For e-commerce business owners, staying ahead of the curve is essential, not optional. Navigating economic shifts, technological advances, and changing consumer behaviors is part of daily business. A reliable compass pointing towards emerging industry trends is crucial.

Ecommerce is now mainstream, accessible to people of all ages. We can get almost anything delivered to our doors with a simple click on a desktop or smartphone, often on the same day. This has leveled the playing field for direct-to-consumer brands, but even those born in an omnichannel world need to stay ahead of trends to meet customer demands and outpace nimbler competitors.

With global ecommerce sales projected to grow by 39% by 2027, retailers are eager to claim their share. As we look ahead to the coming year, it’s important for ecommerce businesses to assess which trends to adopt to stay competitive. We’ve compiled a list of the top 14 ecommerce trends you can expect in 2024 to help you stay equipped and successful.

Efficient AI for Sales & Customer Solutions

“Throughout 2023, AI was the big buzzword in the e-commerce industry as we have seen the surge of a variety of e-commerce solutions ranging from enhanced customer personalization, chatbots and virtual assistants, recommendation engines, and visual search, to name a few.”

~ Su Dias, Junoecommerce

Artificial intelligence (AI) is transforming the ecommerce landscape. For years, commerce teams have leveraged AI to automate and personalize product recommendations and chatbot interactions. Generative and predictive AI, trained on large language models (LLMs), now offer even greater opportunities for efficiency and personalization, boosting productivity and customer satisfaction.

With a large product catalog that requires frequent updates, AI can write and categorize individual descriptions in minutes. It also optimizes product detail pages by generating meta titles and descriptions automatically. Generative page designers enable users of all skill levels to create and design web pages quickly with conversational tools.

AI-driven innovations help keep up with trends, meet customer expectations, and maintain flexibility. The days of robotic chatbot interactions are over, thanks to generative AI and LLMs. Conversational commerce is now more human and personalized. Chatbots elevate online shopping with conversational AI and first-party data, providing a seamless experience across digital channels. This improves product searches, personalized responses, and streamlined purchases.

As technology advances, intelligent AI chatbots will further enhance self-service experiences and make shopping more enjoyable. This is crucial, as 68% of customers would not use a company’s chatbot again after a bad experience. AI and machine learning have revolutionized ecommerce, allowing brands to automate various aspects of their operations. From customer service to personalized recommendations and supply chain optimization, AI’s impact is limitless. Meghan Stabler, Senior Vice President of Marketing at BigCommerce, predicts that AI will continue to enhance shopping experiences by leveraging data to improve personalization and customer service, akin to real-life salesperson interactions. Generative AI will assist buyers in finding products, answering questions, completing orders, and processing refunds.

Headless Commerce: Multichannel Support & Personalized Shopping

Headless commerce is on the rise, allowing ecommerce teams to quickly deliver new experiences by bypassing the developer queue and utilizing APIs, experience managers, and user-friendly tools. This modular architecture offers significant benefits: 76% of users report increased flexibility and customization, 72% note enhanced agility for faster storefront changes, and 66% see better integration between systems. Shoppers also benefit, enjoying fresher experiences across all devices and richer personalization, improving omni-channel experiences and ecommerce performance.

“2023 marked a year where the gulf between those retailers offering a truly omnichannel proposition and those that do not widened. Retailers who invested heavily in their digital transformation over the last decade were reaping the rewards of utilizing powerful customer data to leverage the value of their stores across a much more digitally focused customer journey and providing more personalized experiences.

The shift back to the physical store was more aggressive than many had expected following the pandemic. Retailers who made it easy for consumers to move between online and in-store shopping, minimizing obstacles in the purchase journey, were the ones who benefited.”

~ Richard Lim, Retail Economics

For customer service, diverse channels like live chat, phone calls, emails, social media, and text are crucial. Adding chatbot tools can lighten the workload and enhance the customer experience, contributing to a comprehensive customer support strategy.

Personalization is key to a seamless omnichannel experience. With machine learning, smart website features, and online tracking, businesses can offer highly customized experiences, even personalizing products at scale to boost sales opportunities. Research shows that personalization drives customer loyalty, with 72% of consumers more likely to stay loyal to brands offering personalized experiences.

In modern ecommerce, personalization involves a seamless omnichannel experience at every touchpoint. Tools like Feedonomics help merchants streamline data optimization, product listing, and order syncing across channels, providing unique experiences with personalized recommendations, ad retargeting, push notifications, and dynamic pricing. To address consumer concerns about data privacy, retailers offer customers the option to “opt in” for personalization, building trust and ensuring transparency in data usage, complying with GDPR and CCPA regulations.

Evolving Social Commerce: Seamless Shopping Experience

There are nearly 5 billion monthly active users on platforms like Instagram, Facebook, Snapchat, and TikTok. This year, over two-thirds (67%) of global shoppers have made purchases through social media.

Social commerce connects you with a vast global audience, boosting product discovery, reaching new markets, and building meaningful customer connections. However, merely being present on social commerce channels isn’t enough; you need to actively create engaging, authentic experiences for shoppers. With new tools like generative AI for content creation and social platform integrations, the shopping experience is becoming faster, more engaging, and more entertaining, raising customer expectations.

Customers may not buy directly from your website but through various social commerce channels, like social media. Apps like Instagram enable purchases without leaving the app, making social platforms a strategic place for consumer companies to allocate their advertising dollars.

Recently, platforms like Instagram, Facebook, and TikTok have evolved into social commerce hubs. Insider Intelligence estimates that 110.4 million people will shop via social commerce channels in 2024. With features like one-click checkout and live shopping, these channels provide a seamless shopping experience. Social commerce’s low barrier allows both large and small online businesses to enhance brand awareness, grow their audience, and offer a frictionless buying experience.

“In 2023, the e-commerce industry learned the importance of social channels for commerce (social commerce channels). With one-third of businesses planning to boost social media marketing, customer experience on these platforms has become crucial: 78% of consumers are more likely to purchase and 77% prefer brands they have good social media interactions with.”

~ Carlotta Zorzi, Shopify

Value-Driven Growth: Subscriptions Keep Customers Engaged

Subscriptions have become a popular business model across various industries, from streaming platforms to food, clothing, and pet supplies. In 2023, subscriptions generated over $38 billion in revenue, doubling over the past four years. This model benefits both shoppers and businesses, offering customers choice and creating a continuous revenue stream for sellers.

Subscription services are expanding across ecommerce industries, from food and beverage to clothing rental companies. The Washington Post predicts that by 2025, the “subscription economy” will reach $1.5 trillion. For many ecommerce brands, this model offers continuous revenue and increased customer loyalty. Coupled with loyalty programs, subscriptions provide shoppers with exclusive discounts, early product access, and personalized support, encouraging repeat purchases.

Successful subscription models require a long-term approach, attention to unit economics, effective technology use, and a shift from “customer support” to “customer success.” They have proven successful online, with businesses finding innovative ways to convert products and services into subscriptions that ensure customer loyalty for months and years.

Data Management & Instant Analytics

Data is an invaluable business asset, critical for understanding customers, making informed decisions, and measuring success. However, managing vast amounts of collected data is challenging. This is where data management and harmonization come in, integrating data from multiple sources like CRM and order management systems to provide a comprehensive view of business activities. Harmonized data allows faster insight generation, boosting customer satisfaction and revenue. It also facilitates the implementation of AI, automation, and machine learning for more efficient marketing, service, and sales.

Data management and harmonization are top priorities for business leaders, with 68% predicting increased investments, 32% identifying the challenge of lacking a complete data view, and 45% focusing on gaining a holistic customer view. Effective data management is essential for leveraging new AI capabilities in ecommerce.

Real-time analytics tools now offer instant data collection and aggregation, allowing businesses to monitor customer interactions on websites and online ads. Combined with machine learning, this data helps identify and address prospective sales losses, reducing bounce rates and cart abandonment.

Navigating Online Ad Competition: The Power of Video and User Content

With shoppers now accustomed to vibrant video content on social platforms, they expect the same from your brand’s ecommerce site. Video can offer customers a deeper understanding of your products, such as how they’re used and what they look like from different angles. Brands are finding success using video at every stage of the customer journey, from pre-purchase consultations to product detail pages and post-purchase emails. A significant 89% of consumers say watching a video has convinced them to buy a product or service.

User-generated content (UGC) adds credibility, authenticity, and social proof to a brand’s marketing efforts, significantly boosting sales and loyalty. Shoppers interacting with UGC see a 102.4% increase in conversions. Most shoppers expect feedback and reviews before making a purchase, and UGC provides value by showcasing real customer experiences and opinions. It breaks away from generic descriptions and professional photography, showing how items fit or work, and can highlight complex product features.

UGC is cost-effective for generating content for social commerce without relying on agencies or large teams. By sourcing posts from hashtags, tagging, or campaigns, brands can share real-time, authentic social posts with a wider audience. UGC can be used on product pages, in ads, and for gathering input during product development.

As ecommerce grows, more brands advertise online, leading to increased competition and higher advertising costs. Expect to pay more for popular keyword search terms and product listing ads for common items.

Mobile Shopping: Smart, on the Move

Brick-and-mortar retailers might cringe at customers glued to their phones, often signaling price shopping or using the store as a showroom for future online purchases. However, savvy retailers now offer GPS-enabled mobile shopping experiences, enhancing customer convenience for both in-store and online purchases. A mobile-optimized site is crucial for a positive ecommerce experience.

With smartphones always within reach, mobile shopping is on the rise. Mobile commerce is projected to account for 62% of all ecommerce by 2027. Online businesses must ensure their sites are mobile-responsive and provide a seamless experience across all devices. This includes optimizing content for smaller screens, enabling one-click ordering, and offering other conveniences for on-the-go shopping.

Sealing the Deal with More Payment Choices

If your business still accepts payments only via check, credit, or debit cards, it’s time to expand your options. Many online retailers now offer consumers payment plans with no extra fees, ensuring a fast and easy checkout process. The checkout experience is crucial to the customer journey; even a minor hiccup can turn a sale into a lost customer.

Offering flexible payment options is essential, as 13% of customers abandon their carts due to insufficient payment methods. Provide various options like credit cards, digital wallets (PayPal, Apple Wallet), and one-click checkout (Bolt). Financing options, such as buy now, pay later (BNPL), can connect brick-and-mortar stores with online shops. Partnering with providers like Klarna, Sezzle, and Affirm allows online shoppers to pay in installments without added interest, leading to higher conversion rates, average order values, and sales. Additionally, brick-and-mortar retailers should have a plan for contactless payments.

Sustainability: A Top Priority

“Renewable” and “sustainable” are far from mere buzzwords. Both consumers and governments are making significant shifts towards renewable energy, sustainable practices, and long-term sustainability. Investors, too, are driving new ESG (environmental, social, and governance) preferences in the stock market. Many consumers prefer companies with strong sustainability practices and vote with their dollars.

“One significant observation that was made last year concerns the continuing trend toward sustainable consumption. Sustainability became an important purchasing criterion for many consumers. This is particularly evident in the fact that sustainable shipping options are increasingly being offered in the checkout area and environmentally friendly shipping partners are being used.”

~ Felix Ullrich, JTL-Software

For today’s online shoppers, sustainability has become a major factor. A recent PwC study found that over 70% of shoppers are willing to pay more for sustainably produced goods. This trend is especially noticeable in the fashion and apparel industry, where younger shoppers favor brands prioritizing ethical and eco-friendly practices. According to a Drapers and BigCommerce study, 57% of Gen Z and Millennials consider sustainability important when shopping for clothes, accessories, or shoes, up from 47% in 2022. This shift highlights a growing trend where consumers increasingly consider the environmental impact of their purchases, influencing their loyalty and overall brand perception.

Streamlined B2B Shopping Experiences

Gone are the days of cold calling, offline marketing, and manual transactions. Just as B2C constantly innovates, B2B customers now seek similar modern experiences. B2B is a major business segment, with ecommerce trends pushing for greater automation in areas like accounts payable, accounts receivable, reordering, and fulfillment. To effectively serve other businesses, it’s crucial to adopt the latest technology and address their key pain points.

B2B ecommerce has revolutionized business shopping online. Features like customer portals, personalized pricing, custom shipping rates, and reordering capabilities are now essential for B2B customers, rather than optional luxuries.

Amplifying the Rise of Voice Search

Voice assistants, whether on your phone, home smart hub, or TV remote, have significantly evolved. Voice search is becoming increasingly popular, directly impacting search results and shopping outcomes. Ecommerce sellers need to stay aware of search changes to optimize for future sales. At a minimum, ensure your ecommerce site is optimized for mobile voice search by prioritizing common queries like website and physical addresses, contact numbers, and business hours.

With 75% of US households expected to own a smart speaker by 2025, voice search is a rapidly growing trend in ecommerce. Voice assistants like Amazon Alexa and Google Assistant have revolutionized consumer interaction with ecommerce platforms, offering a hands-free, convenient shopping experience. Shoppers can use voice commands to search for products, make purchases, and track orders easily. Consequently, many ecommerce businesses are optimizing their sites for voice search, ensuring quick and accurate responses to voice queries.

As voice technology continues to advance, its integration into the shopping experience will undoubtedly enhance customer convenience and drive significant growth in online sales.

Augmented Reality: Merging In-Store and Online Shopping Experiences

Customers no longer need to guess what a new couch would look like in their living rooms, thanks to augmented reality (AR). This technology allows them to use a phone or laptop to see a live video of the room with the new addition. The same applies to artwork, flooring, and many clothing items. Ecommerce businesses should incorporate AR where possible to encourage customers to virtually “try on” products.

One of the greatest challenges of online shopping is the inability to see, touch, and fully experience a product before buying. AR addresses this issue. According to eMarketer, over 100 million Americans, or 32% of the population, will use AR by the end of 2025. AR and VR (virtual reality) are transforming online shopping by bridging the gap between physical and digital worlds. Major retailers now use AR for virtual try-ons and interactive 3D product views, allowing shoppers to visualize products in their real-world environments, thus boosting buyer confidence and reducing return rates.

“Robotics in warehousing will remain predominantly accessible to larger operations, highlighting the ongoing challenges for most warehouses in terms of staffing shortages and increasing wages. This will drive the necessity for optimizing internal processes with systems for better warehouse management.”

~ Constantin Liebmann, Pulpo WMS

Conclusion

Staying informed about industry trends is crucial. Follow influencers, read relevant blogs, and keep up with the latest research and trend reports. This helps you develop an instinct for spotting valuable trends and knowing which ones to ignore.

Understanding customer behavior is key to a successful ecommerce strategy. Utilize tools like Google Analytics, social media insights, and CRM systems to gather and analyze data on customer interactions and preferences. This data-driven approach ensures that your strategies align with your customers’ needs.

Customer feedback is invaluable. Conduct surveys, ask for product reviews, and engage with customers on social media to gain insights into their needs and preferences. Competitor analysis is also important. Study how your competitors are adopting trends, and analyze their successes and failures.

Before investing in a new trend, assess its potential costs and the expected ROI. Ensure that the trend aligns with your business goals and offers significant benefits for future growth. This way, you can make informed decisions and focus on trends that will drive success for your business.