Top 10 E-Commerce Trends in 2023-24
By: Shahzad Bashir
Did you know that the very first thing ordered on the internet was a book? Since then the vast world of online shopping has become even vaster, with E-commerce companies minting more than USD 2 trillion in online sales—that too in only 20 years!
It might seem interesting to note that E-commerce has made a lot of other businesses profitable. Just by having a suitable online distribution system and a robust supply chain, a company can reach new heights of fame in the world today. On the one hand, the retail system has become modernized, while on the other, consumers can click and buy their desired products easily and quickly.
The year 2020 has been a game-changer for the E-commerce industry. The lockdown and social distancing have encouraged people to shop online. Many of the E-commerce stores are offering discounts and introducing new products to grab the attention of online customers.
To benefit from the shifting world of E-commerce, be sure to know the trends to look out for in the future—especially if you have an online business. Most likely you will be needing a sound plan for your E-commerce business if you plan to expand to other countries—of course, that would be hardly possible without the support of a reliable agency delivering expert E-commerce translation service.
Take a look at these top 10 trends of the E-commerce industry:
1. Infinite Online Sales Growth
Since the advent of the internet, E-commerce platforms have grown both in popularity and reach. This can be ascertained from the fact that this online sales business has shown a massive increase from USD 1.3 trillion to USD 4.5 trillion from 2014 to 2020—that is approximately 3 times growth in just 7 years. As companies jump on the bandwagon to make their business visible in the online world, more people around the world are shifting from physical retail shopping to online shopping. Seeing the upward trend of this online shopping, there is little doubt that this popularity will continue to rise in the coming years as well.
2. E-commerce During COVID-19
The COVID-19 pandemic has played a major role in changing the online business as we know it. With the closures of physical retail stores (owing to lockdowns), more people are preferring to shop online while staying within the comfort of their homes. The rise in online shopping has reached such heights that the penetration rate of these online retailing is estimated to show a jump from 15% to 25% by the end of the year 2025. Amazon, the online retail giant, made more than USD 24 billion through its E-commerce platforms, thanks largely due to the increase in online shopping. Moreover, E-commerce experts predict that this boost in E-commerce will not be confined to the course of the pandemic only, but is likely to continue in the future.
3. Smart Shopping
Gone were the days when a customer had to go to big markets just to get an idea about the variety of items available. Now, thanks to the growth spurt in the use of smartphones, a customer is able to browse from amongst literally thousands of items with just a swipe of his screen. The sales made through smartphones had shown an increase of 15% since 2016. Not only that, but it is also estimated that by the end of 2021, 73% of E-commerce sales will be held via smartphones. Customers not only use their smartphones for shopping, but they also browse through retail items categories and refer to their preferences with their family and friends via social media.
4. Growth of Voice Commerce
Voice commerce or voice-assisted commerce is a game-changer for retail brands across the globe. Reducing the dependence on hardware, voice commerce allows the end-user to use his voice commands to search and purchase products online. Having been introduced by Amazon through its smart speakers, this voice commerce has been so phenomenal that in 2017, it was estimated that about 13% of smartphone users in US-made their purchases through their voice commands. Not surprisingly, it is estimated that this number will rise by at least 55% by the end of 2023. However, voice-assisted shopping is still in its initial stages, but anyone can bet on its bright future ahead.
5. Significance of Social Media in E-commerce
The world of E-commerce owes its spread and popularity largely to social media sites such as Facebook and Instagram. This is because these social media platforms provide a gateway for customers to make online purchases from the sites available by big brands. These social media sites have not only benefited the end-customer, but it has also made brands visible across countries, assisting them in getting recognized both locally and internationally. As the usage of social media platforms increase, brands are focusing on making themselves more popular by using the power of social media influencers and Key Opinion Leaders (KOLs), who have thousands of social media followers and are well-recognized by the public at large. Some brands such as Shopify and TikTok are famous ones, which have leveraged their popularity via rigorous marketing campaigns on social media platforms.
6. Environmental Concerns and E-commerce
While the world uses online E-commerce facilities to gain a thoroughly unique shopping experience, many of the users are not unaware of the environmental impacts of their choices. As “Green Consumerism” picks up momentum, E-commerce industries should focus on developing more environment-friendly and reliable practices. This involves tracing of products from fair-trade establishments as well as prevention from malpractices, fraud, and forgery through online commerce. This is why a company that wants to establish itself in the international market needs to have the support of a reliable translation service that would assist it in following the “green” trade practices across borders.
7. Artificial Intelligence
One thing that has changed the way people shop and purchase online is Artificial Intelligence (AI). The retailers across the globe are willing to make huge investments in AI tools which will support them in expanding their services and provide them with a suitable advantage in the global world. Some of the advantages of AI tools are reliability, easy-to-use interfaces, and the support of chatbots to respond to the purchaser’s problems easily and quickly. Moreover, it is predicted that there are other areas where AI can be helpful for sellers, such as AI-optimized pricing, discounting, and forecasting. Not surprisingly, this retailer spending on AI tools is likely to approach from USD 2 billion in 2018 to USD 7.3 billion by 2023.
8. Effects of Augmented Reality on Shopping
It is said that until the year 2023, more than 120,000 stores will be using (AR) Augmented Reality technologies, as it has the ability to offer a remarkable business experience. The main issue that people have while placing their orders online these days is the incapability to see the quality of the product. AR technologies fill this gap by building a sense of trust and allowing consumers to visualize their desired products. Not only that, but AR skills can also change the way customers shop and the selected items they intend to buy. Many e-commerce brands have now started to test AR, which will be benefiting them in making their way ahead of the competition in the future as well.
When it comes to online shopping, who doesn’t want a personalized experience? According to almost 50% of consumers, this personalized online experience holds great significance for them and almost 74% of marketers believe that personalization has a “very strong” effect on developing customer relationships. People who shop online sometimes need assistance for searching the products they desire, which is why they place extra emphasis on personalized experiences. This is why E-commerce companies across the globe are striving to give this “personalized” touch to their products in order to bring more customers within their folds.
10. Visual Commerce
The main issue with E-commerce stores in selling a product to customers is that they are unable to physically touch that product. That’s where visual commerce enters the game. Visual commerce is basically the advanced form of ordinary static visuals. It takes marketing to another level by using graphics, consumer-generated media, augmented reality, engaging videos, and interactive content to display items online. It is projected that the image-recognition market is likely to make a profit from USD 20.19 billion to USD 81.8 billion from 2018 to 2026.
With the advancement in technology and changes in consumer behavior, you need to keep an eye out for these E-commerce trends in 2020. Whichever E-commerce trend you decide to adopt, do it with the aim of improving the shopping experience for your customers, along with ensuring that your products fill the customer needs perfectly. This can also be done through expanding your business across borders with the help of professional agencies that can deliver expert E-commerce translation services for a hassle-free and strong bond with customers, both locally and globally.