Decades ago, the advent of ecommerce revolutionized the shopping experience, becoming a ubiquitous part of modern life. Who hasn’t turned to the internet to research products before making a purchase, utilized online ordering for in-store pickup or delivery, or resorted to their smartphone when an item wasn’t available in-store?
However, ecommerce has undergone significant transformation since its inception. It continues to evolve in response to shifting consumer habits and the integration of cutting-edge technology.
Here are ten ecommerce trends expected to shape 2024, which businesses should consider incorporating into their strategies. Staying abreast of these developments can enhance customer satisfaction, streamline operations, and ensure competitiveness—critical factors for sustained success.
Ecommerce trends gaining momentum as we approach 2024
1. Artificial intelligence (AI)
The utilization of AI to enhance operational efficiency and drive business success is no longer exclusive to large corporations. Recent advancements in AI have rendered it more accessible and cost-effective for retailers across various scales. Innovations such as generative AI platforms like ChatGPT enable retailers to engage in natural language interactions to tailor customer experiences and implement effective upselling and cross-selling strategies. Moreover, generative AI can sift through customer data, sales metrics, and other relevant information to generate compelling marketing content and social media posts, thereby fostering increased customer engagement without requiring manual content creation.
AI also streamlines various processes, such as call screening in customer service, and provides automated responses to basic inquiries, allowing human agents to focus on more complex issues. Furthermore, AI facilitates visual image search functionality, empowering customers to snap photos and swiftly locate corresponding products in your store for purchase.
According to Fortune Business Insights, the AI market in retail is poised for exponential growth, projected to achieve a staggering compound annual growth rate (CAGR) of 34.1%, soaring from $5.5 billion in 2022 to an estimated $55.53 billion by 2030.
2. Augmented reality (AR)
Traditionally, brick-and-mortar stores have held an edge over ecommerce by offering customers the opportunity to physically assess how products would fit into their lives or how apparel suits them when worn. However, augmented reality (AR) is narrowing this divide.
For instance, a furniture retailer can now empower consumers to superimpose a three-dimensional image of a chair or table onto a real-time view of their room, allowing them to visualize how it would blend and appear. Similarly, AR technology enables shoppers to virtually “try on” clothing items, visualizing how they would look on their own image.
Consumers eagerly anticipate the widespread adoption of AR technology, with 61% expressing a preference for retailers offering AR experiences. Furthermore, 71% indicate that they would increase their shopping frequency if AR were available for their use.
3. Mobile-first design
According to Statista, a significant 60% of global ecommerce sales originate from mobile devices. To enhance the shopping experience on smaller screens, ecommerce retailers are shifting their approach to website development: they’re prioritizing smartphone design before adapting it for larger screens like tablets, laptops, and PCs. This marks a departure from the traditional method of designing for larger screens first.
The rationale behind this shift is straightforward: it’s more efficient to create an appealing interface for a smaller screen and then scale it up, rather than vice versa. Adopting a mobile-first strategy ensures positive user experiences across all devices, potentially reducing cart abandonment rates, boosting revenue, and fostering customer loyalty.
Moreover, it’s worth noting that Google has transitioned to mobile-first indexing, making mobile-first design crucial for enhancing SEO performance.
4. Voice searches
The user base for voice assistants has surged from 79.9 million in 2017 to 125.2 million in 2023. Additionally, research by PwC indicates that 68% of consumers utilize voice assistants to compile shopping lists, while 50% employ them to make purchases. The allure of simplicity, convenience, and hands-free shopping is propelling this consumer trend.
To capitalize on this burgeoning opportunity, it’s crucial to recognize that spoken language differs from written language. Take the time to understand the phrases your customers use in voice searches and integrate them into your website content. Additionally, prioritize optimizing searches for “near me” if your target market is local.
5. Payment Options
While your business strategy may emphasize product quality, uniqueness, or a robust loyalty program, one of the most impactful ways to drive sales is by offering diverse payment options.
According to a PYMNTS survey of digital shoppers, nearly half indicate that the ability to use their preferred payment method is of significant importance, with an additional 12% considering it the decisive factor in choosing where to shop.
If your current payment processing is limited to credit or debit cards, consider researching your market to identify additional payment methods that could enhance your ability to capture sales.
Depending on your market and customer base composition, you could reap benefits from:
- ACH payments: This method enables customers to make payments directly from their bank accounts and is experiencing a surge in popularity. Nacha reports a consistent annual increase of at least $1 trillion in the total volume of ACH payments from 2012 to 2022.
- Buy now, pay later (BNPL): Offering this option allows customers to split payments for high-value purchases into three or four installments over several weeks, making them more manageable and potentially reducing cart abandonment rates. Fortune Business Insights forecasts substantial growth in the BNPL market, with a high compound annual growth rate (CAGR) of 22% from 2023 to 2030, reaching $122.19 billion.
- Mobile wallets: In the U.S., 53% of consumers prefer digital wallets over traditional payment methods. Notably, 47% indicate they tend to spend more money when using a digital wallet, and 51% state they would cease shopping with a merchant that doesn’t accept these payments.
- Peer-to-peer (P2P) payments: The adoption of P2P payment platforms like Venmo, Zelle, Cash App, and PayPal is another burgeoning trend in payments. Initially popular for reimbursing friends or family or for gift-giving, P2P payments are increasingly utilized for merchant transactions.
6. Subscriptions
The subscription model offers consumers a convenient “set-it-and-forget-it” approach to accessing services like streaming platforms and magazines. Additionally, for businesses, subscriptions establish a steady and predictable stream of recurring revenue. There’s no reliance on customers remembering to reorder each month; sales continue to roll in consistently.
However, this model isn’t solely confined to companies traditionally associated with subscriptions. Retailers are also capitalizing on subscriptions to foster customer loyalty and facilitate monthly purchases. Products like consumables—such as daily vitamins, coffee or tea, and beauty items—are ideal candidates for subscription services. Upon a customer’s initial purchase, businesses can offer to automatically replenish these essentials each month and arrange for recurring payments.
Alternatively, you have additional avenues to participate in the subscription economy. Fashion and accessory retailers, as well as providers of pet supplies and other specialty items, can offer curated boxes tailored to individual customers for either an annual membership or a monthly subscription fee. This approach not only sustains customer engagement month after month but also introduces an element of excitement through surprises, all the while maintaining a steady flow of revenue.
According to Research and Markets, the ecommerce subscription economy is on an upward trajectory, with the market projected to expand by $2.323 trillion from 2022 to 2028.
7. Strengthening the Battle Against Fraud
Fraud poses a significant challenge to the retail sector, with an estimated annual cost of approximately $100 billion, a figure that escalates in tandem with the growth of ecommerce. The absence of face-to-face interactions between customers and sales associates during online transactions provides perpetrators with greater opportunities for fraudulent activities. However, retailers are mounting a robust defense by deploying technology and implementing stringent processes to thwart fraudulent attempts. Moreover, the industry is instituting policies to mitigate chargeback fraud, commonly known as “friendly fraud,” where consumers seek refunds from their banks despite receiving the purchased products, often banking on the assumption that merchants won’t contest the claims.
The promising news is that advanced technologies such as AI can identify suspicious behaviors indicative of potential fraud. For instance, AI algorithms can flag irregularities like orders originating from countries inconsistent with the customer’s ZIP code, multiple orders stemming from the same IP address, or numerous high-value purchases within a short timeframe. Additionally, AI can swiftly analyze data to alert merchants about customers with a history of suspicious chargebacks.
In response to such flagged activities, ecommerce systems have the capability to halt transactions temporarily until customers verify their identities or decline the purchases outright.
8. Omnichannel Strategy
In 2024, retailers are increasingly embracing an omnichannel approach rather than solely relying on their ecommerce website or a single marketplace. More ecommerce businesses are identifying the preferred browsing and shopping platforms of their target audience and expanding their presence accordingly.
This approach may involve joining established ecosystems such as Amazon or catering to niche markets by selling handcrafted or specialty products on platforms like Etsy. Alternatively, retailers may explore the realm of social commerce, directly selling products through platforms like Pinterest or Instagram. However, the key to success in omnichannel ecommerce lies in creating a seamless and consistent experience across all channels while effectively conveying your brand message.
According to Statista, sales from multichannel ecommerce are experiencing significant growth. Totaling $350 billion in 2020, these sales are projected to reach $575 billion this year, with this upward trend expected to persist into 2024 and beyond.
9. Short-Form Video and Live Streaming
While online shopping offers consumers autonomy, enabling them to conduct product research, compare prices, and dictate delivery preferences, there are instances where they seek expert input.
Product videos serve as a valuable resource, addressing potential queries shoppers may have about items under consideration and showcasing features they may not have been aware of. Witnessing a product in action instills confidence and amplifies excitement surrounding the purchase.
Moreover, leveraging short-form video and live streaming on social media platforms can facilitate engagement and cultivate a dedicated following. By broadcasting content related to featured products or ongoing promotions, businesses can effectively connect with their audience and foster a sense of community.
According to eMarketer research, 75% of U.S. consumers actively seek visual content before making a purchase. By incorporating such content into their strategies, businesses stand to broaden their reach within their target market.
Staying Ahead of the Curve in 2024
Running a thriving ecommerce venture necessitates constant adaptation to evolving trends. It’s prudent to remain attuned to market dynamics and adjust accordingly. Integrating these emerging ecommerce trends into your 2024 business strategy can optimize your ecommerce technology, enhance customer satisfaction, and drive business growth.
