There’s enough proof in numbers to establish that these are interesting times for eCommerce. Statista, for example, shows that revenue in the eCommerce market amounts to US$2,237,959m in 2020. It’s an upward journey for the eCommerce industry from hereon, with an annual growth rate of 7.6% for CAGR 2020-2024). The same report says that by the end of 2024, the market value for eCommerce will be hitting a whopping US$3,004,191m.
As promising as these numbers look for eCommerce the industry is also fraught with challenges and uncertainty.
The way consumers shop is changing. New technology trends are emerging every day. And, the eCommerce universe is clogged with competition. That’s why though there already might be 12 million to 24 million online stores only 650000 are actually making anywhere close to $1000 of annual sales. New and existing players face competition from giants like Amazon, which has already captured a majority of the U.S. eCommerce market.
With so much to keep up, eCommerce merchants might feel like they are trying to survive on a slippery slope. If you are an eCommerce merchant or plan to enter the markets soon, gear up for the excitement. Start off by taking note of the five most popular trends in the industry for 2020.
5 most popular eCommerce trends for 2020
Incorporating some of the following trends in your strategy will help you stay ahead of the game ensuring that you are making much more than $1000 in annual sales. There’s a lot to discuss, so let’s dive right in.
Rise in demand for a rich mobile experience
There is enough data to prove that mobile is widely used as the preferred device for online shopping by many. When in a physical store, 65% of people use their smartphones to compare prices of products available online with those available in the store.
To add to this, Google says that people who have a negative experience on your mobile website are 62% less likely to buy from you. Not having a mobile responsive website could be one of the biggest mistakes that you are making.
In 2020 and beyond, this bend towards mobile is going to get richer. Owing to the fact that people demand a smoother, faster, and uninterrupted mobile experience, we are going to witness a revolution in mobile technology and experience.
Consider Progressive Web Apps as an example. People do not want to waste their mobile storage on too many apps. Yet, they want the rich shopping experience that apps provide. This is where PWAs come into the picture. Owing to the superbly engaging and friction-free nature of PWAs, Debenhams, for example, found out that the user journey from browsing to buying was 2x to 4x on its PWAs.
Tremendous growth for social media marketing and social commerce
Everyone is on social media. Even kids know how to use Instagram and Pinterest. That’s why most eCommerce businesses have tapped into social media platforms to amplify their sales and conversions.
Given that people are very comfortable using social media for making online purchases, social commerce is one trend that will see major adoption by eCommerce. Those who have a Facebook shop page and create Instagram shoppable posts will be able to win over those competitors who don’t invest in social commerce.
Now is the time when, in order to succeed, eCommerce players should be investing in marketing tools to boost social engagement and buying. Investing in the right marketing tools matters a lot. InVideo, for example, is a Facebook marketing tool that can be used to create interesting videos that convert.
Personalization will pave way for conversational commerce
There is a tremendous emphasis on the fact that personalization is the only way to win customers and to retain them. The internet is littered with stories on how personalization increases customer engagement and brings in higher conversions.
What eCommerce businesses who are hungry for the major share of shopper engagement and sales pie need to do is change their view about personalization. Today, personalization doesn’t mean just using a shopper’s name on an email or web push notifications. Today, personalization means having regular, meaningful, and engaging conversations with shoppers.
Personalization has evolved into conversational commerce, a trend that will witness manifold growth with advanced technological trends coming into the picture. Conversational AI has made it possible for bots and voice-based assistants to talk with humans 24/7, understand their concerns, and meaningfully engage with them.
Sephora’s Kik is a classic example of how a bot can create fascinating and human-like experience for shoppers, and exceptional results for the brand.
Payment and identity security will become a top priority
Credit card fraud is on the rise and in the times to come will also get more complex in nature.
Unfortunately, KPMG’s Principal and Retail Cyber Security Leader Tony Buffomante, says that, “Despite the focus that’s been on [cybersecurity] post-Target and others, only 58% of retailers said that there’s a leader in the organization whose sole responsibility is information security.”
This attitude towards online crime and fraud is going to see a complete change very soon. Firm measures about safeguarding shoppers’ privacy are already in place with a lot of emphasis being placed on the General Data Protection Regulation by the EU.
Additionally, payment gateway security is going to be a major factor for eCommerce players while choosing an eCommerce platform to build their business on. Statistics point out that eWallets are the most preferred payment method for online shoppers. Providing shoppers the safety they deserve while using their prefered mode of online payment is going to be a must.
Augmented reality will establish a solid footing
It is predicted that by 2020 augmented reality will grow to a whopping $120 billion in revenue. The same report states that 40% of shoppers will be willing to spend more on products that can be experienced pre-purchase via AR. Needless to say, AR is the future of eCommerce.
Brands like L’Oréal have already made it big in eCommerce leveraging AR. Their mobile app identifies the shopper’s face and virtually shows them how they’ll look like with their choice of makeup products applied on their face. Innovative, right?
The trends shared above pave the future for eCommerce. For online merchants, watching out for these shifts and adapting to them is the key to long-term survival.