As experienced in the past years, the e-commerce sector is witnessing significant changes also in 2024. Advancements in technology, rising consumer expectations, and adaptive business strategies are collectively transforming the online shopping experience. This year, e-commerce businesses face numerous challenges, including inflation, international conflicts, low wages, and the disruptive influence of emerging e-commerce platforms like Temu and Shein, which are altering the dynamics of online retail and adding new complexities. The critical question is: How can your business remain competitive in this ever-changing industry? Let's explore the e-commerce trends for 2024 that are reshaping the way we shop online.
E-Commerce Trend #1: Mobile Commerce
The steady rise of mobile shopping, observed over the past few years and continuing to grow in 2023, is expected to persist into 2024. Therefore, it has never been more crucial for businesses to optimise their websites for mobile devices.
Mobile commerce provides users with unparalleled flexibility and convenience. Shoppers can browse, compare products, and make purchases anytime, anywhere, moving beyond the confines of traditional desktop-based e-commerce. Consequently, ensuring a seamless and intuitive shopping experience on smartphones and tablets is no longer optional but essential.
E-Commerce Trend #2: Diverse Payment Options
Offering more than two payment options has become standard practice. However, the increase in choices tailored to the mobile shopping experience has driven businesses to adapt to mobile-centric consumer preferences. Digital wallets have become the preferred choice of online shoppers, and by 2025, 53% of all e-commerce transactions are expected to be through digital or mobile wallets. The integration of mobile wallets and one-click payment options further speeds up the payment process and enhances convenience, especially for users on the go. Empowering consumers with a mobile-friendly experience is a strategic move that aligns with evolving shopping behaviours and user expectations.
In addition to developing mobile-optimised payment options, it is vital to incorporate the most popular payment methods in Europe before offering them. This ensures better alignment with your customers' expectations and preferences.
E-Commerce Trend #3: Social Commerce Continues to Grow
75% of users utilise social media to search for products, and it is projected that sales from social media commerce will triple by 2025, reaching an astounding $1.2 trillion. Therefore, the integration of e-commerce platforms with social media sites like TikTok, Instagram, Facebook, and Pinterest remains essential to reach potential customers.
Social media has become invaluable, allowing shoppers to browse products featured on these networks and make purchases without leaving the app, streamlining the entire shopping process. These platforms offer a wide range of possibilities beyond mere advertisements, including simplified payment methods, easy navigation, and influencer promotions. Influencers play a crucial role in promoting your products, providing reviews, offering exclusive discounts, and engaging in other promotional activities. Continue reading to discover the importance of influencers in e-commerce.
E-Commerce Trend #4: Influencers Remain Key Players
Research shows that 60% of content created by influencers generates higher engagement and outperforms branded posts. Additionally, 80% of consumers have made purchases based on influencer recommendations. This is because influencers often have a dedicated and engaged audience that trusts their opinions. When influencers endorse products, it adds an authentic and personal touch that resonates with consumers, fostering trust in the brand and its offerings.
Influencers excel in creating visually appealing and engaging content. Leveraging their creative skills ensures high-quality content and saves time and resources for companies that may struggle with content creation. Different influencers target specific niches and demographics. By collaborating with influencers relevant to your brand's target audience, e-commerce companies can engage in highly targeted marketing, ensuring that your products reach the right consumers.
E-Commerce Trend #5: Customer Reviews Are Integral to the Online Journey
Positive reviews act as compelling social proof, influencing the purchasing decisions of potential customers. When shoppers see the positive experiences of others, it adds a layer of validation, building trust in the product or brand. The fact that 89% of consumers worldwide incorporate online reviews into their buying process highlights their critical importance.
Therefore, ensuring that the product arrives in optimal condition, on time, and performs as expected is not only necessary but also crucial in 2024. Meeting or exceeding customer expectations is vital in maintaining positive reviews and sustaining the trust and confidence that drive e-commerce success.
How should you handle negative reviews? In such cases, the company should respond responsibly. 62% of consumers are inclined to stop using platforms if they suspect reviews are being censored. It is in the company's interest to take responsibility and address any issues as effectively as possible. This approach builds confidence in the company's proactive response to problems. Demonstrating a commitment to resolving issues reinforces the notion that, in the rare event of a product-related problem, the company is capable and willing to resolve it promptly.
E-Commerce Trend #6: Fast, Free Delivery Options Still Prevail in 2024
Fast and free delivery options remain prevalent in the market, with businesses that align with these standards having a higher likelihood of both attracting and retaining customers. In many European countries, a delivery period of 3 to 5 days is acceptable for online orders. Only a small portion of online shoppers find a delivery timeframe of 6 days or more to be satisfactory. This underscores the importance of quick processing in the realm of B2C e-commerce orders.
In 2024, companies must meet customers' shipping expectations to enhance customer loyalty. Effective shipping strategies in e-commerce are not limited to offering various delivery speeds. A successful shipping strategy involves defined roles that clarify the fulfilment process while considering the revenue implications. Establishing an effective shipping strategy involves having streamlined steps for receiving, processing, and fulfilling orders.
E-Commerce Trend #7: Sustainability Matters
The trend towards sustainability in e-commerce remains popular, benefiting everyone. The top 4 countries willing to pay more for eco-friendly options are Germany, the United Kingdom, France, and Italy.
However, in Germany, only 20% of citizens trust companies' claims about their environmentally friendly practices. Brands must convincingly communicate their sustainability efforts, avoiding the well-known "greenwashing" traps. To overcome this challenge, we recommend establishing genuine green credentials to substantiate your services.
Here are some of the certifications and seals that customers look for in products: Fair Trade Certified, Leaping Bunny, Rainforest Alliance Certified, and Certified Organic. These certifications reflect a commitment to a variety of ethical and sustainable practices that meet the expectations of conscientious consumers.
E-Commerce Trend #8: Artificial Intelligence is Here
Discussing e-commerce trends in 2024 would be incomplete without highlighting the role of artificial intelligence (AI). Its transformative impact on improving various aspects of online retail operations is remarkable. Today, 65% of customers expect businesses to meet their needs. This tool not only increases user satisfaction but also expands opportunities for cross-selling and up-selling. AI facilitates real-time tracking of customer clicks, purchase history, and preferences, enabling personalised product suggestions based on the data collected. This ensures that customers are presented with products tailored to their specific preferences and needs, highlighting the importance of customisation in achieving personalisation.
Another great aspect of AI is the dynamic pricing your e-commerce business can achieve. AI algorithms can analyse market conditions, competitor pricing, and customer behaviour to adjust pricing dynamically. This ensures that prices remain competitive and responsive to market changes.
AI can also be hugely beneficial in content creation, supporting optimising ads, and creating or editing product descriptions and depictions. Being smart about the use of AI and continuing to focus on quality will allow you to stay ahead of most of your competition.
E-Commerce Trend #9: Focus on Quality
When competing against e-commerce giants like Temu, the challenge becomes more demanding. Retailers in this category often offer products that may not meet the highest quality standards, and international shipping is perceived as relatively slow. Despite these drawbacks, consumers continue to make purchases; in May 2023, Temu generated approximately 635US$ million in gross merchandise volume.
It’s nearly impossible to compete with their offerings on a cost level. Hence, identifying Temu or Shein's weaknesses and leveraging and highlighting your strengths is crucial.
For example, if your customer service is not optimal, make it a priority to offer excellent customer service to resolve any questions or difficulties your customers may have. Another crucial service that has gained importance is offering free returns. Making this process easier for customers is highly appreciated, as it enhances the overall experience and contributes to customer satisfaction.
Securing customer retention is another cornerstone for success in today’s e-commerce. In the current landscape, it involves diversifying your product offerings across various categories.
In cases where the primary value is exclusively monetary, customers may prefer more economical alternatives. Personalised discounts associated with subscriptions contribute significantly to increased customer loyalty. The subscription-based e-commerce market is estimated to exceed 450$ billion by 2025, highlighting its growing importance in the industry.
Presenting products in bundled form allows you to save on shipping costs and may enable you to offer discounts tailored to your customer's preferences. It is a strategic approach, and it's crucial to adapt to the unique needs of each customer to foster brand loyalty.
Conclusion
In conclusion, the evolving landscape of e-commerce in 2024 demands a strategic alignment with the prevailing trends that are reshaping the industry. Embracing mobile commerce optimisation, diverse payment options, the integration of social commerce, leveraging influencers, and artificial intelligence, and prioritising positive customer reviews are not just trends but essential components for success in the dynamic world of e-commerce.
To navigate these trends successfully, companies need to go beyond mere compliance with popular practices. This is precisely where byrd can help you, as our services are tailored to e-commerce businesses, matching not only your expectations but also those of European consumers.