Future of E‑Commerce

E‑commerce sales have steadily increased over the past few decades, with more and more consumers turning to digital channels for their shopping needs. It’s not surprising that the convenience and flexibility of online shopping have made it a popular choice for people worldwide.

In this article, we’ll explore the origins and growth of e‑commerce and the reasons why shopping online has become so popular. We’ll also delve into the future and provide you with innovations that improve the online shopping experience and help online stores to reach new heights.

So, whether you’re a business owner looking to grow your online presence or a consumer curious about the future of e‑commerce, this article will surely provide valuable insights about online retail.

Origin and growth of e‑commerce

Electronic commerce, online commerce, or simply e‑commerce, refers to the online buying and selling of items or services. It has become an increasingly popular way to do business in recent years and has experienced rapid growth in the wake of the COVID-19 pandemic. But, if we want to learn about online business and selling via websites, we must go far back in time, long before the pandemic.

The origins of electronic commerce date back to the late 1960s, when CompuServe was launched, marking the beginning of online commerce for commercial purposes. Another important date was 1979 when Michael Aldrich created the first secure data transmission using a transaction-processing computer and a doctored television.

Over the next several years, digital shopping began gaining popularity as more businesses launched websites. For example, Amazon.com was founded in 1994 and became one of the world’s most successful web retailer companies. Other companies like eBay and Alibaba also rose to prominence as the internet became more widespread and more people began to shop online.

The growth of e‑commerce continued throughout the decades, the 2000s and 2010s, as technological advances made it easier and more convenient for people to shop online.

Mobile devices like smartphones and tablets made it possible for people to shop from anywhere, anytime, and social media platforms like Facebook and Instagram gave businesses new ways to connect with customers.

The COVID-19 pandemic hit in 2020, and then web sales truly skyrocketed. With many physical stores closed due to lockdowns and social distancing requirements, people turned to online shopping in record numbers.

Before the pandemic in 2019, 53% of internet users made purchases online, and during the pandemic of -2020/21 – it was already 60%.

The pandemic has also led to changes in consumer behavior that have a lasting impact on e‑commerce. Many people who had never shopped on the internet before were forced to do so during lockdowns and discovered that it was a convenient and efficient way to shop.

In addition, many of these new internet shoppers continue to shop electronically even after the pandemic, driving online sales growth.

Why is shopping online so popular?

You already know a lot about the basics of online sales, so we’ll help focus on why it’s so popular and so often chosen by customers. In our opinion, there are three main reasons why this is the case.

Ability to shop from anywhere

One of the most significant reasons why shopping online has become so popular is the ability to shop anywhere in the world. You only need a wifi connection and a proper device, like your phone.

E‑commerce sales have grown exponentially over the past few years thanks to the seamless shopping experience of digital commerce. Mobile shopping has played a significant role in this growth, as more consumers turn to their smartphones to purchase on the go.

Online stores offer a wide range of products that may not be available locally, which is especially beneficial for individual customers looking for unique or niche items.

Customers are able to shop on holidays, during winter breaks, at the office, or home, without the need to go out to the shopping mall. All these factors combined have contributed to the widespread adoption of online shopping, making it a preferred option for many consumers worldwide.

The freedom to shop whenever you want

With mobile shopping and the convenience of mobile wallets, individuals or business buyers can shop at any time of day or night without being restricted by traditional store hours. This means users can enjoy a quick and easy buying experience without leaving.

Additionally, businesses invest in user experience and try to streamline the buying process for customers even more. That’s why we can even ask a chatbot for advice, and it will answer, even at midnight. This has made shopping online attractive for those who value convenience and efficiency.

With the ability to shop at any time, users can take advantage of discounts and special offers, too, without having to worry about missing out.

Easy access to user ratings and reviews

Another reason why shopping online has become so popular is the access it provides to user ratings and reviews. Unlike traditional brick-and-mortar stores, online shopping allows individuals to read feedback and opinions from other buyers straight away, providing valuable insights into the quality and suitability of items before making a purchase.

This attribute is particularly important for individuals unsure about a product’s quality or performance and may not have the opportunity to physically examine the item before buying it. With e‑shopping, they can easily browse user reviews to make an informed decision, helping to reduce the risk of returning the order.

As you might know, online retailers often encourage customers to leave reviews, which helps to build trust and credibility with other shoppers, and it’s really cool as it helps grow your loyal customer base.

Future of e‑commerce technology

So as you can see, it’s no wonder that online shopping is so popular. The convenience speaks for itself. But of course, it’s not just convenience we’re talking about today. So let’s explore more about what kind of future is being created around e‑commerce.

1. Delivery

Drones will likely play an important role in the future evolution of the delivery process in e‑commerce. For example, they may be used to deliver packages directly to customers’ doorsteps, bypassing traditional delivery methods and reducing delivery times. This would be particularly beneficial in urban areas, where traffic congestion can cause delays in delivery times.

Moreover, drones could be used to deliver packages to hard-to-reach areas, such as rural or remote regions, providing faster and more reliable delivery services to customers in these areas.

However, drone deliveries will require regulatory frameworks to ensure safety and security and address privacy concerns. Additionally, autonomous vehicles may face technical challenges, such as battery life and flight range, which must be addressed for widespread implementation.

2. Voice search

Voice search is expected to become an increasingly important part of e‑commerce trends in the future as well. With the rise of smart home devices and virtual assistants, B2B and B2C companies will need to adapt to this new mode of search to remain competitive in the market.

So, in the future, voice search will likely become more conversational and personalized, with AI‑powered algorithms that can interpret and respond to user queries more accurately. This will enable digital experiences that are more intuitive and user-friendly, helping to improve the overall customer experience.

Additionally, voice search has the potential to change how people find products and services, as well as how they interact with brands. Therefore, ensure that your offerings are easily discoverable.

Businesses will probably adapt to this new trend to provide their customers with more intuitive, personalized, and engaging digital experiences by integrating voice search into online commerce.

3. M-Commerce

The future of e‑commerce is closely tied to the rise of mobile commerce (m-commerce), with an increasing number of people using their mobile devices to make purchases online. As mobile technology continues to advance, businesses that fail to adapt to this trend risk losing out on a significant market share.

In the future, consumers will likely rely on mobile devices for a wide range of shopping needs, from browsing to shopping and even customer service. And that also means you’ll need a good search engine that works great in your app. Our last study shows that the search can make up to 37% of an e‑shop’s total revenues (in the Books and Games segment). So you can’t get past such results.

This makes having an app with a good search engine a great idea, as it will both give your customers a more convenient experience and bring you more revenue.

Mobile apps can offer a range of benefits, such as faster loading times, personalized recommendations, and push notifications that alert users to special promotions or discounts. Additionally, they can provide businesses with valuable data and insights about their customers, helping to improve marketing strategies and customer engagement.

4. Virtual shopping

Virtual shopping is expected to become an essential part of the future of e‑commerce, offering customers an immersive and social shopping experience. Unlike traditional online purchasing, virtual shopping allows customers to browse with friends and interact with each other in real-time, creating a more engaging and enjoyable experience.

The main idea is that you can shop online with your friends. It’s similar to buying in the real world, where you visit a shopping mall with them. They give you advice, tell you that you look good in something or that something else doesn’t fit you.

Well, in the case of virtual shopping, you don’t have to leave the house and meet with people to help you make a decision. Instead, you virtually try on different things, and you can see, on your device, that your friend is seeing this product right now. Then, based on their feedback, you can make different decisions and either purchase or not.

5. More personalized experience

The future of e‑commerce will be driven by personalization. Businesses leveraging customer data to provide tailored experiences will be better positioned to succeed in the competitive online marketplace.

Today’s customers demand a shopping experience tailored to their specific needs and preferences. With technological advancements, e‑commerce businesses can now collect a vast amount of data on their customers, including their browsing and purchase history, demographic information, and social media activity. This data can be leveraged to provide a more personalized experience to customers.

Personalization can take various forms, including product recommendations, customized offers and promotions, personalized email campaigns, and customer service. By offering personalized services, e‑commerce businesses can create a stronger connection with their customers and increase loyalty. In addition, personalized experiences can lead to increased conversions, higher order values, and improved customer satisfaction.

6. Virtual reality

Virtual reality (VR) is quickly emerging as a significant game-changer in the world of e‑commerce. Online shopping can be enhanced by creating immersive, interactive, and lifelike environments. How? Businesses can do this through VR.

More and more companies can provide customers with a more realistic representation of their offerings, enabling them to explore and interact in new ways. Customers will be able to browse through products in a virtual environment in the future, thanks to e‑commerce businesses’ ability to create digital showrooms. In turn, this will lead to higher engagement and conversion rates because they will be able to see and experience products more meaningfully.

VR can also be used to create virtual try-on rooms where customers can try on clothing and accessories online, eliminating the need for physical stores. So, the integration of VR in e‑commerce will not only create a more immersive and engaging shopping experience but will also reduce costs for businesses.

7. Headless architecture

Headless architecture is becoming increasingly popular in online stores due to its flexibility, scalability, and customization capabilities. In a headless architecture, the front-end user interface is decoupled from the back-end content management system, allowing businesses to access many benefits and easily integrate with various technologies and platforms.

Additionally, with a headless architecture, e‑commerce businesses can offer more personalized experiences, faster page load times, and better user experience. Another advantage is also that there is no need to manage infrastructure, capacity, updates, etc.

So yes, the future of e‑commerce will be heavily influenced by headless architecture as businesses seek to offer their customers more customizable and flexible experiences.

8. Robotics

Robotics is set to revolutionize the online shopping industry in the coming years. Robots can significantly enhance the efficiency and speed of operations in e‑commerce, resulting in faster order processing and delivery. Robots can also reduce labor costs and errors while improving accuracy and precision.

One of the most promising applications of robotics in digital commerce is in the area of fulfillment centers. Picking, packing, and shipping orders can be automated by robots, significantly reducing processing time and effort. Additionally, robots can also be used to handle inventory management and restocking, reducing the need for manual labor and increasing operational efficiency.

So, robotics will majorly impact e‑commerce as companies try to improve their operational efficiency and provide customers with faster and more convenient services.

9. Online payments

The drive by companies to offer customers convenient and secure payment options will make online payments a huge influence on the future of e‑commerce. They provide numerous advantages over traditional payment methods, including faster transaction times, greater convenience, and increased security.

E‑commerce businesses can offer a broader range of payment options, including digital wallets, which is more convenient for their clients. In addition, with the proliferation of smartphones, mobile payments have become a popular way to purchase. Furthermore, such payments can be used to facilitate in-store purchases, creating a seamless shopping experience.

Another significant trend in online payments is the use of blockchain technology. Blockchain offers several advantages over traditional payment systems, including increased security, transparency, and lower transaction fees.

10. Omnichannel

Also, the future of e‑commerce will be heavily influenced by omnichannel as companies aim to provide a seamless and consistent experience across all channels.

With customers now using multiple channels to engage with businesses, the ability to provide an integrated experience across platforms has become essential. Omnichannel allows businesses to integrate online and offline channels, creating a unified customer shopping experience.

One of the most valuable benefits of omnichannel is the ability to provide customers with more flexibility and convenience. Shoppers can start their journey online and complete it in-store or in reverse. Additionally, businesses can use omnichannel to collect data on customer behavior across multiple channels, allowing them to provide more personalized experiences. That’s why omnichannel will play a critical role in the future.

Conclusion

The popularity of online shopping can be attributed to several factors, including the ability to shop from anywhere, at any time, and the availability of user reviews and ratings. As more and more people discover the convenience and efficiency of shopping online, e‑commerce will likely continue to grow and evolve in the years to come.

Looking ahead, the future of electronic trade is likely to be shaped by advancements in technology, such as drones, headless commerce, personalization, virtual reality, voice search, robotics, etc., which are already beginning to change how consumers shop online. In the coming years, online shopping is set to become a bigger part of our everyday lives as these technologies develop.

Frequently asked questions