The e-commerce sector is massive. This makes it understandable why e-commerce has become such a hot topic. Global ecommerce sales totaled approximately 3.5 trillion dollars in 2019, showing that ecommerce is becoming an increasingly profitable alternative for enterprises. And the good news is that this isn’t a new trend. This is enormous!
Between 2014 and 2017, online sales increased by an average of 25.6 percent per year.As a result, the future of e-commerce seems promising.
Over the next several years, e-commerce is projected to undergo a major transformation.
After analyzing some of the hottest trends for 2022, we will highlight what we think the most significant changes in e-commerce will be, as well as what these changes may have brought along.
If you are ready to dig in, here we go!
The top 9 most demanding e-commerce trends
- Emerging markets
Several advanced economies are expected to play a significant role in e-commerce in the future, including China, Russia, Brazil, India, and South Africa. Given the recent expansion of most of these countries’ economies, this may not come as a complete surprise, but let’s dig a bit further to find out why.
By 2022, an estimated 3 billion people in developing countries will have internet connectivity. All of those people are prospective clients. 20% of total retail sales are estimated to originate from customers in these growing areas by 2022. What a large number of possible sales!
- Delivery convenience
For a long time, only huge companies in India had the distribution and retail networks in place to reach their clients all throughout the country. Despite this, the logistics industry flourished dramatically after the lockout, and the availability of several tech-driven, reasonably priced logistics partners made it possible for smaller firms to distribute items to customers outside of their local markets.
D2C (direct-to-consumer) retailers with hyperlocal delivery to urban and rural regions, as well as worldwide shipping, were able to make use of this. Large and small companies now have equal access to their target audience.
- Voice and headless technology
According to a poll conducted in January 2019, around 45% of Millennials have used speech technology, such as the Google Home or Amazon’s Alexa, to perform some kind of retail transaction. Smart speakers and other voice-activated devices will certainly see a surge in popularity as more people become used to them.
While it’s still a bit of a jump to assume that we may be purchasing new fashion or home décor without ever seeing it, the use case for restocking, like “Alexa, add cat food to my grocery cart,” is a lot simpler to conceive.
In the long run, however, the increase in subscriptions and voice commerce will lead to automated commerce (acommerce) and headless commerce-powered Internet of Things devices.
- The rise of specialty goods
Today’s consumers no longer take a brand’s statements at face value. As a result of consumers’ increased ability to research their own preferences online, a slew of new niche goods have emerged to meet their specific needs. This is especially true in the cosmetics and skin care industries, where substances play a major role.
Customers are more likely to purchase from dermatologist-certified companies because they expect customized skincare regimens to address specific issues. Other specialty chemicals and minerals, such as caffeine, ginseng, tea tree oil, and argan oil, are becoming more popular in the cosmetics market.
- The term “essentials” has taken on a new significance in our day
People’s lives were radically altered by the outbreak and the subsequent lockdown. Since many people now work from home or participate in meetings via video conferencing, it has become necessary for them to find work attire that is both comfortable and professional-looking.
Simultaneously, many people began cooking their favorite meals at home rather than going out to restaurants. Rising demand for hand sanitizer and immunity boosting vitamins, as well as stylish leisurewear and exotic ingredients, sauces, spices, and dips from across the globe, has led to a shift in the market.
There’s also a substantial surge in demand for ready-to-eat items. In 2021, as more people work from home, these new eating patterns are expected to remain popular.
- Environment support consumers
Today’s internet buyers are more educated and demanding than ever before. It is no longer a question of which shop can provide the most competitive pricing. Customers are more concerned about the environmental effect that a product might have. Plastic is no longer an option for a large segment of the client base. And when it comes to purchasing containers, glass is the preferred material.
With the advent of environmental campaigners, sustainable goods have become more than simply a trendy phrase. It is only fair that shops follow suit and take steps to guarantee that their goods do not have an adverse effect on the environment.
Example: If you run a beauty business, you might want to think about giving your customers vegan makeup options because this is a big thing.
- More personalized payment options
Sezzle, Apple Pay, Venmo, and PayPal are just a few of the payment options available. A new payment method is introduced almost every time you turn around. There are also a growing number of payment methods available to younger generations as they become more technologically aware. Even a TransUnion survey found that the usage of credit cards among Millennials has decreased.
Rather than having to pay for significant items in full up front or use a high-interest credit card, several online retailers like Klarna, Afterpay, and Affirm are now providing low- or no-interest financing solutions.
Brands must embrace as many payment methods as possible along with these buy-now, pay-later (BNPL) choices in order to expand their potential market, especially among the under-40 demographic.
- Ecommerce automation
One of the fastest-growing aspects of online business is e-commerce automation. Everything from marketing automation to warehouse management and beyond falls under this category. At this point, there is an element of automation in every department or section of the company.
Freeing up resources and time for more vital tasks is a good thing. Automated systems, like robots, may be used in warehouses to make them more efficient and free up workers to do more important things.
When it comes to e-commerce automation, the sky is the limit. With a little investigation, you may identify software that will benefit your product.
- The big companies are shifting gears
For many huge, well-established businesses, internet sales were never a focus, and they were limited to a few marketplaces at the very most. In contrast, after COVID, they were driven to begin selling their products online for the first time ever. While some D2C channels were set up cautiously, others took a more aggressive approach.
After the lockdown, demand for consumer durables like vacuum cleaners and washing machines skyrocketed as more individuals took on the burden of doing their own laundry. All kinds of household appliances, including dishwashers, vacuum cleaners, and washing machines, started to sell at a considerably quicker rate than they had before the shutdown.
As a result, production, supply chain, marketing, and branding have all shifted their focus toward expanding the direct-to-consumer channel. Orders are now done more quickly and efficiently, which saves both time and money, which helps to boost production and sales this year.
In the future
Digital-first D2C enterprises will keep developing in the next few years, and huge corporations will create their own digital-first divisions. A D2C brand’s long-term survival depends on its ability to get information from customers and use that information to get more people to come to the site, be more engaged, and make more sales.
These enablers, such as website technology, promotional tools, and supply management specialists, as well as financial technology businesses, will play an important role in this. As their expectations and income levels rise, customers in tier-2, tier-3, semi-urban, and rural marketplaces are likewise anticipated to increase their e-commerce sales volumes.
People who work in direct-to-consumer (D2C) commerce will be influenced by trends like artificial intelligence (AI), better forecasting and recommendation systems, more localized content and native language interfaces for D2C, conversational commerce, and social commerce.
Also Read: Best b2b eCommerce software solutions 2022
