Ecommerce Trends to Watch for This Year (Part 2)
In the first part of our comprehensive guide to ecommerce trends, we explored the rise of mobile commerce, personalisation, voice commerce, augmented reality, and sustainability. As the ecommerce landscape continues to evolve rapidly, staying informed about the latest developments is crucial for online retailers looking to stay ahead of the curve. In this second instalment, we will delve into six more game-changing trends that are set to shape the future of ecommerce in the coming year and beyond.
The secret is to bring the commerce to the interaction. The more people share and interact with each other, the easier it is to add trade to those interactions.
Trend 6: The Emergence of Social Commerce
Social media has become an integral part of our daily lives, with over 3.6 billion users worldwide as of 2020 (Statista, 2021). This massive user base presents a tremendous opportunity for ecommerce businesses to expand their reach and engage with potential customers. Social commerce, the practice of selling products directly through social media platforms, is gaining significant traction and is poised to become a major force in the ecommerce industry.
According to a report by Grand View Research, the global social commerce market size is expected to reach $604.5 billion by 2027, growing at a compound annual growth rate (CAGR) of 31.4% from 2020 to 2027. This remarkable growth can be attributed to the seamless integration of social media and ecommerce, allowing consumers to discover, research, and purchase products without leaving their favourite social platforms.
To capitalise on the social commerce trend, ecommerce businesses should:
Establish a strong presence on relevant social media platforms
Create engaging and shareable content that showcases their products
Utilise platform-specific features, such as Instagram Shopping and Facebook Marketplace
Collaborate with influencers to expand their reach and build trust with their target audience
Encourage user-generated content and reviews to foster a sense of community and authenticity
Tip: Use social media analytics tools to gain insights into your audience's preferences, engagement patterns, and purchasing behaviour. This data can help refine your social commerce strategy and optimise your efforts for maximum impact.
Trend 7: The Rise of Subscription-Based Models
Subscription-based ecommerce has been gaining popularity in recent years, with the global subscription ecommerce market expected to reach $478.2 billion by 2025 (ReportLinker, 2020). This model offers consumers the convenience of regular deliveries of their favourite products while providing businesses with a predictable and recurring revenue stream.
The success of subscription-based ecommerce can be attributed to several factors, including:
Convenience: Subscribers can automate purchases and save time on repetitive shopping tasks.
Personalisation: Many subscription services offer curated selections based on individual preferences and needs.
Value: Subscribers often receive exclusive discounts, free shipping, or bonus items as part of their membership.
Discovery: Subscription boxes introduce consumers to new products they may not have tried.
To succeed with a subscription-based model, ecommerce businesses should:
Identify products that are well-suited for recurring purchases
Offer flexible subscription options and easy cancellation policies
Provide exceptional customer service to retain subscribers and encourage long-term loyalty
Continuously gather feedback and adapt their offerings based on subscriber preferences
Tip: Consider offering a mix of subscription and one-time purchase options to cater to different customer preferences and needs. This approach can help you attract a wider audience and provide a more flexible shopping experience.
Trend 8: The Importance of Sustainability and Ethical Consumerism
As consumers become increasingly aware of the environmental and social environmental and social impact, sustainability and ethical consumerism have become key drivers in the ecommerce industry. A study by Accenture found that 60% of consumers have reported making more environmentally friendly, sustainable, or ethical purchases since the start of the pandemic (Accenture, 2020).
To appeal to eco-conscious consumers, ecommerce businesses should:
Implement eco-friendly packaging solutions, such as biodegradable or recyclable materials
Partner with suppliers and manufacturers that adhere to sustainable and ethical practices
Offer products made from sustainable materials or with a reduced environmental footprint
Communicate their sustainability efforts clearly and transparently on their website and social media channels
Consider implementing carbon offset programs or donating a portion of profits to environmental causes
Tip: Highlight your sustainability initiatives throughout the customer journey, from product descriptions and shipping options to post-purchase follow-up. This approach can help you build trust and loyalty with environmentally conscious consumers.
Buy Now, Pay Later allows customers to have what they want now and spread the payments to make them more manageable over time.
Trend 9: The Growing Popularity of Buy Now, Pay Later (BNPL)
Buy Now, Pay Later (BNPL) services have gained significant popularity in recent years, offering consumers the flexibility to spread the cost of their purchases over time without incurring interest charges. According to a report by Worldpay, BNPL accounted for 2.1% of global ecommerce transactions in 2020 and is expected to double to 4.2% by 2024 (Worldpay, 2021).
The rise of BNPL can be attributed to several factors, including:
Affordability: BNPL allows consumers to make larger purchases without the immediate financial burden.
Convenience: Many BNPL providers offer a seamless checkout experience with instant approval and no additional paperwork.
Flexibility: Consumers can choose from various repayment options, such as weekly, bi-weekly, or monthly instalments.
Accessibility: BNPL services often have lower credit score requirements than traditional credit cards, making them accessible to a broader audience.
To incorporate BNPL into your ecommerce strategy, consider:
Partnering with reputable BNPL providers, such as Klarna, Afterpay, or PayPal's "Pay in 4."
Integrating BNPL options seamlessly into your checkout process
Communicating the terms and conditions of BNPL to your customers to ensure responsible borrowing
Monitoring the impact of BNPL on your sales, average order value, and customer loyalty
Tip: Offer BNPL as a complementary payment option alongside traditional methods to cater to customer preferences and financial situations.
Trend 10: The Rise of Personalised Product Recommendations
Personalised product recommendations have become a powerful tool for ecommerce businesses looking to enhance the customer experience, increase average order value, and drive customer loyalty. By leveraging browsing behaviour data, purchase history, and customer preferences, online retailers can deliver highly targeted and relevant product suggestions that resonate with individual shoppers.
A study by Accenture found that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations (Accenture, 2018). Furthermore, personalised recommendations can lead to a 10-30% increase in ecommerce revenue, according to a report by McKinsey (McKinsey, 2019).
To implement practical personalised product recommendations, ecommerce businesses should:
Collect and analyse customer data from various touchpoints, such as website interactions, email engagement, and purchase history
Use machine learning algorithms to identify patterns and predict customer preferences
Display personalised recommendations strategically throughout the customer journey, such as on product pages, in email marketing campaigns, and during the checkout process
Continuously test and refine recommendation algorithms to improve accuracy and relevance.
Ensure that personalised recommendations align with your overall brand strategy and customer experience.
Tip: Consider implementing a loyalty program that rewards customers for purchases and engagement. This approach can help you gather valuable customer data while fostering long-term relationships and repeat business.
Trend 11: The Importance of User-Generated Content (UGC)
User-generated content (UGC), such as customer reviews, ratings, and social media posts, has become a crucial factor in the purchasing decisions of online shoppers. A survey by BrightLocal found that 87% of consumers read online reviews for local businesses in 2020, up from 81% in 2019 (BrightLocal, 2020).
UGC offers several benefits for ecommerce businesses, including:
Increased trust and credibility: Authentic reviews and ratings from real customers can help build trust and confidence in your brand and products.
Improved search engine rankings: Search engines like Google prioritise websites with high-quality, relevant UGC in their search results.
Enhanced product discovery: UGC can help potential customers discover your products through social media shares and online word-of-mouth.
Valuable customer insights: Analysing UGC can provide valuable insights into customer preferences, pain points, and areas for improvement.
To leverage the power of UGC, ecommerce businesses should:
Encourage customers to leave reviews and ratings by sending post-purchase follow-up emails or offering incentives
Display UGC prominently on product pages and throughout your website
Share positive UGC on your social media channels to showcase customer satisfaction and build brand advocacy
Respond promptly and professionally to positive and negative feedback to demonstrate your commitment to customer service.
Use UGC insights to inform product development, marketing strategies, and customer experience improvements.
Tip: Implement a visual UGC strategy by encouraging customers to share photos and videos of their purchases on social media. This approach can help create a sense of community and authenticity around your brand while providing valuable content for your marketing efforts.
| Payment Method | Adoption Rate (2020) | Projected Adoption Rate (2024) |
|---|---|---|
| Credit Card | 23.3% | 22.8% |
| Digital/Mobile Wallet | 44.5% | 51.7% |
| Debit Card | 12.3% | 12.6% |
| Buy Now, Pay Later (BNPL) | 2.1% | 4.2% |
Source: Worldpay, 2021
Ecommerce Frequently Asked Questions
What is social commerce, and why is it essential for ecommerce businesses? Social commerce refers to selling products directly through social media platforms. It is crucial for ecommerce businesses because it allows them to reach a vast audience, engage with potential customers, and streamline the purchasing process.
How can ecommerce businesses incorporate sustainability into their operations? Ecommerce businesses can integrate sustainability by using eco-friendly packaging, partnering with sustainable suppliers, offering products with a reduced environmental footprint, and communicating their sustainability efforts to customers.
What are the benefits of offering customers Buy Now, Pay Later (BNPL) options? BNPL options allow customers to spread the cost of their purchases over time, making products more affordable and accessible. This can lead to increased sales, higher average order values, and improved customer loyalty for ecommerce businesses.
How can personalised product recommendations enhance the customer experience? Personalised product recommendations can enhance the customer experience by providing relevant and targeted suggestions based on individual preferences and behaviour. This can increase engagement, higher conversion rates, and improved customer satisfaction.
Why is user-generated content (UGC) influential for ecommerce businesses? UGC, such as customer reviews and social media posts, is essential for ecommerce businesses because it builds trust and credibility, improves search engine rankings, enhances product discovery, and provides valuable customer insights.
As the ecommerce industry continues to evolve and grow, staying informed about the latest trends is essential for online retailers looking to remain competitive and meet the changing needs of their customers. By embracing trends such as social commerce, subscription-based models, sustainability, Buy Now, Pay Later, personalised recommendations, and user-generated content, ecommerce businesses can create a more engaging, convenient, and personalised shopping experience.
However, it is essential to remember that implementing these trends requires a strategic and data-driven approach. Ecommerce businesses should continually analyse customer data, monitor industry developments, and adapt their strategies accordingly. By staying agile and responsive to change, online retailers can position themselves for success in the dynamic and fast-paced world of ecommerce.
As we look ahead to the coming year and beyond, one thing is sure: the ecommerce landscape will continue to evolve, presenting challenges and opportunities for businesses of all sizes. By staying attuned to the latest trends and prioritising customer experience, ecommerce businesses can thrive in this exciting and transformative industry.