According to a recent report, eCommerce sales are projected to grow around 6.54 trillion in 2022. With the advent of the new decade, businesses should change or improve their services to address customer expectations and meet the demands of modern users.
By the end of 2019 (according to data from Statista) the global eCommerce market had sales reaching $3.5 billion and represented 14% of the total share of global retail sales.
While eCommerce has seen a marked rise over the last few years, this decade will see the adoption of eCommerce businesses like never before. The growth of technology will aid considerably to eCommerce retailers leveraging their products like never before.
Consumer spending is at an all-time high with no clear signs of slowing down. By 2022, eCommerce sales are expected to reach $892 billion in the U.S. alone. Competition online is growing steeper, advertising rates getting higher, and the number of digital players growing big every day. With such high digital noise, it becomes difficult for online retailers to set their business apart and take it out from the clutter.
So what are the top trends that will dominate the eCommerce industry this decade? Lets’s take a look:
- Personalizing Customer Experience
Gone are days when the same content would work for different demography of users. 2020 is the decade of personalizing the user experience and ensuring customer satisfaction. Marketers are realizing this and pushing for more customization. Starting from marketing and customer acquisition to the final checkout process, customers are expecting a seamless experience with limited steps that saves time. Online retailers have a huge chunk of data available at their disposal. To personalize user experience, marketers must appeal by leveraging this data. Instagram ads mimicking customer preferences is one example of targeted marketing. Currently, only 27% of global retailers are using this data judiciously to reach out to customers. However, with AI tools, the penetration will be much higher and data analysis rates will improve.
- Prioritizing Sustainability
According to a Nielsen study, 73% of global consumers say they would definitely change their consumption habits to reduce their environmental impact, and when it comes to eCommerce, the International Post Corporation shows that 60% of consumers agreed that their eCommerce packaging needs to be sustainable, and 50% said that they would like the delivery of their parcels to be carbon-neutral. And the best part is that these consumers are willing to pay for these changes.
Sustainability is no more just a buzzword. With the rightfully growing concerns for the environment, businesses must adopt sustainability practices and make their operations and dealings more responsible. 2020 will mark the decade of responsible retail, where socially conscious consumers will embrace brands that are environmentally aware and responsible.
- Augmented Reality will expand the shopping experience
The last few years have witnessed the surge of customers to online shopping due to multiple factors like saving time from checking multiple stores, buy from the comfort of their own home, privacy, and personalized experience. Enhancing these functionalities further, online retailers are looking at providing users with a more holistic shopping experience with the help of technology. AR tools are helping users visualize products from the comfort of their homes making them feel like they are viewing it in front of their eyes. This experience is making consumers make instant decisions without doubting the credibility of the product.
In 2019, Gartner predicted that 100 million consumers will shop using AR by 2020.
The AR model not only grants a person the ability to view the 3D version of the product but also shows them how they’ll look wearing it or using it. Soon it is going to be mainstream for businesses of all sizes.
- A surge in the volume of Voice Search
Dependency on voice search assistants like Alexa and Google Assistant will increase making users more comfortable with using voice search technology to look for products online.
Loop Ventures forecasts that 75% of U.S. households will own a smart speaker by 2025. Further, Nielsen predicts that 2% of purchases will be made through voice assistants by 2025.
Voice search can be defined as the acquisition of a product using voice and not using the screen. Optimizing voice search in eCommerce is a winning strategy for online businesses globally.
- Chatbots to improve the shopping experience
Modern shopping experiences require digital tools that shorten the response time and make the process efficient. At the center of personalization lies chatbots that enable stores to stay connected to users and reply back to queries on a real-time basis. Chatbots can automate much of the initial interaction thereby reducing downtime. Experts predict that 80% of businesses will be using chatbots in 2020. Chatbots not only have the capacity for customer support but also change the way people shop online. The proliferation of AI-powered chatbots means websites can answer questions quickly and provide support at any hour of the day.
These trends prove that this decade will see a revolution in the field of eCommerce and increased adoption of technology in the industry. The eCommerce market is set to be smarter, diverse, and more conscious to meet the demands of the evolving audience. Businesses that adopt these trends are sure to stay miles ahead of the competition.
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