5 Emerging E-commerce Trends That Will Shape the Future
E-commerce is a rapidly growing industry that is continuously evolving with emerging opportunities and challenges. The year 2021 has brought significant changes and breakthroughs for e-commerce businesses worldwide. The following are the five most apparent emerging trends that will transform the future of e-commerce.
1. Social Commerce
Social media platforms like Facebook, Instagram, Pinterest, TikTok, and LinkedIn have become the go-to place for businesses to showcase their products and engage with potential customers. Social commerce refers to the integration of a shopping experience with a social media platform, allowing businesses to market and sell their products directly to their target audience.
According to a recent survey, almost 70% of shoppable posts on Instagram came from influencers. The social media channels are becoming more powerful than ever to drive impulsive purchase decisions by utilizing the FOMO phenomenon that propagates materializing sales.
2. Virtual Reality and Augmented Reality
E-commerce businesses are applying emerging technologies like virtual reality (VR) and augmented reality (AR) to provide customers with more realistic shopping experiences. These technologies allow customers to interact with products through simulations and visualizations, creating a connected shopping experience.
Several e-commerce giants like Amazon, Ikea, and Sephora have embraced AR technology to help customers visualize how their products would look in real life, allowing consumers to visualize the product in their home setting. Virtual Reality technology will also become a part of the retail industry, where customers can view the store via VR and order products online.
3. Artificial Intelligence and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are becoming an integral part of e-commerce businesses for better customer service, product innovation, and customer satisfaction. It helps businesses to improve their customer experience by providing personalized product recommendations and solving customer queries through chatbots.
In addition, AI-based tools help e-commerce businesses analyze customer data, make inventory management better, and improve the purchasing experience. Companies like Coca-Cola and H&M are using AI-powered robots to interact with customers in-store.
4. Voice Commerce
As voice technology becomes more widespread, it is also becoming a crucial part of e-commerce transactions. Voice-activated virtual assistants such as Amazon’s Alexa, Apple’s Siri, and Google Assistant have modified the transaction landscape, enabling customers to instantly order products directly through their devices.
Voice commerce eliminates the need to navigate screens, simplifying the buying experience. It has great potential in the future, with Amazon predicting that 50% of all searches will be by voice by 2022.
5. Online Marketplaces
The popularity of online marketplaces such as Amazon, Alibaba, and eBay continues to rise, providing a platform for businesses to sell their products beyond established boundaries. As these platforms expand, they become more accessible for businesses of all sizes to reach potential customers worldwide, provide reliable payment interfaces while also providing conveniences such as fast and secure delivery options.
The trend towards online marketplaces will only increase in the future as businesses seek to improve their international reach across diverse regions.
Conclusion
E-commerce businesses must keep up with the evolving landscape of their industry. Continuously staying in tune with these emerging trends can give you a competitive advantage, improve the purchasing experience, and help your business grow. The five emerging trends mentioned not only provide a more visually appealing and friendly shopping experience, but also more secure, seamless, and personalized services that are essential in the digitized future.
