Trends of the year in eCommerce: personalization, marketplace, subscription
Innobyte, a Romanian software development company specialized in eCommerce, ended 2020 with a turnover of 1.8 million euros, 55% higher than in 2019. The favorable context and dynamics of online offer premises for maintaining the growth trend. For 2021 the company’s representatives estimate that Innobyte will exceed the turnover of 2 million euros, and EBITDA will reach 460,000 euros.
The development of the company’s current services portfolio has led to an increase higher than expectations for the software development company, in the context of the accelerated dynamics of the eCommerce market. Thus, in 2020, the turnover had an increase over the initial pre-pandemic estimates, while the company’s profitability tripled compared to 2019, EBITDA reaching 430,000 euros.
For the current year, Innobyte is counting on a 15% increase in turnover, exceeding the 2 million euros milestone, while maintaining the level of profitability and increasing the number of employees by 25%.
The pandemic, a catalyst for the development of the eCommerce market
With the forced development of the eCommerce market, the business needs of Innobyte customers have become more specific and have focused on rapid implementation of technical solutions, context adaptation and operational optimization.
The pandemic had a catalytic effect on the eCommerce market and propelled online businesses. We have registered a remarkable increase in the demand for services from current partners, amid their need to develop their platforms, and this trend will continue in 2021, says Cătălin Bordei, Managing Partner of Innobyte.
Trends in eCommerce – personalization, marketplace and subscription
The factors that will contribute to reaching the milestone estimated by Innobyte refer both to the accelerated digitization and to the fact that in 2021 the basic need will be related to the performance of existing platforms and the development of solutions that place each business in the top of customer searches, to differentiate them from the competition.
The user is the central element in 2021. The trend of securing and increasing the performance of the platforms will also maintain. eCommerce companies will implement more and more campaigns to attract and retain customers – which will involve new developments and ensure a favorable technical framework: online stores need to operate at optimal parameters, to ensure a browsing experience very good, safe and allowing a higher traffic on the platform, said Cătălin Bordei.
Also, among the trends influencing the eCommerce market continue to be the development of marketplace platforms, in order to offer a wide range of products, but also the development of niche stores, where more emphasis is placed on customization and creating a great experience for customers.
The subscription model is another trend that is increasingly observed in eCommerce. It allows online stores to secure recurring customers for whom they will deliver their favorite products on a regular basis. Also, the orientation towards the development of mobile applications continues the growth curve, becoming an increasingly important tool in the strategy of eCommerce players.
While the market sees an increased offer, customers will choose to access the online store whose “voice” resounds in the crowd, they will buy from those who offer a safe and very good browsing and shopping experience. Thus, the personalization of the browsing experience will be a differentiator and we will certainly see more online projects that will capitalize on this trend, Cătălin Bordei also explained.
New hires and internship programs
In 2021, Innobyte aims to increase the number of employees by 25%, so that the team reaches 50 eCommerce specialists, in order to increase the capacity to manage new projects.
We continue to recruit specialists for our team, both programmers, testing specialists and project managers. We also intend to launch a new internship program, through which to offer a group of passionate people a part of our software development and eCommerce know-how, said Cătălin Bordei.