The eCommerce sector is experiencing significant growth and is expected to undergo remarkable transformations soon. This industry has drastically altered consumer behavior, needs, and shopping habits, generating over 1100 billion US dollars in global sales in just 25 years.
Revolutionary technological advancements, personalized options, policy shifts, and seamless integration with cutting-edge solutions are driving the eCommerce industry forward. Integrating online and brick-and-mortar selling strategies maximize the benefits of both channels.
Here we will discuss the Future Ecommerce Trends that will shape the evolving landscape of the eCommerce sector for years to come.
The Rise Of Online Shopping
Ecommerce has seen a steady rise in sales worldwide, revolutionizing the retail industry over the past 25 years. According to Statista, sales are projected to increase from $1.3 trillion in 2014 to $4.5 trillion in 2021.
This growth can be attributed to technological advancements and changing consumer demands. Businesses are now focusing on making the online shopping experience more user-friendly and convenient, with easy-to-use websites, multiple payment options, and dedicated customer support teams. Additionally, companies are implementing stricter security measures to protect customer data.
Mobile-First Approach is The Key
Mobile shopping has also significantly increased in recent years, with more customers opting to purchase products and services through their smartphones and tablets. Online retailers are now adopting a mobile-first approach to keep up with this trend. By 2022, mobile is predicted to account for over 50% of online sales.
(Number of monthly active users in millions on shopping apps - USA)
B2C Businesses May Enter B2B
Another trend in e-commerce is the rise of B2B eCommerce, which is outpacing B2C eCommerce. B2B eCommerce involves wholesale distributors selling goods to other businesses, and it minimizes the need for manual processes through an online sales portal.
A recent study by Forrester predicts that US B2B eCommerce will reach $1.8 trillion by 2023, with a compound annual growth rate of 10% over the next five years. This presents a significant opportunity for online merchants to enter the B2B market and provide a seamless purchasing experience for customers by leveraging enterprise digital experience services.
Omnichannel retail is a modern sales approach aiming to provide customers with a unified shopping experience with enterprise eCommerce development. This approach involves promoting and selling products on multiple channels, including e-commerce websites, marketplaces, and even offline.
This blurs the distinctions between physical and online channels, giving customers more opportunities to learn about products and services and increasing sales and brand recognition.
Online retailers should strive to provide a consistent and seamless customer experience across all channels. Customers may visit multiple channels while shopping, starting on one channel and completing their purchase on another. Various marketing strategies have adopted the Omnichannel retail approach to boost e-commerce businesses.
Voice shopping is becoming increasingly popular among next-generation online buyers. It is estimated that by 2022, more than 50% of all searches will be voice-driven. Major companies such as Amazon, Alibaba, and Walmart have already introduced voice shopping for online groceries. Voice searching is predicted to reach $40 billion in the US by 2022.
More than 30% of US internet users have used a voice assistant to look for product information or make purchases. As a result, many online retailers are integrating voice commerce into their businesses, making it easy for customers to purchase products using their voices. The trend toward voice shopping is expected to increase in the coming years, making the purchasing process more seamless and efficient.
Social Media x Online Shopping
Social media has evolved beyond being just a means of connecting people. In addition to promoting products or services, it allows retailers to sell their products directly through features such as the Buy Button on Facebook or Instagram Checkout.
For many consumers, social media is a business's initial point of contact. They prefer to read reviews from real users and are more likely to purchase products from brands they follow. The use of social media has the potential to increase eCommerce sales by 71%. It is a powerful digital marketing tool to drive sales and customer loyalty.
E-commerce owners can also leverage the power of social media influencers to expand their brand's reach. Social media exposure can continuously influence the audience to connect with a brand. As the number of social media users and influencers continues to grow, online retailers need to develop better social media marketing strategies to capitalize on these opportunities
Integration of Artificial Intelligence (AI)
Another trend in e-commerce is the increasing use of artificial intelligence (AI) tools. Integrating AI technology into their businesses allows e-commerce companies to analyze store data and customer behavior more efficiently. Additionally, AI can enhance the customer experience through features such as visual search, personalized recommendations, and voice assistants.
As a result, online businesses are expected to spend over $7.3 billion on AI by 2022. In fact, a recent study by Business Insider suggests that chatbots will manage over 85% of customer interactions in 2020. Many e-commerce business owners are already using AI tools to better understand their clients, generate leads, and improve the overall user experience.
Headless eCommerce is becoming increasingly popular among store owners as it simplifies tasks. It utilizes two different technologies: the front end and the back end. The front end focuses on maximizing the use of the content, while the back end efficiently manages the business operations
With headless eCommerce, the front-end and back-end of the eCommerce platform are separated. For example, when a customer clicks on the "Buy Now" button, the store immediately sends a request to retrieve information from the back end. This is the typical process in traditional eCommerce. However, with headless eCommerce, the transaction is faster as it uses API to retrieve the information.
There are several advantages for online merchants using headless eCommerce, such as the ability to use modern technology to create faster and more engaging websites, being familiar to web developers, having control over the site structure, and being able to implement successful marketing campaigns without disrupting the back-end eCommerce operations.
It also tends to cost less for customer acquisition and retention and has a higher conversion rate than traditional websites and eCommerce platforms. Additionally, it is compatible with open-source applications, which enhances expandability.
Subscription Models To Rule
Finally, subscription-based business models are becoming more popular among eCommerce customers as they provide a sense of control over spending and make it easier for eCommerce owners to onboard new users and keep them coming back.
This model involves charging customers recurring fees monthly or yearly to access a product or service rather than requiring a one-time payment. This allows customers to use the product for a specific time and then decide whether to extend the subscription.
Many times, it’s tough to predict market trends. However, patterns emerge to tell you a story when you go by the numbers. The same is the case with B2C e-commerce in 2023. The upcoming times point us toward the rise in online shopping, mobile-first approach, omnichannel marketing, voice-assisted shopping, and so on.
Social media will also play an important role in e-commerce for B2C, along with AI, AR, headless CMS, and subscription models.