Online retail has become a popular business around the globe. This industry is fast growing. To stay competitive, online retailers should be aware of current e-commerce trends. We decided to share some of the retail trends in this article. Our main goal is to inform our customers so they could improve their business strategies.
In this article, you will find:
- The current market size of the e-commerce market;
- The latest trends in e-commerce 2021;
- Our recommendations to consider for your online shop success.
Let’s get started!
What Is E-Commerce in 2023?
Global e-commerce sales worldwide are projected to reach $4.5 trillion in 2021. Analyzing the performance of recent years, one can observe an upward trend, which proves that e-commerce is becoming an increasingly profitable option for business.
In addition, e-commerce is expected to account for 19.5 percent of total global retail sales in 2021. That is, almost a fifth of every dollar spent on retail goods this year will be done over the Internet.
Online sales are expected to continue to grow and take up the bulk of the retail pie. It is estimated that global e-commerce retail sales will reach $ 6.388 trillion by 2024, and the total share of e-commerce in retail sales will reach 21.8 percent.
Mobile e-commerce is also very popular among buyers. Around 79% of smartphone users have made a purchase online using their mobile device in the last 6 months.
Social media is now a key component of organizations' marketing strategies and for good reason. 71% of shoppers make buying decisions based on social media, according to Sprout Social.
What Are the Latest B2B E-commerce Trends?
To achieve success in online retail, you need to be aware of current trends in this industry. Below we share the top eight trends to take into consideration in 2021.
1. Social media is increasing sales
You can use social networks as your alternative sales channels. The most popular are Instagram, Pinterest, Twitter, and Facebook. Why? Because 49% of buyers said, social networks inspire them to make a purchase. Moreover, 71% said that social recommendations influence their buying decisions. 84% of online shoppers in the US reviewed at least one social media resource before buying something.
The leader of social media that brings profit to online business is Facebook. 85% of orders from social media come from this website.
Each social network that brings shoppers to a website has a different average order value. While the average order value of buyers who came from Facebook is $55, Instagram shows a higher result. The average value of the order for this network is $65. Twitter has a lower result. The average order value of customers who came from Twitter is $46.
You can use this trend for your business and integrate your online store with popular networks.
2. B2B sector is spending more on e-commerce technology
The B2B sector can use the advantages of online retail. In fact, the sales of B2B e-commerce are around $1 trillion. Wholesale customers expect the B2C features from wholesale e-commerce websites. It means B2B online shops should be as convenient as B2C online stores. Thus, convenience is one of the most significant b2b e-commerce trends in 2021. They should include the product catalog, shopping cart, and checkout options.
The line between B2B and B2C is blurring also thanks to marketplaces like Amazon and Alibaba.
Alibaba marketplace generates 80% of all sales in China. This marketplace becomes a mediator between Chinese manufacturers and Western businesses.
Amazon is also becoming friendlier to the B2B sector.
You might also like: What Is the Best E-commerce Platform for Wholesale?
Modern e-commerce platforms allow for turning B2C online shops into B2B using extensions. If you want to enter the B2B sector, consider extra B2B features for your e-commerce website.
You might also like: 7 B2B E-commerce Payment Systems
3. Chatbots automate online orders
In recent years, chatbots have become an effective solution for online business. Why? Because you can use them for sales, customers service, and marketing.
The global chatbot market has attained a massive 24.3% Compound Annual Growth Rate. 45% of end users consider chatbots their primary choice for customer service inquiries.
There are 1.3 billion users of Facebook Messenger. Businesses often integrate chatbots into Messenger. This helps them save time and resources on live chats and online shop managers.
A great example is Domino’s. This famous fast-food company has integrated a Messenger chatbot to improve their ordering process. With full-menu ordering, customers make orders faster and in a way that is more convenient.
Online retailers can get the advantages of chatbots apart from Facebook Messenger. For example, you can integrate a chatbot into the chat of your existing online shop.
4. Mobile is becoming the primary channel for online purchases
54% of total e-commerce sales will come from mobile commerce sales by 2021. In 2017, that figure was only 34.5%. Mobile commerce stats suggest it will grow by 20 points in four years, accounting for more than half of the total sales from e-commerce.
At least 62% of users of mobile devices have bought something within the last six months using their mobile phones. This makes responsive design an important attribute of a successful online store.
If the design of your online shop is not responsive, you lose your prospective customers. Besides, more and more businesses launch branded apps.
Let’s look at the Starbucks app. The company developed the Ordering and Pay app in 2015. In 2017, the app handled about 30% of payments from all orders. Take into account that an application for online business is one of the most popular mobile e-commerce trends in 2021.
5. One-click purchasing is a must for e-commerce
A convenient customer experience is a must for a modern online shop. Many online retailers integrate one-click purchasing and one-step checkout extensions. Which makes one-click purchasing a part of e-commerce website trends 2021.
In fact, 28% of online shoppers abandon their shopping cart because the checkout process is too long and complicated. Multi-page checkout is the third reason why shopping carts get abandoned. Other top reasons for the shopping cart abandonment are extra shipping (tax, fees) costs (60% of online shoppers) and no guest checkout (37% of online shoppers). A single-page checkout makes the buying process much more convenient. This results in increasing conversions and decreasing the shopping cart abandonment rate.
Magento One Page Checkout overview. Source: iksanika.com
There are many extensions, which optimize the checkout process. Still, you will need a developer to integrate these extensions into your online store. Moreover, an e-commerce developer will help you find a perfect solution for your platform.
You might also like: 6 Tips for E-commerce Checkout Page Optimization to Increase Sales
6. AI and machine learning for a more personalized experience
Artificial intelligence (AI) is becoming a powerful tool in increasing conversions. Online shops use this technology for more personal communication with customers. This, as a result, increases customer lifetime value and an average order value.
You can use AI for analyzing customer behavior. You can offer shoppers more personal discounts on the basis of their previous purchases.
Machine learning technology combines several types of artificial intelligence. Online retailers use machine learning to create a more personalized customer experience.
Chatbots powered by machine learning, collect input from shoppers and give them relevant answers. This way, machine learning can help to automatize customer support. This technology also suits providing customers with more relevant on-site search results. The technology generates a search ranking based on relevance for that particular user. For that, machine learning and AI are current trends in e-commerce technology.
7. AR and VR are giving rebirth to brick-and-mortar retailers
Augmented reality and virtual reality are very popular among retailers. Why? All shoppers adore these technologies. The report showed that 40% of customers would buy a product at a higher price if they can test it in VR/AR first. Moreover, 61% of customers are loyal to brands, which provide them with AR features. Many brick-and-mortar retailers have already integrated AR technologies into their in-store experiences.
Houzz app overview. Source: thisisinsider.com
Let’s look at Houzz, a home design and interior decorator company. After launching their augmented reality app, the company found it influences buying decisions. In particular, shoppers are 11 times more likely to buy an item after using the app.
Another example is a famous home interior company IKEA. Their AR app helped increase customer loyalty. The app allows customers to place 3D products in their homes and see whether they fit.
8. Voice Commerce
This market is already large and dominated by products developed by tech giants: Apple Siri, Amazon Alexa, and Google Assistant. However, it has proven potential for further growth; therefore, this is an important trend for the coming years. By 2023, 8 billion devices (including smartphones) with voice assistants are expected. For comparison: in 2018 there were 2.5 billion such devices, that is, their number is multiple. According to OC&C Strategy Consultants, voice commerce sales will reach $ 40 billion by 2022.
When interviewing consumers, the following data were found:
- 42% said they would not use voice commerce in 2021;
- Another 19% will either continue to use it or start using it in 2021;
- 24% of the remaining members said they were still undecided about voice commerce.
Dinarys Recommendations for E-commerce Business Owners
The e-commerce industry is something that will never stop developing. There are many technologies and solutions available today. And all online retailers should keep up with the top e-commerce trends of 2021. Otherwise, it's hard to achieve success. Online shoppers expect more from online stores. Outdated online shops with old features are no longer profitable.
We recommend integrating your online store with social networks. We often do this type of integration. It allows customers to share their reviews and feedbacks. Using social sharing buttons, website visitors post your items in their social feed. This way you can attract potential buyers to your website.
As for B2B businesses, many companies still use an old way of shopping – they order items via catalogs. Owning a convenient B2B e-commerce website gives your business more value and increases sales. Responsive design is a must for a successful online business.
To get more sales from mobile shoppers, we recommend combining responsive design with one-step checkout. The convenience of making orders is essential for high conversions.
The e-commerce sphere has very high competition. To stand out from the crowd you need to consider current trends in e-commerce development. The tips from this article might be useful in making the website more convenient for customers. With e-commerce retail trends 2021, you can increase the following business metrics of your website:
- Social media integration might decrease customer acquisition costs;
- AI can help your website increase an average order value by offering related items;
- A mobile app allows your business to get loyal customers and increases customer lifetime value.
You might also like: 7 Most Important E-commerce Business Metrics Every Online Store Owner Needs to Track
We hope this article inspired you to make some useful changes to your online store.
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- Creation of B2B website;
- Checkout optimization.
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