The eCommerce industry has seen a sudden shift in business and marketability over the years and if we give credence to the confidence of business leaders, it is not going to grow dim anytime soon. Going by the global retail eCommerce market reports of Statista, the online shopping revenues are anticipated to grow to 6.54 trillion by 2022. While this particular stat gives us a fair idea of how the e-commerce industry will thrive in 2021 and beyond, in order to understand the trend that will follow in the forthcoming years, we need to comprehend what is causing shifts in buying habits and many other relevant factors.
Ecommerce sectors have, undoubtedly, tightened their grip on the retail market which eventually led consumers to make online shopping essentially a mainstay casting gloom over offline stores. Do you know there are around 24 million eCommerce sites across the globe with more being created every single day? Businesses and consumers are enjoying the online shopping trend so much so, it won’t be surprising to predict this being the biggest ever industry across the globe.
According to trade analysts, the dramatic growth in technology is one of the reasons that has influenced consumers to yield the fruits of online purchasing and prompted a massive boost in the e-commerce industry in the past few years. They further believe that if every online retailer will understand consumer behavior profoundly, the coming era will witness a huge surge in the online commerce marketplace where eCommerce trends will be adopted by leaps and bounds.
Businesses, marketers, and several other verticals know how important the eCommerce sector is transforming into and what it would be after 5 years from now. Shopping online has become a new purchasing trend for consumers but how did it actually happen? How did the eCommerce industry grow to become this strong and giant across the globe? Have e-commerce solutions steadily been on the rise since the launch?
The answer is simple yet complicated. The online buying and selling sector gives privilege to consumers in terms of quality and customer service which is what gives an edge to consumers to lean towards e-commerce rather than traditional commerce experience, however, it is not just limited to this one transcendent reason.
In 2021, it is believed that the future of e-commerce sector will focus on making the service more fruitful than ever for customers and therefore prepare the business to go mano-a-mano in the next phase of the eCommerce industry. Today’s post will define the purpose of growing e-commerce business and what are the top e-commerce trends, marketers are zeroing in on this year.
Prominent Online Shopping Trends Statistics in 2021
So far, we have had a reasonable understanding of how the e-commerce market is growing at an unprecedented rate, however, the question that a lot of people are still doubtful of is why customers are so hankering after online shopping? Aren’t they getting what they want from offline retails or it is turning out to be an unfavorable experience for them? Well, the reason could be many or just one and that’s subjective.
It is not because the majority of the population who belongs to Gen X and beyond believes in digitization but the rise of urbanization across emerging markets could be a major ground to some extent. And the collected data over the years employ the exact analysis on presenting the results effectively. Have a look.
- In the US, retail e-commerce sales are expected to surpass $740 billion by 2023. (Source – Statista)
- The digital medium has acquired 43% of preferred payment methods globally. (Source – Kinsta)
- Over 96% of Americans have made at least one online purchase in their life. (Source – Bigcommerce)
- 43% of global shoppers research products online via social networks. (Source – Statista)
- The first shop of 59% of millennials is done via Amazon. (Source – Inviqa)
- More than 50% of online shoppers tell friends and family when dissatisfied with a product or company. (Source – UPS)
Global Sales Growth of E-Commerce Industry
The given statistics are substantial to state how the rise of the online buying and selling industry would be impacted a lot by the e-commerce trends that are currently in demand. With that said, let’s have a look at the factors that will be responsible for the evolution of the e-commerce sector in 2021 and beyond.
Three Leading Factors That Are Driving E-Commerce Industry Growth in 2021
If you think that the world is on a brink of a major e-commerce breakthrough in the forthcoming years, you are not mistaken. In fact, online shopping is going to be the new normal for commerce sectors. Take the example of Amazon, it is now operating as a leading e-commerce player in a global retail market. A company that started out in 1995 with a mere bookselling firm now dominates the bigwig retailers and vision to witness explosive growth in the e-commerce industry. By looking at these e-commerce trends and the future of shopping worldwide, most startups are interested in investing in the e-commerce sector. Amidst the havoc that this giant industry has caused, there are significant elements that are boosting its sustainable growth, let’s have a look.
If you take a moment to look around and observe the fellow humans, you will see how engrossed most of them are in their smartphones. While some will be using it to chat with their friends and families, some will be browsing their most-liked e-commerce app for a new addition to their wardrobe, which is commonly known as m-commerce (also read – Ecommerce App Development Tutorial). M-commerce has the potential to become a major channel for shopping and to change consumer shopping habits. What if I say that smartphones will be the biggest tool that will drive e-commerce trends in 2021. Over 1.2 billion people worldwide access the internet from their smartphones out of which a survey says that a large number of the population uses it for shopping.
It is apparent that the rise of smartphones and new-age mobile apps have made consumers’ shopping life easier than before. Even if the shoppers are in-store and making up their minds to buy something, more than 55% believe in researching competitors’ prices before they settle on the purchasing decision. It won’t be wrong to tout the smartphone as a go-to assistant for the consumers that help them in making a vivid shopping decision.
Ever since the e-commerce industry has gained customer traction, the brand has become more concerned about adopting different parameters and aspects that relate the strategies to e-commerce, for eg – m-commerce and social commerce. In this growing e-commerce industry, savvy marketers are taking an interest in amalgamating top e-commerce trends with social media that eventually helps in boosting their e-commerce growth.
Social commerce has grown dramatically over the last few years and as per the Statista stats, the sales for social commerce are anticipated to reach 84 billion dollars in the USA by 2024. Have you ever come across pages or ads that are selling products or services directly on social media? That is social commerce. Every buying and purchasing habit that takes place on Facebook, Instagram, Twitter, and other social media channels is social commerce which is growing strong with each passing day.
The digital medium of shopping had been in the industry for a long time but the COVID-19 crisis has accelerated the shift towards a more digital world and triggered significant changes as well. Out of many, the shopping and e-commerce trends in a wide way seems to have a lasting effect. It has been observed in a survey that the percentage of younger people in America who used to shop once a week drastically surged by 14 % amidst the COVID-19 outbreak.
The world has changed a lot during these 10 years. And the way we shopped for products or services earlier had majorly changed the way we shop now. The brick-and-mortar stores have now become so yesterday. One of the major benefits people find via shopping online is they can rummage through the reviews put by other purchasers which helps them a lot to make a decision.
Check this post – How to Build a Multi-Vendor Marketplace App?
Top 10 Ecommerce Trends That Will Change Retail in 2021
The businesses who are looking forward to accelerating their e-commerce industry growth by bringing a whole new business model to the market must follow the trend that is going on and anticipated to approach in the coming days. The main objective of the business is to garner customers that eventually lead to purchase your products, however, luring them with discount offers and maintaining a good social media reputation has become the things of the past. Smart consumers need an innovative way and reason to buy your service which you can get only by understanding the e-commerce trends that will follow in 2021 and beyond.
Growth of E-Commerce Market Beyond B2C Products
The B2B and B2C approach of e-commerce business has had enough with the consumers and now the savvy leaders are considering trying something out of the box that could lead to a major acceleration in e-commerce transformation. The consumers of the 21st century turned to e-commerce to get everything necessary for their daily lives. The businesses that are operating in the B2C paradigm of buying and selling of products want to break the barrier and grow beyond it. That is why the startups who are getting into the e-commerce industry are opting for the D2C approach. This will help them gain a better understanding of their customer and more control over their brand followed by unleashing new e-commerce trends.
Major Fall in Retail Sales Leads to Increase in Online Commerce
If you search “Why online shopping is better than offline” or vice versa, you will be swamped with an abundance of articles and posts that will allow you to devise your decision about either of the two. According to the reports published by a leading business news channel CNBC, US retail sales witnessed a huge fall in December last year. Well, the reason is obvious, this helped hyperlocal e-commerce business take a drastic growth. Apart from that, the reason why people love to shop online is – it saves time, it allows you to shop at your convenience and the major one is the online product prices are cheaper (also read – What It Takes to Run a Successful Hyperlocal Business?) With that said, the coming e-commerce market is expected to be digital majorly.
AI Implementation in E-Commerce
The business landscape is changing significantly in which AI has embedded itself into all aspects. The business leaders of the current era believe that AI and marketing go hand-in-hand. You might be thinking how? Intelligent machines create an impact on various marketing channels and help businesses to quantify marketing decisions. This has resulted in pushing the e-commerce industry growth to a great extent. Many esteemed companies are investing in smarter apps and tools that could help them gain an insight into the customer so that they can further develop a customer-centric experience. A common example of AI in online commerce is searching for your products through an advanced image scanner.
Chatbots Improving the Shopping Experience
Jeff Bezos, the CEO of Amazon once said – “Focusing on the customer makes a company more resilient.” When your business is driven by customers, it is your responsibility to enrich their experience so that they settle on their doubts with a smiling face. It is evident to many businesses that making the customer satisfied is the core of the business strategy. As I talked about AI in the above-mentioned, a chatbot is another invention that is driving customer needs beyond an extent. Chatbot development has improved the traditional methods of engaging with customers and resolving their queries. Hence, this proves to be another component that will absolutely be the adding in e-commerce trends and the growth of the industry.
Increase in Brand Build and Customer Loyalty
Establishing a business is easy but transforming that business into a brand is a tough row to hoe. There’s no denying that enterprises strive to put themselves in a place that can be seen as a reputable entity by consumers. However, branding and customer loyalty have a lot to relate to each other. And when we talk about e-commerce, it is an industry that is entirely contingent on customer loyalty. The key to thriving business and revenue growth is not just about bringing new customers but retaining them. The brands by being loyal to consumers in various verticals will help the e-commerce market and business to grow by leaps and bounds. Branding is an intangible asset that takes diligence to get built.
A recently published customer service report by Microsoft claims that 96% of consumers believe that customer service is important in their choice of loyalty to a brand. This is the reason why e-commerce brands are focusing on occupying their business strategy in providing a personalized customer experience. What does personalization actually mean? In simple terms, it is understanding the individual customer requirements and offering them the products based on that. For eg – When you hop on to a clothing retailer, you are asked to select either the men’s or women’s section through a navigational approach. That’s personalization and brands are anticipated to shift their focus towards it in forthcoming years. Personalizing the customer needs has always been the prominent approach that strengthens e-commerce trends.
Acceleration in Innovation
Among many top e-commerce trends, tech-driven innovation is going to be a pioneering approach. Ever since the development of the internet has come into view, the role of technology has intensified and taken a turbo speed of growth. Since AI, ML and virtual assistants are common technical innovations that are leveraging many industries, virtual and augmented reality are something that is predicted to see the light of the day in 2021 and in upcoming years. There are many e-commerce industries that are solving customers’ problems via augmented and VR. For instance, many eyewear retail chains have come up with “3D try on” technology that allows customers to try different eyewear and frames from the comfort of home. It is a breakthrough innovation in the e-commerce industry.
Also read – Top ROI-focused Features for your Retail App
Advancement in Payment Methods
E-commerce is an ever-changing industry that is trying hard in providing shoppers a seamless and consistent experience across channels and devices. Enabling customers with diverse payment options is one of the steps that have been taken in the right direction by e-commerce sectors. The growth of the digital mediums of shopping is very much dependent upon the online payment options customers are being leveraged with. While payment cards, e-wallets, and cash are some common payment methods to effectuate payments, the e-commerce market is expectedly considering adding cryptocurrencies and direct carrier payments for online transactions.
According to Hubspot, 81% of businesses are already using video as a marketing tool. Since video is going to be the next big thing, it would be unwise of businesses to not use it as a tool of increasing conversion and exposure to building a business that would be an advantage to growing e-commerce trends. Instead of just mentioning the fabric quality and product specification in writing, show your consumers what your product actually looks like after clothing oneself in. Many e-commerce companies have already started tossing short advertising videos who believe that videos can help explain and showcase the products better than images ever can.
Sustainability in Products
A famous quote that comes to mind while unfurling the importance of maintaining sustainability in products is – “Quality is more important than quantity. One home run is much better than two doubles” – Steve Jobs. Consumers always come back to the brand if their product is good even though the price is a bit high. As content is king, the product is an ace to the e-commerce industry. Unless you offer your customers better products than your rivals, it is impossible to create unshakeable customer loyalty. The future of e-commerce depends highly upon the products and thus it is important for online commerce businesses to abide by customer requirements.
How Appventurez Can Help Choose the Best E-Commerce Trend for Your Business?
There are more than enough opportunities for businesses in the e-commerce space. And it is anticipated that the e-commerce trends apart, from the mentioned ones and beyond, will definitely gain customer traction. Since the majority of businesses operating with e-commerce trade are looking forward to building customer loyalty and set the pace for them with avant-garde digital transformation.
E-commerce has undoubtedly revolutionized retail and this has been possible only by understanding the consumer demands and altering the world of e-commerce by meeting the requirements. We, at Appventurez, ensure that the businesses are getting the hold of advancement in technology and shift in consumer behavior and thus adopting new-trend that could be proven advantageous to the company.
Co-Founder and VP Mobile Architect at Appventurez. An expert programmer who is passionate and loves to explore emerging mobile technologies. As a leader, he is a perfect match as he is always there for the team to help and guide them to learn and implement smartly and effectively.
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