The rapid growth of online shopping has led to a burgeoning ecosystem of small and large players. Products of every kind can be purchased online. Businesses love eCommerce for the possibility of buying and selling direct to consumers, without involving a distributor and without having to pay for physical exposure at a brick-and-mortar.
Here are the biggest trends guiding the future of eCommerce:
1. More Growth
Ecommerce will grow from $3.3 trillion to $5.4 trillion by 2026 and soar even higher. As retailers struggle with soaring rents, lower-than-average foot traffic in certain regions, and other challenges, moving operations online and selling direct to consumers is a profit-centric selling strategy.
2. More Influencer Marketing
To cut through the noise, more brands in the eCommerce space will use micro and macro influencers to reach their target clientele. Influencer marketing delivers better results and instantly creates awareness if you’re a new brand, letting people know you exist. Many predict influencer marketing will be one of the primary ways for new eCommerce sites to build market share.
3. Live Shopping
There is no better way to create a sense of urgency than live shopping hosted with your best influencer. A live shopping app are ideal for brands looking at pushing a new product, a new product line, or a series of products. Expect the growth of live streaming e-commerce and live online shopping to be very helpful in making instant sales and driving real-time revenue.
4. Rising Customer Acquisition Costs
There is no barrier to entry into eCommerce. Costs are extremely low to set up an eCommerce channel. There are already an estimated 24 million eCommerce sites online globally. To acquire new customers, brands have to spend more. The cost-per-click on paid search ads has increased 15% year-over-year as well, increasing one’s advertising spending significantly. A rise in eCommerce customer acquisition will mean brands shifting to more targeted eCommerce strategies.
5. Better Customer Lifetime Value
CLV, or ‘Customer Lifetime Value, is seen as a saving grace as returns on ad spending in eCommerce are plummeting. The more loyalty an eCommerce site builds, the better off it will be. Prioritizing Customer Lifetime Value might involve regular discounts, customer appreciation days, strong customer service efforts, and essential branding strategies.
6. Participation of Major Retailers
Every year, competition in eCommerce is increasing. While Amazon is the big player, expect Walmart and others to circle in on specific categories, further dividing market share and making eCommerce more corporatized. Small businesses will have to work harder to outdo the larger competition and work with them as a distribution strategy.
7. Small Brands Have a Story
Your brand exists for a reason, and there’s a story behind every product. You differentiate from competitors by telling your story in eCommerce and highlighting where a product’s from as well as a brand’s origin. This is where small brands will continue to make their reputation, highlighting the advantages of buying from a more underground brand identity than a corporate conglomerate.
8. Social Media at the Center
Social media is where eCommerce and online buyers spend most of their time. More eCommerce happens on social media and through social media clicks than anywhere else. Live streaming is growing. Video marketing on TikTok, Instagram, Facebook, Twitter, and YouTube is growing. These online communities are where eCommerce marketing has to be direct, smarter, and more cost-efficient.
9. Shopping Directly on Social Media
Social media is not only where eCommerce brands market, but it’s going to be where brands will ultimately sell most of their products. More eCommerce is happening directly through social media instead of being redirected to a platform. Already in China, more than 50% of eCommerce sales happen on social networks, and in turn, those brands are generating more than ten times the revenue of eCommerce sales in the United States. Expect sales through social media to grow significantly by the decade’s end.
10. Augmented Reality Adoption
Many clothing, eyewear, and beauty and makeup brands already adopt AR in eCommerce. It’s also being used by home décor and furniture companies. Augmented reality allows someone to try on a product before buying without going to a physical location. As eCommerce apps and the metaverse continue to develop separately and together, augmented reality, or AR, will likely have a more pronounced role in online shopping.
11. NFTs, Crypto, And Blockchain
From a technological standpoint, a lot is predicted for the future of eCommerce. Some eCommerce platforms are already starting to blend in with the sale of non-fungible tokens, for example. The future will likely see the increased incorporation of cryptocurrency on eCommerce platforms. We can expect merchants to be set up on specific blockchains aligned with their customer base and their products. This will also mean increased prioritization of security.