The ecommerce industry has seen significantly less growth in the past couple of years, now that the effects of the COVID-19 pandemic have settled down. Many customers are returning to physical stores to shop, resulting in just 9.4% in projected ecommerce growth for 2024 (compared to 26.7% back in 2020).
Global ecommerce sales are expected to account for 21.2% of retail sales in 2024, up just 1% from 2023, for an estimated total of $6.5 trillion. This can be attributed to inflation and increased cost of living, significant slowdowns in China’s economy, and the decline of ecommerce in a few areas around the world, most notably in Western Europe and East Asia.
If brands want to keep up and stay competitive, they need to know which trends are redefining today’s ecommerce landscape and how to leverage them.
Artificial intelligence is undoubtedly one of the most impactful trends in ecommerce that’s here to stay. From machine learning to natural language processing, AI is key to helping brands automate and optimize their business. It’s used to power sales forecasting, shipping logistics, customer support, personalized recommendations, and more. For example, StampedIQ uses AI to help customers write better reviews and help brands discover valuable insights.
Learn more about the power of StampedIQ and how it enables brands to make smarter business decisions.
Generative AI is one of the newest advancements in artificial intelligence, where algorithms help create new content like images, text, and audio. Brands can use generative AI tools to create ads, graphics, copy, voiceovers, and so on. They can also be used to improve shopping experiences, product recommendations, and chatbot effectiveness.
While generative AI can significantly increase productivity and efficiency, brands should be cautious about its ethics: 62% of customers say they’re less likely to trust content created by an AI application.
With the increased prevalence of social shopping, brand apps, and mobile wallets, more and more customers are shopping on their phones and tablets instead of their computers. Mobile commerce, sometimes called “m-commerce”, is expected to account for 42.9% of ecommerce sales in 2024, an estimated total of $621 billion. Some industry experts predict that phones may become customers’ preferred shopping channel in the next five years, especially as millennials and Gen Zers gain even greater spending power.
Interested in launching your own mobile app, complete with product reviews? Check out our integration with Tapcart to drive more trust, engagement, and conversions.
As mobile devices become more popular, new marketing channels are starting to pop up, giving brands more opportunities to reach and engage with customers. Recent trends in omnichannel marketing include SMS, push notifications, live shopping, and connected TV ads, shown on smart devices and streaming services like Hulu, Roku, and YouTube.
96% of brands say text messaging helps them drive more revenue. Learn more about SMS marketing and how to make the most of it with our Attentive integration.
Social commerce has become a huge part of the mobile shopping experience, where customers purchase directly through apps like Instagram and TikTok without having to leave the platform. The combination of convenience, accessibility, feed ads, and influencer marketing has made it one of the most effective marketing channels today: social commerce is expected to increase by 30.8% in 2024 and reach $1.6 trillion in sales.
To make social commerce even more impactful, brands need to find ways to tie it back to their other marketing channels. This might mean partnering with influencers for omnichannel campaigns, putting positive comments and reviews in their product descriptions, and giving customers reward points for purchasing through social media.
Learn how to turn your product reviews into social ads and smart banners with Stamped Reviews.
Brands can also use social platforms and other marketing channels to create deeper connections with customers, increasing the likelihood of repeat purchases and boosting lifetime value. One of the best ways to build these more meaningful relationships is with brand communities: when customers feel connected to a brand, they’re 76% more likely to choose them over a competitor and 68% more likely to recommend them to a friend.
Brand communities take many different forms. Some brands create hashtags and host giveaways to drive more engagement. Others create dedicated spaces like forums and Discord servers, where like-minded people share their love for the brand. Lastly, brands use exclusivity marketing like in-person events, niche newsletters, and VIP programs to reward top customers.
Loyalty programs with tiers are proven to result in a 1.8x higher ROI and a 2.1x higher AOV compared to loyalty programs without. Launch your own VIP program with Stamped Loyalty.
Having the right data is key to creating shopping experiences that meet customers’ needs and expectations. This can range from basic information like name, location, and payment details to exhaustive customer profiles based on their purchase history, product reviews, and so on.
Brands should incorporate data throughout the customer journey by gradually collecting information at every step. Lead forms, account registrations, quizzes, product reviews, and NPS are all quick, yet effective ways to capture customer data without asking for too much at a time.
Learn more about how to build brand credibility and gather actionable feedback by collecting Net Promoter Scores with Stamped Reviews.
Once brands collect the relevant data, they can use it to further personalize customers’ experiences and encourage future purchases. Data-driven personalization leads to increased profitability and longevity: it can reduce acquisition costs by as much as 50%, lift revenue by 15%, and increase ROI by as much as 30%. Optimizing marketing strategies based on customer data can increase conversion rates by 160% or more.
One of the easiest ways to drive more sales with data is product recommendations based on past purchases. Brands can also build email campaigns based on loyalty program activity, such as reminding customers to come back to spend their points. Lastly, brands can incorporate comments and reviews in the product development process. Customers feel more valued when brands take their feedback into consideration, leading to increased retention and LTV.
Customers want to align themselves with brands who share the same values. They also want brands to take clear stances regarding widespread issues like poverty, sustainability, and equality. 46% of customers are more likely to purchase from brands already donating to charity and 39% are more likely to buy a product based on the brand’s diversity practices.
Brands need to evaluate their manufacturing and logistics processes, employee policies, and business transparency. Many customers actively look for information like working conditions, employee wages, and environmental impact before deciding whether to make a purchase.
Some brands may also want to consider looking into more sustainable alternatives, such as biodegradable packaging and carbon-neutral shipping. Another thing brands can do is partner with non-profit organizations that align with their values. For example, a female-owned business might donate to women’s shelters while pet brands might work with veterinary organizations. Clear, genuine brand values help customers feel closer to them, leading to repeat purchases.
Customers’ interest in luxury apparel is declining due to inflation and economic uncertainty, with just 2% year-over-year sales growth in 2024 compared to nearly 50% in 2021. And as customers start to travel more and spend more time outdoors, the lines between technical apparel and lifestyle apparel are starting to blur. Lastly, customers are becoming increasingly conscious of the impact of fast fashion, generative AI, and climate urgency.
Four of the biggest themes in beauty for 2024 are sustainability, biohacking, artificial intelligence, and viral micro-trends like latte makeup and glazed donut nails. Customers are seeking out a combination of eco-friendly packaging and scientifically-proven ingredients like collagen and polynucleotides. They’re also using AI to build personalized skincare routines and test makeup products while also looking to platforms like TikTok for inspiration.
Like many other industries, more and more CPG brands are using social commerce to create frictionless shopping experiences and artificial intelligence to assist with demand forecasting, predictive analytics, and so on. They’re also working to reduce their carbon footprint with compostable materials and reusable packaging. Lastly, while the cost of living crisis has customers turning to off-brand CPG products, they’re also becoming more critical of them.
Holistic health is becoming more relevant as customers shift their focus towards their overall well-being, managing their stress and anxiety with yoga, meditation, and counseling. Technology is also becoming more ingrained throughout the fitness industry, from biometric data to personalized workout routines to health wearables. Lastly, fitness is becoming increasingly inclusive for all ages and abilities, leading to opportunities for adaptive fitness products.
Multi-purpose products and “cleaning” influencers are on the rise, as evidenced by their collective 79 billion views on TikTok. Customers are also becoming more willing to invest in both luxury and eco-friendly products, expressing their concerns with harsh chemicals like bleach and formaldehyde. Lastly, customers are seeking out the right balance of function and aesthetics, creating a highly curated collection of organizational products.
As ecommerce trends continue to grow and evolve, brands may find it difficult to keep up. However, with reviews and referrals, brands can drive customer acquisition by building trust and leveraging social proof. With loyalty programs, brands can reward customers for repeat engagement and purchases, accelerating lifetime value.To learn more about Stamped Reviews and/or Stamped Loyalty, book a demo with one of our sales reps today.