The Transformative Trends Shaping the Future of E-Commerce
In the business world, e-commerce has taken the place by storm in recent years. It's hard to imagine a life without the convenience of online shopping, especially in the midst of the global pandemic. But what exactly is e-commerce, and what does the future hold for this industry? Let's take a closer look.
What is e-commerce?
Put simply, E-commerce, short for electronic commerce, is the buying and selling of goods and services online. This includes everything from clothing and electronics to groceries and furniture. The purpose of e-commerce is to make shopping more convenient and accessible to consumers. With just a few clicks, customers can browse and purchase products from anywhere in the world, at any time of day.
Shopping on the go
'Mobile devices account for 79% of all e-commerce website traffic.' (OuterBox)
'90% of smartphone users have used their device to make a purchase in the last year.' (OuterBox)
'51% of shoppers say they use their mobile device to compare prices while shopping in-store.' (RetailMeNot)
One of the biggest trends shaping the future of e-commerce is mobile commerce. As more people rely on their smartphones for everything from socialising to shopping, mobile commerce has become increasingly important. In fact, mobile commerce is projected to reach $3.56 trillion by 2021. That's a huge market that online retailers can't afford to ignore. From optimising websites for mobile devices to developing mobile apps, e-commerce businesses are finding new ways to reach customers on the go.
Social Media Selling
'90% of Instagram users follow at least one business account.' (Hootsuite)
'Social media influencer marketing can generate up to 11 times higher ROI than traditional forms of digital marketing.' (Influencer Marketing Hub)
'By 2023, social commerce sales are projected to reach $604.5 billion globally.' (Statista)
Another trend transforming e-commerce is social commerce. Social media platforms like Instagram and Facebook are no longer just for connecting with friends and family. They have become powerful marketing tools for businesses. With the help of social media influencers and shoppable posts, brands can reach their target audience in a more authentic way. Social commerce takes advantage of the trust people have in their peers, and allows brands to build relationships with customers in a more meaningful way.
AI in e-commerce
'By 2025, the AI market in e-commerce is projected to reach $19.4 billion.' (PR Newswire)
'Product recommendations based on AI algorithms account for 35% of Amazon's revenue.' (McKinsey)
'AI-powered visual search can increase customer engagement by 48%' (Gartner)
Artificial intelligence (AI) is also playing a significant role in the future of e-commerce. AI can be used to personalise the shopping experience, make product recommendations, and even provide customer service. Chatbots are a great example of AI in e-commerce. They can answer frequently asked questions and help customers find what they're looking for. AI can also help retailers optimise their inventory management and pricing strategies, leading to more efficient and profitable businesses.
Shopping Sustainably
'66% of global consumers are willing to pay more for sustainable products.' (Nielsen)
'81% of consumers feel strongly that companies should help improve the environment.' (IBM)
'38% of consumers say they would stop buying from a brand that doesn't support sustainability efforts.' (CGS)
Finally, sustainability is becoming increasingly important to consumers, and e-commerce businesses are taking notice. From eco-friendly packaging materials to carbon offsets, online retailers are finding ways to reduce their environmental impact. This not only helps the environment, but it also builds trust with customers who are looking for brands that share their values.
How does your e-commerce strategy measure up?
Mobile and social commerce, AI, and sustainability are just a few of the trends that are driving the growth of e-commerce. As technology continues to evolve and consumer behavior changes, e-commerce businesses will need to adapt to stay ahead of the curve. But one thing is clear: e-commerce isn't going anywhere anytime soon. Is your customer's shopping experience in need of an update? The Click Creative Digital Agency Melbourne team are here to help.
