Biggest Ecommerce Trends in 2024
Looking toward 2024, there are several trends that are poised to shape the way we shop online. From the rise of video shopping and subscription-based models to the continued expansion of mobile commerce and the ever-growing role of personalization, these trends are sure to have a significant impact on the eCommerce industry.
Why Are Ecommerce Trends So Important?
To succeed in the eCommerce realm, businesses should draw insights from past eCommerce trends and strike a balance between optimizing their existing channels and experimenting with novel ones.
Take, for example, Facebook ads. They were notably budget-friendly a few years ago, but in the past 2-3 years, their costs have substantially risen, especially for brands with a lower average order value (AOV). In contrast, TikTok advertising currently comes at a relatively high price, approximately $20,000 per campaign. However, as time progresses, it is expected to become more cost-effective, enticing a broader array of brands to explore its potential.
How Can Ecommerce Trends Benefit Your Business?
Keeping up with the latest e-commerce trends is crucial for online retailers aiming to optimize their market share. The dynamic e-commerce landscape can be complex, especially when finding actionable guidance and valuable knowledge on how to make the most of these trends. Businesses can proactively adjust their offerings to meet evolving customer demands, optimize resource allocation, seize opportunities, and mitigate potential threats.
So, let's delve into the primary trends in depth, equipping your online store with the necessary guidance to outpace the competition.
Top 10 Ecommerce Trends in 2024
1. Mobile Commerce
Mobile commerce, or mobile shopping, is a rapidly expanding tendency in eCommerce. With the increasing prevalence of smartphones and other mobile devices, more and more consumers are using their mobile devices to browse, research, and purchase products online. In fact, mobile devices now account for over half of all online sales, according to a report by Criteo, and this trend is expected to continue its confident growth.
Insider Intelligence predicts that by 2024, mcommerce sales will reach $534.18 billion, making up 40.4% of all ecommerce sales. This mobile commerce revolution is driven primarily by smartphones and tablets.
In the past, mcommerce was split fairly evenly between tablets and smartphones, but this balance has shifted. Nowadays, smartphones account for a dominant 87.2% of mcommerce sales. Essentially, mcommerce trends closely follow those of smartphones, with the distinction that smartphone commerce is growing slightly faster than the overall mcommerce sector.
One of the prime benefits of mobile shopping is its convenience for customers — they can shop anytime and anywhere. Additionally, retailers can use native apps and optimize their digital shops for all types of tablets and smartphones — to create a more personalized and seamless shopping experience for customers. This can include features such as push notifications, location-based offers, and personalized product recommendations.
According to a survey conducted by Google, 77% of mobile searches take place at home or at work, and 96% of those searches lead to some sort of action, whether it's a phone call, store visit, or purchase.
Retailers who want to take advantage of this trend should optimize their eCommerce sites and apps for mobile devices, and also ensure they have a secure and reliable mobile payment system.
Overall, mobile shopping is a trend that is expected to continue growing in popularity as more consumers adopt mobile devices and look for convenient and personalized shopping experiences. By 2025, the mobile sales segment will reach $3.56 trillion, according to a report by Zion Market Research.
2. New Payment Methods
Offering a variety of payment options at checkout can not only protect against canceled sales but also increase conversion rates. Customers appreciate a quick, secure, and convenient checkout experience, and the more options you provide, the more value you offer to your customers.
In a recent study conducted by Statista, it was discovered that digital and mobile payment methods, including PayPal, Apple Pay, and Google Pay, constituted nearly 45% of all worldwide e-commerce transactions in the year 2020.
Instead of providing credit card details on every single website they order from, customers prefer the convenience, speed, and security of these time-tested checkout methods.
Another subtrend here is the growing use of alternative payment options — such as crypto (mainly Bitcoin) and buy-now-pay-later options (BNPL) such as Shop Pay Installments from Shopify, Affirm, Afterpay, Sezzle, PayPal, and Klarna.
3. B2B Customer Personalization
B2B enterprises are increasingly adopting B2C-like strategies, such as implementing loyalty programs, modernizing their websites with AI-driven personalization, and developing mobile apps in response to shifting market trends. This transformation aligns with the findings from Forrester, which state that 62% of B2B buyers make their final vendor selections primarily based on digital content.
With B2B purchasers growing more accustomed to the user-friendly and intelligent online shopping platforms seen in the B2C sector, their expectations for a digital-first experience have heightened. Therefore, B2B firms that offer a seamless eCommerce customer journey are better positioned to secure a spot on that coveted vendor shortlist.
However, the significance of the customer experience extends beyond this point. As a B2B buyer, you are part of the 73% who desire personalized experiences akin to those available in the B2C domain. Furthermore, research has indicated that 50% of B2B buyers regard enhanced personalization as a critical factor when seeking online suppliers to establish business relationships, as personalized experiences have resulted in a 48% increase in consumer spending.
4. Video Commerce
Video shopping, also known as "shoppable video," is yet another direction eCommerce is moving towards. This trend absorbs all types of video and visual content, including product demonstrations, influencer videos, pre-paid product reviews, and even user-generated photo reviews.
As per eMarketer, the global digital video viewership exceeded 3 billion individuals in 2020, surpassing pre-pandemic forecasts. By the end of 2021, this figure will reach 3.26 billion, though the pace of growth is anticipated to decelerate.
Video shopping is extremely simplified showcasing products to customers on the other side of the screen, and more importantly, it allows viewers to purchase them directly through the video. This can be done through clickable links, pop-up buttons, or QR codes that take shoppers to the product page or checkout.
The video format is gaining steam as it allows retailers to engage with their audience in a more interactive and immersive way. Video can also help increase conversions as the format significantly simplifies decision-making and product purchasing.
The trend for visual content is essentially becoming mainstream as Gen Z and millennials prefer visual content over text, as they’ve grown up in the age of tech and social platforms. Additionally, video is apt to capture the attention of these generations, which are known for having shorter attention spans.
Therefore, retailers targeting these generations may find that incorporating visual content such as video shopping in their eCommerce strategy can be effective in attracting and retaining customers.
5. AR & VR
Augmented and virtual reality are confidently getting spread across eCommerce, with a huge unrevealed potential to revolutionize shopping as we know it.
AR technology allows retailers to enhance the customer shopping experience by providing a more immersive and interactive way to view products. For example, with augmented reality, shoppers can virtually try on sneakers, outfits, or makeup, see how furniture would fit in their rooms, or explore a new apartment in 3D. This helps shoppers be more confident about the potential purchase, additionally increasing the likelihood of a sale.
Madara Cosmetics, one of Magebit's well-known clients in the cosmetics industry, demonstrates its commitment to enhancing the customer experience through the integration of the "Virtual Try On" feature. With "ORGANIC REALITY," their custom-designed Augmented Reality (AR) tool, MADARA empowers customers to explore and experiment with MÁDARA Organic Makeup in a user-friendly and interactive manner, whether they are in the physical store or in the comfort of their own homes.
This innovative technology not only allows customers to visualize how Madara's products will look on them but also nurtures a deeper connection with the brand by offering a seamless and engaging digital experience.
Another great example is Wanna Kicks — the AR try-on-shoes app that allows seeing how sneakers would look on your feet and discover fresh drops from the latest collections of world-known brands.
Virtual reality or shortly VR offers users a full immersion into a simulated environment. The tech is used to design 3D showrooms, allowing potential buyers to discover products in a more interactive way, and to simulate the experience of using a product. For example, you can virtually test drive a car or try on the latest outfits in a virtual changing room.
However, VR adoption is still limited by the high costs of VR headsets and the lack of VR content and infrastructure.Worth mentioning that the adoption rate is lower than AR because it requires a more immersive setup and most of the time it's more complex to use.
Both technologies have yet to be widely adopted in eCommerce but are considered emerging trends that will continue to grow in the next few years. On the go, VR is getting more accessible and affordable, making it more viable for retailers to implement it.
6. AI Writing Tools
Leveraging AI writing tools in e-commerce is a straightforward and accessible solution, regardless of your technical expertise. The procedure is simple: you input your text, and the AI writing tool handles the rest. These various tools, such as ChatGPT, Google Bard, TextCortex, Jasper AI, and their counterparts, can generate entire paragraphs swiftly. This capability revolutionizes your work process, enhancing efficiency and enabling you to accomplish more within shorter timeframes.
ChatGPT pioneered the widespread adoption of generative AI tools, providing millions of individuals worldwide with a glimpse of the capabilities inherent in large language models. Since then, other tools, like AI-based image generators such as Midjourney and DALL-E, have gained increased attention. However, none have come close to achieving mainstream adoption to the extent of ChatGPT.
A survey conducted by Statista Consumer Insights in March and April 2023 revealed that 20 percent of U.S. respondents had experienced ChatGPT, surpassing the usage of other AI tools such as Jasper Chat, GetGenie, or Simplified.
These alternatives are primarily designed to assist users in text generation and copywriting, but they have not achieved the same level of widespread adoption as ChatGPT.
7. AI-Powered Personalization
Across all channels, people are cultivated to feel and treat themselves as unique individuals. This attitude pretty much always converts to the want-to-pamper-myself purchases, resulting in increased sales — regardless of the shopping season or niche.
As commerce is getting extremely customer-centric, in 2023, personalization becomes a must for basically any business. To surpass customer expectations and create long-term customer loyalty, brands are increasingly implementing AI-powered personalization.
AI helps businesses offer personalized shopping by analyzing customer data and behavior. This can include purchase history, demographics, interactions with emails and ads, and browsing behavior.
Customized push notifications, chatbots, sleek email campaigns, individualized pricing, and product recommendations are just a few examples of AI-powered personalization.
The best part for brands here is that the use of AI in eCommerce leaves no room for guesswork, instead allowing businesses to build better customer relationships based on a meticulous analysis of huge data volume.
8. Virtual Customer Assistants
Virtual assistants are quickly becoming a digital substitute for a real customer service rep or, in some cases, the whole customer service department. On the mission to improve customer satisfaction and assist with product navigation, virtual customer assistants or simply VCA are there to provide 24/7 customer support and handle a high volume of customer interactions.
Moreover, virtual assistants are becoming widely used in voice commerce, allowing customers to use voice commands for placing orders, tracking deliveries, and getting personalized recommendations. The growing popularity of voice search is how commerce adjusts to the accelerated lifestyle, making on-the-go shopping more convenient and faster for customers.
AI-powered and trained with millions of real-life requests, virtual customer assistants (VCA) are gaining steam across eCommerce as they can easily deal with FAQs and complex requests in real time, driving sales and boosting customer satisfaction.
9. Everything is a Membership
Subscriptions have been gaining popularity over recent years due to the extreme convenience they provide - customers may use a product or service as long as they need and then easily quit. It’s applicable for physical products, such as monthly boxes of snacks or beauty products, or digital products, such as streaming services or on-demand courses. Additionally, subscriptions also make it easy for shoppers to budget for regular expenses.
In 2022, the SaaS market generated $213.9 billion in revenue (Statista Market Insights, 2023). Projections indicate that it will rise to $253.9 billion in 2023 and further to $344.0 billion by 2027.
The revenue displayed a 12.9% annual growth rate in 2022 compared to 2021 (Statista Market Insights, 2023). Projections suggest an 18.7% growth in 2023 compared to 2022 and a 7.0% growth in 2027 compared to 2026.
For online businesses, the huge advantage of a subscription model is that it opens up the way to create a predictable revenue stream.
Plus, subscription as a payment option allows retailers to collect data for later use to personalize and improve the shopping experience for their visitors. Subscriptions are expected to continue growing in popularity as more companies adopt this proven method to build recurring revenue and foster customer loyalty.
10. Influencer Marketing
Incorporating influencer marketing into their strategy enables eCommerce brands to broaden their audience reach by harnessing the influencer's popularity. This approach empowers eCommerce brands to accomplish a range of marketing objectives, including enhancing brand recognition, increasing online interactions, and boosting conversions.
In 2021, the United States was projected to reach a record-high influencer marketing expenditure of 3.7 billion U.S. dollars. Given that internet personalities have demonstrated their capacity to enhance brand visibility, stimulate engagement, and influence the purchasing decisions of millions of users, it is unsurprising that investment in influencer collaborations is anticipated to accelerate further.
Marketers now have an expanding array of social media platforms at their disposal to connect brands with consumers. According to recent surveys of Statista, Instagram continues to reign as the leading global platform for influencer marketing, with the global Instagram influencer market size exceeding two billion dollars for the first time in 2020.
As the eCommerce industry continues its evolution, businesses must proactively embrace the latest 2024 business trends. Incorporating these trends can greatly improve the customer experience, drive sales, and establish a competitive advantage. By optimizing eCommerce websites and apps for mobile devices, providing a wide array of payment options, tailoring the shopping experience, harnessing the potential of video and social media, and exploring AR and VR technologies, businesses can effectively position themselves for the dynamic eCommerce landscape and maintain a leading position in the 2024 ecommerce trends.
Additionally, the subscription model gains momentum, offering both convenience and revenue stability. Understanding and adopting these trends are pivotal for businesses seeking growth, and navigating an ever-evolving landscape. As 2024 unfolds, these trends pave the way for innovative, customer-centric strategies, shaping the eCommerce industry's future.
Why is it crucial for businesses to monitor eCommerce trends?
Businesses in the eCommerce realm must stay abreast of trends to evolve with the market. Insights from past trends assist in balancing existing strategies while exploring new channels for sustained growth and market share optimization.
How crucial is mobile commerce in 2024?
According to market reports, it is projected that mobile commerce will account for 70% of total retail e-commerce sales by the year 2024, amounting to more than 4 trillion dollars. This shift toward mobile dominance presents a unique array of factors for e-commerce teams as they construct online shopping experiences.
How can AI improve the customer shopping experience?
AI can enhance the shopping experience by providing personalized product recommendations, chatbots for customer support, and predictive analytics to comprehend customer preferences and behavior. To learn more about AI, you can read “Top 6 Impressive AI Tools to Boost the Performance of Your eCommerce Business.”
How AR and VR are transforming eCommerce?
Online users can now preview the products they intend to purchase visually, allowing them to explore a variety of virtual showrooms. This offers compelling incentives for individuals to engage with your store, elevating in-store interactions to unprecedented levels.
Magebit is a full service eCommerce agency specialized in Magento. At Magebit we create the wonders of eCommerce and support small sites as well as large enterprises.
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