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As we approach 2024, the e-commerce industry is undergoing major transformations. Technological advances, increased consumer expectations, and adaptive business responses to emerging demands are collectively driving change in the online shopping experience. In the coming year, e-commerce companies face several challenges, such as inflation, international conflicts, low wages, and the disruptive presence of new e-commerce players like Temu and Shein, which alter the dynamics of online shopping and present additional complexities. The key question is: How can your company compete effectively in this evolving industry? Let's delve into the e-commerce trends of 2024 that are actively reshaping the landscape of the way we shop online.
E-Commerce Trend #1: Mobile Commerce
The increasing trajectory of mobile shopping, which has been observed for several years and continued to increase in 2023, is expected to persist in 2024. Consequently, it has never been more important for companies to optimize their websites for mobile devices.
Mobile commerce offers users unprecedented flexibility and convenience. Shoppers can browse, compare products, and make purchases anytime, anywhere, breaking away from the limitations of traditional desktop-based e-commerce. For this reason, ensuring a seamless and intuitive shopping experience on smartphones and tablets is no longer an option, but an absolute necessity.
E-Commerce Trend #2: Various types of payments
Having more than two payment options has become commonplace nowadays. However, the surge in choices tailored to the mobile shopping experience has prompted businesses to adapt to mobile-centric consumer preferences. Digital wallets have become the favorite 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 goes a step further by accelerating the payment process and increasing convenience, especially for on-the-go users. Empowering consumers with a mobile experience is a strategic move that aligns with evolving shopping patterns and user expectations.
In addition to developing mobile-optimized payment options, it is crucial to consider incorporating the most popular payment methods in Europe before offering any of them. This ensures better alignment with your customer's expectations and preferences.
E-Commerce Trend #3: Social Commerce keeps rising
75% of users utilize social media to search for products, and it is projected that sales from social media commerce will triple by 2025, reaching the astounding figure of $1.2 trillion. Therefore, the implementation of integrated e-commerce platforms, such as TikTok, Instagram, Facebook, and Pinterest ads, remains essential to reach your potential customers.
Social media has become extremely useful since shoppers can browse products featured on social networks and make purchases without leaving the app, which streamlines the entire shopping process. They present a wide range of possibilities that go beyond mere advertisements and simplified payment and navigation methods. It extends to influencers actively promoting your products, providing reviews, offering exclusive discounts, and engaging in other promotional activities. Keep reading to discover the importance of influencers in e-commerce.
E-Commerce Trend #4: Influencers are here to stay
Research indicates that 60% of content created by influencers achieves higher engagement and exceeds branded posts. In addition, 80% of consumers have made purchases based on influencer recommendations. The reason behind this is that influencers often have a dedicated and engaged audience who trust 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 stand out in creating visually appealing and engaging content. Leveraging their creative skills not only ensures high-quality content but also 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 part of the online journey
Positive reviews serve as a compelling form of social proof, shaping the purchasing decisions of prospective customers. As shoppers observe the positive experiences of others, it adds a layer of validation, fostering trust in the product or brand. The fact that 89% of consumers worldwide integrate online reviews into their buying process highlights their critical role.
Therefore, ensuring that the product arrives in optimal condition, on time, and performs as customers expect is not only necessary but also particularly crucial in 2024. Meeting or exceeding customer expectations becomes a cornerstone in maintaining positive reviews and sustaining the trust and confidence that drive e-commerce success.
What to do in the event of getting a negative review? In such cases, the company should handle it responsibly. 62% of consumers express an inclination to stop using platforms if they suspect that reviews are being censored. It is therefore 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 problems reinforces the notion that, in the rare event that a product-related problem arises, the company is able and willing to resolve it quickly.
E-commerce trend #6: Fast, free delivery options still popular in 2024
Fast and complimentary delivery choices remain prevalent in the market, with businesses aligning with these standards having a higher likelihood of both attracting and keeping customers. In many European countries, a delivery period of 3 to 5 days is acceptable for online orders. Only a marginal portion of online shoppers find a delivery timeframe of 6 days or beyond to be satisfactory. This underscores the significance of expeditious processing in the realm of B2C e-commerce orders.
In 2024, companies must meet customers' shipping expectations to increase customer loyalty. Effective shipping strategies in e-commerce, however, are not limited to offering different delivery speeds. A successful shipping strategy involves defined roles that clarify the fulfillment 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, which is beneficial for everyone. The top 4 countries willing to pay more for eco-friendly options are Germany, the United Kingdom, France, and lastly, 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 authentic green credentials to substantiate your services.
Here we share with you 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
Talking about e-commerce trends in 2024 would not be complete 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 personalized product suggestions based on the data collected. This ensures that customers are presented with products tailored to their specific preferences and needs, underscoring the importance of customization to achieve personalization.
Another great aspect of AI is the dynamic pricing your e-commerce business can reach. AI algorithms can analyze market conditions, competitor pricing, and customer behavior to adjust pricing dynamically. This ensures that prices remain competitive and responsive to market changes.
AI can also be hugely beneficial in terms of content creation, support with optimizing ads, or the creation or editing of product descriptions and depictions. Being smart about the use, and continuing to focus on quality will allow you to stay ahead of most of your competition.
E-commerce trend #9: Highly your quality
When competing against e-commerce giants like Temu, the challenge becomes more challenging. 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 persist in making purchases; in May 2023, Temu generated approximately 635US$ million in gross merchandise volume.
It’s almost 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 being successful 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. Personalized discounts associated with subscriptions contribute significantly to increased customer loyalty. The subscription-based e-commerce market is estimated to exceed 450$ billion by 2025, underscoring its growing importance in the industry.
Presenting products in bundled form allows you to save on shipping costs and may allow 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 optimization, diverse payment options, the integration of social commerce, leveraging influencers, and artificial intelligence, and prioritizing positive customer reviews are not just trends but crucial 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.