The rise of e-commerce has seen highs and lows over the years. From changes in technology to rising costs, every customer has been affected by different economic factors throughout history. By looking at it and getting insight from the experts, we can aim to predict the future of e-commerce.
Indeed, e-commerce is a great example of the marketplace’s fluidity. Global online sales reached a record high during the pandemic. However, overall retail sales in the US decreased from $5.47 to $4.89 trillion, which represents a 9% decline.
Nowadays, experts agree on the future of e-commerce is shaped by a number of relevant factors, including the rise of mobile devices, artificial intelligence, and blockchain technology.
Any e-commerce business owner will need to adapt to such technologies and constantly improve online business. For that, this article features the vision 5 e-commerce experts who reveal predictions about the future.
How is the industry growing? A deeper look at the future of e-commerce
The growth of e-commerce is not surprising. Social media has enabled celebrities and other prominent figures to reach larger audiences than ever before. Potential customers can purchase from their phones, anytime, anywhere.
But beyond this common knowledge, here are a few ideas to keep in mind, too.
1. Personalization will be everything
You can create a remarkable shopping experience by personalizing your online interactions beyond casual transactional contact. According to studies, personalized customer service does increase sales by as much as 80%.
Personalization in e-commerce extends beyond using clients’ names in your e-mails. To enhance the online shopping experience even further, e-commerce companies are beginning to use hyper-contextual targeting based on Artificial Intelligence (AI).
2. Greater attention to the customer experience (CX)
As online commerce continues to grow worldwide, consumers require an efficient and convenient digital experience when shopping. Brands must provide engaging experiences that follow consumers throughout their journey.
Additionally, physical stores are going through a digital revolution, too. A Shopify study found that retailers with an omnichannel strategy were able to make up 94% of lost in-store sales during the first month of the epidemic by moving their commerce to an online version. As a result, e-commerce businesses must (and will) devote more attention to such opportunities.
3. Enhanced and dynamic delivery experience
Retailers are now offering better ways to distribute their products. For grocery orders, giants like Amazon offer amazing delivery, while BOPIS and curbside pickup have grown in popularity.
Customers may these days order products online, and then pick them up from their local store without even getting out of their cars. According to a National Retail Federation study, 81% of consumers are interested in attempting this, and 43% have actually tried it before.
This will certainly be part of the future of e-commerce. Shoppers who choose to pick up their online purchases in stores spend 23% more on average than those who go with standard shipping, and they are 13% more likely to complete their transactions. Relevant numbers to keep in mind.
4. Voice commerce increases automation
E-commerce companies are experimenting with voice technology because of the high costs associated with customer acquisition. According to studies, 45% of Millennials use voice assistants like Siri, Alexa, and Google Assistant when shopping.
As an example, voice commerce in the US is expected to reach $40 billion by 2022, but most voice-based activities occur on devices like Google Home or Amazon Echo through a virtual assistant.
The future of e-commerce: expert’s advice and perspectives
The following are quotes from some of the leading experts in the field of e-commerce. Here is their insight on the future of this channel.
1. Koshi Samarasinghe, a Shopify expert
“Consumers have more power than ever, and they can use that power to choose where to spend their money. They can also express their ideals through the brands they support. According to Koshi Samarasinghe, Senior Partnerships Manager of Retail at Shopify, companies that align their values with those of their customers will be more successful.”
Prediction: Many consumers today prefer to spend their money on businesses that stand for principles they share, such as ethical production, carbon offsets, and so forth. Conscious customers seek out companies that have a purpose and use advertising to show their value to potential clients.
2. Phillip Jackson, Future Commerce
“Phillip Jackson, the co-founder of Future Commerce, a start-up that conducts retail media research, has nearly 100,000 followers for his podcast and YouTube videos. His publication Archetypes recently released its first issue to wide acclaim.”
Prediction: Consumers are growing increasingly dissatisfied with experiences directly related to e-commerce products. The gap between what they were led to expect and the actual product experience is significant.
When people buy luxury goods through direct-to-consumer channels, they are not receiving the quality that they expect. Over the next years, we’ll see a decrease in emerging e-commerce businesses due to this phenomenon, which benefits consumers overall by reducing competition for subpar products.
3. Oren Inditzky, Wix
“According to Oren Inditzky, VP of Online Stores at Wix, the continued growth of e-commerce brands both organic and paid will be powered by social commerce and shopping.”
Prediction: With its ability to reduce friction, improve interactions and offer new options for merchants to stimulate interest and drive sales, social shopping is anticipated to surpass $2 trillion by 2025. As more customers use social media for commercial transactions, brands will need to understand how these channels fit into their larger marketing strategy.
In 2023, consumers will expect brands to connect with them in authentic ways as social platforms. Of course, examples would be Instagram, Facebook, or TikTok, as they enable retailers to build native stores on their channels.
4. Krissie Leyland, Kollectify
“Krissie Leyland founded and leads Kollectify, a zero-waste digital marketing business that aids e-commerce and Shopify apps in marketing. According to Krissie, brands must communicate their sustainability plans if they wish to attract customers.”
Prediction: More people are becoming environmentally concerned and are looking for ways to live more sustainably each year. As a result, it is essential to involve the entire organization in sustainability efforts and make this clear. The future of e-commerce may soon come to an end if companies don’t start paying more attention to their environmental impact.
5. Tina Donati, Alloy Automation
“Integrations are a great way to expand your brand presence. Tina Donati, Content Marketing Lead at Alloy, shares how they integrated with several brands for the benefit of their own business growth.”
Prediction: In 2024, companies will continue to seek out ways to improve the connection between tools and platforms; this is being driven by automation trends.
More interactive content, such as clickable videos and quizzes, will also be included in emails and landing pages. Creating an intriguing approach to interacting with your subscribers is easier than ever. Additionally, you may discover a lot about your clients that enables you to market and sell more intelligently.
Why digital marketing will be relevant in the future of e-commerce?
Digital marketing is one of the most important facets of any e-commerce in the future. It has become a lifeline for online businesses due to its cost-effectiveness and targeted audience. Every company may increase revenue by utilizing digital marketing instead of traditional brick-and-mortar advertising.
In today’s digital world, digital marketing techniques that attract potential customers will be a key strategy to succeed.
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Highlights on the future of e-commerce experts agree
According to the experts, the future of e-commerce revolves around providing customers with a great experience. Only those brands that follow these trends to sell their products online will stand out among their competitors.
To stay relevant and ahead in this increasingly competitive marketplace, it’s important to consider how consumers behave when they’re shopping. That certainly holds the key to the future of online success.