Did you know that the first item purchased online was a Sting music CD in 1994? Only 30 years later, nearly 30% of the world’s population shops online. E-commerce and digital marketplaces are always evolving, keeping online retailers on their toes. What e-commerce trends can retailers and consumers expect in 2024? Let’s look at facts and stats.
While everyone was forced to stay home during the pandemic, in-person shopping is back in full force. Still, e-commerce continues to thrive, with experts predicting that retail e-commerce sales will climb to over 8 trillion dollars by 2026. But with robust growth comes brutal competition, and online retailers will need to deliver personalized customer experiences that are memorable and praise-worthy.
E-commerce Trends in 2024
- Multi-Channel Presence: Consumers are researching and comparison shopping more than ever before – and once they make their decision, they don’t want to backtrack to find you again. 73% of retail consumers shop across multiple channels. Retailers who utilize 3 or more channels increase their customer engagement by 251% more than single-channel retailers. Online retailers are now required to maintain their presence on multiple online platforms – including their own website, social media platforms, and third-party marketplace venues such as Amazon.
- Artificial intelligence (AI): Whether we are ready or not, AI is revolutionizing e-commerce and is not going anywhere. While AI has been skirting around the business environment for a decade or more, 2023 marked AI’s mainstream debut, as generative AI proved itself to consumers. AI can be a powerful tool to help online retailers, and 97.2% of businesses are investing in big data and AI. Not only that, but 91% of top businesses have an ongoing investment in AI. Online retailers who remain averse to artificial intelligence and machine learning will quickly fall behind.
- Social Commerce: According to research by Forbes.com, 96.9 million people in the United States shop directly on social media. In fact, 83% of Gen Z consumers say their purchasing journey begins on social media, primarily Instagram and TikTok. That number is poised to grow as younger generations enter the marketplace. Social commerce is expected to reach nearly $3 trillion by 2026, a fact that should motivate even the most reluctant of retailers to join the space.
- Sustainability: As climate change and sustainability continue to drive behaviors, consumers are seeking out and prioritizing eco-conscious options – with many showing willingness to pay a premium for sustainable goods and businesses. However, the concept of “greenwashing” is simultaneously driving skepticism of corporate efforts, with 60% of U.S. consumers harboring suspicions that companies are only feigning their commitment to sustainability. E-commerce companies need to demonstrate a clear, definitive, and authentic commitment to the cause – or you’ll lose their respect (and business).
- Voice Search: According to 2024 e-commerce trends, consumers are using voice searches and assistants more consistently. Approximately 40% of American internet users employ a voice assistant at least monthly, but the number is growing, and e-commerce brands must optimize their sites for voice commerce to stay competitive. What does this entail? Focus should be placed on improving customer experiences by integrating natural language patterns and providing concise responses (that don’t inspire frustration).
- Inflation-Inspired Behaviors: Inflation is not causing us to stop spending money, but we do spend money more carefully. If a consumer does not feel comfortable or confident in their purchasing experience, they are less likely than ever to complete an online sale. Online retailers should return to the time-tested methods of reassuring consumers about their purchases. For instance, 67% of shoppers check the return policy before buying online. If returns are difficult or badly managed (and reviewers will definitely report that fact), they will likely not complete the purchase. That said, 92% of shoppers will purchase from a brand again if the return process is easy.
- AR and VR: One of the top concerns facing online shoppers is imagining how an item will look, feel, and fit in reality. Augmented and virtual retail experiences are increasingly allowing shoppers to visualize—or even interact—with online products online before buying. Using their smartphones, consumers can test a shade of makeup or determine how well a couch will look in their living room. A survey conducted by Snap/Publicis Media reported that 80% of shoppers feel more confident in their purchases when using these technologies, and 66% of shoppers who use AR are less likely to return their purchases.
- Curated Experiences: As consumers become more comfortable with AI’s advanced capabilities, their expectations of how businesses utilize it will continue to grow. Currently, 24% of consumers think retailers should use AI to make recommendations more personal to their preferences, guiding them to products based on their data profile. Offering personalized rewards and loyalty bonuses will become critical for retailers – and those who fail to deliver relevant experiences to their customers risk losing market share to those who do.
- Privacy Issues: E-commerce consumers want personalized and seamless purchasing, but not at the expense of feeling violated by shady data practices. Brands that compromise a customer’s trust—especially in regard to their personal data—risk losing their business forever and could suffer the scathing wrath of negative reviews for years. Security measures aimed at protecting customer data must be at the forefront of any e-commerce initiative.
Need Help Developing Your E-Commerce Strategy?
Whether you are just starting an online store, or you are looking for ways to launch your current e-commerce sales to another level, Alliance IT can help. Call today to learn more about how utilizing managed services can help you to scale your business while optimizing your resources.
