5 Major E-Commerce Trends That Will Shape The Industry In 5 Years
E-commerce has come a long way in the past decade, with online shopping growing from a niche market to a multibillion-dollar industry that impacts almost every other vertical. Today, almost everyone is familiar with sites like Amazon and eBay. However, the explosive growth of e-commerce isn’t over just yet. In fact, we can expect even more growth in the coming years! According to projections by Statista, digital commerce will continue to be one of the fastest-growing sectors through 2022. The 2020 report revealed some interesting trends about how consumers are buying goods online and what they’re buying. Let’s take a look at some of the biggest e-commerce trends that will shape the industry in 5 years:
1. Consumers Will Expect A Superior Shopping Experience
One of the key e-commerce trends to watch in the coming years is the expectation of a superior shopping experience. Consumers are much more savvy than they were just a decade ago, and they want a great experience when they’re shopping online. In fact, a recent survey by Walker Sands found that 63% of consumers would rather go to a store than shop online if they had to make a purchase. What’s more, a whopping 80% of customers indicated that an inefficient or unresponsive website would make them abandon their purchase without hesitation. This is why e-commerce companies need to optimize their site for speed. In fact, a recent survey found that website speed is now the number one factor that influences a customer’s purchasing decision. As e-commerce becomes increasingly competitive, companies will need to make sure they are meeting customers’ expectations. Doing so will help them retain customers and increase their profit margins.
2. E-Commerce Will Become Even More Reliant On Machine Learning
With each passing year, automation continues to become more and more important in the e-commerce industry. Companies are already leveraging AI and machine learning to improve their operations. These tools are used to streamline the supply chain, optimize logistics, and personalize the customer experience. Now, some analysts predict that the industry will become even more reliant on AI in the next 5 years. According to a recent report by the E-Commerce Guide, e-retailers will likely rely on AI to improve their conversion rates by 20%. Additionally, it is estimated that AI will improve e-commerce sales by as much as $1.1 trillion by 2023. E-commerce sites are using AI and machine learning to personalize their shopping experience and provide customers with better product recommendations.
3. Omnichannel Retailing Will Be Key
One of the most important e-commerce trends to watch over the next 5 years is omnichannel retailing. Omnichannel retailing refers to a business strategy that melds online and offline retailing together. One of the reasons retailers are increasingly investing in omni-channel is to offer customers a seamless shopping experience. This includes allowing customers to order online and then pick up their purchase in a store or have it delivered to their home. What’s more, retailers can use omni-channel to their advantage, by leveraging data to inform decisions. For example, an online retailer might notice that a certain product is selling well online. This information can then be used to re-stock the item in their stores. What’s even more exciting is that emerging technologies like augmented reality (AR) and virtual reality (VR) will change how customers experience omni-channel.
4. Advertising Strategies Will Shift To Voice And AI
One of the e-commerce trends to watch closely in the next 5 years is how companies are using AI to inform their advertising decisions. More and more companies are leveraging AI to help inform decisions, such as what products to advertise, what prices to charge, and where to promote their products. For example, Amazon has been experimenting with leveraging AI to inform the ad campaigns that are being run on its platform. Currently, Amazon is using AI to optimize its ad campaigns for the digital assistant, Alexa. One thing to keep in mind is that AI isn’t able to make all of these decisions on its own. While AI is incredibly powerful, it can’t think for itself. Instead, AI uses machine learning to continuously improve its decision-making ability. However, many AI-powered marketing solutions will likely become even more widely used in the coming years.
5. B2B E-Commerce Will Grow In Importance
Another e-commerce trend to keep an eye on is the growth of B2B e-commerce. B2B e-commerce refers to the sale of goods or services between businesses. The industry is already worth billions of dollars, but B2B e-commerce is expected to grow in the next 5 years. According to a report by E-Commerce Gateway, the B2B e-commerce market will be worth $1.5 trillion by 2023. This growth is being driven by a few factors, including changes in the way businesses operate and the emergence of new trends, like omnichannel retailing. What’s more, B2B e-commerce has been shown to have some distinct advantages over B2C e-commerce, including a more scalable business model, lower shipping costs, and reduced overhead. As these advantages become increasingly apparent, B2B e-commerce is expected to grow in importance over the next 5 years.
E-commerce has come a long way in the past decade. With digital commerce projected to keep growing in the coming years, it’s clear that e-commerce isn’t going anywhere anytime soon. However, with this growth comes new challenges for companies. To succeed in this competitive landscape, businesses need to appeal to consumers with a great product, provide them with a superior shopping experience, and promote those products effectively. Fortunately, emerging technologies like AI, AR, and VR will help companies accomplish all of these things. These technologies can be used to improve product offerings and boost sales. With these tools, e-commerce companies will be well-positioned to succeed in the coming years.
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