The changing face of ecommerce: How brands can win big with digital in 2024
By Nikita Saha Lee is Group Marketing Manager at xDNA Group.
The ecommerce space is dynamic, with continual changes to customer expectations, platforms and technology determining how online retailers can effectively reach and engage customers.
Here are some of the biggest trends and considerations shaping ecommerce strategy, and how brands can continue to connect with customers throughout 2024 and beyond.
Sustainability
A recent study surveying over 16,000 shoppers across 16 countries found that 83% of consumers consider sustainability as a key factor in their buying decisions.
With consumers being more environmentally conscious than ever before, ecommerce businesses must respond to these concerns and prioritise sustainability initiatives across the whole of their operations, including supply chain, packaging, manufacturing and shipping.
Brands that are able to adopt and highlight sustainable practices, such as those that reduce the environmental impact of shipping and production are in a better position to align with consumer expectations.
Omnichannel presence
An omnichannel presence requires engaging customers across various channels such as social media, mobile apps, marketing communications like emails, and even physical stores. The benefit here is that customers are offered a variety of touchpoints, allowing them to interact with the brand in their preferred way, building engagement and brand loyalty.
As customers increasingly expect brands to meet them on their preferred channels, ecommerce businesses must focus not only on developing an omnichannel presence, but also on developing new and engaging ways to sell across these channels. Nike is a great example of a brand that has managed to seamlessly integrate its online and offline channels, creating a cohesive shopping experience for its customers.
Augmented and virtual reality
Augmented reality [AR] and virtual reality [VR] tools are shaping the way customers interact with products and make purchasing decisions on ecommerce platforms. AR and VR enables interactive experiences, allowing customers to virtually try on products such as clothing and jewellery, or visualise art and furnishings in a virtual space. IKEA, for example, have ‘IKEA Place’, an augmented reality app that allows their customers to visualise their home décor and furniture in their own living space.
Consumers are able to make informed decisions about the products they purchase, minimising returns while boosting engagement through these interactive experiences.
Artificial Intelligence
AI tools are having a huge impact on how ecommerce businesses engage with consumers and manage operations. With the assistance of AI algorithms, ecommerce platforms can provide intelligent product recommendations, streamline inventory management, and provide positive user experiences through chatbots and virtual assistants.
The powerful predictive analysis capabilities of AI mean online retailers are better equipped to anticipate market trends, optimise their pricing, and enhance supply chain efficiency, while providing high levels of security in terms of transactions, fraud detection and the protection of customer data.
Similarly, AI-powered sentiment analysis is invaluable providing insights into customer feedback. With this technology, ecommerce platforms can more easily respond to consumer expectations, refine their offerings, and continue to provide exceptional shopping experiences.
Community building and social commerce
According to a recent report from TikTok, 66% of users said the platform inspired them to make a purchase even when they weren’t planning to.
Tapping into user-generated content and word-of-mouth marketing on social channels such as TikTok is a powerful force for ecommerce platforms. Brands can leverage the influence of content creators and their communities, authentically reaching their target audiences, which are often comprised of users already primed to make purchases.
The future of ecommerce: A shifting landscape
It’s vital that ecommerce businesses avoid resting on their laurels when it comes to testing and implementing new features, technologies and marketing strategies, or risk getting left behind by more innovative competitors.
Responding to shifting consumer concerns, such as the demand for more sustainable practices, as well as integrating tech tools that boost customer engagement are key to staying ahead this year.
