The world of e-commerce has seen incredible growth in recent years, with the COVID-19 pandemic accelerating the shift to online shopping. In 2020, global e-commerce sales surpassed $4.2 trillion, and this is only expected to continue to rise in the coming years. As a small business owner, it's essential to stay ahead of the curve and keep up with emerging trends in e-commerce to remain competitive in the market. We’ve rounded up a few of the top trends, from AI to sustainability and broken down the ways that they can be adapted to help small businesses succeed.
Artificial intelligence (AI) technology has transformed e-commerce in recent years and is predicted to continue having a significant impact on the industry. The use of AI-powered personalisation is becoming more common, allowing businesses to create tailored shopping experiences for each customer. By analysing customer data and behaviour, AI algorithms can recommend products that are most relevant to the customer's interests and needs,which in turn increases the likelihood of a sale. AI-powered marketing campaigns can target specific customer segments with personalised messaging, improving engagement and conversion rates. By using AI technology, businesses can provide a more seamless and personalised shopping experience for their customers, improving brand connection, customer satisfaction and loyalty. As AI technology continues to evolve, it's likely that we'll see even more sophisticated forms of personalisation and automation in e-commerce, making it an exciting area for businesses to invest in.
Voice search technologies, like Siri and Alexa, have been around for several years, but are expected to grow alongside their other AI counterparts in the coming years. According to ComScore, by 2024, 50% of all searches will be voice searches. This trend presents a significant opportunity for e-commerce businesses to optimise their content and make their products easier to find through voice search. By using long-tail keywords and natural language in product descriptions and metadata, businesses can improve their visibility on voice search platforms.
Social media platforms are no longer just for sharing photos and connecting with friends; they have become a significant part of e-commerce. Social commerce, or the use of social media platforms to sell products and services, is expected to grow even more in the coming years. By leveraging social media platforms' massive user bases, businesses can reach a wider audience and increase sales. Platforms like Instagram and Facebook have already integrated e-commerce features into their platforms, making it easier for businesses to sell products directly to their followers. The brand-business connections that social platforms have fostered in recent years have allowed customers to feel part of a brand journey, have access to intimate behind-the-scenes and day-in-the-life content, building trust in the people and products behind the name. When people feel confident in a brand, they're more likely to make a purchase, meaning that businesses that invest in social commerce can build stronger relationships with their customers, as well as increase their online visibility and sales conversion rates.
With mobile devices well and truly embedded in our daily lives, mobile commerce is a critical consideration when planning e-commerce strategies. In 2023, it's expected that over 72.9% of all e-commerce sales will be made via mobile devices. This means that optimising websites for mobile devices and considering the addition of mobile apps to provide a seamless shopping experience for customers on-the-go is no longer an option, but a necessity. Mobile commerce allows for features such as push notifications and mobile-exclusive deals, which can help to increase engagement and drive sales. If a dedicated brand or product app isn’t an option, adding features such as direct, clickable links to your website or sales page in Instagram stories is a simple way to dip your toes into the waters of mobile commerce. Consider this your reminder to double check your own website on a mobile device to make sure that it is just as functional there as it is on a desktop.
Sustainability has been thrown around as a buzzword for years, but seeing concrete brand action is becoming increasingly important to consumers, and businesses must address this trend by adopting sustainable practices. From using eco-friendly packaging and reducing production waste, to sourcing materials responsibly, every little bit counts. In addition to appealing to environmentally-conscious consumers, sustainable practices can also save businesses money in the long run. For example, by reducing the amount of packaging used and purchasing locally, businesses can save on shipping costs and improve their bottom line. Brands like Patagonia have built their entire business models around sustainability, and smaller businesses can take a leaf from their book, adopting eco-friendly practices in their own bricks-and-mortar trades, as well as their e-commerce operations. By prioritising sustainability, businesses can differentiate themselves from competitors and appeal to a growing segment of socially-conscious consumers.
Several big brands have already shown how early adoption of new tech trends and innovative e-commerce strategies has been a game-changer in their business practices:
While these demonstrate the power of innovative e-commerce strategies on a global scale, the same principles can be applied to small businesses.
The future of e-commerce is bright, and small businesses would do well to embrace the emerging technologies and prepare for upcoming changes. With trends such as voice search, AI-powered personalization, and social commerce already transforming the industry, early adoption can help businesses stay ahead of the curve, increase their online visibility, improve customer satisfaction, and drive sales. Don’t be afraid to explore the options and technologies available as the field of e-commerce steps into the future, and take advantage of the exciting opportunities it presents.
