E-commerce has revolutionized retail. In the beginning, this market segment was quite limited in its capabilities. However, shopping online is becoming more convenient every day. In the near future, e-commerce will undergo tremendous changes—ones that ICF experts simply cannot ignore.
Online Sales Growth Is Irreversible
E-commerce sales are constantly rising and there are strong reasons for this. Online stores are among the most popular online businesses. Sales are projected to increase from $1.3 trillion in 2014 to $4.5 trillion in 2021 (Statista, 2019). That’s a tremendous figure. It means a threefold increase in just seven years. This can be attributed to the level of comfort provided to online shoppers. There is also increased trust in online sellers as well as improvements in website functionality.
Voice Shopping Is on the Rise
Yes, you heard right. Thirteen percent of smart speaker owners in the US said they made purchases at the end of 2017. By 2022, this figure is projected to grow to 55% (OC&C Strategy Consultants, 2018). Total spending on voice purchases has also grown in the UK. This e-commerce trend became popular in 2014 when Amazon launched its smart speaker—Echo, followed by other speakers (such as Yandex's Alice in Russia).
Social Media Is Gaining Importance
Social networks today have changed our everyday lives. The "Buy" button in Facebook and Instagram is being used more and more. This is not surprising, since social media allows you to shop in online stores as well, greatly simplifying online shopping. Moreover, Instagram and Facebook are constantly updated to meet the needs of online shoppers. All of this is important to consider when promoting your brand.
Increase in Mobile Payments
Recently, mobile payments have been growing at a tremendous rate. Studies show that turnover increased from 26% of all internet users in 2016, to 37% in 2018. Over the years, the use of mobile payments has expanded from online shopping to food delivery, car sharing, and many other online transactions. In China, some mobile payment systems even allow you to split the cost of large purchases with others, similar to UberPOOL offered by Uber. Mobile payments have undoubtedly raised the bar for user convenience. As long as convenience remains a priority, mobile payments will remain an integral part of the future of e-commerce.
Development of Artificial Intelligence
Global retailer spending on artificial intelligence (AI) is expected to reach $7.3 billion annually by 2022, up from $2 billion in 2018 (BusinessWire, 2018). This is largely because retailers are focused on new ways to improve customer service personalization. AI tools range from automated marketing platforms that can create timely offers, to chatbots that instantly respond to customer inquiries. Other areas where AI is beneficial in retail include AI-optimized pricing and discounting, as well as demand forecasting.
This, of course, is far from an exhaustive list of all the e-commerce trends companies will face in the near future. However, the trends listed above are essential to consider when planning your business development strategies. Come to International Commodity Fair 2020 to meet suppliers, logistics professionals, and experienced businesspeople who have been implementing these strategies for years.