E-commerce has already completely changed the way people buy goods. Despite already changing shopping habits, e-commerce is just getting started.
Here are five big trends shaping e-commerce.
1. Continued growth in e-commerce sales
It is undeniable that e-commerce is booming. It’s hard to beat the ease and convenience of buying products online and having them delivered to your doorstep. For this reason, e-commerce has experienced strong growth in recent years.
U.S. e-commerce sales, for example, will top $1 trillion for the first time in 2022. Reaching that milestone wasn’t expected until 2024 before the pandemic. Worldwide, e-commerce sales are expected to reach $5 trillion in 2022 and $6 trillion by 2024.
Despite already experiencing such strong growth, e-commerce still only represents around 19.6% of retail as a whole in 2020. This means that there is still plenty of room for this sector to continue to grow. gain market share. It will be interesting to see how much e-commerce continues to grow in the future.
2. Customers demand more from brands
There is a kind of social contract that exists between brands and consumers. People who buy goods essentially use their dollars as a voting mechanism. Companies and brands that receive the most business gain public approval.
But what determines which brands get that stamp of approval? Consider your own buying preferences. Of course, you want to buy the items you like the most.
Whether it’s shoes, clothes, food, a car, or anything else, people generally want to get the goods that speak to them. This preference comes down to a combination of personal taste, quality and brand.
Cost has also traditionally been a driving factor for customers. If there isn’t a huge difference between two items, you probably want the cheaper one.
However, sourcing and ethical issues are also becoming more prevalent. As consumers become better informed about how their products are made and shipped, they set higher expectations for brands.
Ethical sourcing and sustainability will continue to become more important to e-commerce shoppers in the future.
3. Artificial intelligence is gaining importance
It’s hard to find an industry that won’t be affected by AI in some way. E-commerce is certainly no exception to this rule.
AI is set to play an important role in online shopping in many ways, especially given that there is an explosion of data in e-commerce from digital shopping, connected supply chains, better Internet of Things (IoT) and more sources.
First, let’s look at it from the customer’s perspective. AI is designed to make online shopping easier and better for consumers. Chatbots are improving all the time. They are already at a point where they can handle many interactions without human assistance.
Greater personalization is another way AI is advancing in e-commerce. Customers want a personalized shopping experience. Artificial intelligence is able to provide better data-driven product recommendations than was possible before.
There are also big ways AI is making a splash in the e-commerce backend. AI is already playing a huge role in the future of e-commerce analytics. ThoughtSpot is an analytics provider integrating AI into its data analytics platform – an AI-powered engine that uses advanced algorithms to automatically extract insights buried deep within data.
With the integration of AI into analytics tools, e-tailers can capture more and more relevant insights in much less time. This information enables more informed and timely decision-making, which in turn can drive business results.
Long story short: AI is poised to drive tremendous value at every level of online retail, from inventory to shipping, production, marketing, sales,… customer experience, etc.
4. Mobile and voice will continue to dominate
When you think of shopping, you can automatically associate that action with a store, despite the growing popularity of e-commerce.
In the same way, people still often associate e-commerce with computer shopping. The reality, however, is that mobile e-commerce is quickly becoming an equally popular mode.
Business Insider studies suggest that m-commerce could reach 44% of all e-commerce by 2024. There’s no denying the growing trend of shopping on mobile devices.
5. Subscriptions find their place
Subscription e-commerce has been around for a little while now. Most people have at least heard of subscription box services, such as Birchbox or Dollar Shave Club. But things have now moved beyond that point for subscription e-commerce.
E-commerce big dog Amazon is now offering customers discounts for purchasing items on a recurring basis. It’s a win-win situation for brands and consumers, as the steady cash flow allows brands to offer discounted prices on products.
It is more than likely that this type of subscription e-commerce will continue to grow in relevance in the future.
E-commerce is here to stay. But this way of shopping is still in its infancy. These trends will shape e-commerce for years to come.