Having just begun the year 2024, eCommerce practitioners and related businesses are raising the question: What will be the year's biggest trends in eCommerce?
As far as HubSpot CRM goes, we know that their Commerce Hub, which currently operates in the US alone, will be globalized in the coming weeks. This will be a game changer for many businesses using HubSpot, as they would be able to run their commerce process all in one place - Quotes, payments, billing, invoices, reporting and more - all under one roof.
For us, HubSpot globalizing its Commerce Hub is a great opportunity to try and decipher which trends are expected in the field of eCommerce for 2024. It is worth mentioning that digital marketplaces can get turbulent (especially in the age of AI), so predicting these trends is a task that should be done methodically and with agility.
What is shaping the future of online selling in 2024?
1. Online retailers will make or break based on seamless omnichannel experiences
As consumers returned to in-person shopping in 2023, e-commerce didn't lag behind. Every time a customer makes a purchase, they do so across multiple channels and touchpoints.
The world is filled with online shops, third-party marketplaces, social media apps, and brick-and-mortar stores where people research, compare, shop, and seek support. With virtually no disruption, they expect to be able to do so easily.
73% of retail consumers shop across multiple channels, and compared to single-channel retailers, retailers using three or more channels increase customer engagement by 251%.
In order to maintain a cohesive brand experience, retailers need to be present on all online platforms - including their own website, social media platforms, and third-party marketplace shops.
In addition, they need to improve the omnichannel customer experience by unifying things on the back-end, so that no matter where a customer picks up their purchasing journey, it continues seamlessly. Flexible fulfillment, social commerce and personalization of customer service are the way to go.
2. The evolution of e-commerce is driven by artificial intelligence (AI)
AI is here to stay, whether you like it or not. The technology has been a useful tool for e-commerce businesses for a long time, but in 2023, generative AI showed consumers just how powerful it could be.
Online retailers can benefit from AI by:
- Provide personalized recommendations and experiences to customers
- Manage inventory, supply chain logistics, and everything in between
- Reach their target audiences more efficiently with fine-tuned digital marketing strategies
It’s no shock that 97.2% of businesses are investing in big data and AI, and 91% of top-level businesses report having an ongoing investment in AI - which they’re planning to increase.
Artificial intelligence and machine learning will soon pose a threat to retailers who remain wary of them.
3. Engagement from social commerce will be massive
In the U.S., 96.9 million people shop directly on social media. Millennials and Gen Z will continue to consume the market, so that number will only increase. A whopping 83% of Gen Z consumers begin their shopping on social media.
Increasingly, brands are making it effortless for people to discover and buy directly from their favorite social apps (primarily Instagram and TikTok), earning them social currency as well as elevating consumer expectations.
By 2026, social commerce is expected to reach $2.9 trillion. Retailers need to embrace social media now.
4. Customer service must be personalized
Get rid of the one-size-fits-all mentality when it comes to customer service.
Customer service is one of the many steps consumers expect to be personalized throughout their journey. Engaging with them today should be informed by their preferences, transaction history, and past service interactions.
A human face or voice representing the best of a brand's desired attributes is increasingly recognized as a very real extension of the brand.
A customer's interaction with your service department shapes their perception of your brand enormously. As customers embrace digital channels, this becomes more true.
Customer service trends require organizations to think creatively about how to solve for intangibles such as empathy and tone of voice. In rapidly changing situations, they must ensure agents have ready access to the right information, at the right time, to resolve any issue or customer pain point that may arise.
5. Mobile-first dominates UX design
Remember when mobile-optimized websites were the new big thing about a decade ago (2010 or so)? The popularity and ease of mobile commerce have only grown over the last decade.
So much so that the balance of power has shifted. Today, brands are designing mobile-first experiences instead of optimizing desktop sites for mobile.
91% of consumers make online purchases on their smartphones. In 2024, m-commerce is expected to account for 40.4% of all e-commerce sales. By 2025, mobile commerce will account for $710 billion (or 10.4% of all retail transactions)..
Consumers consistently show that they want to shop from their mobile devices. It is imperative that retailers deliver mobile experiences that are purpose-built:
- Adopt fingerprint and facial recognition technology to simplify all processes, from sign-up to check out
- Develop a designated mobile app with e-commerce features specifically optimized for smaller screens
6. ROPO (research online, purchase offline) + BOPIS (buy online, pay in-store)
In the era of consumer upending customer journeys, retailers may have difficulty tracking how and when their virtual UX translates into physical sales.
As more and more people combine their buying journey across multiple channels, ROPO ("research online, purchase offline") has grown in popularity. Using companies' e-commerce sites, third-party marketplaces, and online reviews, people conduct product research online before making a purchase in a store.
The journey itself hasn't changed dramatically, but our ability to track it has.
BOPIS and curbside delivery seem simple: Shop online and pick up in-store or curbside. An employee is alerted to come out with packages via a phone call or location-based check-in. Throw it in the trunk and cruise home.
Scaling these services, however, can be extremely challenging for most retailers. Turning traditional stores into fulfillment centers requires agility and quick pivots so consumers can get what they need quickly.
To stay on top of this e-commerce trend, retailers who have not yet invested in a unified customer data platform should do so now.
7. Using AR and VR to enhance e-commerce
Having the ability to try on products or fully imagine how they will fit in your home is one of the biggest challenges online shoppers face. With augmented and virtual retail experiences, shoppers can visualize-and even interact-with products online before making a purchase.
- Smartphones allow shoppers to try on everything from clothes to makeup
- AR can help them visualize how furniture and home appliances will fit in their spaces (like with IKEA's AI-driven app).
- With VR showrooms, shoppers can virtually interact with products or even configure them before buying them (as with Audi's earlier Oculus experience).
When using AR, 80% of shoppers feel more confident, and 66% feel less inclined to return their purchases, according to a survey conducted by Snap/Publicis Media.
Although immersive technology has come a long way in the past few years, we're just getting started. In 2024, e-commerce businesses across all industries will roll out augmented, virtual, and mixed reality experiences.
8. Personalization and curated experiences are in high demand
Retailers will continue to use AI to optimize every aspect of their e-commerce experience, as we have already discussed. However, its powerful impact on personalization deserves its own attention.
With increasing awareness of AI's advanced capabilities, consumers are becoming more demanding of businesses' use of the technology. A survey found that 24% of consumers believe retailers should use AI to personalize recommendations.
Customers expect hyper-personalized, curated experiences as a return on their consent for your use of their data. Among them:
- Personalized recommendations based on past purchases, behavior, and cross-channel engagement
- Loyalty programs that offer personalized rewards
- Using their preferred channels to reach them with targeted messaging that resonates with them
As personalization capabilities become more powerful, retailers who don't deliver tailored, relevant experiences to their customers risk losing them forever.
It is also important to gain the trust of your customers when it comes to your data practices. This leads us to..
9. Privacy and transparency remain paramount to consumers
A seamless, personalized e-commerce experience is what customers expect, but not at the expense of shady data practices.
Gartner predicts that by 2024, 75% of the world's population will have their personal data protected. A company in violation of compliance will face hefty fines and legal repercussions.
In addition to the financial risks of regulatory violations, brands that violate customers' trust-especially when it comes to their personal data-risk losing their business forever. (Not to mention the negative reviews they will leave in response).
Personalization and CX strategies for e-commerce in 2024 must prioritize data privacy and transparency. Customer trust must remain a top priority as companies adopt new AI capabilities and hyper-personalization strategies.
10. Human is platinum
We are fixated on the ways emerging technologies can help businesses grow and scale, as well as deliver exceptional virtual experiences in the world of digital commerce.
Despite AI-everything, people are beginning to appreciate the human touch even more.
A Mintel report notes that consumers are beginning to appreciate what makes humans so unique - emotions, empathy, creative ideas, and the desire to connect with other humans.
Consumers and brands will increasingly seek out human elements, as opposed to faceless algorithms, in order to strike a balance between progress and preservation.
Communication with a human is what makes interactions with salespeople and customer service representatives positive for 58% of U.S. consumers. According to the authors of the report, "human-as-a-premium" will become an emerging trend in the coming years.
Even the most digital experiences can be improved with a human touch as brands adopt tech that increases efficiency, productivity, and scale.
11. The direct-to-consumer model is thriving for brands and retailers
Direct to consumer (DTC) used to be reserved for digitally-native brands looking to save costs and differentiate themselves.
DTC is now embraced by brands of all sizes and shapes. Due to the sky-high rent for physical retail spaces, as well as the need for first-party customer data, this is partly the result of the quest for first-party customer information.
DTC sites were the third most popular online purchase channel in 2023, with the U.S. having the highest share of DTC brands worldwide.
Third-party retailers are often bypassed by consumers when the brand's customer experience is easier, more reliable, or offers better rewards or pricing.
In 2024, we will see more brands and retailers optimizing their DTC experiences to collect more, higher-quality customer data that will allow them to deliver the kind of personalization that inspires loyalty.
12. Subscription commerce drives retention
In the case of physical products, subscription models continue to be popular with consumers, combining ease and convenience of automation with a sense of surprise and delight.
This provides a predictable, ongoing revenue stream for e-commerce retailers.
By 2026, global subscription e-commerce is expected to reach $904.2 billion.
From physical products to streaming services, subscription commerce can benefit almost any digital seller. Subscription brands can differentiate themselves by offering personalized options such as:
- A budget-friendly price range
- A personalized product based on the preferences of the consumer
- Fulfillment options that are easy and flexible
Keep in mind that it's crucial to make it easy for your subscription members to cancel and manage their memberships. Besides governments cracking down on shady subscription practices, making it difficult for customers to cancel will undermine any goodwill you built up by making it easy to order.
E-commerce trends in 2024 are dominated by customers-obsessed experiences
Subscription retail, personalization, and unified omnichannel commerce all have one thing in common: Customer experience is at the forefront of everything they represent. Using that as a compass, you'll never go astray.