The eCommerce industry is evolving at a breakneck pace in 2024. With rapid advancements in technology and changing consumer demands, businesses must stay ahead. Understanding these changes is crucial for anyone involved in the eCommerce industry. This article explores the top trends shaping the eCommerce industry in 2024. From AI in eCommerce to omnichannel retail, we will cover essential trends and innovations.
Artificial Intelligence for Personalization
Artificial intelligence (AI) is transforming the eCommerce industry. AI simulates human intelligence using computer science and big data. Business owners can train AI to adapt to consumer behavior, resulting in personalized experiences.
Personalization is a top area where businesses implement AI. It tailors the user experience based on consumer behavior. A survey found that 80% of consumers are more likely to return if a company provides a personalized shopping experience.
At a compound annual growth rate (CAGR) of 23.67%, the global personalization software market is expected to surge over $5 billion by 2030. This is a significant jump from $943.25 million in 2022. For example, Starbucks combines AI and machine learning to offer top-notch personalization. Starbucks tracks customer data on its mobile app to generate unique offers in real-time.
Overall, AI in eCommerce is promising. By 2027, the global AI market is projected to reach $407 billion. Another study reveals that 91.5% of leading brands continuously invest in AI.
Hybrid Commerce
The future of eCommerce is phygital. This blend of online channels and physical retail experiences is known as hybrid commerce or omnichannel retail. It integrates multiple channels to provide a seamless experience.
A simple way to conduct omnichannel retail is by implementing click-and-collect. Also called buy online, pick up in-store (BOPIS), this service lets customers check out online and collect purchases in-store. The convenience of online shopping, quick in-store visits, and zero shipping charges have grown the click-and-collect trend. Its value is projected to surpass $154 billion by 2025. Leading retailers like Walmart, Target, and IKEA offer this service.
Additionally, research online, purchase offline (ROPO) behavior has increased. Consumers prefer seeing and touching products before buying. Furthermore, eCommerce business owners can opt for progressive web apps (PWAs). PWAs act like native apps compatible across devices and browsers. They optimize mobile shopping experiences.
Even if you have a robust eCommerce app or site, consider offering products on online marketplaces. By 2025, global online marketplace sales are projected to reach $8.8 trillion at a 20% CAGR. Omnichannel retail enhances the customer experience, leading to higher order rates.
Augmented and Virtual Reality
Augmented reality (AR) and virtual reality (VR) are revolutionizing the eCommerce industry. The AR/VR market size, growing at a ten-year CAGR of 41.1%, is expected to reach $856.2 billion by 2031.
AR integrates the real world with computer-generated visuals and sounds. VR, on the other hand, simulates a real environment using a special headset. Many eCommerce brands adopt AR and VR to offer immersive shopping experiences. According to a survey, 71% of consumers would shop more if a business used AR. Companies using AR/VR content have a 94% higher conversion rate.
IKEA is a pioneer in using AR. The IKEA Place mobile app lets customers view digitally-reproduced 3D product images in their homes. Users can see if a furniture piece fits nicely in a room with their mobile devices.
Customer Relationship Management
Customer relationship management (CRM) is crucial in the eCommerce industry. CRM includes tools and strategies to manage customer interactions. A great CRM strategy is essential because 92% of customers would abandon a business after two or three negative interactions.
CRM helps businesses understand customer needs and behavior better. This strengthens relationships and builds a loyal customer base. The CRM market size is expected to hit around $128 billion by 2028. Over 91% of companies with 10 or more employees use CRM to manage customer conversations.
Loyalty and reward programs are excellent CRM strategies. The North Face’s loyalty program, XPLR Pass, lets customers earn points through several actions. Loyalty members can access exclusive products, birthday gifts, and field testing.
CRM will continue to be a top strategy for improving customer engagement. Therefore, investing in a CRM tool is great for an eCommerce business’s growth.
Customer Support as a Priority
Customer support is always essential in every business. Issues with products or services can turn away customers. Ultimately, a company must offer quality assistance. 81% of customers believe a positive support experience encourages repeat purchases. Reply time is essential. 60% of customers agree that 10 minutes or less is the benchmark for immediate response time.
The demand for instant interaction is why live chat has become the preferred communication channel. 41% of consumers choose live chat over phone, email, and social media support. Despite this, many businesses now utilize customer service chatbots.
The global chatbot market is forecasted to reach $3.99 billion by 2030. Chatbots streamline the customer journey from acquisition to retention. For example, Uniqlo IQ provides customer service and helps users select items based on recent purchases and occasions.
Adding chatbots to eCommerce sites is relatively easy. If you’re a WordPress user, Tidio, IBM Watson Assistant, and WP Chatbot Plugin are some of the best AI-driven chatbot plugins.
Social Commerce
Social media is an effective retail sales channel. It maximizes mobile shopping. A study shows that mobile devices share 80% of social media traffic. 79% of smartphone users have made a purchase using their mobile devices.
Social media commerce sales are expected to triple by 2025, reaching $1.2 trillion. Moreover, global social network users are projected to reach almost six billion in 2027. eCommerce businesses should take advantage of this trend. 75% of users use social media platforms to research products.
Selling from social media channels is cost-effective. Business owners can integrate influencer marketing and live shopping to boost sales. Influencer marketing helps attract new customers with lower costs. For every dollar spent, it generates a return of $5.78. 80% of consumers have purchased products based on influencer recommendations.
Business owners can also utilize live shopping features on social media channels. Live online shopping lets sellers showcase products in real time. This creates an interactive experience and builds customer trust.
Subscription Models
The subscription model is a leading trend in the eCommerce industry. It offers a practical solution for recurring expenses. The subscription market is growing exponentially at a 71% CAGR. It is estimated to surge over $2 trillion by 2028.
Various products come as subscriptions, from streaming services to monthly clothing deliveries and meal kits. HelloFresh, for instance, has attracted over seven million customers worldwide with its customizable plans. 70% of business leaders agree that the subscription model plays a vital role in eCommerce growth.
To reduce subscription churn, offer special perks such as free delivery and lower prices. Maintaining good communication with customers is also crucial.
Headless Commerce
Headless commerce is a next-generation eCommerce solution. It decouples a website’s front and back ends. Using APIs, headless commerce can deliver content to any front-end framework.
Consumers can browse and purchase through IoT devices like smart speakers. Headless commerce unifies all shopping experiences, increases flexibility, and opens new sales possibilities. It also streamlines omnichannel retail.
More businesses are adopting headless commerce. 82.91% of business owners saw improvements after adopting a headless system. Headless architecture is undoubtedly future-proof in the eCommerce world. Consider migrating to a headless CMS like Sanity.io or Strapi.
Flexible Payment Options
Offering multiple payment options is crucial in the eCommerce industry. Mobile payment solutions are among the top trends worldwide. In 2021, digital or mobile wallets accounted for 49% of global eCommerce transactions. This figure is expected to reach 53% by 2025.
Payment methods’ popularity varies by region. For instance, South Korea favors credit cards, while Thailand prefers bank transfers. Buy now, pay later (BNPL) lets customers pay for products in installments. BNPL is projected to account for $680 billion in transaction volume by 2025. It improves customer experience and reduces the cart abandonment rate by 35%.
Voice and Visual Searches
AI advancements have made visual and voice searches possible. These AI-powered systems use machine learning and NLP to determine search intent. Visual search lets shoppers use images to conduct searches. It is forecasted to grow at a 17.5% CAGR, reaching over $32 million by 2028.
While 62% of millennials and Gen Z want to use visual search, only 8% of brands offer it. ASOS’s Style Match feature lets visitors upload a photo of an item. It then generates a list of similar products.
Voice search lets people multitask, saving time. Around 47% of shoppers use voice commands to make purchases. The voice search market is estimated to grow at a 23.7% CAGR, reaching $49.79 billion by 2029.
Conversion Rate Optimization
Conversion rate optimization (CRO) encourages site visitors to buy products or sign up for newsletters. CRO is customer-centric. Business owners should optimize every customer touchpoint. For instance, websites with over 30 landing pages yield seven times more leads.
Conducting usability testing measures a CRO strategy’s performance. The A/B test assesses the responsiveness of different webpage versions. Statistics reveal that 60% of companies implement A/B testing. The CRO software market is growing at an 11.6% CAGR.
Marketing Automation
Marketing automation enables businesses to automate routine tasks. It gathers and analyzes customer data to create personalized messages. This improves customer engagement and
conversion rates. Marketing automation is growing at a 12.8% CAGR, anticipating $9.5 billion by 2027.
It saves more than six hours a week. 40% of marketers plan to implement automation in their email campaigns. The algorithm helps reduce cart abandonment by pushing automated emails. These emails encourage customers to complete checkout.
Fast and Free Delivery Options
Customers expect fast deliveries. 62% of online shoppers expect free shipping within three business days. Affordable shipping is another trend. The Jungle Scout Consumer Trends report reveals that 72% of US shoppers seek products with low shipping prices.
Shipping satisfaction is declining. Consequently, business owners should strategize efficient shipping systems. Amazon sets a great example with its global inventory warehouses.
Zero-Party Data
Data privacy is a growing concern. 86% of consumers care about data privacy. Apple’s App Tracking Transparency and Google Chrome’s end of third-party cookies support this. Collect zero-party data directly from customers. Quizzes, polls, and registrations are effective methods. Zero-party data improves engagement and customer experience.
Sustainable Online Shopping
Sustainability is a significant concern for consumers. By 2030, CO2 emissions from freight shipping may amount to 25 million metric tons. 52% of consumers value sustainability more post-pandemic. Green commerce is a rising trend. Consumers prefer sustainably packaged products.
Thrive Market is an excellent example of a sustainable eCommerce business. It offers ethically-sourced products in carbon-neutral packaging. Opt for eco-friendly packaging to introduce brand sustainability.
Conclusion
Staying updated on eCommerce industry trends is essential for success. AI plays a huge role in driving growth. Omnichannel retail enhances customer experience. AR and VR offer immersive shopping experiences. CRM and marketing automation improve engagement. Flexible payment options and fast deliveries meet customer expectations. Sustainability is becoming more important.
Understanding and implementing these trends ensures a competitive edge in the eCommerce industry.
Click here to read our latest article Transform Your Financial Future
This post is originally published on EDGE-FOREX.
