July 13, 2021
Over the past five years, our activity of trading goods drastically changed (for the better) and became our new normal. Though, what is coming up next for the future of the e-commerce industry? Ever since the burst of the Internet, technology has been important in the online retail industry. Especially in the tough previous months, its role has been consolidated.
To keep up with the times, you as an owner, need to know how to make your product stand out and provide users with a personalized shopping experience.
Four Trends and Technologies Shaping E-commerce is part 1 of the two-part series The Future of E-commerce. In this series, you will learn:
This week’s article highlights four e-commerce trends and how you can leverage them to your own advantage.
E-commerce in the modern age
Definition: E-commerce (sometimes written as eCommerce) is a business model allowing companies and individuals to exchange (buy & sell) goods and services over the internet. According to the commercial profile, there are six types of E-commerce, namely:
To put it at a higher level, electronic commerce works based on multiple software development technologies, to name a few:
Software development companies like InApps Technology offer various technologies and services to help you leverage disruptive technologies and create lucrative business ideas for e-commerce.
Amazon and eBay were pioneers to take advantage of the benefits of e-commerce to buy and sell mass-market goods over the internet.
Fun fact: Amazon turns 27 this year!
During this period, buyer interest and participation in online shopping have increased significantly. Reports show that by the end of 2021, there will be 2.14 billion digital consumers. In fact, the global population of 7.87 billion people (2021), that’s about 27.2% of the world’s population shopping online. Look at the potential!
At the moment, when comparing e-commerce with traditional retail stores, the latter clearly shifts the scale. However, the e-commerce industry shows a major year-on-year (YoY) growth, 38% in the first quarter of 2021.
So, it is only a matter of time until the majority of our purchases are made online.
E-commerce share of total global retail sales
The Key Takeaway: With more and more people shopping online every year, there’s no time like today to start an online store.
The current trends of E-commerce
As the old saying goes, the customers are king. Today pretty much doesn’t change. Since they have multiple options, customers hold the power in the market.
Therefore, your product alone cannot separate you from your competitors, it is how you create a unique shopping experience and build your brand around it. Finding customers is easy, retaining them is what really matters. Everything from an intuitive order process and payment options to fast delivery can have a big impact.
This kind of service is intangible, thus needs a lot of extra effort. We offer software development solutions to help your every business needs.
Nowadays, all popular brands are represented online through an e-commerce platform, shopping apps, marketplaces, etc. We can see that brands are pushing every effort to acquire more digital clients.
Keep on reading to see upcoming trends shaping the e-commerce industry!
Personalized Product Recommendations
Understanding your visitors and creating more personalized product recommendations will help tons! Particularly, this helps to make a unique shopping experience and make a lasting impression on your potential customers. Since every product sold online is basically the same, it is how you deliver it makes difference.
Let’s take the Segmentify case. Segmentify is an intelligent product recommendation engine that guarantees its clients a minimum 10% revenue increase. How do they do it? They implement many different campaigns to increase conversion rates, revenue, repeat customers and purchases, reduce abandoned carts and bounce rates.
When creating product recommendations, you should continue to analyze your performance and constantly adjust to adapt to your customer’s behavior.
Social Media Commerce
Definition: Social-commerce is the use of social networking sites like Facebook, Instagram for online shopping transactions.
Social media is an important part of our daily lives, especially among Millennials and Gen Z-ers. This vehicle effectively changes the buyer-seller landscape. To keep in touch with clients digitally, brands make use of popular social networks to create more personal relationships, thus, personalization. Later on, more advanced technical features are then merged into social media to shorten the buying cycle.
In the foreseeable future, most major social networks will adopt the one-click Buy button. For example, Facebook has been implementing this approach for quite a while and has seen much positive feedback.
Last but not least: the social electronic commerce growth rate is expected to increase by 25% for the next five years – making up more than one-quarter of the total e-commerce market.
We are currently rolling out a ton of new offerings, specializing in E-commerce platform development. How you can leverage new technologies to your own advantage and at the same time, save up to 60% time and cost? Read more!
Definition: M-commerce, shorten for mobile commerce, is done by using applications on smart devices like smartphones or tablets to trade goods and services. Nowadays, mobile devices consumers make up half of all the internet traffic. In other words, e-commerce shops need to make their sites well responsive to mobile screens, in some cases, even develop a separate app just for reaching these buyers and keeping up with mobile e-commerce trends.
In fact, the presence of a website or mobile app alone cannot guarantee breakthrough success. Creating the best online shopping experience – that’s the most important. To clarify, client engagement and customer retention are key indicators owners should concentrate on.
Since mobile shoppers are picky, even the smallest issue can suddenly change their minds. As a result, this may lead them to buy from another competitor. To overcome this, the more advanced functions integrated into the apps can step up your game. Devices like Beacons and Dash Buttons can help immensely. These devices trigger user interest and engagement on the mobile app, ultimately increase sales.
Work of One-click Checkouts
Research shows that mobile users like to have an easy e-commerce shopping cart as much as possible. This advancement in the online cart, together with digital coupons or vouchers, can be responsible for half of the sales in online retail.
Work of Digital Wallets
Electronic wallets, or e-wallets, or mobile wallets make the payment process much simpler. Online services such as Apple Pay, Google Wallet, Microsoft Wallet, Samsung Pay, PayPal, etc. ease consumer transactions. In addition, these electronic wallets can be synchronized with your personal bank account.
Not just payment data alone, information like your driver’s license, identity card, health card, etc. can also be store on the phone. So you don’t need to worry about forgetting your essential documents every time you leave your house!
Moreover, thanks to NFC (near field communication) technology, we now can wirelessly connect to terminals for in-store payments using our smartphones. Contactless payment is on the rise!
Work of Beacons
Beacons provide a more personalized digital shopping experience, while, drive retail sales.
According to Apple in 2013, top retail stores like Macy’s, Urban Outfitters, Target, and CVS use beacons heavily to help them build personalized content marketing strategies.
Working principle: Beacons transmits Bluetooth signals to nearby smart devices having the correct branded app.
This approach increases the chances consumers use the app and actually complete their purchases. For instance, Sephora uses beacons to get consumer information and then send out more personalized promotions.
Work of Dash Buttons
Take Amazon as an example. This gadget offers easy order placement of most regularly purchased goods. In other words, it calculates what items you usually purchase and enable a fast re-order placement, saving you time and effort!
Working principle: these buttons are tagged to places where these goods are regularly used. After that, using the Amazon app, users can set up the order.
Top players like Costco and Walmart, or even Asia unicorn startups like Shopee have been pushing efforts to use these buttons to create a more pleasant shopping experience for customers.
About 85% of users start their shopping journey on one device and continue on another, says Google. They may start with an ad on Instagram and end up buying at a shoe store across the street. This message from consumers has created the trend for retailers to align their online and offline sales channels.
This is called omnichannel.
Definition: Omnichannel is described as all the ways to interact with a customer should provide the feeling of one entity. Since brand may convey their message through multiple platforms in many regions, it is important they are consistent. Every single detail of a company, from its brand, marketing content, to ads should convey the same concept.
To stay competitive in the modern age, firms will need to adopt an omnichannel strategy. This complex system indicates a high-load backend to maintain and merge data from different sales and social channels.
With more and more people shopping online every year, there’s no time like today to start an online store.
Since every product sold online is basically the same, it is how you deliver it makes difference. Therefore, personalization is key. When creating product recommendations, you should continue to analyze your performance and constantly adjust to adapt to your customer’s behavior.
Carefully watch out for four trends (Personalization, Social commerce, M-commerce, Omnichannel) to step up your e-commerce game and make yourself stand out.
Stay tuned for Part 2 where we analyze The Future of E-commerce with five technological innovations. Above all, how you can leverage them to your own advantage!
Thank you for reaching the end of this blog. As part of our long-term vision to keep you updated with the latest industry news, we keep on posting relevant articles for your consideration.
We, InApps Technology, understand starting a new business can be challenging, that’s the reason why we roll out new offerings in E-commerce to help your journey easier. If you are curious to learn more about our Special Packages at an affordable competitive price, please jump to here!
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