The post-pandemic world has seen constant growth in the e-commerce industry at an accelerated pace. With a market size of US$2.8 trillion in 2022 and a CAGR of 11.4%, the e-commerce market is expected to reach US$4.1 trillion by the end of 2027.
As more and more consumers shift towards online shopping, it creates a huge opportunity for new players to enter the market. However, every new retailer or brand must also consider other significant factors before capitalizing on the latest e-commerce trends.
Though real numbers are not known, a good estimate is that there are 12 to 24 million online stores globally. The numbers seem daunting, but less than a million of them generate US$1000 or more in yearly sales. It can be both good news and bad news.
There is more user demand to capture in 2024, but it will not be easy to grab the user’s attention. The competition is going to be fierce, and customers will have more choices than ever.
Let’s dive into the e-commerce trends for 2024 to up your e-commerce game. Leverage this data to grow the customer base, boost sales, and maintain visibility.
16 E-Commerce Trends for 2024: Decoding Success for Online Stores
So, what essential factors will drive growth to e-commerce brands? Let’s take a look.
- Mobile Shopping
- Omnichannel
- New Payment Options
- Social Commerce
- Live shopping
- Personalization
- AR, VR, and the Metaverse
- Re-Commerce
- Subscription Commerce
- BOPIS
- Customer Service
- Delivery
- User-Generated Content
- Sustainability
- Tight Budget & Inflation
- New Consumers
1. Mobile Shopping
Online shopping trends have seen a decline as offline stores started operating again. Yet, more people than ever are spending most of their time online. And a huge chunk of that time is not spent on computers. In fact, almost 53% of internet users are using the internet on mobile devices.
Source: https://datareportal.com/reports/digital-2022-time-spent-with-connected-tech
Not just millennials, boomers, or Gen Z, even Generation Alpha keep a mobile phone at their arm’s reach all the time. And today, phones contribute to much more than just texting and calling.
According to Statista, most e-commerce site visits were generated through a mobile phone, and most digital sales were also conducted with them in 2022.
“In 2022, mobile phones contributed to 73% of retail site traffic, and they also generated 63% of digital sales.”
Statista
Optimizing your site for mobile devices is no longer a choice. It is a necessity. You need to offer a better user experience and enhance accessibility, such as integrating mobile payment options, readability, thumb-friendly zones, and a mobile-friendly checkout.
The M-commerce market size is expected to reach a whopping US$ 4.7 trillion by the end of 2027 at a CAGR of 33.4%.
2. Omnichannel
Omnichannel, as the name suggests, means you have a presence on all the important channels where your customers hang out. Consumers have gotten pretty smart today. The sales process is not linear anymore where
- a user watches your ad or finds your brand in search results
- visits your site
- hangs around a little
- and eventually purchases something.
With more brands than ever in the market, it becomes imperative to create a loyal customer base. These customers would follow your content across various platforms, engage with you on various channels, and act as your brand advocates. Consumers utilize various resources and channels to compare various brands’ prices and reputation.
“73% of shoppers prefer different channels during their buyer journey.”
Harvard Business Review
The customer retention rate for omnichannel campaigns is 90% higher as compared to single-channel.
Important factors brands must consider leveraging omnichannel in 2024:
- Manage your inventory properly to ensure the correct stock is visible to consumers in real-time online.
- Personalize the services for a specific customer group. 56% of customers prefer to purchase from an online/offline retailer if they recognize their name.
- Invest in techs such as chatbots and AR to provide an enhanced and natural shopping experience.
- Focus on fulfillment and offer flexible return options
- Ensure in-store associates are tech-enabled to offer accurate and up-to-date product information and also give them access to customer account details to provide personalized recommendations and enhanced services
Another factor to consider is that shoppers may have different expectations while shopping online compared to in-store. Analyze their behavior and implement the right strategies to meet their standards.
To thrive in 2024, brands must have an effective omnichannel strategy and offer a seamless shopping experience.
3. Payment Options
Almost 7 out of 10 customers proceed to checkout but do not complete the transaction due to poor checkout experience or the process taking too long. The worst part is that 80% of them never come back.
Online shoppers prefer convenience over anything. A slight inconvenience can push them to leave the cart and purchase from a seller who makes the entire procedure easy.
The online payment industry keeps evolving, and a number of new payment options are available online today. 49% of these digital payments are attributed to mobile wallets, such as Google Pay, PayPal, Apple Pay, and Samsung wallet.
Source: https://www.oberlo.in/statistics/most-popular-online-payment-methods
“Paypal currently holds 43.5% of the market share with 429 million active users making it the largest payment gateway.”
With such a large user base, online brands and merchants must offer a PayPal buy button so users can easily complete the transaction.
Major Payment Options for E-Commerce Trends in 2024
1. There were 3.4 billion digital wallet users worldwide in 2022 and the number is expected to grow to 5.2 billion by 2026. Having a digital wallet buy button can definitely make the buyer’s journey more convenient.
2. With Flexible Financing Facility, shoppers can purchase products that were not within their reach earlier.
3. Gen Z and Alpha look for convenient payment options. One such example can be direct selling via social media platforms.
4. Social Commerce
The younger generation prefers social media platforms over Google search these days. As a result, more brands and retailers are entering the social commerce space.
“Almost 40% of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search. They go to TikTok or Instagram.”
Prabhakar Raghavan – Senior Vice President (Google’s Knowledge & Information)
Today, retailers and brands can build social media presence and engage with their customers personally. Data from these campaigns can help understand user behavior which can help create more effective targeting.
Global social commerce sales were US$ 992 billion in 2022 and are expected to reach US$ 2.9 trillion by 2026. Therefore, it’s important that you consider these channels in your overall strategy.
5. Increasing Adoption of Live Commerce
Live commerce, also known as live selling, is a growing trend in e-commerce that involves the use of live streaming to sell products or services.
Live streaming technology allows retailers to connect with their customers in real-time and showcase their products in a more engaging and interactive way.
This has led to a rise in popularity, particularly among younger consumers who are more comfortable with online shopping and social media.
80% of marketers believe that livestream commerce will be a vital part of promoting products in the coming years.
Coresight Research expects that the live streaming market in the United States will be worth $26 billion in 2023 and continue to experience steady growth, reaching $35 billion in sales and comprising 3.3% of all US ecommerce by 2024.
Reports from Statista further indicate that live commerce in the US is growing to generate $55 billion in sales by 2026.
Live stream shopping is found to have significantly higher conversion rates than regular ecommerce, with some companies reporting rates that are 10 times higher.
Luxury goods, in particular, have an average conversion rate of 70% when showcased on live commerce platforms.
From the above numbers it’s clear that live shopping is the future of e-commerce and brands and retailers should capitalize on this trend in 2024 to stay ahead of the curve.
6. Personalization
Customers are willing to purchase from brands that remember their preferences and offer a personalized experience. In fact, 83% of consumers are okay with sharing their data to enjoy a personalized experience.
“91% of consumers want to purchase from brands that remember them and their preferences to send relevant offers.”
Accenture
With more brands competing to capture users’ attention, personalization looks like the best option to outperform them. You must collect your customer’s data and offer them a personalized experience, like engaging on a platform of their choice and sending personalized offers.
E-commerce contributed to 19.7% of the total retail sales worldwide in 2022, which was 18.8% in 2021.
7. AR, VR, and the Metaverse
A static image is no longer the best way to showcase your product. Augmented reality, virtual reality, and Metaverse are becoming popular in the e-commerce world. They offer a more immersive and natural shopping experience while sitting in the comfort of a customer’s home.
AR offers a 3D view of the product in a physical environment. You can check the product from all angles before purchasing it. It reduces buyer’s remorse and Return to Origin (RTO) rates.
Metaverse is a digital world where a user can interact with different products and try them before buying, similar to brick-and-mortar stores. Customers can even attend live events held in the metaverse while sitting on a couch and exploring different products.
“66% of customers prefer to use AR for online shopping. ”
Think with Google
The global AR, VR, and Metaverse market is expected to be a US$ 250 industry by 2028. Though it’s still a little early, e-commerce marketers have already identified beauty, home goods, and fashion as expected to be the top retail categories in the metaverse.
8. Re-Commerce
Re-commerce is expected to become an important factor if we discuss e-commerce trends in 2024. With people seeking more budget-friendly options, while sticking to brands, re-commerce will more likely offer sustainability to the brands.
“The Re-commerce industry is expected to grow to US$ 250 billion by 2025.”
Statista
The key re-commerce markets are
- Electronics
- Clothing
- Accessories & Jewelry
- Sports Goods
- Music Gears
According to an eBay report, 90% of their buyers have engaged in re-commerce. Re-commerce also offers sustainability by reusing goods that would otherwise go to waste.
Younger generations care about various causes and believe in contributing towards them. To appeal to Gen Z and Gen Alpha, brands must also focus their efforts on re-commerce and sustainability.
9. Subscription Commerce
Customer acquisition requires more costs and effort due to the increasing competition in the market. In 2024, one thing brands must look forward to is retaining their customers. And one of the best ways to do that is through subscription commerce.
“The subscription commerce market size is expected to grow to US$ 904.28 by 2026 at a CAGR of 65.67%.”
Subscription commerce is ideal for businesses that sell simple regularly-used products. In fact, 12% of weekly buyers are ready to try a subscription e-commerce service, while 35% are already subscribed to at least one. A good example is – beauty products delivered every month. One of the biggest benefits of subscription commerce is convenience. Customers do not have to go through the entire buying process again and again.
10. BOPIS
BOPIS, or Buy-online-pickup-in-store, became the norm during the pandemic era. And it is still not going anywhere. With BOPIS, customers have the flexibility to purchase a product and schedule its pickup at a physical store of their convenience.
“Around 40% of shoppers prefer BOPIS to home delivery to save the delivery charges.”
BOPIS also offers advantages to retailers. Many consumers who come for pick-up purchase other products while in the store. Overall, BOPIS provides flexible fulfillment that offers more options and increases loyalty. As a result, the BOPIS market size is expected to grow at a CAGR of 19.3% and reach US$ 703.18 billion.
11. Customer Service
Great customer service is the backbone of customer satisfaction and customer retention. As brands are competing on factors like prices, a good customer service experience can almost always guarantee repeat customers. Most e-commerce sites do not have offline stores, so they must integrate a seamless customer service experience online.
With every purchase, customers seem to have questions related to product features, return policies, or technical information. They need responses to their queries instantly. 60% of customers believe 10 minutes or less is the ideal response time.
“67% of customers leave a brand if they have a terrible customer service experience with them.”
Esteban Kolsky
One of the best ways to quickly resolve common consumer problems is the integration of a chatbot. As most platforms support them today, you can connect with customers on their preferred channel and resolve their queries quickly within seconds.
A chat will help your customers with personalized responses and recommendations. If your brand caters to global markets, you can provide 24/7 support with a multilingual chatbot.
12. Delivery Options
Today’s shoppers want their products delivered on or before the expected time. According to a report, 85% of US consumers are not satisfied with the delivery times of e-commerce brands.
Catering to consumer demand, Amazon distributed its warehouses to incorporate same-day and next-day deliveries. In addition to that, customers also want to track their product at each stage of the delivery process. Hence, quick delivery and product tracking have become the bare minimum a brand can offer.
“27.4% online shoppers consider the cost of delivery as the top most priority while shopping online.”
In addition to the cost, speed, and convenience are also critical for modern shoppers. If you fail to deliver on time, you may lose that customer forever. Hence, you must implement the right strategies to lower your shipping charges and deliver the product on time.
13. User-Generated Content
As influencer marketing is booming with channels like TikTok and Instagram, UGC will be a big driver of e-commerce sales in 2024. User-Generated Content, as the name suggests, is content about products of a brand created by a brand’s users/customers.
“Brands generate $6.50 for every $1 spent in influencer marketing, making it the most cost-effective customer acquisition method.”
Tomoson
Trust begets transactions. Consumers trust influencers more than brands because they interact with them on a regular basis. In fact, 61% of consumers trust a product recommended by an influencer rather than promoted by a brand.
You cannot ignore online reviews as well. In a report by Power Reviews, 99.9% of consumers agreed to read online reviews during their buyer journey. Hence, you must focus on getting as many positive reviews as possible to gain trust.
UGC also acts as social proof. When people watch images, videos, and reviews of products from other people, they accept them without much doubt. UGC is going to be huge in the 2024 e-commerce trends as it builds credibility and drives engagement.
14. Sustainability
The upcoming generations are more conscious of sustainability. With the rise of green commerce, brands are also taking essential steps to reduce their carbon footprints and offer eco-friendly shopping experiences. Even with tight budgets, 75% of US consumers worry about how their purchases affect the environment.
“87% of consumers are willing to purchase a product that supports environmental and social causes.”
Forbes
50% of consumers do not consider online shopping environment-friendly. Brands can focus on sustainability to gain consumers’ trust. 92% of consumers are more likely to trust a retailer that is environmentally and socially responsible.
A good example of an environmentally-conscious e-commerce business can be Thrive Market. They implement eco-friendly fulfillment practices and carbon-neutral packaging with zero-waste-producing warehouses.
How can brands implement green commerce in their overall customer experience?
- By selling more ethically-sourced products
- Recyclable and environment-friendly package material
- Reduce the packaging to avoid waste and provide consumers to pick from more sustainable packaging options
- Offer discounts on slow shipping or shopping multiple items together
- Enable re-commerce on your store and make it easy for customers to recycle your products
15. Tight Budget & Inflation
Inflation and tight budgets are going to have a negative impact on e-commerce in 2024. More and more people are budget conscious and tread carefully before making a purchase.
In order to stay afloat in the e-commerce market, you must adapt to your customers’ needs. There are two ways to ensure you don’t lose customers.
- Offer flexible returns
- Offer budget-friendly options
No matter how strict your return policy is, it will not deter a shopper from returning the product. On the contrary, by enforcing them, you are more likely to lose the customer.
“80% of customers believe that their loyalty won’t remain intact in case of a bad return experience.”
And 57% of shoppers would pick a brand that offers a smooth and flexible return policy.
Another thing you can do is offer budget-friendly options to eliminate financial insecurity. One good example is a freemium service, such as a streaming service provider. Many streaming service providers offer a free plan where ads are enabled on the platform. It helps retain customers.
16. New Consumers Entering Marketplaces
As the e-commerce market size keeps growing, there will be more online shoppers in 2024. However, a huge portion of these consumers will be Gen Z and Generation Alpha.
These new generations are not so easy to convince. However, they are more than ready to spend. But, you need to persuade them by adapting to their preferences. For instance, 55% of them are more likely to use a “Buy Now Pay Later” option. If your target market is Gen Z, you must think about integrating this option.
“80% Gen Alpha kids significantly influence their family’s buying decisions.”
Spectra
The omnichannel approach is crucial to target these generations. They would research your product, read online reviews, and watch influencers promoting them before reaching a decision. 73% of Gen Z do not transact with brands they can’t trust. Trust is the new currency with these generations.
Unlike millennials, TikTok is their preferred mode of search, not Google. They don’t like to go through top results on Google and scroll each page to find the answer. They want quick answers, and they don’t like to wait.
To adapt to them and gain their trust, you must be omnipresent and offer a seamless shopping experience with easy checkout and convenient delivery.
Customer Satisfaction: the evergreen 2024 e-commerce trend
No matter who you target or what e-commerce strategy you build, one trend is never going out of trend – customer satisfaction. All your brand and business must be built around what your customers want. If you can provide a great customer experience, you will remain in business.
Frequently Asked Questions (FAQs)
Is e-commerce growing?
E-commerce is constantly growing and evolving. The post-pandemic saw a shift in the users’ behavior to buying products and goods online. Increasing usage of smartphones and high-speed internet has also contributed to the rapid growth of the e-commerce landscape. As more advanced technologies are getting introduced and new digital payment methods are available in the market, we can expect e-commerce to keep growing.
What is the future of e-commerce?
E-commerce is rapidly growing and changing as new technologies enter the market every other day. Experts believe that the following will be a part of e-commerce →
- Re-commerce
- Sustainability
- AR, VR, Artificial Intelligence, and Metaverse
- Personalization
- Social Commerce
- New Payment Options
- Headless Commerce
- Chatbots to resolve user queries in real-time
- Subscription Commerce
- BOPIS
What are the fastest-growing e-commerce sectors?
The fastest-growing e-commerce sectors keep changing in response to market trends and user demand. Currently, these are the fastest-growing segment of e-commerce.
- Mobile Commerce: Mobile phone users are increasing day by day. As a result, e-commerce sales using mobile phones are also at an all-time high.
- Social Commerce: As younger generations are using social media for buying decisions and more consumers prefer personalization, social commerce is expected to grow.
- Food and Grocery Delivery: Since the pandemic, people have started ordering food and grocery online, and the demand has been growing since then.
- Health & Wellness Products: E-commerce has made it more convenient for consumers to access healthcare services and purchase wellness products online.
- Luxury Goods: More consumers have started purchasing high-end luxury goods online. The industry is enjoying decent growth currently.
What are the major types of e-commerce?
- B2C or Business to Consumer – where a business sells to a consumer
- B2B or Business to Business – where a business sells to another business
- D2C or Direct to Consumer – where a business sells directly to its consumers without any retailers, wholesalers, or distributors
- C2C or Consumer to Consumer – where one individual sells a good or product to another individual
- C2B or Consumer to Business – where an individual sells a good or product to a business
- B2G or Business to Government – also referred to as B2A (Business to Administration), when a business sells a good or product to a government entity
- C2G or Consumer to Government – also referred to as C2A (Consumer to Administration), enables a consumer to offer feedback or request information about a public sector directly to a government entity
Wondering how to start an e-commerce that helps you take advantage of the latest trends and be ahead of the competition?
Vimmi is a premier destination for brands and retailers who are looking to build a video-first e-commerce platform armored with latest technology and an efficient reporting system that always keeps you on your toes.
Talk to us today and see how we can transform your e-commerce business.
