10 E-Commerce Retail Industry Trends to Watch in 2021
As the world is shifting towards a digital era, the e-commerce industry is expanding and evolving at an astonishingly rapid pace. Consumers today have more power than ever to research and compare products, prices, and experiences online, which has led to an increase in competition within the retail industry.
In 2020, the COVID-19 pandemic accelerated the shift towards online shopping, and this trend is set to continue in 2021. To stay ahead of the curve, it’s essential for e-commerce businesses to keep a close eye on the latest emerging trends that can help them adapt and grow their online presence. Here are ten e-commerce retail industry trends to watch in 2021:
1. Personalization and AI-Based Recommendation Engines
Personalization has become a buzzword in e-commerce in recent years, and for a good reason. Consumers today expect businesses to understand their unique needs and preferences and provide personalized offerings. With the help of artificial intelligence-based recommendation engines, e-commerce businesses can analyze customer data to offer tailored recommendations, enabling them to enhance the customer experience, increase customer loyalty, and drive sales.
2. Increased Use of Social Media for Shopping
Social media has become an essential part of our lives, and increasingly, consumers are using social media platforms for shopping. Instagram and Facebook have launched shopping features, allowing businesses to sell products directly on their social profiles. In 2021, expect to see e-commerce brands adopting social platforms to reach a wider audience, showcase their products, and drive sales.
3. Contactless Payment Options
The COVID-19 pandemic has made consumers more cautious about touching surfaces, including cash and credit cards. As a result, e-commerce businesses have had to adapt by offering contactless payment options such as mobile wallets, payment gateways, and digital currencies. In 2021, expect to see more e-commerce businesses adopting these payment options to meet consumers’ changing needs.
4. Live Video Commerce
Live video commerce is gaining popularity, especially in China, where more than half of all internet users watch live streams. This trend is set to expand globally in 2021, as more e-commerce brands experiment with live video to engage, educate, and sell products to their customers. Live videos enable e-commerce businesses to showcase their products in a more interactive way, answer customer questions in real-time, and ultimately drive sales.
5. Increased Investment in Cybersecurity
With the rise of e-commerce, cybercriminals have become more sophisticated in their attacks, targeting businesses and consumers alike. As a result, e-commerce businesses are investing heavily in cybersecurity to protect their customers’ data. In 2021, expect to see more e-commerce brands implementing multi-factor authentication, encrypting data, and using fraud detection tools to enhance their security.
6. Ethical and Sustainable E-commerce
Consumers today are increasingly concerned about the impact their purchases have on the environment and society. As a result, e-commerce businesses are adopting sustainable and ethical practices, such as using eco-friendly packaging, sourcing ethical materials, and donating a portion of their profits to social causes. In 2021, expect to see more e-commerce brands embracing sustainability and ethics as a part of their business model.
7. Voice Commerce
With the rise of virtual assistants such as Amazon’s Alexa and Google Home, voice commerce has become a growing trend in the e-commerce industry. Voice commerce enables consumers to search, compare, and buy products using voice commands, making shopping more convenient and accessible. In 2021, expect to see more e-commerce businesses optimizing their websites and online stores for voice search.
8. Multi-Channel Selling
To maximize their reach and sales potential, e-commerce businesses are increasingly adopting a multi-channel approach to selling. This approach involves selling products on multiple platforms, including marketplaces, social media, and mobile apps, as well as their own online stores. In 2021, expect to see more e-commerce brands expanding their online presence through multiple channels.
9. Augmented Reality
Augmented reality (AR) offers a new way for e-commerce businesses to showcase their products and provide a more immersive experience for their customers. With AR, consumers can view products in 3D, try them on virtually, and see how they look in different settings. In 2021, expect to see more e-commerce businesses adopting AR to enhance their customers’ shopping experience.
10. Subscription-Based Services
Subscription-based services have become a popular trend in the e-commerce industry, offering customers convenience and cost-effectiveness. Subscription models offer a regular supply of products or services, providing customers with a seamless and hassle-free experience. In 2021, expect to see more e-commerce businesses adopting subscription-based services to deepen customer loyalty and drive sales.
Conclusion
The e-commerce retail industry is in a state of constant change, and e-commerce businesses need to stay on top of emerging trends to remain competitive. In 2021, expect to see an increased focus on personalization, contactless payments, live video commerce, and sustainable and ethical practices. The trends highlighted above offer e-commerce businesses valuable insights into how they can adapt and thrive in a fast-moving and dynamic industry. By staying ahead of the curve and embracing these trends, e-commerce businesses can enhance the customer experience, increase sales, and build long-lasting customer relationships.
