The dramatic transition from traditional commerce practices to e-commerce has changed the way people explore and shop. The advances in technology also drive the sector to the next level. Now as customers’ expectations continue increasing, e-commerce businesses are progressively turning to innovative approaches to meet buyer preferences. According to the US Census Bureau of the Department of Commerce, Americans spent US$154.5 billion online in the third quarter of 2019.
Moreover, as the world is currently fighting against COVID-19 and billions of people already sent to stay home, retailers who active digitally are gaining much advantages owing to most people are now using digital retailers even more. This is causing a mixed impact on retail businesses largely due to lockdowns imposed by governments across the world, which is delaying orders to reach customers’ doorstep.
Here are some trends shaping the e-commerce industry in 2020 and beyond.
Shopping Behavior
As cities globally are already going under lockdowns to maintain social distancing in order to contain the spread of COVID-19, more people are now turning to online shopping. But, it can’t be predicted that online shopping is increasing, this is the demand of time. Some largest retail chains have already been announcing that they are expanding their e-commerce sales, but the crisis is expediting this process. Meanwhile, global lockdown measures are certainly changing consumer behavior and forcing people to use online shopping a lot more.
AI Pace in E-Commerce
Since most businesses are leveraging artificial intelligence for their improvements, e-commerce has completely changed with this emerging tech. The technology is beneficial for both the customers and the merchants as it provides retailers the data relevant to drive customer preferences. With the arrival of AI, the e-commerce industry has made significant growth and over 72 percent of business leaders believe the technology will deliver more benefits for their business in the future.
Voice Commerce
The evolution of voice technology is having a considerable impact on many verticals, including e-commerce. With the increasing customer expectations of personalized services, voice-enabled solutions are gaining rapid momentum in the shopping channel. Voice commerce will offer customers the ability to just search and buy something online using voice commands. This may make completing a purchase faster and can be done at any time throughout the day, from anywhere.
Global Expansion of E-Commerce
E-commerce business has virtually faded borders, allowing a consumer to purchase goods and services from a seller from any corner of the world. This wider access to a customer base means e-commerce brands can witness huge gains in growth. In a research, global e-commerce, by 2023, will see an increase of 53 percent, with an estimated US$5.9 trillion market cap. However, expanding globally draws a new set of challenges that require the strategic implementation of the business model. They include thinking about locals, navigating a complex ecosystem of vendor contracts, fulfillment, establishing local banking relationships, comprehending preferred payment methods, fulfilling compliance with local laws and regulations, taxes, fraud and more.