What’s Next For eCommerce

You’re likely intimately aware of how much of a learning experience 2023 was. With AI firmly rooting itself in our lives and forevermore shifting the sales paradigm, stiffer competition making themselves known, and increased channel saturation pretty much annihilating strategies, it’s clear we’re in for a real treat in 2024.

Preparing for change can bring about some interesting forecasting. So here’s what I think is still on the horizon for the year ahead.

1. Social commerce starts cashing in

More and more brands are focusing their marketing efforts on social commerce. Not only is there an understanding that they need to show up for their customers on the platforms where they spend most of their time, but they also know that social platforms are where customers now want to shop.

This channel is expected to skyrocket this year. According to Accenture’s recent report, it’s set to grow three times as fast as traditional eCommerce, from $492 billion in 2021 to $1.2 trillion by 2025.

It makes sense! Social media is where conversational commerce got its start. By its very nature, these channels make conversation a natural choice. This means that brands looking to engage in conversation with their customers must build a strategy around these social media mammoths to keep pace.

2. Fashion retailers go bust (or come close to it)

We’re all familiar with how tricky online clothes shopping can be. And the playing field’s only getting trickier to compete in: The industry reported some of the lowest average conversion rate numbers in Google’s Ads Benchmark report for 2023 – clocking it at 1.57%.

Just as customers feel the economic pinch, the cost of doing business has risen as well. It will likely rise some more as inflation is stemmed and minimum wages are raised (as we recently saw happen in California). Marginal retailers, with high debt, will be forced to close some of their stores, reduce shopping hours, and/or lose the selling space in some of their major units to minimize operating costs. No doubt, they will do whatever they can to survive the difficult environment they may be facing.

Despite this, opportunities remain. Now more than ever, the need for these businesses to prioritize and expedite the way they approach setting themselves apart online should be the primary order of business.

3. Voice commerce makes itself heard

As smart speakers and voice assistants like Alexa, Google Assistant, and Siri become more prevalent in our daily lives, voice commerce is on the up.?

Voice-activated shopping is providing an entirely new way for customers to make purchases. This technology relies on voice recognition and natural language processing, allowing users to simply speak their needs and have them fulfilled. But what exactly is driving the rise of this innovative trend?

One of the key factors is the demand for convenience. With hectic schedules and limited time, shoppers are constantly seeking ways to simplify daily tasks. Voice-activated shopping offers a solution by eliminating the need to type or browse through numerous options. Instead, users can effortlessly speak their desires and have them fulfilled, saving valuable time and effort.

But, as with any technology that collects personal data, it’s important to keep an eye on those rising security and privacy concerns.

4. Augmented Reality shows its face

Hot off the press: Apple’s Vision Pro Augmented Reality (AR) Goggles have dropped, and they’re a true sign of the times. This revolutionary device brings a host of features and capabilities that promise to redefine our digital interactions.

We will begin to see the integration of virtual and AR technologies for more immersive shopping experiences. Customers will be able to visualize products in their own environment before making a purchase, leading to reduced return rates and increased confidence in online shopping. It’s a page straight out of a sci-fi novel, and I love it.

5. Invisible commerce appears out of nowhere

The term is used to describe the seamless and automated process of purchasing goods without any visible intervention from the shopper. However, it specifically references the behind-the-scenes technology that enables transactions to occur without the need for human involvement. Think automatic subscription renewals, predictive reordering of consumables based on usage patterns, or smart home devices that reorder household items when supplies run low.

In the next year, it will become a bigger player for eCommerce, as it allows for far more frictionless and personalized shopping experiences – right up my alley!

6. Guiding replaces searching

By 2025, 60% of businesses are set to make the transition from experience- and intuition-based selling to data-driven selling (Gartner Future of Sales 2025 Report). What’s driving this change is a growing trend among buyers, who now lean towards digital and self-service channels, necessitating the adoption of multi-experience selling.

Guided selling, specifically, thrives on personalization. At its core, there’s an understanding that each transaction is unique, tailoring recommendations based on the intricacies of the buyer's needs. This personal touch not only simplifies the purchasing process but also enhances satisfaction, paving the way for more loyal relationships. As we step deeper into 2024, the shift from eCommerce search dominance to full-journey Guided Selling experiences will mark a transformative chapter for our industry.

TL;DR

• Social commerce is set to grow rapidly, accentuating the need for conversational engagement strategies.
• Fashion retailers will face tougher competition online, with low conversion rates and rising costs leading to potential closures.
• Voice commerce will gain traction with the rise of smart speakers, offering convenience and simplification in shopping experiences.
• Augmented Reality promises immersive shopping experiences and increased consumer confidence in online purchases.
• Invisible commerce seeks to revolutionize shopping with seamless, automated transactions, paving the way for frictionless buying.
• Guided selling emerges as the future of sales, driven by a shift towards digital and self-service channels, enhancing customer satisfaction for more loyal relationships.

What do you think awaits us in the year ahead? Sound off in the comments.