How E-commerce Industry will change in coming years?
In 2018, we saw a massive increase of 25% in online sales when compared to 2017. That was huge, but it can’t be considered as great. It can further grow but to achieve the desired target it is important to include the latest trends that can completely transform the working of the E-commerce industry, therefore there will be lot of changes in E-commerce industry in coming years.
As the industry is changing, it is important to provide something different to consumers. People staying at any corner of the world can easily purchase products using E-commerce stores.
A lot of major transformations are expected to happen in E-commerce domain over the coming years, and in this blog, we are going to understand what the future of it will look like. Thus, today we’re going to discuss some of the latest trends of it in 2019, discuss what could be the most impactful changes in the next few years, and find out why such changes are required.
There’s a lot to find out, hence let’s dive in.
1. Automated Advertising –
Automated ads will play an important role in 2019. Social channels are already customizing the design to cater to this trend. In Automated advertising, datasets are used to target the audience. These ads are displayed to the audience on the basis of their interest. They are again retargeted after some gap to generate higher ROI. In layman terms, it is all about attracting the right audience to the right ad. Compared to other retargeting strategies, online store vendors have a better opportunity to reach out to a larger audience using Automated advertising.
Facebook allows E-commerce store owners to select the audience. You can simply target them with appropriate ads. This is a great platform to earn a higher profit margin in the long run. Google Admob displays video ads intelligently in between mobile games. When a game level ends, a small video ad comes with an offer. The only issue is that sometimes the users assume these ads as part of the game.
2. Programmatic Advertising –
In simple terms, programmatic advertising means doing email marketing and sharing social media posts using automation technique. But programmatic advertising has become a powerful trend in the E-commerce industry. It shows no signs of stopping. It includes prominent areas of the website including landing pages and shopping carts.
If applied properly, programmatic advertising will give authority to:
- Send customized emails to the customers.
- Display products and offers as per the visitors’ buying history.
- Re-target customers for necessary product sales.
The marketing further gives freedom to customize the store offerings for each customer. Automated recommendations work on the customer’s click during their store visit.
3. Artificial Intelligence –
Categorizing customers and identifying the patterns of customer’s browsing history is a huge challenge for online stores in terms of automation. Artificial intelligence plays a key role in dealing with such challenges. According to store merchants that have implemented AI strategies see sales rise of over 10%. With AI-enabled applications, multiple users request and queries can be handled. It is not possible for a customer support agent to provide service to more than 2-3 people simultaneously. The accuracy of service is highly influenced by the size and quality of the data. This creates troubles for startups if they don’t have proper AI services integrated. To manage this, AI-enabled application can be integrated. To create a personalized experience more companies will are opting for AI-powered tools.
4. Voice Search –
E-commerce stores should start optimizing the content for voice-enabled search. People love searching through voice over the textual searching. Integrating the voice search feature will allow buyers smooth navigation of the online store. Use of voice-enabled search buttons can offer more conversions in comparison to manual search. Thereby improving the numbers for sales. Renowned E-commerce giants like Amazon, Nike, and eBay use voice search in their apps. It helps users to order any product through their smart speakers.
5. Click and Shop –
A new trend of E-commerce industry is the image shopping. Users simply point their mobile device camera towards a product they want to order from an online store. There are several photo apps present like CamFinder that helps to perform the same job easily. This trend also helps in selling affiliate products using the photo shopping technique. For instance, Pinterest offers its own photo camera. It identifies and interprets images to give an exact product description. It has already partnered with several E-commerce brands and reputed search engines. It offers them relevant information for classifying and interpreting images.
6. Digital Brick-And-Mortar-Stores –
E-commerce industry came into inception in 2007 and that made a huge impact on brick-and-mortar market. Now, in 2019, a lot of things have changed. Brick and mortar stores are offering a digital experience to the customers. These new retail stores offer personalized digital experiences without having any inventory stored.
A prominent example of this is the real estate industry. Assume a client enters a real estate store and by using a VR headset to see the 3D version of the building. This is also getting a good response in the automobile industry. Showrooms are offering virtual versions of the automobiles for the visitors. Automobile giants like Audi, Toyota, and Mercedes are implementing VR apps. It gives the users a soothing experience.
7. Social Payment –
Another trend in E-commerce that is slowly rising is social payments. Social payments help users to transfer funds using social media channels. Most of the social platforms have developed their own version. Popular payment services like Apple pay, Facebook payments, Google wallet, Twitter Buy are available. All these methods have a similar working as a digital bank account. Social media users can directly buy products from social platforms or through online retailers that provide such payment options.
Social payments are a secure way to transact money. But they have some limitations as well. They are prone to hacking. The major reason is most users have set a weak password and people usually turn their mobile phone settings to ‘always connected’. If they get hacked, hackers can easily access all the social accounts and make payments. Still, the social payment method is a seamless way of buying products. Therefore a remarkable trend for e-commerce.
8. Localization –
Localization is nothing but a sort of personalization. It is a process of customizing the website’s content. Find the IP address of the customer and offer them contextual merchandising. In E-commerce personalization usually refers to personalized merchandising. Use multiple customer data points to provide a sort of personalize feeling on your website and display relevant products. The data points comprise of customers’ Search Queries, Buying History, Social Behavior, Shopping Cart, and Geographic Location. By using these data points, you can provide the best products to individual customers. All personalization is aimed to improve the customer experience. In simple terms, refining the customer experience is engaging the customer for more purchases. Exceptional customer services, lower prices, faster shipping, smooth navigation increases customer satisfaction.
9. Smooth Payment Checkout –
Most of the buyers abandon their shopping carts for different reasons. A majority of shoppers Skip the payment process. Several E-commerce stores face such situations, and they know that this leaving of carts can be fixed with the latest technology innovations.
Here are the most common reasons why people abandon their carts:
- Too expensive delivery
- Complicated payout process
- Lack of payment options
- Technical errors during the payment
The important thing is that, if the user experience at this stage isn’t smooth and satisfactory, you will simply lose the potential customer. Hence, a smooth payment step is what you must implement in your store. Hence, if you’re planning to stay ahead of the competition this is the E-commerce trend to consider.
10. Mobile Design –
People prefer buying and exploring E-commerce websites using mobile devices. Hence, mobile customers couldn’t be ignored in any scenario. E-commerce very well knows that if they don’t target the mobile users they’ll definitely struggle to make a profit and online reputation. Being mobile friendly is the hottest E-commerce trend.
If your store was designed a few years back, it is a perfect time to make it mobile responsive. Responsiveness increases the search engine rankings and the conversion rate. Mobile technologies are influencing people buying experience. An E-commerce mobile app boost conversions as it is faster in comparison to websites. The other advantage an app offers is the fast checkout, helping users to make purchases with a few taps and increasing ROI.
The future of E-commerce is full of exciting changes and technical innovations for both store owners and buyers. Whether you own a store or working at an E-commerce firm, it’s important to stay alert when it comes to any changes in the E-commerce landscape.
The best thing to remain updated is to keep on learning.
Read articles. Watch videos. Connect to communities.
So, what do you think? Do you have any more recommendations for the future of E-commerce in 2019?
Was there any trend that we missed from the list that you’d like to consider? Mention in the comments section below!
Author Bio –
Ashley Brown is a Magento developer working with AgentoSupport, a reputed Magento 2 Development Company helping clients with their concerns related to ecommerce stores. She loves writing informative blogs on latest Magento updates.