The year 2024 marks a turning point in ecommerce, driven by technological advancements and shifting consumer expectations. AI and changes in consumer behavior fuel the ecommerce transformation, presenting companies with new opportunities and challenges. As a result, several trends in ecommerce are emerging, some of which began years ago but are now gaining momentum thanks to recent technological innovations that are having a major impact on online shopping.
Mobile Commerce
Mobile commerce has become one of the significant trends in ecommerce over the last ten years, thanks to the widespread use of smartphones. By 2027, mobile commerce is expected to account for 62% of all ecommerce sales, with U.S. retail sales predicted to surpass $710 billion. This highlights just how important mobile devices are for online shopping. For retailers, adopting a mobile-first strategy is a great way to stay ahead and meet customer needs effectively.
The Importance of Mobile-Responsive Sites
Mobile commerce has become a fundamental part of the shopping process. To ensure success, it is critical that your ecommerce site provides a consistent and frictionless experience across various mobile devices. This means your site should be mobile-responsive and optimized for smaller screens, making it easy for users to access and navigate the layout, content, and navigation.
The One-Click Ordering Trend
One-click ordering is another one of the growing trends in ecommerce. Thanks to the omnipresent nature of mobile devices, consumers can shop anywhere and anytime. The combination of portability and constant internet connectivity allows consumers to shop on-the-go. It could be during their daily commute, while waiting in line, or on their lunch break.
Mobile Commerce Drives Personalization
Mobile commerce is important for personalization. The key to this lies in the wealth of information stored on mobile devices. These devices hold user information such as location, browsing history, and preferences. The vast amount of user data makes it possible to offer targeted recommendations and promotions.
Advancements in Mobile Payment Security
Mobile payment solutions, like digital wallets, make online shopping easier and more secure. They help increase sales by offering a safe and convenient way to shop on mobile phones. By leveraging biometric authentication methods, such as fingerprint or face recognition, these systems provide an added layer of security and ease of use.
The Impact of Mobile Technologies on Modern Ecommerce
Mobile technologies are having a big impact on ecommerce. For instance, mobile phones are driving innovation in voice commerce, allowing users to shop using voice commands with virtual assistants like Siri and Alexa. Marketers connect with customers more effectively by using mobile technologies, sending personalized reminders about limited-time sales, new products, or items left in their shopping carts.
Achieving Seamless Omnichannel Integration
Innovations in mobile technologies also allow for seamless omnichannel integration. Modern shoppers can start their experience on one device and continue it on another. They can buy on-the-go and pick up their items in the store.
Social Commerce
Many mobile commerce platforms are integrated with social media, fueling another one of the biggest trends in ecommerce – social commerce. This allows users to discover and purchase new products directly within social media apps.
Social commerce offers a low barrier to increase brand awareness and grow an audience. It’s expected that around 110.4 million people will shop via social channels in 2024. The leading platforms in this space are Instagram, Facebook, and TikTok. Additionally, social commerce is projected to reach a global value of USD 1.2 trillion by 2025.
Young customers particularly appreciate social commerce. This makes sense, given that young people are the core audience of social media platforms.
Major Trends in Social Commerce
One-Click Checkout
Features like one-click checkout and live shopping foster real-time engagement and offer a frictionless buying experience.
One-click checkout makes it simple for customers to finish their purchases with minimal effort. Since user information is safely stored, shoppers don’t have to enter the same details over and over again.
Live Shopping
Live shopping combines commerce with live video streaming. This allows brands to showcase products while chatting with shoppers and getting quick feedback.
Live shopping is a huge trend in ecommerce, especially in China, where it’s spreading across Southeast Asia. It started in China in 2016 with Alibaba and is projected to bring USD 77.89 billion globally by 2030.
Western countries are also following this ecommerce trend. Amazon introduced its livestream functionality in 2019 through Amazon Live. In the US, live shopping is forecasted to bring in $68 billion by 2026.
How Live Shopping works?
Live Shopping is similar to the traditional teleshopping experience.
- The influencer or celebrity host showcases products in real-time.
- They answer viewers’ questions and offer special discounts through a chat client.
- Viewers can purchase the showcased products directly on the streaming platform using digital wallets.
Why Live Shopping is So Popular?
Video provides a deeper understanding of products, making it an important medium for product discovery. A vibrant product video is rich in information and useful for customers. Most shoppers are convinced to buy a product after or during a live session. As a result, video product viewing is becoming an integral part of the online shopping journey.
Social and Community Aspect
Social commerce is transforming. It helps people discover products, reach new markets, and build connections. It creates a sense of community and connection among customers. Social media provides engaging, authentic experiences, and these experiences are essential.
The Benefits of User-generated Content for Ecommerce Businesses
For online shoppers, especially younger generations, authenticity is key. They look for unsponsored product reviews and word-of-mouth recommendations. In fact, more than half of consumers use online search and product reviews to make purchase decisions.
Social platforms drive the rise of user-generated content, which greatly influences shoppers’ buying decisions. This type of content can be used on product pages, in ads, and for product development. The best part is that this type of content is cost-effective for brands. For instance, user-generated videos can effectively highlight the functions and features of complex products.
User-generated content is vital for brands as it adds credibility, authenticity, and social proof to their marketing efforts. By providing feedback and reviews, users showcase real customer experiences, moving away from generic descriptions and professional photography.
Buy Now Pay Later
Today, consumers want payment options that are both flexible and secure. One popular choice is Buy Now, Pay Later, which lets online shoppers buy a product without paying for it right away.
This ecommerce trend is growing rapidly. In 2022, the market grew to an impressive $6.13 billion USD, and global transactions have already exceeded $200 billion USD.
Buy Now Pay Later Can Reduce Cart Abandonment Rates
Because of this rising interest, ecommerce companies should consider adding a Buy Now, Pay Later option at checkout. . This can help reduce cart abandonment rates, since a recent survey showed that nearly 13% of online shoppers will abandon their carts if they don’t see enough payment options.
Why More Shoppers are Choosing Buy Now Pay Later in Ecommerce?
Buy Now, Pay Later offers many advantages, especially for young customers who want to buy expensive items, such as laptops or smartphones, in small, manageable installments without any extra interest.
When customers check out, they usually pay the first installment upfront. Then, the remaining balance is automatically deducted from their debit or credit card, or bank account, until the full amount is paid. Most shoppers will find it more affordable to buy expensive products by breaking their payments into several equal amounts over the next few months.
Strategies for Responsible Spending with Buy Now Pay Later Options
Buy Now, Pay Later can be a powerful way to drive sales, especially for pricey items. It increases the average amount spent on each order, which means more revenue for online retailers. By letting shoppers delay payment, BNPL encourages them to spend a bit more than they normally would.
However, retailers must exercise caution when implementing BNPL, as it can sometimes contribute to higher consumer debt. People who use BNPL may also be more likely to rely on bank overdrafts, payday loans, and other high-interest financial products.
To mitigate these risks and promote responsible spending, online retailers should consider the following strategies:
- Establish clear eligibility criteria for BNPL users, taking into account their credit history and financial situation. This can help prevent over-reliance on BNPL and reduce the likelihood of debt accumulation.
- Provide transparent repayment terms that are easy to understand, including the total cost of the purchase, the repayment schedule, and the consequences of missed payments.
- Set a reasonable spending limit for BNPL customers to prevent excessive debt.
Subscription-Based Models
The trend of subscription services in Ecommerce is booming and is expected to reach $1.5 trillion by 2025. It offers a convenient way of shopping, providing customers with peace of mind through regular delivery via recurring product purchases.
Subscription Services: A Trend in Ecommerce Across Industries
The subscription model has gained immense popularity across various industries, particularly in those that offer commoditized products.
- Online retailers offering curated or boxed products adopted the abo model, which their product offerings naturally support. Since these products encourage repeat business, a subscription model is a logical choice.
- In the automotive industry, companies are exploring different subscription models. This change comes as consumer behavior shifts from ownership to usage.
- In Healthcare, we see various subscription plans that offer preventive care services for a flat fee.
- Beauty and Personal Care brands are also embracing subscriptions. They make it simple for customers to receive their favorite beauty products on a regular basis.
- In Publishing and Media, subscriptions have become a primary revenue source as traditional advertising income declines.
- Education Platforms are adopting subscriptions too. They sell their products online on an abo basis, giving users unlimited access to their resources.
- Food and Beverage companies use the subscription model to cater to the busy lifestyles of individuals who lack the time to shop for groceries themselves.
How Subscription-Based Models Enhance Retailer Growth?
Predictable Revenue Streams
Online retailers can expect two key benefits: predictable revenue streams and reduced churn. The abo-commerce model is practical, easy to scale, and helps companies manage their cash flow more effectively.
Customer Engagement and Loyalty
The abo-commerce helps brands collect first-party data, which helps them personalize experiences, identify trends, and test new products. When brands use data-driven insights to create engaging programs, they win customer loyalty.
Retaining existing customers is important, and abo-commerce can help keep them loyal. The subscription model offers creative ways to promote customer loyalty, such as exclusive discounts, personalized support, and early access to new product launches.
Opportunities for Upselling
Tiered pricing allows customers to choose the plan that best fits their needs and budget. A basic plan might offer limited features at a lower price, while standard or premium plans provide more features and opportunities to sell additional items. Online retailers can increase revenue by adding extra features, exclusive access, or personalized services to their higher-priced plans.
Why Shoppers Prefer Subscription-Based Models in Ecommerce?
Time-Saving Convenience
Subscriptions save time by automating regular purchases, reducing the need for frequent store trips or repeat buying on ecommerce stores.
Cost Savings
Many subscription services offer discounts compared to one-time purchases, making them financially appealing.
Same Day and On-Demand Delivery
Today, customers are demanding speed more than ever, which is why same-day and on-demand delivery trends in ecommerce are on the rise.
Same-day delivery means customers can get their orders on the same day they make the purchase.
On-demand delivery gives customers the flexibility to choose exactly when and where their order is delivered.
The Importance of Quick Commerce
These trends in ecommerce highlight the growing importance of quick commerce, or q-commerce. This term refers to delivery practices that promise ultra-fast delivery times, often from just minutes to an hour.
How Ecommerce Companies Are Responding to Customer Demands for Faster Service?
The stakes are high, and ecommerce companies are responding by investing massively in automation and robotics. This typically means setting up local fulfillment centers, developing advanced logistics, and fine-tuning inventory management.
Optimizing Logistics Centers
Optimizing the efficiency of logistics centers is also critical. By streamlining the picking and packing process, warehouses can minimize the time workers waste searching for items, allowing them to assemble orders in record time.
Urban Demand for Quick Commerce
The growing demand for quick commerce is largely driven by urban areas, where busy customers expect fast delivery of groceries, apparel, and electronic items.
To keep up with this ecommerce trend, it is essential to have small, strategically located fulfillment centers in these busy city areas, close to the end consumer. By being closer to the consumer, these centers reduce logistics costs and delivery times. They serve as local distribution hubs, typically not open to the public and designed solely for rapid order fulfillment.
The Role of Local Hubs
These local hubs are a must-have for quick commerce, as they support product storage and rapid dispatch with minimal delay. To keep this process flowing, having advanced inventory management systems is essential to ensure products are always in stock and ready for quick shipping.
Benefits for Ecommerce Businesses
Reduced Cart Abandonment Rate. Over 25% of online shoppers will abandon their cart if items can’t be delivered within 24 hours. By offering this option at checkout on your online store, you’ll close more sales.
Improved Efficiency. On-demand delivery can reduce failed delivery rates since customers can direct the courier to a specific alternative location if needed.
Advantages for Online Shopper
Convenience. Customers get their orders quickly, at a time and place that work for them. Plus, they stay informed with real-time tracking and status updates.
Flexibility. With on-demand delivery, online shoppers can change their delivery options if something unexpected happens on the delivery day.
Challenges of Implementing Quick Delivery
Implementing same-day delivery or on-demand delivery adds complexity to your ecommerce operation. You need to think about the cost, your geographical reach, and your technology options.
- Partnering with third-party logistics can be a smart move, as you can tap into their existing infrastructure and leverage their expertise.
- Choose technology that is compatible with your IT infrastructure and improves your operations. This helps you manage your order process and optimize routes efficiently.
- Use data analytics to forecast demand, which helps you optimize your inventory.
- Provide different delivery options to cater to various customer preferences.
The Impact of Sustainability on Current Ecommerce Trends
Sustainability is one of the growing trends in ecommerce, as shoppers become more environmentally conscious. It is fascinating to observe that over 70% of shoppers are willing to pay more for sustainably produced goods.
The Shift Towards Quality and Ethics
Today, most consumers are looking for high-quality, durable products, and the “slow living” trend promotes a sustainable and relaxed pace of life. Therefore, ecommerce brands must be transparent about their supply chain and prioritize sustainable practices.
This shift is especially strong among younger shoppers. Many Gen Z and Millennials really favor brands that practice ethics and care for the planet. In fact, 57% of them put sustainability first when it comes to fashion and apparel. This makes eco-friendly practices essential for attracting customers who care about the environment.
Eco-Friendly Trends in Ecommerce
Sustainability addresses the environmental impact of the abundance of items created, shipped, and discarded daily. Ecommerce firms should pay attention to this trend and create strategies that support sustainability. Doing so can help reduce the environmental footprint, ensure compliance with local regulations for global traders, and ultimately enhance brand reputation.
Green Packaging Trends in Ecommerce
Sustainable Packaging is crucial to promoting environmentally friendly consumption habits. To achieve this, online retailers should adopt packaging materials that are 100% recyclable, biodegradable, and reusable, such as cardboard, paper pulp, or plant-based bioplastics.
Green Delivery Solutions
Online businesses can invest in electric or hybrid vehicles and green technologies for last-mile delivery, significantly reducing emissions and air pollution in urban areas. This strategic move will not only minimize the environmental impact of their operations but also enhance their brand reputation and appeal to eco-conscious consumers.
Efficient Stock Control in Ecommerce
Effective ecommerce inventory management is important for streamlining inventory operations and reducing waste. By implementing a just-in-time inventory system, businesses can minimize excess production, reduce inventory storage needs, and lower the environmental impact of their operations.
Re-Commerce: A Sustainable Trend in Ecommerce
Re-Commerce is an emerging trend in ecommerce, driven by consumers’ growing demand for sustainable and affordable shopping options.
What is Re-Commerce?
Re-commerce refers to the practice of selling used items, such as fashion, shoes, and more. Before being sold, these items are checked, cleaned, and repaired if necessary to ensure they are in great condition. This meticulous process lets consumers buy high-quality products at lower costs. It also reduces waste and promotes sustainability.
Resale Market Trends Driving Ecommerce Growth
Today, many shoppers view resale items as status symbols. In fact, the resale market in the US is expected to grow to an impressive $70 billion by 2027.
There is also a growing presence of secondhand, rental, and resale online marketplaces. The fashion second-hand apparel resale market alone reached $33 billion in 2021. This rise in popularity comes from various factors, including the increasing cost of living and a strong interest in sustainability among younger shoppers.
Strategies for Success in Re-Commerce
In response to a growing demand, many global brands are opening resale stores and encouraging customers to bring in their used items, fostering a culture of recycling and reuse.
To thrive in the resale market, ecommerce brands need to scrutinize their supply chain to find ways to make it more efficient and sustainable. Additionally, having effective inventory and order management systems will play a key role in their success.
Benefits of Integrating Re-Commerce in Online Retail
- Customers will feel more connected to the brand, leading to greater loyalty. They can engage with the brand by using a marketplace to resell their used items.
- This approach promotes sustainability, which is becoming increasingly important in ecommerce. By supporting re-commerce, brands help advance circular economy initiatives.
- Brands can reach new customers, especially younger generations. This popular trend can attract a fresh audience eager to join in.
Notable Examples of Re-Commerce
Many established brands have turned to re-commerce:
- Nike Refurbished: Sells refurbished Nike shoes at a lower cost.
- IKEA Second Chance Market: Offers used furniture and other items for sale.
- Amazon Second Chance: Sells used products at lower prices, often in “like new” condition.
- Samsung Re-Newed: Offers certified refurbished Samsung smartphones and tablets.
Final Thoughts
Increased competition from global retailers and small online stores will force ecommerce companies to innovate their operations, rethink their offerings, and reassess their business strategies.
To stay ahead, it is important to keep an eye on the latest trends in ecommerce and see how they fit into the company’s goals and vision. Whether it is subscription, social commerce, or sustainability, ask yourself how these trends align with your ecommerce strategy and if it makes sense for your business. If so, explore ways to integrate them, making sure your brand stays consistent throughout the process.
Photo: @fizkes via Adobe Stock