E-commerce is a constantly evolving industry that is expected to total 6 trillion on a global scale. By 2024, 21.2% of sales will happen online, according to stats.
Starting as early as the 1970s with the emergence of teleshopping services, e-commerce gradually grew along with technology and the internet to reach this stage.
With the commercial use of the internet, e-commerce began to take shape and Amazon was the first e-commerce company to have initiated in the 90s decade. It was followed by the auction site eBay and Etsy at the beginning of 21st century where consumers could buy and sell online.
As mobile phones became a necessity, mobile commerce, helping people make transactions via mobile phones, gained traction with the help of newfound technology.
One of the primary reasons for this evolution is means of communication or touchpoints and increasing demand for products. As means of communication multiplied, so did marketing strategies that observed different methods for the varied communication channels.
Product reviews are one of the popular channels used to market the products and services offered by retailers.
The 2020 decade saw the supercharged growth of gamified marketing along with an emerging hyperactive Gen Z. This trend which saw the daylight in recent years will continue to enhance e-commerce experiences for consumers through personalized marketing strategies.
E-commerce trends in the coming years will leverage the following global change in circumstances and the strengthening of technology.
Keep reading about the recent trends.
E-commerce Trends to Know in 2024
There are three reasons why e-commerce keeps changing.
- Convenience
- Personalization
- Sustainability
Prioritizing these to provide the best customer experience and align company goals with global goals, e-commerce adapts to changing situations.
Trends show up when there is a need to adapt and drive important results for any company’s growth.
E-commerce trends are centered mainly around these factors.
- APAC Shopping Marathons
Asia and Pacific regions have diverse cultures and special occasions that reflect their collective identity. Seasonal sales are viral in the e-commerce industry because that’s when there’s a demand for products and services.
Customers flood in when the sales go live and marketers strategically entice customers using discounts and rewards.
Seasonal sales have now changed to peak shopping marathons happening every month due to the many occasions.
According to customer insights published by Google, a change in strategy is needed as purchasing behavior has changed in the post-COVID world. Along with discounts, behavioral levers can be used to drive sales. Customers tend to drop a product purchase due to distrust and lack of confidence in buying the product.
To successfully increase conversion, the following points are highly recommended by experts.
- Setting up strong social proofs through reviews
- Fast delivery, in-store collection, and free returns
- Authority bias for building brand reputation
- Category heuristics with authentic product descriptions
- Power of free – helps audience make a purchase confidently
- AI and Machine Learning
AI and Machine Learning are said to be revolutionizing e-commerce by personalising customers’ whole experience. Brands collect data on their purchasing behavior to predict purchasing circumstances and give what the customer may need.
They settle to increase customer engagement with the brand through various touchpoints and help customers make an informed decision. It also benefits the brand by gaining visibility and time spent on a website.
Every element of the multiple-channel or omnichannel method is strategically devised to provide a hassle-free experience for the customer.
Chatbots are used to engage with customers and guide them at every stage of their purchasing journey, while also helping them choose the right product.
Voice search is another trending feature in e-commerce that prioritizes customer’s convenience. It helps them make quicker searches that don’t require the efforts of manual typing and learning complicated technology.
- AR and VR
Taking it a step ahead, brands use Augmented Reality and Virtual Reality experiences for consumer benefit who seek products that well suit them.
The immersive experience aims to provide exactly what’s best for the customers.
They enhance the user experience equal to that of a brick-and-mortar store experience.
AR and VR present a possible scenario in a real or simulative experience. Brands leverage it to help customers try on tangible products like apparel, accessories, and furniture virtually.
- Social Commerce
43% of APAC shoppers refer to social media before making a purchase. Platforms like Instagram, Facebook, TikTok, and X are used to promote a product and increase brand awareness.
As customers are becoming highly vigilant when it comes to quality, they rely on social media to check the authenticity of a brand. This necessitates brands to have a proper social presence as reviews are being posted online everywhere.
Social commerce will pick up in 2024 as omnichannel connections keep increasing.
- Mobile Shopping
In the year 2023, 43.4% of purchases were made using mobile phones. Online purchases made through mobile phone transactions are referred to as mobile commerce or m-commerce.
This trend will continue as people’s mobile phone usage keeps increasing exponentially, particularly in shopping experiences.
People prefer shopping via mobiles over desktops and this is an important cornerstone for e-commerce companies to build a group of customers and provide customized experiences.
- BOPIS and ROPO
BOPIS is short for Buying Online and Purchasing In-store and ROPO for Research Online and Purchase Offline.
Both of these methods have a common ground: it is to bring in-store experience and heighten customer convenience.
This way, consumer preferences are widely considered and every group gets what they want. But it also places them in competition with online stores and offline stores.
This is here to stay and other benefits include speed and avoidance of shipping costs.
- Sustainability and Ethics
Customers are highly becoming aware of product quality through reviews and community-based interactions.
They also look for authentic sources and go to the lengths of educating themselves before buying a product. They began to pay attention to brand values and how they contribute to global welfare.
This heightened awareness largely through social media encourages brands to take sustainable practices such as using recyclable packaging. They are deploying sustainable and ethical practices in their workplace and production process. For instance, brands that offer snow camo products are increasingly aligning their values with sustainability, appealing to eco-conscious consumers.
Emphasis on the size of the company is becoming less as SMBs with authority and a valuable ecosystem are being preferred by customers.
Conclusion
E-commerce and its variants like social commerce and m-commerce are becoming the future for retailers to scale their businesses. It is primarily through omnichannel communications that provides space to promote products and understand consumer needs.
The aforementioned trends are already under implementation and will proceed to increase scalability. Experts agree that following these trends may keep businesses afloat and propel them forward in the sea of competition.
FAQ
How can e-commerce be sustainable?
- Sustainable packaging and shipping practices through recyclable invoices, and checking carbon footprint emission
- Including sustainability in company goals
- Reducing return rate
- Reduce energy waste in warehouses
Is e-commerce the future of retail?
- While the majority prefer shopping from online e-commerce platforms, a set of people still prefer in-store experiences which can be accommodated through BOPIS and ROPO options. Data shows these options are made available without leaving anyone out.
- The future of retail is filled with tech advancements and multiple-channel operations.
