Future Over the Next Five Years
Ecommerce comes with a rich and colourful history, since its inception in the 1960s, when its application was very limited. With the very first online transaction being done in 1994 (to buy a book, of all things!), to the current massive wave of online retail shopping, e-commerce has achieved the ultimate status of becoming indispensable to the modern man.
An e-commerce industry analysis shows the US to be the largest contributor to e-commerce currently, with China and India following close behind, given their explosive population sizes. However, given the current rate at which it’s growing, the future e-commerce trends are expected to change drastically over the next five to ten years.
In the current era where everything is digitalized, technology only stands to improve more over the coming years and is no doubt going to revolutionize the future of e-commerce. So, if you’re an e-retailer trying to scope out the future platform for your business, rest assured that online retail is only going to see good times in the coming future. This article focuses on some key factors that are going to influence the future of e-commerce technology.
1. Impact of COVID 19 on Ecommerce:
I’m sure, this is the first question that’s in your mind; to know how the pandemic has affected the e-commerce platform. Well, I have some excellent news for you; analysis done in 2020 shows a 15% increase in e-commerce rate which is set to increase to 25% by 2025. The current global situation with lockdowns and restrictions has only boosted the online retail market, with more and more people opting for online shopping.
The situation no matter how dire has brought with it a silver lining in the form of increased e-commerce penetration. And the pandemic has, in fact, become one of the major influencers in the list of e-commerce future factors.
2. Growth of Online Sales:
The growth of online retail has become unstoppable. There is no way that people are going to turn back now, after experiencing the delight and ease of shopping from the comfort of their own homes, couches, beds, you name it. Plus, nothing, not even traditional shopping will beat the excitement and anticipation you get while waiting for the delivery of something you ordered online. There’s always some amount of mystery surrounding the purchase which is unbelievably addictive. Therefore, rest assured that the future of e-commerce is incredibly bright!
3. Mobile phones and the future of e-commerce technology:
Mobiles have become a basic necessity nowadays. People might even survive without food for a day but not without their mobile phones and internet connectivity. Let’s face it, indeed mobiles have somehow become an extension of ourselves to a certain extent. And an e-commerce industry analysis has shown that online sales done through mobiles has increased 15% since 2016 and is set to increase to a whopping 73% by the year 2021, given the current trends. People tend to do most of their shopping via their mobile phones, as it is the most comfortable option of all. Plus, most people tend to do some research of their own about a product, before placing an order. Hence, mobiles are arguably the largest platforms for e-commerce at present.
4. Ease of Use:
With various new e-retail businesses opening up, the competition at developing a user-friendly mobile or a desktop app for online shopping also increases. Because the success of an e-retail business depends on the simplicity and ease of its use. Even tech whizzes might get annoyed and give up if the process of buying something online seems very complicated, so just forget about technologically disabled people. Devising an app or a user-friendly website is of utmost importance and is another important factor that will stand to influence future e-commerce trends.
5. The Role of Social Media in Ecommerce:
Ah, social media; you cannot live with it, you cannot live without it. It has become a daily ritual for most of us, like brushing. Your day just won’t be complete without browsing through Facebook or Instagram and finding out the latest tragedy that has struck humanity or reading that juicy bit of celebrity gossip (Oh come on, don’t deny it).
Many online shopping platforms in UAE and other countries allow social media log-ins, to make a purchase, which makes the entire process of registration very easy for the user. Another major advantage is that these e-retail accounts that are linked to social media platforms, will utilize your shopping preferences to display similar products on your news feed. Take it from an avid online shopper that this little hack is an absolute miracle-working e-commerce future factor. There have been plenty of times where users have seen an ad for something while scrolling through their social media page, that has prompted them to make a purchase.
6. Green consumerism:
The present generation of millennials have become exceedingly aware of the deteriorating environment and have been actively trying to promote environmental-healthy alternatives. This is another thing to be taken advantage of, to improve future e-commerce reach. Studies have shown that nearly half of the consumers have said that environmental concerns play a vital role in their online shopping decisions. Therefore, retailers must look at sourcing fair-trade products and mentioning the seal of approval on their products to pave the way for a greener and better future, not just for the environment, but also for themselves.
7. Role of AI and AR in Ecommerce:
Artificial Intelligence (AI) and Augmented Reality (AR, are both taking leaps and bounds in improvising the digital platform. Usage of AI to provide an improved customer experience and offering a 24×7 customer support line is all the rage these days. Many companies have begun experimenting with AR to provide a futuristic shopping experience to their buyers. These technologies no doubt play a major role in influencing the e-commerce future over the next five years.
With rapidly growing technology and changing customer needs and patterns, you have to be on the look-out for these major factors that influence the future of e-commerce. You must be shrewd enough to use these trends to your advantage and use them to promote or improve your e-retail reach. Consumer satisfaction is the ultimate goal that e-commerce tends to achieve and only by achieving this can e-commerce propose to have a bright future ahead.