The best way to leverage the global e-commerce market to increase revenue is by adjusting to customer preferences. Businesses continue to sell on e-commerce platforms that prioritize customer experience to streamline global sales.
The following is a list of some of the most significant global e-commerce trends that are anticipated to shape the industry in 2024. These trends are expected to have a substantial impact on online shopping, retail businesses, and consumer behavior.
- Social media platforms
Social media platforms such as TikTok and Instagram now offer shopping features that allow users to buy products without leaving the app. The social commerce market is expected to grow at a CAGR of 40.1% between 2023 and 2028.
Brands are shifting to interactive formats like Instagram Reels and TikTok videos. Video usage leads to an 81% increase in sales, and 80% of people prefer it over written text. Collaborations with Key Opinion Leaders and influencers for livestream sessions offer an interactive shopping experience. Platforms like Amazon, Shopee, and eBay engage with the TikTok community by creating informative and entertaining videos featuring popular products or promotions.
- AI Bots
Chatbots offer 24/7 global support with pre-set responses, addressing consumers’ frequently asked questions. 72% of businesses prioritize expanding AI and chatbots across the customer experience. Chatbots also provide multilingual support, breaking down language barriers.
- Online Shopping
The e-commerce industry has evolved since the pandemic to offer more than traditional stores. Livestreams and e-wallets in streaming are driving online sales. The use of AI is intensifying and will pave the way for significant trends in retail and e-commerce in 2024.
- ML and AI
Machine Learning and AI help improve e-commerce warehouse processes, ensuring a seamless flow of goods, reducing costs and increasing efficiency. AI-powered tools can help manage supply chain efficiency by predicting demand, keeping track of stock and rerouting deliveries. Leveraging AI can achieve higher accuracy and efficiency in handling various products in warehouses.
Personalized shopping experience in e-commerce is facilitated by AI-driven recommendation tools. Algorithms based on customer data such as past purchases and time spent viewing products are used to recommend new products, enhancing purchasing decisions for increased online sales.
- Digital Payment
E-commerce platforms offer various digital payment methods such as PayPal, E-wallets, credit cards, cash on delivery, and Buy Now Pay Later (BNPL). BNPL payments are a growing trend and projected to reach USD 61.09 billion by 2032.
- Cybersecurity
Online transactions are growing rapidly, but so are cyber-attacks. Small businesses are the most vulnerable, with only 14% prepared for defense. To protect customer data, implement tighter security measures such as changing passwords regularly, updating software, and using multi-factor authentication.
- Sustainable packaging
Sustainable packaging is one of the top trends expected to grow through 2024. Millennials and Gen Z support brands with environmental commitments. 73% of Gen Zs are willing to pay more for sustainable products. So, businesses should explore sustainable packaging options for online purchases to build a stronger connection with eco-conscious customers and reduce environmental issues.
- B2B
E-commerce platforms offer discounted rates for bulk purchases to attract smaller traders. Asia, led by China’s market valued at USD 3.72 trillion, drives the global B2B e-commerce market. The market is projected to reach USD 26.59 trillion by 2030 at a CAGR of 18% between 2023 and 2030, according to Statista.
- AR and VR
Augmented reality (AR) and virtual reality (VR) can offer an immersive and interactive shopping experience. The AR retail market is expected to reach USD 6.7 billion and VR retail solutions market is estimated to hit USD 5.5 billion by 2028. By implementing these technologies, you could enhance your e-commerce store and offer your customers a better shopping experience, leading to increased brand loyalty and higher sales.
- Applications programming interfaces (APIs) and headless systems
Headless and API-driven e-commerce allows businesses to separate the front-end and back-end of their online stores. This flexibility enables quick feature updates and a consistent user experience across devices. ShopifyPlus offers headless commerce solutions for businesses to turn any digital screen into an e-commerce sales channel.
To succeed in e-commerce, businesses should prioritize customer needs and stay updated with emerging trends. With the increasing number of online shoppers, it’s essential to adopt new technologies and engage with customers to stand out in the competitive market.
