The Future of Ecommerce 2020 Edition Ecommerce is an environment that’s constantly changing and upgrading as technologies improve and companies battle against each other to win a greater share of the pie. The future of ecommerce is undoubtedly going to be full of exciting changes and innovations for both businesses and buyers. There’s a lot to cover, so let’s dive in. stated that the biggest drawback of online shopping is that they cannot touch, feel, and try a product before buying it. New brand-building opportunities are starting to emerge on marketplaces too. In the age of “World Wide Web”, multi-story shopping centers are dramatically coming to a close with the rise of e-commerce. With the cost to fulfill orders soaring, brands must turn fulfillment into a strategic asset. It is only right that retailers follow suit and ensure that their products don’t have a negative impact on the environment. With consumers still wary of buying in store, online purchase demand in new product categories has surged worldwide. Though just 15% of online shoppers receive products on a recurring basis today, 75% of DTC businesses will offer subscriptions by 2023. The opportunity for DTC brands is to build on their ecommerce expertise. Reaching the purpose-driven consumer means re-evaluating your marketplace presence and offering rich non-marketplace experiences. Ecommerce businesses are going to need to hone their videography skills because video is projected to play a massive role in the future of ecommerce. Oberlo uses cookies to provide necessary site functionality and improve your experience. “Traditionally, frequently changing content is gated behind software engineers who need to edit HTML, commit code, test, and perform website releases to ship copy changes,” says Richard Bremner, Koala’s head of technology. Consumers worldwide are buying items rarely purchased online before the pandemic, like groceries, health and hygiene, and home essentials. Leading global online marketplaces 2019, by GMV. With Asia Pacific as ground zero for ecommerce, fulfillment complexity is compounding for brands selling cross border. This company would be a great manufacturer for you to work with if your customers want vegan or gluten-free products. But advertisers warn that brands must prepare for third-party cookies to die. If you’re waiting for this to end, you say we’re gonna be back to normal in two months, that we’re just biding our time and getting through it, then you’re gonna be screwed. As buyers become more and more familiar with browsing and making purchases on their mobile devices, it’s essential that businesses adapt and learn to optimize their marketing campaigns for mobile too. This method that retailers can create unique products without investing much capital to start their own line of products. In fact, there’s been an average growth rate of 25.6 percent in ecommerce sales over the years 2014 to 2017. The faster and easier you make it to check out, the more money you can make. That also means building—or buying—a technological foundation that frees your team to create immersive, unified experiences wherever your customers are. We’re going to break down some of the top trends for ecommerce in 2020, discuss what we believe the most impactful changes will be over the next few years, then dissect why those changes might have come about. “Victoria’s Secret can’t. Customize the look and feel of your checkout for an experience that converts customers and keeps them coming back. Industry data reveals increased spend in paid search, social, and connected TV. claiming that relevant content increases their purchase intent. Even though overall ad spend is forecast to decline 20% in 2020, digital ad spend is estimated to increase 13%. Building a brand has never been more important—or more difficult. Even if they end up buying a product in-store, shoppers are more inclined to do research online beforehand. amounted to nearly 3.5 trillion dollars worldwide in 2019. proving ecommerce is an increasingly lucrative option for businesses. Brands are also offering new fulfillment options like “click and collect.” And 40% of buyers selected curbside pickup for online purchases in the first three months of the pandemic: Proprietary Shopify data reveals nearly 100,000 brands worldwide began offering curbside pickup during the pandemic. E-commerce, or electric commerce, is the process of buying and selling of various products and services by businesses through the internet. Brands have little choice but to creatively reimagine fulfillment. Proprietary data from Shopify shows the number of brands offering free shipping has increased 5.3% since the pandemic began. E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet.Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and … In response, brands are prioritizing personalized experiences that can’t be found on marketplaces. The U.S. antitrust case against Google could also impact advertisers’ ability to target consumers using iPhones. I firmly believe Gymshark has the potential to be to the U.K. what Nike is to the U.S. and Adidas is to Germany.”. This stretches from marketing automation to warehousing and beyond. Check out this blog post about the biggest dropshipping markets. Of the 75% of consumers who say they tried different online brands during the pandemic, 60% expect to integrate the new brands and stores into their post-COVID lives. Emerging markets like India, China, Brazil, Russia, and South Africa are projected to play a massive role in the future of ecommerce. Power your entire online and offline experience on today’s most agile commerce platform. Take a look at Nike, who have already expanded in both New York and Shanghai, with their brand-new experiential shopping locations or, as they like to call them, “Houses of Innovation.”. Start by identifying your most valuable customers, and the conversion paths they took. Describe the key factors that will define the future of e-commerce. Companies can rely on manufacturers to produce products that are highly specific to their audience’s needs. Adding personalization into your marketing campaigns is an easy way to start building those relationships. Plus, 48 percent of buyers actually end up spending. The Internet might be the single most important facet of modern society, governing everything from political discourse and higher education to the way we conduct ourselves and our businesses. People use the term of e-commerce to describe the process of searching for and selecting products in online catalogues and then purchasing by using a credit card or encrypted payment processing. Research has already found that 60 percent of shoppers would rather watch a product video than read a product description when they’re shopping. 2. All the pioneers are stepping on each other's toes. 1. It’s undeniable that the growth of online shopping is far outpacing the sales from brick-and-mortar stores. Companies such as Facebook have already introduced a host of options for entrepreneurs looking to sell directly on their platform. Your inventory management system should accurately forecast demand so that inventory can be purchased, replenished, and managed effectively. Purpose-driven consumers—approximately 40% of all consumers—want products and brands that align with their beliefs, and are willing to pay a premium. As COVID-19 spread, consumers began shopping outside their home countries. On Facebook, customer acquisition costs spiked following the pandemic, with costs now higher than pre-pandemic levels. This trend is great as it frees up employees time and resources for more important work. Half of all global ecommerce sales occur on marketplaces, and the sheer volume compels brands to participate. “In dollars and cents, I don’t think the risk [of removing cookies and forcing advertisers to rely on proprietary logins] is worth it to them,” says Jeff Green, The Trade Desk’s CEO. After the outbreak is over, do you think you’ll do any of the following? If you have a Shopify store check out some of their AI apps which can help your business today. To better compete with marketplaces and retail giants, brands are also investing in richer, more personalized experiences. This might not be totally surprising, given the recent growth of some of these nations’ economies, but let’s look a little deeper. Need help picking a theme for your store? “Their demand is shifting needs and expectations. Find out how long it takes them to make a second, third, or fourth purchase, and the typical order in which items are bought. This trend is not only a tailwind for digital brands, but also a headwind as the world of ecommerce becomes more crowded and competitive than ever. It’s estimated that around a potential 3 billion buyers from emerging markets will have access to the internet by 2022. You buy a blender from an ecommerce company. Koala built a headless progressive web app, which allows it the flexibility to offer the right experience at the right time to different customer segments across any device. Only 38% of the largest companies are capable of competing on customer experience. It’s everything. When measured by gross merchandise volume (GMV), China is home to the world’s largest marketplaces, including Taobao, Tmall, and For example Shopify AR allows brands to show customers their products in natural environments before buying them to ensure that the product is fit for the purpose intended. These changes in shopping behaviors could be due to the evolution of popular social media apps like Facebook, Instagram, and Snapchat, which have all pushed updates (think Instagram Stories) which prioritize video content. No more workarounds, patches, or hacks: With Shopify Plus, you can run your online store and retail locations with hardware, software, and payments that were made for each other. The investment makes business sense when 96% of consumers will shop with a retailer again based on an “easy” or “very easy” return experience. China is becoming an increasingly big player in the e-commerce scene, however, and its e-commerce platform provider Alibaba is much bigger than Amazon. We are going to use two categories: A general one based on who the buyers and sellers are. With e-commerce, businesses can sell to any customer who can access the web. To combat rising acquisition costs and advertising uncertainty, brands are experimenting with new channels like voice-powered shopping. They’re also prioritizing retention, rewarding and incentivizing existing customers to spend more. You don’t need to look too far to see ecommerce businesses adapting to this change too. This is the customer-facing portion of its web presence, allowing for new web pages, products, and content to be deployed faster. And that means TikTok, Pinterest, and new channels like Discord, Fortnite, and Animal Farm. E-commerce Around the World: Global Trends and Predictions. That’s huge, and the good news is that it certainly isn’t a new trend. Whether you’re an entrepreneur, or you’re working at an ecommerce company yourself, it’s important to try to keep your finger on the pulse when it comes to changes in the ecommerce landscape. Listen to podcasts. industry. Levi’s and Tommy Hilfiger are livestreaming shopping events similar to QVC. Or, it could be due to the wide array of massively successful YouTube channels which focus on unboxing, reviewing, and critiquing brand new products. Percentage of respondents agreeing to the statement “I would be more likely to purchase products or services from a company with a good reputation for environmental responsibility”, Sourced from World Business Council for Sustainable Development. Having to connect with buyers through just words…. Unlocking the future of retail means offline-online innovation that allows consumers to buy anywhere they shop, try on your products with augmented reality (AR) before buying, and engineering virtual versions of retail shopping experiences. Never has the consumer expected more of businesses. B2B eCommerce sales are. This is exactly why an integral part of the future of ecommerce will revolve around businesses and entrepreneurs finding ways to build direct relationships with their customers. Koala, an Australian furniture brand, adopted a headless architecture from the start. For example, businesses that possess large warehouses to carry out their business can invest in robotics to become more efficient and free up staff to do more important tasks in the fulfillment process. No longer is it about which store can provide the best prices. 81 percent of shoppers conduct online research before buying. Ecommerce as a percentage of total global retail sales will also continue to grow over the next five years. Responsive themes also help improve SEO, site speed, and overall user experience. From dynamic website content powered by real-time behavioral analytics to helping people customize their purchase journey, offering personalized experiences with a human touch is the antidote to marketplaces. Customer acquisition costs are increasing worldwide across channels, with rates on Facebook rebounding to pre-pandemic highs. Private label means that a unique product is produced by one company but packaged and sold under another company’s own brand name. Curious which international markets Oberlo users are generating huge revenue? Many will also pay a premium. But a gulf has opened up between digital-first DTC brands and businesses that are new to ecommerce. At this stage every department or business unit has an element that can be automated to an extent. of 25.6 percent in ecommerce sales over the years 2014 to 2017. from emerging markets will have access to the internet by 2022. Check out. This is a huge figure, showing the importance of making sure that you are being found on Social Media, on Google Search, and anywhere else that your customers may be. Prior to publication, the report was reviewed by third parties with expertise in ecommerce, global trade, and consumer behavior. Connecting the online and offline worlds allows the customer to choose where they buy. Explain the main functionalities and features included in e-commerce servers. Buyers want to feel that there’s somebody behind the computer screen who cares about them. Support your answer with an example for each factor. The permanency of these shifts will be determined by how satisfied consumers are with online experiences. Despite these concerns, transaction volume compels brands to have a marketplace presence. The next week you receive an email from that same company. This is exactly why an integral part of the future of ecommerce will revolve around businesses and entrepreneurs finding ways to build. These are experiences that you simply cannot get online, and go a long way in solidifying loyalty to their brand. Make your checkout a powerful sales engine by adding trust badges, shipping information, countdown timers, customer reviews, and live chat through access to the code. With AR, customers click on a product and instantly see it overlaid wherever they point their mobile device. Today’s brand has a four-pronged fulfillment mandate: fast, free, sustainable, and branded shipping, Establish free-shipping thresholds to protect profit margins as consumers worldwide expect quick delivery for ecommerce orders, Turn fulfillment into a competitive advantage by placing inventory closer to customers, automating returns, and offering flexible options like curbside pickup. So it is no wonder that people are always asking about the future of ecommerce. Nearly 150 million people shopped online for the first time in the pandemic, and the number of ecommerce buyers will only continue to rise. “More than ever, the last few months have been dictated by what buyers need rather than where merchants wanted to take that,” says David Moellenkamp, Shopify Plus’ director of automation. The pandemic has also amplified the consumer’s increasing desire for convenience, immediacy, and simplicity. When you convert dark stores, you’re also equipped to ship orders placed in … Treat every product page as its own profit-and-loss statement. Optimize your day-to-day workflows and customize your checkout experience with built-in ecommerce automation tools, only in Shopify Plus. Give customers the freedom to personalize products, design custom packaging, or mix and match custom assortments. It is only right that retailers follow suit and ensure that their products don’t have a negative impact on the environment. Molson Coors Beverage Company equipped its Toronto DTC initiative with both local pickup and local delivery. This trends towards more tailored products makes ecommerce affordable and lowers the barrier for entry into a highly competitive space. Social commerce is the process of making purchases directly on social media and is one of the most important ecommerce trends to focus on. Whether you’re an entrepreneur, or you’re working at an ecommerce company yourself, it’s important to try to keep your finger on the pulse when it comes to changes in the ecommerce landscape. Use 3D modeling or 3D versions of your products to show product shape and texture from any angle. Fulfillment networks are expensive to build, so brands are partnering with third-party logistics providers (3PLs) to tap into their vast fulfillment networks. Types of e-commerce. 40 percent of survey participants said they use their mobile device to conduct research,, 51 percent of mobile users have bought from a brand other than the intended one, Ecommerce Terms You Need To Know Before You Start, 10 Virtual Reality Statistics You Need To Know in 2020 [Infographic], 10 Small Business Statistics Every Future Entrepreneur Should Know. Needless to say, this trend is only going to grow in the future. Take your customers behind the scenes to better understand your brand or product. But the pandemic has also accelerated this behavior in China. Now, it’s the opposite. The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. Ecommerce is also making order profiles more complex: Distribution centers are fulfilling smaller DTC orders faster to meet aggressive cutoff times and shipping deadlines. One thing that most Filipinos is proud for is their adaptability to change. Three-quarters of U.S. consumers are more likely to buy a product packaged sustainably. Interactive products through AR or VR is new but it is quickly being adapted within ecommerce brands to help customers choose the right product. This saves time, expedites fulfillment, and reduces shipping costs. But the real power is in Shopify POS, which unifies your online and retail sales on one platform so you can offer a blended omnichannel customer experience with: The pandemic brought about changes to lifestyle and consumer spending habits. As traditional retailers attempt to disrupt the marketplace experience, expect incumbents like Amazon to follow suit. Across the world fulfillment centers are getting smarter and more automated. Creative assets should automatically sync across channels and pages. This enables companies to ensure that their marketing campaigns are consistently optimized. The changes you must make to your business won’t be temporary though. . Try to consume as much information you can about the field of ecommerce – that’s how you’ll get an edge on your competition. provides private label products with certifications like Organic, HACCP, Kosher, Halal, RAW, Vegan, Gluten-Free and Fair Trade. Today’s shopper wants shipping to be not only fast and free, but also environmentally conscious. With analytics at your fingertips, stay on top of growing trends in your business across in-store and online sales. Apple is also poised to make it tougher for Facebook advertisers. “Some people will actually shift into buying certain things online, and they’ll keep doing it.”. A Custom-Tailored and Dynamic Experience . If you are considering what ecommerce trend to be a part of, this is a good place to start. Observers have quipped that “consumers can find anything on digital marketplaces except your brand.”. Customers can choose to pick up their orders or have them delivered from their nearest retail location. Responsive online stores allow your brand to provide consistent experiences across all devices, from desktop to tablet to mobile. Human connection is the new luxury. B2B e-commerce is simply defined as e-commerce between companies. Having a unified view of your product and customer data is the first step toward providing a consistent experience to customers across channels. By 2024 more than 110 million, or nearly 84%, of all U.S. households will own a connected TV. Shopping cart platforms like Shopify have eliminated many barriers of entry. These full-service fulfillment networks guarantee your business fast shipping, access to real time data, and let’s you represent your brand to your customer from checkout to delivery. Customers now care about the impact a product can have on the environment. Brands without a single source of truth for sales data and reporting will find it difficult to efficiently track performance across channels. E-commerce is a business model or a larger business model that allows companies or individuals through the electronic network and is usually the type of business segments in the internet. There’s maybe a tangible product and then a digital experience that complements the product.”. Other shifts that took hold during stay-at-home orders are also expected to persist, including shopping online, using mobile payments, and video calling and conferencing. Ecommerce is at an all-time high. , of your business. Our consumers are demanding speed and efficiency, no matter what you’re doing. Recently this discipline has grown in popularity making it a big ecommerce trend for 2020. To receive additional perks, customers must spend enough to move into the second ($250 lifetime spend) and third ($450 lifetime spend) tiers. Prioritizing ecommerce, the rising competition for online attention has reinforced the value the company.. 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