Ecommerce Trends – 2021
What’s Trending In eCommerce
We all need to keep up-to-date with what is current and the trends in 2021, especially when it comes to making money online. Therefore, we have compiled these articles to help you determine if your eCommerce efforts are current.
Ecommerce Trends – 2021
The eCommerce industry is always changing, and this year has been no different. More than ever, merchants are creating and/or improving their eCommerce businesses to meet customers where they are. While it may seem like everything in eCommerce is evolving, we narrowed it down to the biggest trends that will affect businesses in the coming months and years.
1. Augmented reality enhances the reality of online shopping.
Augmented reality (AR) has been a complete game-changer for eCommerce. With this type of technology, shoppers can truly see the item they’re shopping for, which helps them make a buying decision. In addition, AR really changes the shopping experience in specific industries, such as fashion and home decor, because the customer can get a better feel for the item without seeing it in person.
In 2019, Gartner predicted that 100 million consumers would shop using AR by 2020, so it will be interesting to see how that shakes out next year.
Michael Prusich, Director of Business Development at 1Digital Agency, agrees with this prediction:
“Polls have shown some compelling numbers in regards to AR too: 35% of people say that they would be shopping online more if they could virtually try on a product before buying it, and 22% would be less likely to visit a brick-and-mortar store if AR was available via their favorite eCommerce store. AR grants a person the ability not just to see a 3D model of a product but lets a user see how it looks if they were actually wearing it. Some products and industries lend themself better to traditional shopping methods, but AR is going to shake things up sooner than later.”
Tessa Wuertz, Director of Marketing & Partnerships, efelle.com, also sees the potential for even smaller to midmarket businesses joining the trend:
“We are expecting a lot more businesses to utilize AR for their products and businesses — so much so that it will become more standard in eCommerce and social media platforms. Of course, we see it put to use with larger companies, but I think we’re soon going to start seeing it become mainstream for businesses of all sizes.”
2. There will be a growing volume of voice searches.
Not only do more people own smart speakers, but they also rely on voice assistants to complete daily tasks. Loop Ventures forecasts that 75% of U.S. households will own a smart speaker by 2025.
As more homes adopt smart speakers, more consumers will utilize voice search to shop online, order food, and organize their lives. The rise of voice search creates an opportunity for eCommerce businesses in terms of keywords and content.
David Zimmerman, Director of eCommerce Solutions, Kensium, included “more involvement of voice-enabled solutions in the commerce space with Amazon Alexa and Google Home” high on his list of 2020 trends to keep an eye on.
3. AI helps shops learn about shoppers.
Artificial Intelligence (AI) and machine learning make it possible for the customer to have automated, personalized shopping experiences. AI continuously collects data on how a customer shops, when they buy purchases and what they’re looking for in a product or a service. It’s a piece of technology that really can’t be replicated in-store.
Ron Smith, Editor in Chief, The Digital Outdoor, emphasizes how the complexity of AI and the ability to make it more human is also increasingly important:
“People want to know that brands care about them, and AI will be programmed accordingly. We have seen the opposite behavior on social media, where AIs learn from humans’ more negative remarks, but consumers will likely crave the impact. If bots can learn how to form sentences to convey an emotion, companies can soon teach them to offer comfort and products based on customers’ moods.”
4. On-site personalization uses those insights to create individualized experiences.
A huge trend among businesses over the past couple of years is eCommerce personalization. Customer expectations of personalization constantly increase, and personalization should and will become an eCommerce standard.
Shopify wrote well what good eCommerce personalization should do:
- Meet users needs
- Avoid turning visitors off with poor recommendations
- Be used only where the potential return justifies your investment
Statistics say that customers spend 48% more when their experience is personalized. And let’s take personalized emails as an example. According to research, personalized emails generate 6x higher transaction rates and convert better than cold emails.
So, personalizing the online shopping experience is the key to customer satisfaction. By offering a personalized customer experience, you will deliver an excellent shopping experience and connect with your customers more. Customers love seeing businesses that care about them, and in this day and age, your business should do just that! Remember, you can not thrive in any area if you do not have customers supporting you, so do your best and treat them right!
5. Chatbots Are Here to Stay
Chatbots have changed the customer experience lately for the better, and that will only continue. More than 60% of all end-users consider chatbots as their first choice for customer service inquiries. Companies use a chatbot to improve customer service, provide quicker and better responses, and gather more data to create a more enjoyable customer experience next time around. So, by developing chatbots and integrating them into your business system, you will surely benefit from them. They also have marketing benefits for eCommerce websites, such as search engine rankings. Above all, your customers will get a personalized and quick service, which a successful company should strive for.
6. Subscription Ecommerce
Did you know that the subscription eCommerce market has grown by more than 100 percent a year over the past five years? As a result, it is becoming an increasingly popular and fast-growing way of buying things online. And of one of the most popular eCommerce trends.
Subscription eCommerce is when customers receive the same products on a repeat purchase basis, including everyday items. If companies want customers to repeat purchases from stores, they need to ensure the quality of the products they offer and a great user experience. Starting from website design to customer service. Developing a great and unique customer experience will help you accelerate both growth and profit. A great example is P&G (Gillette on Demand) who launched a new subscription business.
Also, an important part of the subscription is personalization. Customers consider personalized subscriptions as a reason for continuing to subscribe, so don’t forget about that.
7. Mobile Shopping is Expanding
Your customers want to shop conveniently via their mobile phones. Hence, it’s important to improve their shopping experiences. More so, since it’s estimated that over 73% of eCommerce sales will occur on mobile devices by the end of this year.
These figures should inspire you to embrace new mobile technologies and customer service tools to help maximize your sales.
Today, consumers trust brands to deliver quality products and services. Ecommerce brands such as Home Depot, 3Wishes, and Zappos deliver the best products and offer fair refund policies.
Consumers feel more comfortable today when they shop online via their mobile devices than ever. Millennials and Gen Z, in particular, use computers, mobile devices, and the internet a lot.
So you can understand why mobile shopping is growing. Hiring these individuals, such as tax credits, and there are assistance programs to develop these new workers further.
8. Young Consumers Are Transforming The Online Business Space
According to this study, 2 out of 3 young consumers between 18 and 34 are spending more money purchasing items online than before the pandemic hit.
They increased their online spending by 57%.
In contrast with the older generation: consumers between the ages of 55 and above, whose online spending increased by 41%.
That said, it’s important to pay attention to this younger generation of shoppers. These shoppers are not as naive or indecisive as you might think. They make most of their shopping decisions without asking their parents, friends, or spouses for permission.
They can get all the information they need from online resources or learn from online learning and tutoring platforms such as Udemy, Skillshare, etc.
Therefore, you need to start optimizing your eCommerce store and products for them if you want to increase your sales potential.
So, where can you find the younger consumers? First, you need to consider social media networks.
Gear your efforts towards social media marketing — since more than 50% of young consumers who purchase items from independent brands get recommendations via social media.
9. The Emergence of New Payment Options
As an online seller, you need to embrace new payment gateways. Currently, most eCommerce brands accept wallets — such as Apple Pay, PayPal, Google Pay, and Samsung), in addition to the typical debits and credit cards.
In 2020, we saw a surge in Bitcoin payments. This trend is going to get stronger this year and beyond.
It offers tremendous benefits for online sellers, such as low or zero transaction fees and no reverse transactions.
Smart online stores are already capitalizing on this new payment gateway. For example, Overstock partnered with Coinbase to accept Bitcoin as a payment method from its customers.
This year, be prepared to see many online stores integrating cryptocurrency payment options at scale.
This trend will also provide extra layers and guide online shoppers to stay safe online using this new payment option.
10. Dynamic Pricing Will Gain More Attention
Did you know that dynamic pricing offers a viable way to attract new customers and stay competitive? “It’s a tailored pricing strategy based on individuals’ willingness to pay,” says Matter Economics.
The right pricing model can significantly increase the demand for a particular product. Conversely, if you don’t price your product correctly, you’ll discourage sales and push your customers away.
The right price is mainly the ideal price your customers are willing to pay based on your product is worth. However, it would help if you also considered what price would offer you the maximum possible profit.
As consumer needs continue to change, it’s valuable to use dynamic pricing software like Prisync or Omnia Retail to determine the best price for your products.
Most of these tools provide a ton of resources and real-time insights into your market, competitors’ prices, demand, and the perceived value of your product to help define a benchmark pricing that will make everyone happy.
Please consider the eCommerce trends and check them against what you are doing to see how you may improve your customer’s experience.
Article compiled by hughesagency.ca
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