E-commerce is here to stay.why?
Gen Z (18-22 years ) are spending twice sometimes triple on social channels through Interacting with ads and buying on newer platforms.
They are completely comfortable with e-commerce.
While Millennials (22-37 years). Are happy with the speed, convenience, and personalized online experience.
They are loving it.
Gen x (40-57 years) have to adapt as everything is going online.
They are learning the hard way. Probably not.
The e-commerce trend is unstoppable.Still not convinced?
It’s projected that e-commerce sales will increase from 1.3 trillion as it was in 2014 to 4.5 trillion by 2021.
In this post, we will explore e-commerce trends that will carry the day in 2020.
Ready? Let’s jump right in.
1.Augmented Reality (AR)
For a shopaholic like me who loves clothes, fashion, and gadgets.
Sales reps make sure they take me around,share what’s on offer and help me try it out. You can get the same experience on an online store.
This can be achieved by using Augmented Reality (AR) technology.
With AR you can visualize the product in full, see it on your body or at home. Making you have the same instant gratification you get from a real shop.
According to (Prnewswire), over 120,000 stores are using AR technology in 2020 to enhance the buyer’s experience.
You can’t ignore this trend
For instance, Burrow , a DTC furniture brand, uses AR to make customers visualize how their couch will look like in their living room.
Through their Burrow at home app. You can take photos of your living room then using their ARkit get a 3D true-to-scale image of the couch fitted in your living room.
AR best fits stores selling clothes, furniture, and home decor.
2. Chatbots
Your store can have salespeople and greeters who are available 24/7 for 365 days.
This is not in the form of humans but that of bots that communicate with thousands of customers giving them personalized attention and thoughtful recommendations.
The truth is that many shoppers prefer to converse with the bots.
In fact, 60%of customers prefer chatbots over email when asking a simple inquiry.
This is because of their fast response rate.
Currently, 80% of online businesses are now using chatbots.
Sephora, a makeup company uses a Sephora chatbot on Kik (a popular messaging app).
Once you open a chat it asks you to provide a few simple details about yourself in the form of a short quiz done in seconds.
It then stores the info and uses it later to help customers find ideal products that meet their taste and unique style.
To get started with branded chatbots you can get in touch with Chatful,Morph.ai, Olark, or Botsify.
If you don’t have the budget you can start with something simple like a rule-based chatbot to answer questions.
3.Animation
Imagine entering a physical store to find their display cluttered. Taking all your time to find products. My guess is that the next thing you do is leave the shop, Right?
Expect the same in your online shop.
If you can’t find what you are looking for then you bounce to another site.
Investing is a good user experience UX that is simple and easy to understand. You create an enjoyable shopping experience that will make you stand out from the crowd.
According to Adobe, 38% of online shoppers will leave if your site is not attractive.
Simple animation, dynamic results and fluid transition make websites easier to use. These features usher customers in style making it enjoyable.
For instance, M&S reveals more about their clothes and how they look when fitted once you hover your mouse over the product image.
Footlocker has a brilliant “sneaker calendar” that changes when you click on the dates
Animation tools should help to improve usability not to bring distractions. Web designers need to work in reducing destruction by making the conversion path seamless.
4. Artificial Intelligence (AI)
In a traditional store, salespeople recommend what to buy.
Using artificial intelligence (AI) you can offer the same customized advice online.
AI has marketing platforms, chatbots that respond to customer queries. They also give prices and discounts all done by bots.
Machine learning is on the rise as global retailers spend over $7.3 billion per year on AI (Business wire 2018).
Sephora make-up stores use AI to help find perfect make-up.
They use the color IQ tool to scan customer’s faces. Then recommend the best foundation or concealer shades. Also, their lip IQ recommends the perfect shade of lipstick.
North Face also helps customers find suitable coats using IBM Watson cognitive technology. The bots ask questions on your eventlike where will you wear it? What will you be doing? Then using this information it recommends the best coat.
People are looking at brands that care about them. Thus AI technology should meet these unique needs.
5.Raise of voice search
People are now relying on voice search like using Google Assistance and Amazon Alexa to buy online.
In 2017 alone 13% of the U.S with smart speakers used it to buy. It’s also predicted that 75% of US households will have smart speakers by 2025. Further Apple Siri is being used by over 500 million across the globe. So, no doubt, voice search is on the rise.
For instance when shopping for groceries on Amazon fresh. Simply tell Alexa your special dietary need. Then it gives suggestions and adds them to the cart.
Voice search saves past history making it easy for repeat customers to reorder. For instance if you reorder the same soap or toilet paper you ordered last time, by saying “Alexa order soap” , you get the same product.
Voice search makes it easy for customers to leave reviews. It’s much easier to say your experience and star rating than typing.
So how should marketers prepare for voice search?
By shifting to voice engine optimization.This is where they will listen to customers and build a list of specific keywords used in voice search.
These will include long-tail keywords and question-based keywords. As many shoppers will use a conversational tone while shopping.
Finally, you should optimize voice search through featured snippets by answering specific questions related to your brand.
6. Customers respond to videos
If a picture is worth 1,000 words then a video is worth millions.
Customers respond well to engaging videos. The same applies to user-generated content and interactive content that shows people using your products.
Videos help improve conversion rates.
In fact, 62% of customers watch product reviews before buying a product. This trend will increase in 2020. Google loves videos as they help people understand your products and offers and videos are easy to share.
Theory 11 store has a robust video strategy that combines both storytelling and product showcasing. The company has managed to create polished product videos that tell stories.
Also Labella Mafia Clothing uses video to showcase their products. It has short videos of models wearing their products which help customers see how clothes fit before they buy.
In addition, marketers use videos to show product capabilities and instructional tutorials that break technical and difficult info into a simple format. Videos also show customers how to select products.
7.Drone delivery
Drones are taking the skies.
For a few years we have been hearing about drone delivery mainly on medical supplies.
There is a big possibility to adopt it for e-commerce. In Australia drones made over 3,000 deliveries in the last 18 months.
Google has also shown interest in drone delivery as they are now testing it in Virginia. Amazon Prime Air also plans to take the skies by making 80-90% of their delivery on drones.
This is a future possibility that store owners should explore.
8.Increase mobile presence
Mobile commerce is everywhere.
Currently in the US more than half of the customer’s shop uses mobile devices. In Europe 55% shop through phones. By the end of 2021, 73% of all e-commerce sales will take place on mobile.
Is your online store prepared? This is possible by having responsive designs that appear the same on mobile, tablets, and desktops.
Mobile online payment like the e-wallet is on the rise. Alipay and Wechat have over 1 billion users.
For instance, Hickoryfarms lets visitors enjoy shopping through mobile devices and also shop by category, price.
Their beautiful websites on mobile make website navigation easy and the cart experience is smooth
Developers should strive to make mobile responsive sites by improving on-site designs, page speed, and site structure
9. Subscription keeps customer back
Subscription plans keep customers coming back.
It’s convenient as it reduces the signup process each time they want to buy. Subscription engages on behalf of the customer.
According to McKinsey. 15% of online shoppers have signed up to more than one subscription plan. It also shows that subscription services have grown more than 100% since 2011.
Even though it’s rising, customers are more aware of the impact of many subscriptions on their budgets. This means they will be more choosy in the future. As a store owner you need to know why subscription matters to a client.
Subscription does not only work on the service industry, many other categories offer subscription.
For instance, Home Chef and Blue Apron deliver ingredients to cook a complete meal weekly. Birchbox gives you a monthly beauty box. Dollar Shave Club delivers men shaving products monthly or three times a year while Stitch Fix sells fashion through subscription.
10.Micro-Influencer marketing
Influencer marketing is BIG business.
Top influencers are banking millions of money. But to some extent they are manipulative. BBC reports that influencers with 50,000 to 500,00 followers on Instagram get paid more than $1,000 for endorsement only.
A startling 84% of consumers trust recommendations from peers over ads. Top influencers no longer count as peers. They are celebrities who get paid to advertise.
That’s why many businesses are opting for micro-influencers.
Micro-influencers are individuals with 1,000 to a million followers.
Why are they preferred?
- They focus on a specific niche market
- Experience higher conversion rate
- They Are affordable
- Followers trust them
- Bring out higher engagement
- Have the word of mouth effect
Still not convinced? Think of it this way, the number of followers isn’t a reflection of whether people will buy or not but as for Micro-influencers, the audience asks questions about the products. They trust that friend which is priceless.
To tap to micro-influencers. Start with your customers and use them to promote your products to their friends. Thereafter connect with them on social media.
Conclusion
Here a summary of e-commerce trends to watch in 2020.
- Augmented reality
- Chatbots
- Animation
- Artificial Intelligence
- Raise of voice search
- Customer respond to videos
- Drone delivery
- Increase mobile presence
- Subscription keeps customers back
- Micro-influencer marketing
Do you think there is a trend missing on my list? Go ahead and share it in the comments below.
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