There's never been a greater force driving eCommerce in a new direction than the year 2020!

Transforming and accelerating the industry by nearly a decade, if not more, businesses worldwide have been impacted in ways no one could ever have imagined.

As this report by McKinsey and Company mentions, “Covid-19 has pushed companies over the technology tipping point - and transformed business forever.”

The move to online selling is a truth that cannot be denied by retailers and consumers alike, and more and more entrepreneurs are now surfing on the eCommerce wave - and this wave is not going to crash!   

Consider this single statistic - by 2022, eCommerce revenues will increase to $6.54 trillion, up from $3.53 trillion in 2019. That’s almost a 100% jump in less than 3 years.

The trends that 2020 ushered in will continue to solidify and spawn further developments that will shape how eCommerce will look in 2021 and beyond.   

That said, success will be defined by your reactions to these developments. In other words, what you get out of 2021 will depend a lot on what you bring to 2021!

In this post, we will look at some of the upcoming eCommerce trends and how you can position your business to take advantage of these!

1. Marketplaces Will be the Preferred eCommerce Channel for Customers     

Marketplaces such as Amazon, eBay, Etsy and Walmart Marketplace will lead the way when it comes to eCommerce numbers, irrespective of the size of the seller.  

And for good reason!

These marketplaces have the experience, infrastructure as well as fulfillment capabilities that many small businesses don’t - especially those that newly jumped on the eCommerce bandwagon in 2020. As customer experience continues to gain importance, marketplaces are able to fulfill customer expectations and offer a level of convenience that many individual eCommerce stores might struggle to provide.

Marketplaces eventually offer the best of both worlds: consumers get great value, the barrier for entry for sellers is low, and products rank well driven by user-generated content.

This brings us to the next major trend for 2021.

We could say this ad nauseam - customer experience will define eCommerce in 2021. 

One big way this will manifest is businesses meeting customers where they WANT to be met instead of expecting them to come to the shop.  As a result, an omnichannel approach to doing business will no longer be an option but a necessity for almost all eCommerce sellers.

Even though customers may have preferences, it’s common knowledge that no one shops exclusively through a single channel. Consumers want to discover new sellers and have the ability to transact on multiple platforms. While developing social media and other digital platforms (especially for those new to eCommerce) may seem to be costly and unduly time-consuming, not investing in these will be an expensive mistake in the long run. 

To sum this up, who would not want cash flow from multiple sources and multiple devices?

Sustainability is no longer just a hastily created CSR (Corporate Social Responsibility) initiative that companies put in place to sound “green” and then forget about in the mad rush to drive sales.

Especially after the advent of Covid-19 and increasing public awareness of issues such as global warming and environmental injustice, conscious consumption is more widespread than ever. Consumers are beginning to analyze the impact of their shopping preferences on the environment. For instance, this study by Accenture has shown that more than 45% respondents in the post-Covid world have vowed to shop sustainably. 

The message is very clear - we cannot be selfish anymore and have to make sure that Earth remains a viable home for future generations. Most companies, including Amazon, are responding by adopting environment-friendly and ethical practices. 

Customers prefer that the buying experience be customized to their needs. In fact, a majority of consumers will now respond only to personalized messaging.

In such a scenario, sellers need to be able to showcase the exact content that consumers want, when they want it and where they want it. Doing this will increasingly become the key to enhancing conversion rates. Recent research by My Total Retail demonstrates that adopting features such as “product recommendations” and “search together” can help eCommerce businesses nearly quadruple their conversion rates.

As eCommerce surpasses traditional retail in 2021, the demand for efficient order fulfillment will also increase. 

Companies worldwide will increasingly deploy advanced technology for fulfillment and warehousing, thereby making it easier to meet customer demand for faster shipping (including same-day shipping) and better tracking. With increased transparency becoming a norm, the right kind of mobile fulfillment apps will become a necessity rather than an option. 

In a multi-channel world, the logistics of handling shipments can be daunting and sellers would need to rely on innovative and easy-to-use solutions for their eCommerce stores to manage the  shipping process.

Technology is set to take over eCommerce in more ways than we could have imagined even a few years ago. Even as contactless purchases become the norm, it is difficult for customers to experience a product the same way that they would have in a physical environment. Sellers are looking at more ways to keep customers interested and reduce cart abandonment. That is where AR will take centerstage. 

AR allows eCommerce customers to preview products and experience services in their own environment and at their own convenience before making a purchase. It helps re-create the in-store experience through experiences such as virtual try-ons. 

By 2022, over 120,000 stores are expected to be using AR technologies to offer customers an enhanced buying experience.

7. Mobile Commerce will Take Over eCommerce

M-commerce (mobile commerce) refers to eCommerce conducted through wireless handheld devices such as smartphones. 

The use of mobile phones, across all demographics, is increasingly influencing buying decisions, even if the eventual purchase happens in a brick-and-mortar store.

By 2021, M-commerce sales are likely to account for 54% of all ecommerce sales

It’s clear that sellers must optimize their eCommerce stores for mobile users. Not only would it increase customers’ overall experience but also significantly expands reach. Moreover, integrating mobile with other channels truly results in an omnichannel experience - you want to be where your customers are most of your customers are browsing through their mobile phones!

8. AI in eCommerce will Become More Intelligent and Less Artificial

AI has embedded itself into all aspects of our lives. eCommerce will be no different.

With machine learning and chatbots becoming more mainstream, sellers will be able to capitalize on AI to dramatically improve customer experience and sales.

For instance, brands are already using AI to make recommendations for customers’ next purchase, based on their history. In addition, sellers can deploy voice search to better position their products to customers. AI will also be instrumental at the backend, for example to assist with inventory predictions.

2021 is Yours to Seize! 

While 2020 was a year of turmoil, it was also presented opportunities. In 2021, the stage is set for you to fully capitalize on these and make this year count!

Which eCommerce trend will you try to capitalize on?