The first product to be sold online was a book that was purchased through Amazon in 1995.
Twenty years later, sales in the e-commerce industry have reached more than $ 2 trillion worldwide. And there is no question about it that they will continue to grow.
E-commerce has revolutionized retail. It has highly evolved over the years to meet the changing needs of people and to facilitate the online shopping experience for the modern customer. In its early days, e-commerce was quite limited. But now, thanks to countless changes that have made online shopping easier – like customization and better return policies for customers – e-commerce has rebounded. And in 2020 we will surely see even more positive changes in sales through e-commerce.
So if you’re still not convinced about the future of e-commerce, these e-commerce trends will show you that e-commerce is not only growing fast, it’s here to stay. Use this information to your advantage and thus ensure constant growth in your online store.
If you want to start a successful e-commerce business and take it to the next level in 2020, be sure to take advantage of these emerging trends in the e-commerce industry.
Electronic commerce: trends and purchasing behaviors
Why are eCommerce trends so important? The world of e-commerce is becoming competitive quite rapidly. In order to stay ahead of the competition, you must constantly monitor e-commerce trends. If you don’t keep your online store up-to-date with e-commerce trends, you risk being left behind. To guarantee future success you must look ahead. Since we are in 2020, you must know these e-commerce trends to be able to take advantage of them. It is very important to analyze and adopt e-commerce trends in a timely manner in order to develop your brand strategy and excel in the market.
Ecommerce Trends: What are the top eCommerce trends for 2020?
Wondering what the future of e-commerce is like? Do you want to see what trends can help your online store be successful? These are the top 10 e-commerce trends for 2020 that you should not overlook.
1. Ecommerce trends: The growth of e-commerce is unstoppable
Online sales have been growing steadily and with good reason. Online shopping is one of the most popular activities done online. The statistic provides information on e-commerce trends for retail in the world from 2014 to 2019. The retail e-commerce sales worldwide amounted to 1.67 trillion US dollars in the year 2005, whereas, in 2019, there was growth to 3.55 trillion.
Although online shopping is one of the most popular online activities, the numbers vary by region. With the increasing popularity of e-commerce stores, more and more people are shopping online. There can be a number of factors that attribute to online shopping. It could be said that one of the main ones is the level of comfort that you have when buying online. There has also been an increase in shopper confidence regarding online shopping, as well as a better website experience. In the past, people doubted buying online, but not anymore.
The web usability has enabled online stores more customer-friendly. With the convenience of shopping from anywhere, it is no surprise that the growth of online sales is unstoppable and that e-commerce shopping trends continue to rise.
2. E-commerce trends: Caring for the environment influences buyers
Caring for the environment is all the rage and commitment to environment sales, making sustainable brands better accepted by environmentally conscious consumers. The latest trends in e-commerce tell us that half of the digital consumers claim that environmental issues affect their purchasing decisions. E-commerce companies must strive to use more sustainable practices.
More and more users, especially millennials, worry about taking care of the planet. Therefore, it is important for companies to know their environmental footprint and ensure that their practices are respectful of the environment. And they can do it in multiple ways, whether it’s using fair trade raw materials and even promoting a greener e-commerce environment.
3. Global trends in electronic commerce: Purchases from mobile devices are increasing
The growth of electronic commerce from mobile devices has been remarkable. Since 2016, sales made through mobile devices have increased by 15%. Mobile e-commerce trends tell us that by the end of 2021, 73% of online sales will be made through a mobile device. These figures cannot be ignored. Improving the shopping experience from mobile devices can be a great opportunity for customer loyalty.
The growth of electronic commerce has been driven in part by the increase in the use of mobile devices. People not only shop online, but they also use their mobile devices to browse or research products before deciding on their purchase. As confidence in online shopping increases, consumers are increasingly comfortable shopping from mobile devices, especially millennials and Generation Z, who have grown up surrounded by computers and the internet. These generations are also more likely to shop online using their mobile devices, compared to previous generations. As a result, more and more sites are optimized for mobile browsing. Make sure that not only your website but also its online store is optimized for mobile devices. By doing this, you will be making shopping at your e-commerce store simpler and more accessible to your target market.
4. New e-commerce trends: Increase in the growth of electronic commerce by voice
Voice shopping is growing among Internet users. By 2020, voice searches are projected to represent 50% of all searches. Additionally, 43% of voice-enabled device owners use their devices to shop. This e-commerce trend has gained much popularity over the years in popularity, especially since 2014 when Amazon launched Echo, its smart speaker. Although voice shopping is still in development, this statistic shows us that in the coming years it will become more popular.
Therefore, companies will have to take advantage of this e-commerce trend and provide customers with the comfort they are looking for when buying products.
Since voice shopping is a non-visual experience, it is primarily used as a sales channel. This means that instead of using voice search as a browsing experience to research what they want to buy, customers use it once they have already decided on their purchase.
Products purchased through voice search are typically low-cost products such as inexpensive food or electronics and cheap household products.
5. Current trends in electronic commerce: Evolution of the role of social networks in e-commerce
The number of buyers through social media is also increasing rapidly. With the introduction of the “Buy” button on Facebook and Instagram Checkout, social media is already playing an important role in the world of electronic commerce. This is a great opportunity for brands to start creating a social media marketing plan.
The truth is that social networks have changed the way we live our daily lives, including the way we buy. For example, now brands have the opportunity to use their Instagram account as a virtual showcase to expose their products and redirect users to their online store. Learning to sell on Instagram will help you generate more traffic to your online store and thus increase your transactions.
Likewise, consumers increasingly spend more time on different social networks, so e-commerce brands can increase the chances of being discovered by their target audience by doing influencer marketing on Instagram. Furthermore, by using platforms like Shopify, companies can easily connect their online stores with social networks so that people can buy directly from them. For example, Instagram and Facebook are constantly updated to meet the growing needs of online shoppers.
And let’s not forget TikTok, the latest and newest social network, which is used not only by teens but also by all of Hollywood. This video sharing application has been working to incorporate elements of electronic commerce, and if you download its latest update you will see that there is a new feature in which users can include purchase links from their profiles or videos. With this, users who click on the link will be taken to a URL within TikTok without having to leave the application to access the site.
Social networks allow brands to have the opportunity to be discovered by millions of users. As social media continues to become a regular part of our daily lives, its power to influence e-commerce trends will increase. So if you have a brand, use social media for your business and be sure to connect them with your online store to sell through them.
6. Trends and technologies of electronic commerce: Payments with QR codes return
One thing that has contributed to the growth of e-commerce is payments via mobile devices, which have become the norm. Research shows that more than a third of the online population used mobile payments in 2018.
And one payment method, in particular, QR codes, seems to be coming back. First invented in 1994, it wasn’t until the early 2010s that QR codes became popular. But the problems that plagued the codes kept them from growing in popularity.
However, in recent years there has been an increase in the use of QR codes, especially in e-commerce. There is also an inverse correlation with age, as teens and young adults use QR codes more frequently than those in older age groups.
QR codes are particularly popular in Asia, especially in East, South, and Southeast Asia. For example, almost all Internet users in Hong Kong and Taiwan use QR codes. And who can forget China, where 42 percent of all e-commerce transactions in the world occur? In China, payment via mobile devices is considered the standard payment method. Most transactions, ranging from online shopping, food delivery, online gift delivery, car sharing, and many others, are done using QR codes. By contrast, as many as 65 percents of mobile device users in the US have yet to adopt mobile payments.
7. New e-commerce trends: Role of Artificial Intelligence
What emerging trends or technologies could redefine or revolutionize electronic commerce? Without a doubt, Artificial Intelligence and Augmented Reality.
Merchants will spend $ 7.3 billion a year on Artificial Intelligence (AI) by 2022, up from an estimated $ 2 billion in 2018 (BusinessWire, 2018). This will happen as retailers are looking for new strategies to increase the personalization of the customer experience. This research shows us that retailers are willing to invest heavily in tools that help them improve their customer service. There are multiple AI tools, such as automated marketing platforms that are equipped to generate timely offers or chatbots. They respond to customer inquiries instantly. Other areas where AI will be useful to retailers is through calculating AI-optimized prices and discounts, as well as forecasting demand.
The role of AI will be strengthened in the coming years as retailers invest in improving areas such as customer service, where AI can be useful in understanding customer reactions to a purchased product or service. This will play an important role in how retailers can improve customer experience. To stay competitive, it is important for retailers to invest in this e-commerce trend. And, without a doubt, both technologies will have an impact on the growth of electronic commerce.
8. Latest trends in e-commerce: Augmented Reality transforms the way we buy
Spending on Augmented Reality will increase by 71.6% until 2022 (IDC, 2018). The adoption of RA in the sector will be driven by retailers and online shoppers. One of the main concerns that people have when shopping online is the inability to see the product first hand. RA technology helps bridge this gap and enables online shoppers to better visualize the products that interest them.
For users, this could mean a whole new shopping experience. RA aims to change the way online customers perceive the products they intend to buy. By using RA, customers will be better able to understand their own needs and whether the products they want to buy meet their demands. Some e-commerce brands have already started experimenting with AR, which will help them stand out from the competition. Providing more personalized experiences to consumers will allow better online purchases. Companies are using RA not only to improve the experience and to build customer loyalty but also to allow shoppers to try and explore products in the same way that they would during an in-person shopping experience.
9. Electronic commerce trends: Personalization is the future of e-commerce growth
Personalizing the experience when shopping online is the key to keeping customers satisfied. People who shop online sometimes require help finding the products they need and value a more personalized experience. Even as a result of poor product recommendations, online shoppers may avoid visiting certain stores entirely.
Online stores are implementing this trend and investing in personalization techniques to improve the online shopping experience, such as personalizing email marketing campaigns or retargeting campaigns.
By offering personalized customer communications, providing relevant discounts, and engaging with your customers through, for example, video content, you will help deliver a better shopping experience as well as customer loyalty.
10. Ecommerce trends: Visual commerce is on the rise
One of the difficulties of starting an e-commerce business is having to sell a product to consumers who have no chance of physical interaction with it. That is right where visual commerce comes into play.
In short, visual commerce is the next generation of still images. It takes digital marketing to a whole different level, as instead of simply using product photos to market them, visual commerce goes a step further by incorporating other types of images, such as consumer-generated content, interactive content, and videos, and as mentioned above, augmented reality.
Visual commerce is slowly but surely becoming an integral part of e-commerce, as evidenced by the growth in deep learning technology that supports it. This includes the image recognition market, which will grow from $ 20.19 billion in 2018 to $ 81.88 billion in 2026, marking an annual growth rate of 19.6 percent.
Take advantage of these 2020 e-commerce trends
With advances in technology and changes in consumer behavior, you should be on the lookout for these e-commerce trends in 2020. Whatever eCommerce trend you decide to adopt, do so with the goal of improving the shopping experience for your customers and build a lasting relationship with them. Evolve alongside eCommerce and take advantage of these e-commerce trends to contribute as a seller to future e-commerce growth.
Vikram Rana is Marketing Manager at LiftnGift and has served as the Head of Conversion Marketing at Planet Web Solution. He’s an expert in inbound marketing and lead generation.