26 Nov What We Should Expect in the Future of E-Commerce?
In 2017, e-commerce sales reached as high as $2.290 trillion that occupied 10.1% of the overall retail sales. It is also expected to rise consistently to reach $4.470 trillion by 2021 and so that we can say that the future of e-commerce is brighter. The global e-commerce market is expanding in Southeast Asia and Middle East America. So, what we should expect in the future of e-commerce? Here are some trends to watch out for in the coming year:
What is the Future of E-commerce?
1. Personalization and Customer Experience
E-commerce businesses like Amazon have already transformed the customer experience. The personalization trend will remain a key factor in winning e-commerce customers for the years to come. Today, customers don’t want to spend their time with unnecessary information. They require more personalized products, services, and information from the e-commerce industry.
It has been observed that retailers who provide a personalized experience to their customers observe a rise in their sales of about 6% to 10%. Amazon and Netflix have provided us the best example of personalized experience with their recommended services and products. Any e-commerce business can inspire from them and send emails to customers with recommended product list or special offers through social media.
Mobile devices are becoming a preferred choice for shopping online in the upcoming years. It is expected that almost 70% of the total e-commerce traffic will come through mobile devices by the end of this year. It is also expected that the M-commerce revenue for the year 2018 is going to hit equal to the total e-commerce revenue for 2013; approximately $620 billion.
This is so because the brands like Apple and Google are making it convenient for customers to pay via mobile devices. Say for an example, Starbucks is receiving almost 10% of their orders through their mobile app only. This is the result of apps allowing secure payments online.
3. The convenience of Product Delivery
Customers want convenience; whether it is for shopping the products online or choosing the delivery options. They prefer fast delivery of goods at convenient delivery points. So, the e-commerce businesses who want to thrive in the market should offer fast services with multiple options.
4. Augmented Reality
Augmented reality is entering the e-commerce field rapidly. Consider the level of ease and convenience provided to the customers by augmented reality; when you can try your clothes virtually before buying it online, testing a makeup look or even testing a 3D product image of furniture for fitting it into your home. We have already seen how the furniture company called Wayfair introduced the augmented reality concept of 3D images in iOS 11 feature. It allowed customers to view the room in 3D with the furniture piece they wish to buy.
The AR market is set to reach $83 by the end of the year 2021. So, this suggests that upcoming years is surely going to be the year of augmented reality in the future of e-commerce marketplace.
5. Emerging Market Potential
The e-commerce market is set to expand in Southeast Asia and Latin America. The e-commerce market has penetrated these areas only at the rate of 6% and this is the reason why these areas will be targeted in near future. Another reason for targeting these areas is that they are expected to grow at a higher rate through 2021. Apart from India, e-commerce businesses can expand their market in areas like Chile, Mexico, and Brazil.
6. B2B’s Data Challenge
The B2B e-commerce transaction has increased to 7.66 trillion dollars which were 5.83 trillion dollars in 2013. Even though B2B businesses are all set to thrive in the global market, there is still something that can cause hindrance. The B2B businesses are also consumers at the end of the day and they are expected to function like B2C when it comes to online ordering.
A B2B business can be successful when it is buyer specific and it understands the buyer’s decision of purchase. This calls for getting an insight into customer requirements and it involves gathering a lot of data. This suggests that B2B will have to face challenges of accumulating quality data for the coming years.
At last, we can say that the future of e-commerce world is all set to observe the changes mentioned here and we shall witness them in near future. All we have to do is keep an eye on the e-commerce market trends and leverage it into your business for grand success. Did you like this article or not? Mentioned your thought in a comment section.