5 E-commerce Features to Embrace in 2024

For every online store, enhancing sales is the main goal. They do this by attracting new customers and keeping the existing ones.?

How??

Well, they use technological advancements wisely to build innovative strategies and to make shopping easier and cooler for people. According to a recent report, e-commerce sales are expected to increase by about 9.4% this year (2024), and by 2027, it is predicted to reach $8 trillion, which is a big jump. The e-commerce market is highly competitive, with tons of online stores out there, all trying to keep up with what people want. They use cool new stuff to make sure they're not left behind in the competition. So, if an online store wants to do well, they've to embrace the latest e-commerce trends, features, and tech. That way, they can:

• Outshine competitors and can set new trends in the e-commerce industry.
• Meet the ever-changing expectations of customers and keep them coming back for more.
• Inspire creativity and innovation within the team unlocking a treasure of fresh ideas to drive business forward.
• Work smarter, not harder, improving efficiency and effectiveness.
• Stay agile, adapt quickly to market shifts, and seize opportunities as they arise.
• Create memorable, personalized interactions that keep customers coming back for more.

Here we have 5 e-commerce features for online businesses to embrace in 2024:

1. AI (Artificial Intelligence)

Almost 97.2% of e-commerce businesses are putting money into big data and AI. And among the top businesses, 91% are keeping up with investments in AI, hoping to get even more advantages out of it.

The AI tools help businesses to predict what customers might like. It does so by analyzing customer's browsing history, their purchasing behavior, and other demographic information. It lets you give a personalized shopping experience to match customers’ individual needs and preferences. Imagine browsing through an online store, and instead of seeing a lot of random products, you're shown items that exactly match your style, interests, and past purchases. That's the magic of personalized recommendations and product suggestions.

Giving personalized shopping experiences to customers using AI brings numerous benefits for both businesses and customers. Businesses can get the benefit of higher conversion rates, increased customer engagement, and enhanced customer loyalty. By showing customers products they're more likely to be interested in, businesses can boost sales and maximize revenue. On the other hand, customers appreciate the convenience and efficiency of personalized recommendations, which save them time and effort while ensuring they find exactly what they're looking for.

Take eBay, for example, which uses AI to provide personalized customer advice and recommendations, enhance shipping and delivery times, optimize pricing strategies, and foster buyer-seller trust. They don’t just limit this technology to customer interactions instead eBay extended the use of AI to image search and automated web page translations.?

In 2019, eBay claimed that one of the standout achievements of AI in e-commerce is that it identifies 40 percent of online credit card fraud with "high precision". This highlights the effectiveness of AI in contending fraudulent activities and enhancing security measures for both buyers and sellers.?

However, some retailers may still avoid this transformative technology. Don't hesitate, instead make it an important part of your 2024 e-commerce strategy. know the risks, face challenges, and use AI at its full potential to grow your business and enhance customer satisfaction, this is how you can lead the market. Software solutions like that of Ginkgo Retail provide BI reporting tools to make your e-commerce business more efficient through a real-time reporting system and predictive analysis.

1. AR and VR

It's tough for customers to pick the right product without physically experiencing it which leads to 70% of shoppers abandoning their carts. Unlike in physical stores, where you can touch or try on products, exploring their features before purchasing, online stores lack this convenience. However, with AR and VR technologies, providing customers with a physical store purchasing experience is now possible. It allows customers to interact with products virtually before making a purchase decision.

Companies like IKEA assist online customers via AR technology in selecting furniture for their homes, while many real estate firms offer 3D tours. Take Crate & Barrel, for example. They provide a virtual store experience where shoppers can explore products in 3D. It's just like being in the actual store, with all the same design services available.?

By using AR and VR technologies e-commerce businesses can get a lot of benefits such as they can enhance their marketing efforts, reduce returns, and personalize the shopping experience for customers. Platforms like Facebook and Google are already exploring AR features in advertising, indicating a shift towards more immersive digital marketing strategies. Additionally, the 'try-before-you-buy' advantage offered by AR and VR allows customers to visualize products virtually, reducing the likelihood of returns, especially in the fashion industry. Virtual showrooms, like the ones used by automotive companies such as Kia, changed the online shopping experience. It lets customers look at products in digital places. Furthermore, virtual try-on tools let online shoppers 'try on' different items without actually wearing them. Adding to this some apps help customers find their way around stores using augmented reality (AR). Interactive user manuals help customers understand features and setup processes of products more effectively by giving virtual walkthroughs. These examples show how using AR and VR in online shopping can make a big difference and help businesses grow.

In 2024, the AR & VR market is set to explode, with a whopping revenue projection of US$38.6 billion. This market is growing fast, expected to hit US$58.1 billion by 2028. That means around 3.67 billion users will be trying out AR and VR tech. By investing in both a physical and virtual store, you can give your customers a super smooth personalized experience every time whether they are browsing online or walking through your store.?

1. Loyalty programs

As prices keep going up, people want to save money whenever they can, even when shopping online. That's where loyalty programs come in that help in customer retention through good offers and benefits. A study found that most online shoppers like getting discounts, free stuff, or free shipping from these programs. So, if you're running an online store, having a good loyalty program can help attract budget-conscious shoppers, build long-term relations with customers, and encourage repeat purchases.

To design a loyalty program, merchants must analyze customer purchasing behavior so the program can suit the specific preferences and needs of the target audience. Additionally, how the loyalty program looks and works is important. If customers can easily see their rewards and benefits clearly and simply, it makes their shopping experience better and makes them more likely to keep using the program and stay connected with the brand.

Let's take a look at LuisaViaRoma, a luxury fashion retailer’s loyalty program called LVR Privilege. It's like being part of an exclusive club where you earn points for every euro you spend. The program has four tiers based on the points you earn. One cool feature is their Sneakers Club, where members get access to limited-edition sneaker drops. You can use your points to get discounts on purchases or opt for the Privilege Card, which gives you a 15% discount on all purchases for six months. This program has been a big hit, leading to a 59% increase in customer retention and €16 million in revenue. Plus, they have a birthday email campaign that's won awards and gets a lot of engagement with 25% more people opening the email and 40% more clicks compared to regular emails

1. Buy now pay later

In 2024, the "Buy Now, Pay Later" (BNPL) trend continued to gain traction, especially among younger shoppers seeking flexibility and affordability in their purchases. Recent data reveals that 3 out of 5 people, or 60%, have tried a Buy Now, Pay Later (BNPL) service, with nearly half of them, or 46%, currently making payments through such services. Gen Z is the most frequent user of BNPL among all generations, with adoption rates expected to rise from 36.8% in 2021 to 47.4% in 2025.?

BNPL allows customers to finance their purchases over time through interest-free installments, making purchasing convenient and within their budget empowering them with more purchasing power. E-commerce businesses are challenged to seamlessly integrate BNPL options into their payment systems to meet consumer demands. A prime example is Boohoo, a fast-fashion retailer in the US market, which prominently showcases three BNPL solutions on its website. These options are highlighted in banners, product pages, shopping carts, and order summary pages, offering customers a range of choices. Studies show that having different BNPL options can help customers. However, it's crucial for businesses to clearly explain the terms of each BNPL option to avoid overwhelming shoppers with choices. By embracing the BNPL feature e-commerce businesses can deal with customer needs in a better way and can boost sales in 2024.

1. Voice and image search functionality

In 2024, integrating image search and voice search features into your e-commerce platform is a demand for staying competitive and attracting customers. Major retail players like Amazon, eBay, and Alibaba have embraced visual search, empowering shoppers to explore products through mobile apps or online platforms effortlessly. Image search technology allows customers to discover products by searching for similar items using personal photos or online images. This expands your potential customer base and boosts online sales, especially for customers who first encountered the product in a physical store. Similarly, voice-activated devices like Amazon Echo and Google Home are gaining popularity, making voice search a preferred method for many internet users. Optimizing your e-commerce site using voice search technology and offering the convenience of placing an order through voice command helps you grab the attention of those users who prefer voice search and also builds loyalty with them. As per experts by 2024, the global voice recognition market is predicted to reach a worth of $26.8 billion, with 8 billion voice-enabled digital assistants worldwide. Because of this trend, businesses are updating their websites for voice search, and are changing their strategies to match how people shop and find things online.?