Buying and selling products online have become a routine aspect of our lives. But, what does the e-commerce industry's future hold? Since the inception of the Internet, technology has played a huge role in the online retail business. This article examines e-commerce trends in 2018 as well as the most significant technology advancements that are shaping the future of online shopping:
- Chatbots - new virtual support service
- Voice Assistants - modified word of mouth
- Augmented & Virtual Reality - innovative shopping experience
- Blockchain Technology - new data security & payment method
- Drones & Droids - next-level delivery system
What is E-commerce Nowadays?
To define, e-commerce is a transactional process in which parties use an electronic network, such as the Internet, to exchange (buy and sell) goods and services or transfer information. It is in charge of the sales side of e-business. There are six forms of electronic commerce, according to the commercial profile. Obviously, this refers to business-to-consumer (B2C) transactions, but it also includes:
- Business-to-Business
- Consumer-to-Consumer
- Consumer-to-Business
- Business-to-Administration
- Consumer-to-Administration
Electronic commerce, at its most fundamental level, is built on software development technologies used in mobile commerce, online transaction processing, electronic data exchange (EDI), inventory and supply management systems, automated data collection systems, and digital marketing. It can also be accompanied by broader technologies such as mobile devices, social media, and email applications. MLSDev, a software development firm, offers a wide range of technologies and services for creating top-notch and unique e-commerce software.
The first marketplaces to harness the benefits of e-commerce to buy and sell mass-market items online were Amazon and eBay.
Consider this: Amazon is celebrating its 25th anniversary this year! Consumer interest in and engagement in internet buying has increased dramatically throughout this time. It's no surprise that by 2021, more than a quarter of the world's population (2.14 billion) will be digital buyers.
E-commerce vs. brick and mortar data currently show that the latter has the upper hand. The e-commerce industry, on the other hand, continues to rise year after year, accounting for 11.9 per cent of total sales in 2018.
As a result, it'll only be a matter of time before the majority of our transactions are made online.
What are the Current Trends and Technologies Having an Impact on E-commerce?
Customers now have a lot of power in the market since they have so many options to choose from.
As a result, it's not only your goods that sets you apart from the competition; it's a customer-centric shopping experience designed around your brand that keeps people coming back. Everything from an easy-to-use ordering process to payment options to quick delivery has an effect. This enhanced service is intangible and needs a significant amount of time and effort. New e-commerce technology and apps provide software development solutions in this area.
Today, every well-known business has an e-commerce store, shopping applications, marketplaces, or perhaps all of these things at the same time. Every effort is made to increase online clientele. The following are the current e-commerce sector trends.
Social-commerce, a Subset of E-commerce
Social commerce, as the name implies, is the use of social media to conduct online transactions.
Social media has become an integral part of our daily lives. This information has a significant impact on the buyer-seller dynamic. To build a personal relationship with their customers, brands use popular social media platforms to communicate with them. Social media now includes more complex technical capabilities aimed at shortening the buying cycle. Most social networks are likely to incorporate the one-click "Buy" button in the future.
P2P marketplaces have evolved as a result of the convergence of e-commerce and social media. The best examples are Facebook and Instagram.
Finally, the fact: during the next five years, social e-commerce is expected to rise by 25%, accounting for more than a quarter of the whole e-commerce market.
M-commerce
Mobile-commerce, or m-commerce, is the practice of buying and selling goods via apps on smartphones and tablets. Today, mobile devices account for half of all internet traffic, making it critical for e-commerce stores to adapt to mobile screens and, in some cases, even create a distinct app for the sole goal of reaching these shoppers and keeping up with mobile e-commerce trends.
The mere existence of a website or mobile app does not imply enormous success. It is critical that you offer the finest online purchasing experience possible. Client retention and engagement are important metrics to monitor.
Buying and selling products using apps on smartphones and tablets are becoming more popular. Because mobile shoppers are picky, even the tiniest flaw can cause them to change their minds and buy from a competitor. Meanwhile, mobile apps' more advanced functionality introduces some new game rules. The importance of having a branded e-commerce mobile app was demonstrated by the advent of gadgets such as Beacons and Dash Buttons. These gadgets boost user engagement and interest in the mobile app, which leads to increased revenue.
1. One-Click Checkouts
This method creates an entirely new e-commerce experience by analyzing previous purchases and buyer behaviour. According to research, mobile customers expect an e-commerce shopping cart experience to be as simple as possible.
This breakthrough in the mobile cart, combined with an increase in interest in digital coupons, will account for nearly half of all e-commerce sales.
2. E-wallets and New Payment Integrations
Payments are made easier with electronic wallets. Electronic transactions are made simple with online services like Apple Pay, PayPal, Stripe, and Google Wallet. Additionally, digital wallets can be linked to your bank account. This information, as well as your driver's license, health care, and other personal information, can be stored on your phone.
We can also use our smartphones to wirelessly connect to terminals for in-store payments, thanks to the widespread acceptance of NFC (near field communication) technology.
3. Beacons
Retail sales are boosted by beacons, which also provide a personalized mobile purchasing experience.
Top retail stores, according to an Apple presentation from 2013, employ beacons extensively. They're used by Urban Outfitters, Macy's, Target, and CVS to create targeted content strategies. The device sends Bluetooth signals to neighbouring smartphones with the appropriate branded software installed.
This raises the likelihood of using the app more frequently and completing the purchase. Beacons are used by Sephora to collect customer information and offer targeted incentives.
4. Dash Buttons
This appliance from Amazon offers easy order placement of the most regularly purchased goods. These button devices are tagged to a place where these goods are often used. Then, using the Amazon app, a user can preliminarily set up the orders. This new technology trend in e-commerce will likely soon be imitated by other top players like Costco and Walmart.
Omni-Channel is the New Normal
According to Google, almost 85% of users start their purchasing journey on one device and finish it on another. It may begin with an Instagram ad and wind up in a leather jacket shop down the street. This consumer message has sparked a trend of merging online and offline sales channels.
This strategy is known as omnichannel, which means that all of a customer's interactions with them should feel like they're dealing with the same person. Every aspect of a company, including its brand, marketing content, and advertisements, should promote the same message.
Enterprises will need to use an omnichannel approach to stay competitive. This complicated system necessitates a high-load backend to keep track of and merge data from all sales and social channels.
What is the Future of E-commerce?
At the moment, these are the procedures that are setting trends. Merchants should be aware, however, that as technology advances, we will continue to see changes in how we interact with and purchase items.
The tech adoption curve aids in assessing the risks of implementing new e-commerce technology. It depicts the most prominent e-commerce advancements influencing the business, as well as their level of public acceptability.
Naturally, it will take some time for the majority of e-commerce users to accept it, but keeping a close eye on technical improvements is more than required.
Chatbots - New Virtual Support Service
A chatbot (also known as a conversational agent) is a piece of software that mimics real human interaction through written or spoken communication. It can take the form of a website bot, a chatbot app, a social network chatbot, or a voice assistant.
The benefit of employing this technology is that it saves time and money by automating customer care in an e-commerce environment 24 hours a day, seven days a week. Another advantage is that obtaining basic information on a client creates leads and thus revenue. Chatbots can also direct potential customers to the information that they are looking for.
Hipmunk is a wonderful example of a customer service chatbot. On its website, this travel search engine employs technology to answer travel-related questions and make recommendations. Staples, an office supplies business, also utilizes a chatbot to recommend things based on previous orders. It even aids in the completion of purchases via chat.
Because the technology is still in its infancy, consumers will most certainly think that they are conversing with a robot, especially if they are live-chatting. Chatbot technology is reliant on advancements in natural language processing (NLP), and without significant progress in this discipline, it will remain a limited algorithm that will struggle to understand more complicated speech (jokes, metaphors, dialects).
E-commerce chatbots, on the other hand, are becoming more advanced and natural in their communication with each passing year. Who knows, they might become so humanized that we won't be able to tell them from real people.
Voice Assistants - Modified Word of Mouth
Voice search is commonly utilized in services such as Apple's Siri, Google Now, and Microsoft's Cortana, all of which use NLP technology. Voice assistants, such as Amazon's Alexa, have become increasingly popular in virtual e-commerce. Voice commands can be used to order items directly from Amazon using the technology. It also discovers bargains quickly and can even arrange meal delivery from nearby eateries.
Before the shop, a growing number of individuals, particularly millennials, are turning to voice assistance. With the widespread use of smart speakers for the home, such as Amazon Echo and Google Home, it's likely that customers will learn about a product through "word of mouth."
These assistants can make suggestions for the most frequently requested things. As a result, the top player is likely to make all of the sales. As a result, we leverage Google algorithms to optimize our website searches, and the same method is used in voice search reasoning.
Augmented & Virtual Reality - Innovative Shopping Experience
Although both AR and VR use comparable technology, many people mistake the two. While virtual reality creates a completely new artificial reality, augmented reality just adds a few virtual features to the real world.
You may think these things are cool now, but the idea of combining virtual reality and augmented reality in e-commerce could transform the way people shop online in the future. Imagine being able to virtually engage with and touch products before making a purchase. You could, for example, try on a dress virtually, feel the fabric, and see how it fits you. Banana Flame, a British clothes e-commerce site, has already used AR, allowing customers to use their webcams as interactive mirrors.
AR isn't just for the fashion business; it's also used in the cosmetics, furniture, and auto industries because it helps people to envision mobile purchases. Ikea and Audi have used augmented reality glasses to allow customers to create their own kitchens and test drive vehicles.
Google, Apple, and Facebook have all made significant investments in augmented reality. In addition, firms such as Alibaba, Microsoft, and HTC are developing AR technologies in-house. According to TechCrunch, the virtual reality and the augmented reality sector are worth $108 billion. AR is growing more popular, owing to its expanding use on mobile devices.
Blockchain Technology - New Data Security & Payment Method
One of the businesses affected by the revolutionary usage of blockchain technology is e-commerce.
With the future rise of e-commerce, some negative consequences are unavoidable. Trust difficulties, delayed transactions, greater costs and restrictions, and digital data ownership are all issues. Blockchain, with its concept of a distributed, verifiable database of all digital transactions, aids in the development of online payment trust. It also eliminates fraud and introduces a new payment option using cryptocurrency (Bitcoin, Ethereum, Ripple, etc).
Amazon, for example, has standards in place for its listed shops. They can only send one follow-up email to their customers, reducing engagement with them. Amazon has its own customer service team that is unfamiliar with the merchants' merchandise. As a result, the sellers' credibility is harmed, and the buyer pays a greater price as a result.
Experts are currently working on the future of the e-commerce marketplace. It's called ECoinmerce, and it'll be blockchain-based to address the difficulties described above.
The concept of digital asset transactions eliminates the requirement for a third party. Furthermore, these transactions are speedier, with lower fees for both buyers and sellers. Every piece of information entered into a blockchain is preserved indefinitely. This means that no matter how many times a good is sold or repurchased, the transaction history always stays. This has the potential to significantly reduce fraud and increase transparency.
Drones & Droids - Next-level Delivery System
Over the last century, there has been a trend for robots to take over human tasks. Previously, automated devices were used on vehicle assembly lines and in the food industry. Artificial intelligence and machine learning are limiting people's participation in the process, such as in a delivery system. Currently, human intervention is required to operate automated cars. Drones and droids, on the other hand, may be able to eliminate even this participation.
Drones in the sky and droids on the ground are the future of automation. Despite the numerous challenges of drone delivery, the advantages of its adoption are significant for retailers. This will result in significant cost savings in logistical operations. Amazon is first in line with its testing of Amazon Prime, a new, quick drone delivery system. Domino's, a well-known example in the food industry, delivered a pizza with the use of a drone in New Zealand in 2016. Shipping times will be reduced to only a few hours once drone airports become a reality. This will almost certainly increase internet sales.
The future of e-commerce delivery is projected to be focused on an individual person and their expected location and time, rather than a specific address. Pinpoint shipping, as it's known, would include powerful AI.
Bottom Line
The internet retail business will undoubtedly see more technology advancements with each passing year. Brands must develop new technological solutions that attract loyal customers and give a unique e-shopping experience in order to remain prominent. Being active on social media and operating in the e-commerce sector is now a requirement. Meanwhile, the Internet of Things (IoT) is gaining traction, and smart devices such as dash-buttons and beacons are examples.
Even so, there's more to come in the e-commerce sector's future. Virtual reality, delivery drones, voice assistants, and crypto-payments have all proven to be popular in the e-business world, indicating that our journey of acquiring items may transcend beyond our wildest dreams.
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E-Commerce