The eCommerce industry has seen a massive boom over the past few years and shows no sign of slowing down. According to JungleScout, Amazon’s total revenue was $469.8 billion in 2021. Additionally, the net income Amazon earned from its online retail business in 2021 was $33.36 billion, which marked a $21.3 billion increase from 2020.
It is no surprise that this growth has attracted investors looking for ways to make money from it. There are already several startups that are offering solutions for companies looking to use their services or products in an online store like Amazon or eBay. But what about those who don’t want any involvement with big corporations? How can they still benefit from this new technology? Here are some trends expected to impact the future of eCommerce.
As eCommerce takes off, many companies will likely focus more on personalization. Personalization is essential to customers because they want personalized experiences. It’s the number one reason people buy something online: they don’t just want an item but a price that fits their budget and interest in the product. Personalized experiences can help you reach your audience more effectively by tailoring messages and offers based on their preferences and buying history—but only if you have enough data about them.
If you’re not getting this right now, that may be because your company isn’t investing in its customer data management (CDM) practices. Most brands use only transactional CDP systems that track what happens when someone buys from them. Still, these tools don’t necessarily allow them access to other types of data about their customers’ buying journeys or purchase history—or even basic information about these people as individuals!
The customer experience is a crucial differentiator for eCommerce businesses. Customers today have more options for websites and products than ever, and they expect their purchases to be easy and smooth—especially in today’s digital world, where they can shop anywhere.
The future of eCommerce isn’t just about selling more products; it’s about delivering the right experience at each step of the purchase process. As shoppers become increasingly savvy with technology, retailers need to keep up by providing them with an attractive user interface designed around their needs rather than theirs alone (for example: being able to search for products quickly).
Online shopping has drastically affected the number of physical stores in America. According to a recent study by Cushman & Wakefield, there are over 1 million fewer retail locations today than there were in 2006. In the coming years, more and more brick-and-mortar stores will likely close. And that’s not all: as more people opt for online purchases instead of going out into the world to buy things themselves (because it’s significantly less. expensive!), many retailers are seeing their sales fall or stagnate altogether.
While this may seem like a noticeable trend that will continue indefinitely, why would people spend money at physical locations when they can do it from the comfort of their homes? There are some ways you can use this situation to your advantage. By using your skills as an entrepreneur or employee/employer, you could potentially make some extra cash while contributing positively to society through these closures!
As eCommerce grows, businesses will expand into new markets to keep customers interested. This can mean offering products from other countries or regions with unique cultural experiences and flavors.
For example, some American consumers may not be familiar with the cuisine of their Mexican neighbors. Still, they are more likely to order food online from these regions to try new things—and if they find them delicious enough, they may even buy more than one item at a time!
In addition to expanding into different markets and cultures, companies that specialize in selling items made by small businesses should consider opening their storefronts where customers can purchase goods directly from the source (or “maker”). This allows people who normally don’t have access to something unique (e.g. due to a lack of available transportation) gain access to these products; it also helps both parties involved: The maker gets exposure while those who purchase items through this kind of arrangement benefit by being able to access, purchase, and enjoy these products.
Voice ordering will become increasingly prominent in the near future. In fact, it’s already happening. The biggest eCommerce company in the world (Amazon) has been using voice assistant technology to order things for years. Meanwhile, other companies like Walmart and Target are also integrating voice ordering into their digital experiences.
Voice ordering is a more natural way to shop because it’s more convenient than typing—you don’t have to worry about typos or putting something in the correct order when you’re talking to your computer! Plus, it’s private: no one can see what you’re talking about unless they’re listening in on your conversation through an earbud or headphones (or even just by watching).
Voice search is growing in popularity and utility. As more people use voice assistants such as Amazon’s Alexa, they become more accurate and efficient. This technology will continue to evolve as the industry figures out how to make it more natural, convenient, and accessible for users. This trend will allow eCommerce companies to tap into an untapped market of consumers who prefer using their voices instead of typing on a keyboard or swiping on a phone. screen—so many retailers have started adding this functionality to their online stores.
There are many benefits to shopping this way:
These customers can save money by buying multiple items. This can be more convenient than paying the total price for each item individually.
Data analytics is a powerful tool to help eCommerce companies grow their business. It allows them to understand their customers, products, and marketing efforts to find new ways of reaching them. For example, if you’re an eCommerce company selling clothing for women, you might use data analytics to figure out which styles are selling well and why.
You can then use this information when choosing which colors, fabrics, and styles should be featured on your site. The most important thing about using data analytics effectively is that it’s not just limited by what’s happening within one industry. Instead, it works across all industries because it uses information from different sources, such as social media platforms like Facebook or Twitter, along with customer feedback surveys (like those found on Google Forms).
Big data is a critical element of the eCommerce experience. It’s not just about providing customers with what they want, but also about learning more about their preferences and needs to create unique tailored experiences for each customer. Big data will help eCommerce companies better understand what their customers want and how they can improve their product offerings. Big data analytics has become one of the most important trends in online retail today: 59% of retailers say that using machine learning for marketing has improved their customer service, and 55% believe it has helped them grow their business.
Chatbots are a great way to provide customer service 24/7—they can answer questions, solve problems, and even make recommendations. They also help improve customer retention rates (by making it easier for customers to find what they’re looking for), which is essential as more people shop online than ever before. Chatbots are already being used in many industries: Amazon’s Alexa has been available since 2014; Google Assistant came out in 2016; Microsoft’s Cortana debuted last year; Facebook Messenger also integrated its chatbot called M (short for “Machine Intelligence”). Apple’s Siri is also finally bringing her voice back after an 18-year hiatus!
Artificial intelligence (AI) is a great way to help eCommerce companies increase security and thereby protect their customers’ information and their business data. AI can be used in many ways to improve shoppers’ overall experience. For example, it could automatically detect fraudulent activity on an account or prevent a user from making purchases that the account holder doesn’t authorize. It also helps identify trends and patterns across large volumes of data. This allows you to identify new opportunities or threats before they become problematic for your business practices or financial situation.
AI can help eCommerce companies learn about their customers. It can also help them better understand what their customers want, how to improve their products and services, and even market themselves more effectively. Many companies are already using AI in different ways. Retailers use machine learning technology to track online sales data from users’ browsers or mobile devices. This allows them to predict which products are most likely to be purchased by certain groups of people based on past purchases. For example, if you’ve bought an item before, there’s a good chance it’ll reappear in your basket soon!
eCommerce fraud is a big concern for eCommerce businesses. The industry has grown significantly in the past few years, and experts are predicting even more growth in the coming years—but this also means that there’s more opportunity for thieves to take advantage of your company’s lack of anti-fraud measures. Experts in the field recommend getting fraud protection software that is automated and that uses AI to help protect businesses from losses stemming from fraud.
The best way to prevent this is by using fraud protection software that automatically monitors your store 24/7 and alerts you if any suspicious activity occurs on your site or within its system. These programs use AI technology that helps them be extremely efficient at detecting fraudulent transactions and providing solutions for customers scammed by thieves trying to sell fake products or services through their stores.
With over 40 billion transactions happening on eCommerce sites every year, it’s clear that this is a booming industry. And with more than 5 billion mobile users worldwide and the number of smartphone users in the US growing fast, it’s easy to see why shoppers are going digital for their purchases. But what about the future of eCommerce? We’ve outlined ten trends you should keep an eye out for as your business grows in size and scope—so what do they all mean for your company?