The eCommerce industry has undergone a tremendous transformation in recent years. It has been driven by the rapid development of technology, a shift in consumer preferences, and global economic shifts. eCommerce has seen several notable trends over the past few years. These eCommerce trends are not only influencing how businesses operate but also how consumers shop and interact with brands in the digital marketplace. In this blog, we will explore some of the key eCommerce trends that have been defining the eCommerce industry. We’ll start by looking at the statistics of the eCommerce industry and where it’s headed.
eCommerce Industry Stats: The Future of eCommerce
eCommerce has grown at a meteoric pace over the last few years. Retailing has been significantly impacted by it. Retail eCommerce sales worldwide reached approximately 5.2 trillion dollars in 2021. By 2026, this figure is expected to grow by 56 percent, reaching about 8.1 trillion dollars.
Business-to-business (B2B) online commerce also shows continuous eCommerce growth in 2023. Because of the long queues and annoying traffic, customers nowadays prefer eCommerce over brick-and-mortar shopping. While shopping online, they can also read reviews and compare products. Due to this, business owners focus more on getting online traffic than foot traffic through their marketing campaigns.
However, China and the USA dominate the global economy with their fast-growing eCommerce space. The following is a list of the top 10 countries where online shopping is the most popular.
- China – $656.3
- United States – $500.47
- United Kingdom – $83.83
- Japan – $78.64
- Germany – $68.01
- South Korea – $62.69
- France – $45.54
- India – $29.47
- Canada – $28.63
- Australia – $19.33According to Forbes, eCommerce statistics for 2023 are as follows:
A total of $8.1 trillion is expected to be generated by eCommerce by 2026.
Among eCommerce companies, Amazon has the highest market share of 37.8%
More than half (48%) of online shoppers abandon their cart because of additional costs such as shipping, taxes, and fees.
Online shopping is done at least once a month by 79% of shoppers
A total of $2.9 trillion is expected to be generated by social media commerce by 2026
Smartphones are used by 91% of shoppers to make online purchases
The eCommerce fraud detection and prevention market will reach over $69 billion by 2025
eCommerce trends in 2023 and beyond
eCommerce’s future is much easier to predict. We’ve compiled a list of the top eleven eCommerce industry trends you need to know about in 2023 to stay ahead of the competition.
1. Blockchain and cryptocurrency
eCommerce is gaining traction as blockchain technology enhances security, traceability, and transparency. The use of blockchain in eCommerce transactions and supply chain management is being explored by some businesses. Furthermore, cryptocurrencies are becoming more accepted as a form of payment, giving customers more payment options. In spite of the fact that their adoption is not yet widespread, blockchains and cryptocurrencies have the potential to reshape eCommerce transactions and offer secure alternatives to traditional payment methods.
2. Influencer marketing
Among the key eCommerce trends is the continued rise of influencing collaborations. Influencers aren’t just D-list celebrities. Their audience is real. It has a tangible impact. 70% of millennial customers are inspired by influencer recommendations. Brands are increasingly collaborating with social media influencers and content creators to extend their reach and credibility. The endorsements and reviews of influencers help businesses reach wider audiences and build trust. Choosing the right influencers who align with the brand’s values and target audience is crucial to influencer marketing success.
3. Health and wellness eCommerce
As a result of the COVID-19 pandemic, health and wellness-related eCommerce has grown exponentially. A growing number of consumers are using the Internet to purchase fitness equipment, supplements, healthcare products, and telemedicine services. In the future, these online shopping trends are expected to persist as people continue to prioritize their health and well-being. This sector offers a chance for eCommerce businesses to meet evolving consumer needs and provide convenient, accessible, and healthy lifestyle solutions. To create your own health and wellness eCommerce, reach out to the best web eCommerce development company in the USA.
4. Same-day delivery
In recent years, customers have become increasingly demanding of fast delivery options, such as same-day or next-day delivery options. Even such companies as Blinkit, offer 15 minutes delivery to their customers. As a result, eCommerce businesses optimize their fulfillment and logistics processes. These fast delivery options reduce cart abandonment rates and enhance the overall shopping experience. Often, meeting these expectations involves partnering with local delivery providers and strategically located fulfillment centers.
5. Post-payment mechanism
The post-payment mechanism is one of the key eCommerce trends in the online shopping industry. Cart abandonment is a major problem for eCommerce entrepreneurs. In 2015, eCommerce firms lost $4.4 billion due to cart abandonment. To overcome such losses, post-payment mechanisms are an effective solution. Customers often show interest in your products. Nevertheless, they abandon the cart because of faith in your product quality. A growing number of eCommerce entrepreneurs are now experimenting with post-payment strategies. The best eCommerce website development company can help you implement these advancements in your online business to attract new customers and retain existing ones.
The failure of payment gateways is a major cause of cart abandonment. It is a good idea to use the post-payment strategy. Especially during the trending sales season, it can significantly reduce revenue loss. Furthermore, it is an effective strategy for acquiring new customers and keeping up with eCommerce growth trends.
6. AR and VR
The use of AR and VR technologies has become increasingly popular among eCommerce brands to provide customers with an immersive shopping experience. The AR/VR market is expected to reach $856.2 billion by 2031, growing at a CAGR of 41.1%.
The concept of augmented reality (AR) combines the real, physical world with computer-generated images, sounds, or other stimuli. In contrast, virtual reality (VR) simulates a seemingly real computer-generated environment by using a special headset to immerse the user in it. The majority of consumer reactions are positive. 71% of respondents said they would shop more if businesses used augmented reality. A study found that companies using AR/VR content convert 94% better.
One of the companies pioneering augmented reality is Ikea. The IKEA Place app uses Apple’s ARKit platform to allow customers to see digitally reproduced 3D product images at home. Through their mobile devices, users can see how a piece of furniture fits into a room.
7. Conversational commerce
In conversational commerce, customers engage with brands in real-time conversations, making shopping more interactive and personalized. It’s not just about quality products anymore, it’s about immersive experiences and meaningful conversations that make consumers feel valued.
Therefore, conversational marketing is on the rise, through which customers can get answers about products/services and even make purchases via chatbots or live agents. eCommerce business owners can leverage conversational marketing by implementing a chatbot on their official website or social platforms, using call-to-action prompts in chatbots, or using live agents to optimize conversations. Our generative AI services can help you stay on top of the online shopping trends and grow your business.
8. Generative AI
Generative AI has grown in popularity in the corporate world since 2020, with venture capital investments increasing by 425%. The technology has the potential to revolutionize eCommerce by generating personalized product recommendations, creating realistic product images, enhancing the consumer experience, and increasing sales. Also, a chatbot can be created to assist customers and resolve problems, allowing customer service agents to focus on more complex tasks. The use of generative AI can also prevent financial losses by detecting fraudulent transactions and improving eCommerce security. As a result of this technology, the retail industry is expected to undergo a revolution.
9. Personalized shopping experience
With sophisticated customer analytics, eCommerce has revolutionized how we shop, enabling retailers to better understand customer needs and preferences. With this data, businesses can create more relevant and engaging shopping experiences. Personalized sounds and smells are also used by retailers to create immersive shopping experiences, like music tailored to specific clothing items. Customers can find the perfect fit and style by using digital mannequins equipped with sensors that measure their height and weight. There is no doubt that these trends will shape the future of shopping in the coming years.
10. Social commerce
One of the most important eCommerce trends to follow is social commerce, which is the act of making purchases directly on social media. According to Zeropark’s Consumer Trend Report, social media product searches are catching up with SERPs. Facebook and other companies have already introduced direct selling options for entrepreneurs.
There is no doubt that this trend will only continue to grow in the future. The Instagram Checkout feature and Instagram Shopping are prime examples of social media companies taking advantage of this opportunity.
11. Voice commerce
Voice commerce, or V-commerce, allows customers to purchase using voice commands by using voice-activated devices. The capabilities of voice assistants like Amazon Alexa, Google Assistant, and Apple Siri extend far beyond providing information and searching for products.
The use of voice commerce simplifies shopping by removing the need for typing and browsing on screens. You can ask for a pair of black sneakers, for example, and the voice assistant will take care of everything. Businesses must optimize their content and product information for voice search. In addition, they should provide secure authentication methods to prevent unauthorized purchases and ensure seamless integration with voice assistant platforms.
OpenXcell helps you adapt to an ever-changing industry
It’s no secret that retail sales have been around for centuries, but eCommerce is constantly evolving. Staying ahead of the competition requires understanding the latest business trends and incorporating techniques that work for your brand and business model. Therefore, you should monitor your competitors, observe their new practices, and prioritize changes that will impact your bottom line.
Looking for a technology partner to help you integrate these updates? The eCommerce software solutions provided by OpenXcell can help you provide your customers with a great shopping experience and increase sales. Over the years, OpenXcell has built countless eCommerce websites for clients ranging from small businesses to big retail companies. We have helped businesses adapt to the latest changes in this dynamic sector as they expand internationally through updating their eCommerce technology. Make the most of the latest technologies and trends to revolutionize your eCommerce business. Contact us today!
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