A discussion with Simon Patterson (Head of e-commerce) about the changes to the retail landscape in recent years and how things have altered since COVID-19. What the retail industry looks like, the trends we are seeing, the opportunities we provide to customers and where we think the market is heading. It’s clear that over time, the e-commerce industry has become a key player in the global retail world. It’s prevalent in various industries and has the power to connect consumers with products on a worldwide level directly. However, despite the importance of physical shopping and brick-and-mortar stores, the e-commerce field has also proven itself to be a major disruptor. In fact, experts project that global retail e-commerce sales will increase to 22.6% when it comes to total retail sales worldwide, rising from 19.4% in 2023. In recent years, the retail landscape has experienced a dramatic transformation in the wake of the COVID-19 pandemic. With e-commerce at the forefront of this shift, most businesses have had to adapt quickly to meet changing consumer behaviours and technological advancements. In this blog, we sit down with Simon Patterson, head of e-commerce at Dee Set, to gain insights into these changes and explore the trends that are reshaping the future of retail. Simon shares his thoughts on how e-commerce has evolved, the growing importance of customer-centric solutions, and the exciting opportunities this digital revolution offers. From omnichannel integration to the power of AI and automation, we dive into what the future holds for online retail - and how Dee Set is positioned to help brands thrive in this ever-changing environment. A: Absolutely! I joined Dee Set earlier this year, transitioning from Tactical Solutions, which is another company within the Dee Set Group. There, I worked closely with a fantastic team, supporting multiple FMCG retail brands by driving best-in-class in-store execution. Overall, the experience gave me a solid understanding of running modern retail operations from the ground up. Before that, I spent a significant portion of my career with Coca-Cola Europacific Partners (CCEP), where I held a variety of roles across different areas of the business. This allowed me to gain valuable insights into the retail and FMCG sectors on a larger scale. Stepping into the role of Head of E-commerce here at Dee Set was incredibly exciting for me. It presented an opportunity to dive into a fast-evolving space, which is both challenging and full of potential. What really appealed to me was the chance to lead the development of our e-commerce strategy, ensuring we're well-positioned for the future in the rapidly changing world of online retail. The industry is evolving quickly, and it's important that we continue to innovate and adapt to meet the needs of both our customers and the market. It's been a rewarding journey so far and I’m excited to see what’s next! A: The pandemic had a significant impact on e-commerce, accelerating the shift towards online shopping at an unprecedented pace. Retailers and online platforms faced immense pressure because of this, particularly when managing supply chains and meeting the surging consumer demand. While we've seen sales trends begin to stabilise post-pandemic, the landscape has fundamentally changed. Thanks to the integration of emerging technologies and advanced data capabilities, these days, online shopping is more seamless, convenient, and accessible than ever before. I believe that the shift to e-commerce is not just a temporary phenomenon - but a long-term transformation. That said, we may see growth rates settle into a more sustainable rhythm compared to the pandemic-induced surge, but the trend towards online retail is here to stay. Rather than a return to pre-pandemic shopping habits, we’re likely to witness a more balanced coexistence between online and offline retail, with e-commerce continuing to play a central role in the future of the retail industry. Supporting Simon’s perspective, it was reported in a 2021 study conducted by AlixPartners that 48% of consumers say their shopping habits have been permanently changed by the pandemic. Whilst e-commerce/online shopping had rapidly gained traction amongst many consumers before this period, the pandemic enabled the industry to shine, as well as boosted the visibility of other shopping methods like click and collect. Even technologies like contactless payments have become more favourable too. Today, e-commerce statistics show that around 34% of people worldwide use online shopping to meet their needs, marking a 2.7% increase from the previous year. Whilst physical brick-and-mortar stores are still vital for modern brands, the online shopping world is showing no signs of slowing down. As a result of this move, we’ve seen many retailers revamp their e-commerce approach completely, ensuring that they’re offering their consumers innovative experiences that keep them coming back for more. A great example of this is Tesco, who this year introduced their Tesco Marketplace Initiative, allowing customers the ability to shop from thousands of third-party products when buying their groceries. The marketplace (which features products from brands like Diageo, Silentnight, and Tefal), will be fulfilled directly by the supplier. A: The pace of technological development in the retail sector is truly remarkable, and the opportunities it presents are vast! From a consumer standpoint, we’re seeing the growing integration of machine learning and AI tools across multiple e-commerce platforms. These advancements enhance user experiences by offering personalised recommendations, optimising search functionality, and even enabling dynamic pricing models that respond to market demand in real-time. With just the tap of a button, consumers now have more control and convenience than ever before. On the supply chain side of things, the impact is equally transformative, particularly in areas like third-party logistics (3PL) and e-fulfilment. The automation of data and the implementation of cutting-edge backend systems and actionable insights have revolutionised order management and fulfilment processes. Once a customer places an order, these technologies take care of the ‘heavy lifting,’ streamlining everything from inventory management to shipping. This not only increases your efficiency, but it also allows businesses to scale more effectively. It’s one of the key advantages we’re leveraging as we continue to innovate and meet the evolving demands of the modern retail landscape. An example of an e-commerce giant utilising the use of innovative technology (specifically AI) is Shein. The controversial fast fashion online store is known to personalise its online shopping experience by using AI to fuel product recommendations for its customers. Shein’s staff utilise customer data through UGC like infamous haul videos or other social media content, which is then analysed. Shein uses proprietary machine-learning applications — essentially, pattern-identification algorithms — to measure customer preferences in real-time and predict demand. They also use AI and predictive analytics to predict upcoming trends so that they can ensure their style offerings stay relevant to their customers. A: Personalisation has become a crucial element in today’s e-commerce landscape, particularly from a customer service standpoint. Shoppers now expect more than just tailored product recommendations—they want interactions that feel immediate, relevant, and seamless. With advancements in technology, we can engage with customers almost instantly, whether through automated systems or by using sophisticated software that enables real-time communication with our service teams. However, finding the right balance is essential. While automation and AI-driven bots can offer quick responses, there’s a risk of detaching from the human element, which can leave customers feeling frustrated or disengaged. The key is ensuring that these technologies and capabilities enhance the overall experience by providing efficiency without sacrificing the personal touch. A well-timed human interaction can often be the difference between a satisfied customer and one who feels overlooked. In our current climate, it appears that more and more companies are utilising chatbots to help improve their customer support and consumer satisfaction. And it’s not just businesses either – consumer trust in chatbots keeps growing each year too, thanks to their ability to analyse data, spot patterns, and offer real-time, personalised solutions. In a recent chatbot survey conducted by Tidio, it was reported that around 82% of survey respondents would talk to a chatbot if there was any waiting involved in talking to a human representative. This shows us that the adoption of a chatbot could eventually eradicate the need for traditional call centres as we know it. It is worth noting that chatbots may be more effective for simple customer queries. However, if the customer is seeking a more personalised, qualitative response, they will usually be better off talking to an actual human! A: Omnichannel retail software is absolutely critical in today’s retail landscape. The distinction between traditional brick-and-mortar stores and online shopping is becoming increasingly blurred as consumer behaviour continues to evolve. Shoppers no longer see these channels as separate — instead, they expect a seamless experience, whether they're browsing in-store, online, or through your social media platforms. To effectively integrate both their online and offline experiences, brands need to ensure consistency across all channels. This means offering cohesive messaging, smooth transitions between digital and physical spaces, and leveraging innovative technology to connect the two. For instance, customers may browse products on a brand’s app, make a purchase online, and pick up their order in-store—all while receiving personalised marketing that reflects their preferences and shopping history. By creating an integrated, revolutionary omnichannel experience, prominent retailers can meet the demands of today’s consumers and build stronger, more loyal customer relationships. A: The e-commerce landscape offers an abundance of opportunities for businesses to thrive, and it's more accessible than ever for brands to tap into this growth. While it may sound like I'm giving a self-promotional nod, this is precisely where our e-commerce operation excels. We specialise in removing the logistical complexities for brands, allowing them to focus on their core offerings. As I mentioned earlier, our infrastructure is designed to seamlessly integrate with a brand's website backend. Once a customer clicks the ‘confirm purchase’ button, we handle everything from there. This includes product storage, picking, packing, and dispatching orders, ensuring a smooth, end-to-end process for all. We aim to streamline the entire order fulfilment journey, so businesses can capitalise on their -commerce growth without the headache of managing these critical but time-consuming operations themselves. A: A robust and scalable digital infrastructure is absolutely essential in today’s retail landscape, especially when navigating peak shopping periods. Having a well-structured data and technology architecture is key to effective demand planning. While the online marketplace can be volatile, a lot can still be predicted through intelligent data analysis and usage. However, the real challenge is in being prepared for unforeseen spikes in demand, which is where scalability becomes critical. Equally important is the logistics side of the e-commerce operation. Ensuring that efficient processes are in place at the 3PL (third-party logistics) level is crucial for maintaining customer trust. If your logistics can’t keep pace with the demand, it can directly impact the customer experience, leading to missed delivery windows or stock shortages, which in turn can harm your brand’s reputation. Therefore, a strong digital infrastructure combined with an agile and reliable logistics operation ensures that businesses can not only meet but exceed customer expectations - even during the most unpredictable sales periods. A: If there’s one crucial takeaway I could leave about the future of e-commerce, it’s the critical role of product delivery. This may not sound revolutionary, but it’s a fundamental aspect that often gets overlooked. At the heart of every online transaction is one key enabler: Reliable, timely product dispatch and delivery. You could have the best product, a seamless website, and great customer service, but if you fail to deliver on time and within customer expectations, it can unravel all of that hard work. The pressure on delivery networks and providers has never been greater, and getting this right is more important than ever in shaping customer loyalty and long-term success. At Dee Set, we provide expert field marketing solutions for brands and retailers, using cutting-edge retailing technology to help our clients excel in the online space. We're proud to have built a scalable e-commerce strategy that enables us to handle up to 10,000 unique orders per week, with room to expand further during peak times or promotions. Our system ensures efficient accurate order management and timely deliveries to keep your customers always satisfied. Whether you're a startup or a large enterprise, we can tailor our services to fit your needs, ensuring smooth, reliable performance - even during high-demand periods! With our expertise and technology, we can help our clients to thrive in the digital marketplace. Get in touch today to see how we can help you!Q: Hey Simon! Thanks so much for chatting with us today. Firstly, can you tell us a bit about you and your role?
Q: Amazing! How has COVID-19 accelerated the shift towards online retail? Is this shift here to stay, or do you expect an eventual return to pre-pandemic shopping habits?
What Do the Figures Reveal?
Q: How are technologies like AI, AR, and automation shaping the future of online retail?
The Shein Phenomenon
Q: How important is personalisation in today’s e-commerce experience, and what innovations are helping retailers deliver more customised experiences?
The Importance of Chat Bots
Q: How important is omnichannel retail, and how can brands effectively integrate both online and offline experiences?
Q: What opportunities do you see for businesses looking to capitalise on their e-commerce growth?
Q: How important is having a robust and scalable digital infrastructure to handle spikes in demand (like during Black Friday or holiday seasons)?
Q: Finally, if you could leave our readers with one key takeaway about the future of retail and e-commerce, what would it be?
Embrace the Dee Set Factor