The Importance of Digital Marketing in E-Commerce: A Growth for Catalyst
By Akshata Sing
In today’s world, where over 2.64 billion people shop online globally, digital marketing has become crucial for e-commerce businesses. By the end of 2024, global e-commerce sales are projected to reach $6.3 trillion, up from $4.28 trillion in 2020, making the online retail competition fiercer than ever. To stay competitive, E-commerce businesses must adopt digital marketing as a core growth strategy. One of the biggest advantages of digital marketing is its ability to reach a global audience quickly and cost-effectively. With more than 4.9 billion internet users worldwide, e-commerce businesses have access to a huge potential customer base. Platforms like Instagram, Facebook, and TikTok, which collectively have around 4.76 billion users, offer businesses the chance to increase brand visibility, engage directly with their target audience, and drive traffic to their websites.
Digital marketing also offers a much more affordable option compared to traditional advertising methods. Businesses can start with as little as $1 a day for social media ads and still see impressive results through precise targeting and analytics. Take email marketing, for instance—it delivers an average of $42 for every dollar spent, making it one of the most effective strategies for e-commerce. Similarly, paid search campaigns are highly profitable. Google Ads, for example, has an average return on investment (ROI) of 200%, meaning businesses can double their money with the right strategy This cost-effectiveness is particularly beneficial for small and medium-sized e-commerce businesses, which may not have the massive advertising budgets that larger companies enjoy. With the right digital marketing approach, these smaller businesses can still compete on a level playing field.
Personalisation: The Game-Changer
Digital marketing
One of the most powerful aspects of digital marketing is its ability to collect and analyze real-time data. More than 80% of consumers are likely to buy from brands that offer personalised experiences. Digital marketing allows businesses to track customer behavior—such as browsing habits, past purchases, and search history—and use that data to provide tailored recommendations and targeted marketing messages. Amazon’s recommendation algorithm is a prime example of how this works in practice. The company attributes 35% of its sales to its personalized suggestions, demonstrating how effective data-driven personalisation can be in keeping customers engaged and boosting conversion rates.
