29-August-2022

Top 5 Trends to Look Forward in Ecommerce Industry

Introduction

Today the e-commerce industry is seeing rapid growth in every aspect. Until 2019, the e-commerce retail industry contributed to a total of 14 % sales of the worldwide retail market. After Covid-19, online shopping is experiencing mass adoption globally and experts expect it to grow more in the coming years.

The evolution of the e-commerce market at this pace implies that businesses are going through a period where they need to keep up with the changing trends and adapt to new industry standards. Factors like increase in competition, change in buyers’ shopping behaviour, boost in promotion and advertisement rates, and digital content optimization have become essential considerations for e-commerce brands today.

Hence, brands need to analyse and adopt emerging trends in the industry to keep ahead of the competition. In this article, we will explore the top 5 prevailing as well as upcoming e-commerce trends 2022 and how businesses can adopt them in their ecosystem.

We will be taking you through top 5 trends that are listed as follows;

1.Blockchain
2.Metaverse
3.Live commerce
4.Artificial Intelligence and machine learning
5.Internet of things

1. Blockchain

Your curiosity can be understood by us, but before deep diving into blockchain it is important to know what is blockchain. A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions.

how does blockchain work?

 

Blockchain in Ecommerce

Because it makes online financial transactions more secure, blockchain is a win-win for both brands and buyers. But it also provides a lot of other benefits, including cutting costs, improving business processes, making transactions faster, and improving the overall customer experience.

1. Enhanced security: Data breaches and fraudulent transactions are major concerns for ecommerce retailers. According to PriceWaterhouseCoopers annual Global Economic Crime and Fraud Survey 2020, 47% of companies experienced fraud in the past 24 months with a total of $42 billion lost.*

2. Trusted Identities: Blockchain technology allows for trusted identities verified by multiple trusted parties, and offers the highest level of security for customer databases and CRM systems.

3. Easier, faster transactions: Because blockchain transactions are basically instantaneous and do not go through traditional banks, there are no delays for payment processing or pending transactions. Purchases can be made instantly, which means faster order fulfilment for customers.

4. Greater access for global consumers: For customers living in developing countries, access to a reliable banking system is not a given. Blockchain and cryptocurrencies allow them to bypass the banking middle man, giving them access to a wider variety of ecommerce retailers. And it allows forward-thinking brands to tap into new and emerging markets.

5. More convenient rewards and referrals programs: Blockchain allows brands to easily issue rewards points that are redeemable across a variety of sites and partner brands. Companies can even pay content creators or influencers in digital tokens, which can then be converted into their preferred currency.

Brands which have invested in blockchain technology;

1. IKEA
2. Walmart
3. Amazon
4. Myntra

2. Metaverse

Metaverse illustration

“The term Metaverse is used to describe a combination of the virtual reality and mixed reality worlds accessed through a browser or headset, which allows people to have real time interactions and experiences across distances.

“Right now, what will become the Metaverse is actually a series of disconnected metaverses, like the ‘walled gardens’ of the early internet [darpa.net, bit.net, or aol.net] that eventually came together to form the internet as we know it today. The current set of metaverse worlds each has its own access, avatars, interactions, and currency.

Blockchain in Ecommerce

The metaverse has the potential to improve current e-commerce practices and create unique experiences for customers. Here are some concepts that the metaverse will revolutionize:

Personalised experience:
Personalization in e-commerce is often limited to product recommendations or discounts. In the metaverse, brands offer their customers hyper-personalized experiences without worrying about the multiple boundaries of the physical world.

1. Reduced return rates: Creating virtual experiences will become essential for merchants who sell products that have traditionally been difficult to buy online and typically experience high return rates, such as home furnishings, cosmetics, shoes, and ready-to-wear.

2. Stronger engagement: By allowing customers to actively participate in your brand’s actions, you can build a closer relationship that is in line with what fans expect from your brand. You can launch an exclusive product in the metaverse, only available to your most passionate fans who pay to get that product.

3. Better understanding of customers: The goal of marketing is to understand your customers. Marketers create content to keep their customers interested. Imagine how exciting it would be to have people discover and interact with a virtual collection. The metaverse will allow brands to test the potential success of their products without making them.

4. Customer Experience:: In the metaverse, digital experiences that are close to reality will be created, unlike the 2D interface of traditional e-commerce experiences. The metaverse has the potential to bridge the gap between e-commerce and in-store shopping experiences. Addressing this is important because, according to a recent Shopkick study, 70% of consumers consider the ability to try, touch, and see physical products to be their favourite aspect of the in-store experience.

Brands which have invested in blockchain technology;

1. Meta
2. Flipkart
3. Amazon
4. Myntra

3. Live Commerce

Live commerce is the act of selling products online through live video while shoppers interact with the brand in real-time. To make live commerce successful, in most cases you would need certain tools like a live video shopping tool, live chat, and shopping cart integration for the ultimate user experience. Consumers can watch, talk, and shop all from the comfort of their own home.

how live commerce works

Live Commerce in Ecommerce:

Today, live stream shopping is experiencing explosive growth. China, the USA, and European countries turn to this media tool for selling goods online.

The benefits of introducing live streaming are multiple. Let’s list them in our guide for live commerce.

1. Client conversion ratio:One of the biggest benefits of adopting live streaming in eCommerce is the change of client conversion ratio. Customers love to watch videos. Moreover, they expect a brand to shoot videos that will describe their product or service, explain how to use it, or even sell, just live streams do.

2. Personal touch:Any retailer who uses live streams will confess: they help build proper relations with customers and establish a better connection between a brand and a client. The matter is that live stream videos help to add a personal touch to everything you do.

3. Customer engagement:If you are planning to work on customer engagement, livestreaming is the perfect tool for that. To make the stream even more interesting to your audience, you can invite influencers. In this way, you will also attract the audience of the influencer.

4. Builds brand awareness:When consumers see the face behind the brand, or beloved influencers using your products, you can bet they’ll start recognizing your brand more often.

Brands which have invested in Live commerce technology;

1. Amazon
2. Instagram
3. Meta
4. Myntra

4. Artificial Intelligence and Machine Learning (AI and ML)

ai in ecommerce

In the simplest terms, AI which stands for artificial intelligence refers to systems or machines that mimic human intelligence to perform tasks and can iteratively improve themselves based on the information they collect. AI manifests in a number of forms. A few examples are:

1. Chatbots use AI to understand customer problems faster and provide more efficient answers
2. Intelligent assistants use AI to parse critical information from large free-text datasets to improve scheduling.

AI is much more about the process and the capability for superpowered thinking and data analysis than it is about any particular format or function. Although AI brings up images of high-functioning, human-like robots taking over the world, AI isn’t intended to replace humans.

Artificial Intelligence in Ecommerce

Amazon has long recognized the benefits of artificial intelligence and related technologies. The behemoth ecommerce company uses machine learning to improve product selection and user experience and to optimize logistics.

1. More targeted marketing and advertising: Personalization is a top priority, according to surveyed retailers, but only 15% say they’ve fully implemented personalization across channels. Stand out from the crowd with a more personalized message and have one-to-one conversations with your customers.

2. Increased customer retention: Delivering targeted marketing and advertising messages personalized for their customers can increase retention. McKinsey omnichannel personalization research indicated there’s a 10-15% uplift potential in revenue and retention from omnichannel personalization strategies.

3. Seamless automation: The goal of automation is to accomplish a task with as little human intervention as possible. That can mean anything from scheduling emails in a CRM or marketing tool, using Zapier to automate tasks or leveraging advanced technology to help with hiring.

In the context of future ecommerce trends, however, some of the most commonly talked about today are robotics and machine learning.

4. Efficient sales process: Using AI can help you create a more efficient sales process by gathering data about your customers, automate follow-up abandoned cart inquiries, and more. You can help move customers through the funnel by having them engage with chatbots for simple questions.

Brands which have invested in Live commerce technology;

1. Meta
2. Amazon
3. Flipkart
4. Myntra

5. Internet of Things (IoT)

iot in ecommerce

The Internet of Things (IoT) describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools.

 

IoT in E commerce

 

1. Better tracking and logistics: With IoT, retailers get greater visibility over the process of order fulfilment, so they can meet the demands of consumers who shop more online. IoT technology offers ecommerce retailers the benefit of tracking customer orders from the moment they’re placed to the second they reach the customer’s doorstep.

2. Automated management of inventory: Ecommerce retailers like having control over the items going out and coming in of their warehouses to know what is in and out of stock. With such tools as IoT sensors and RFID tags installed in inventory systems, business operations can be much easier, plus retailers need not hire store managers to physically check merchandise as they get real time information on their stock.

3. Enhances relationships between manufacturers and end consumers: IoT ensures that a good relationship is established through the connected appliances such that the durable goods manufacturers and customers enjoy a long-term relationship. For example, manufacturers of printers can offer cartridge replacements from the printers themselves.

4. Personalized information and actions: IoT also brings together personal data and that of brands to deliver more personalized experiences. In this way, ecommerce retailers can leverage the consumer’s connections to offer more personalized information and actions, while interweaving data to personalize their experiences further to households and each member. A good example is where there’s a connected car, the driver gets to receive offers tailored to him/her. Alternatively, a family with caa smart fridge can receive experiences tailored to their preferences.

Brands which have invested in Live commerce technology;

1. Meta
2. Amazon
3. Flipkart
4. Myntra

Wrapping up

As we saw that e-commerce has been an industry with a very high potential. Hence this industry has to be integrated with the ongoing respective trends to be a part of the river of competition and stand your business and services out. All these 5 trends have been showing and will show how how boon can they be if used properly.

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