

People may not remember your company name after one purchase, so dropshipping model must be realigned towards building a reputable digital commerce.

Online brands that have been around have invested heavily into customer experience (CX) and branding.

Naturally, the next question is how we can grow the eCommerce brand in 2022 and what potential mistakes we could make, so we can avoid them.

Understand what customers want

To build an eCommerce brand, you must understand what customers want and what makes your products or service different.

It would help if you asked them directly what they expect from your brand.

This might sound like a strange idea because most businesses try to sell their product as fast as possible, without asking anything from customers.

That’s why they end up losing money.

So, instead of selling products as fast as possible, you should focus on finding ways to get more sales.

This means that you need to find ways to increase customer satisfaction and loyalty.

To do so, you need to listen carefully to what your customers say.

Once you’ve done that, you’ll see that there are two main things that customers look for:

  1. Quality – They want to buy quality products from reliable sellers.
  2. Relatability – They want to buy from a business that understands their point-of-view

If you want to grow your eCommerce brand, you need to take care of both points.

What would a customer consider a quality product?

A quality product means different things to different people.

Some prefer buying organic food; others prefer buying clothes made from natural fabrics.

Others prefer buying products from small local businesses, while others prefer buying from large corporations.

And then some prefer to buy products from well-known and trusted brands.

All of these are valid options.

There’s no one single answer to this question.

Instead, you need to figure out what your target audience wants.

And once you have figured that out, you can start creating content around it.

For example, Green Blob Outdoors showcased the quality of their product boldly.

Of course, products you are selling must be made well and you should showcase that.

I’m sure you’ve heard of many stories where people bought something cheap and ended up having problems with it later.

For example, they had a problem with the product after using it.

This happens because low-quality products aren’t built properly.

And, if you’re looking to grow your eCommerce business, you don’t want to risk losing money because of poor-quality products.

So, you need to invest time and resources to ensure that everything you produce is of good quality.

And, here’s another thing. You need to make sure that you deliver the best experience possible to your customers.

How do you do that?

Well, you need to make sure that your customer experience is top-notch.

Nonexistent customer omnichannel marketing strategy

To ensure your eCommerce business is successful, it is essential to improve your customer experience by implementing a customer omnichannel marketing strategy.

A customer omnichannel marketing plan is a set of actions that will help you improve your customer experience.

In short, omnichannel involves all communication channels between you and your customers.

These include social media platforms such as Facebook, Instagram, and YouTube, in combination with email marketing.

In addition, it includes physical stores like Amazon and Walmart.

When you combine all of these channels, you better understand how your customers think and act.

As a result, you can create more personalized experiences for them.

You can also use this information to build better relationships with them.

An example of an omnichannel customer strategy using email marketing is finding out which emails your customers often open.

Once you know this, you can send targeted messages to them.

Your goal is to engage with your customers on a personal level.

If you do this correctly, you’ll be able to increase sales and retain existing customers.

Focus On Improving Net Profit

Net profit is the ultimate goal of any online business.

It is the difference between revenue and expenses.

The higher the net profit margin, the better.

If you first focus on brand growth and then increasing net profit, you’ll have a perfect blend for a successful eCommerce business.

Most eCommerce businesses become obsolete because they neglect to focus on net profit.

They spend too much time focusing on growth instead of profits.

But, if you focus on net profit, you’ll be able to keep growing your eCommerce business without running out of funds.

Problem with product pricing

More than a few eCommerce companies have fallen victim to the never-ending price/cost tug of war.

Approximately 30% of new businesses fail because they have spent all of their available capital before turning a profit.

Regarding product cost versus pricing, I wish I could offer you a hard and fast guideline, but it depends entirely on the goods, verticals, and customers you serve.

However, some general guidelines may apply.

One of the biggest mistakes many eCommerce businesses make is not charging enough for their products.

This means that they end up losing money on every sale.

Another mistake is selling at an exorbitant price. This usually happens when you compete with other brands or retailers who sell similar items.

In both cases, you lose money on each sale.

Also, you risk alienating potential buyers who don’t want to pay what you charge.

So, how do you avoid making these mistakes?

You need to understand your target market.

What are their needs and wants?

That’s why we have to focus on brand growth first.

When you know the ideal pricing range for your product, you can calculate your profit margin.

Ecommerce profit margin

What is a good profit margin for eCommerce?

Generally speaking, a 10% net profit margin is considered normal, whereas a 20% margin is considered above-average and a five% margin below-average. That being said, an outstanding profit margin for e-commerce is above 30%

Can eCommerce be profitable with a low profit margin?

Yes. But you need to understand what your customer wants and try to create a new complementary product with a high-profit margin.

In most cases, that is some form of a digital product. For example, if you are selling a physical product with a net profit margin of 5% and you can offer a video course to better use that product, you’ll improve the overall e-commerce profit margin.

Be Distinctly Different From Competition

Competition can be a great thing if you see it as a way to differentiate yourself.

It can be a filter to attract only ideal customers.

If you look at Amazon, they started by selling books. They were different from Barnes & Noble in that sense.

Today, they’ve expanded into almost everything under the sun. And they continue to distinguish themselves from competitors.

The same goes for eBay. It was originally where people sold things like old records and magazines. Today, it’s one of the largest online shopping platforms.

And it remains distinctively different from its competition.

The easiest way for eCommerce to beat the competition

Unapologetically providing only what customers want will make your brand a go-to business for a specific group of people.

But, this also means that you need to build a strong brand identity.

Remember, you should never copy your competitor. Instead, you should always find ways to stand out.

For example, you shouldn’t just provide clothes if you sell clothes. You should also provide fashion advice.

Or, if you sell makeup, you should provide tips on using makeup.

Your goal is to become a trusted source of information about your niche.

This will help you gain loyal followers and increase sales.

Brand identity is all about building trust.

To achieve this, you need to provide quality content.

Quality content is not just any old random stuff.

Instead, it would help if you wrote useful and informative articles.

You can do this through blogs or videos.

These types of posts will allow you to establish yourself as a reputable source of information.

Leverage your uniqueness

You’ll see that thousands of businesses today have similar products.

However, there are very few that have something unique about them.

Think about what makes you different from other eCommerce businesses.

What sets you apart from others?

Think about why someone would choose your brand over another brand.

Once you know this, you can start thinking about creating a unique offering.

One of the best ways to leverage uniqueness is to focus on a particular audience and then think of all possible “power-ups” you can offer.

Power-ups are additional benefits that you can add to your product.

And in most cases, they would be some form of a digital product.

Think of courses, ebooks, checklists, or even online mini-communities. This can be a completely new source of income for your eCommerce business.

Just don’t think of it as a quick buck thing.

The more power-ups you offer, the higher your chances of attracting more ideal customers.

Make your customers the heroes.

They have already voted with their wallets that they want what you offer. It is up to you to make them even more competent and better versions of themselves.

Create an experience for your customer. An experience is all about making sure that your customers feel valued.


All in all, it all comes down to your customers and what they really deep down want.

  • Focus on brand credibility. Quality matters. Good brand identity and resonance with your customers will help you attract ideal customers who will buy from you again and again.
  • Understand what customers want. Never guess what they want. See your analytics stats, talk to your customers, and find out what they like and dislike.
  • Improve customer omnichannel marketing strategy. Combine social media and email marketing to keep up with your customers. Build a community around your brand. Create a sense of belonging by sharing valuable insights and knowledge.
  • Focus on improving net profit margins. At the end of the day, you want to maximize profits.
  • Beat the competition by staying true to your values. Don’t change your core values just because you’re competing against somebody else. Be transparent. Your customers deserve nothing less than honesty and transparency from you. Make them the heroes.

Marko Matijasevic

Marko is performance-based growth strategist, focusing on business growth while maintaining a strong emphasis on authenticity in every individual he works with.