New technologies continue to emerge in the field of eCommerce, necessitating online businesses to constantly adapt to meet the evolving needs of customers. The popularity of online shopping is experiencing significant growth, leading to a substantial increase in eCommerce sales. In the United States, eCommerce revenue, which was estimated at $900 billion in 2022, is projected to surpass $1.7 trillion by 2027.
To maintain a competitive edge in the online retail sector, it is imperative to comprehend customer preferences and stay abreast of the latest eCommerce trends. Alita Infotech, with its extensive experience in eCommerce development, has successfully delivered projects for various clients. We are enthusiastic about sharing our expertise with you.
This article will illuminate the latest eCommerce trends and their impact on applications and other software.
How eCommerce Technologies Are Shaping the Future of Sales
The rise in online retail’s prominence is closely tied to the advent of cutting-edge eCommerce technologies. With online shopping now offering unprecedented convenience, it comes as no surprise that the eCommerce industry is projected to expand by nearly $13 trillion between 2022 and 2027.
Take a look at the chart below to explore the worldwide retail eCommerce sales.
According to projections by Insider Intelligence, sales on US B2B eCommerce websites are anticipated to increase from $1.9 trillion in 2023 to $2.4 trillion in 2025. This surge is not limited to sales alone; customer expectations are also on the rise. The proliferation of online stores is a clear testament to this trend, with the number of eCommerce websites worldwide expected to double from 12 to 24 million.
In tandem with the expansion of the eCommerce market, the convergence of digital and physical experiences is set to escalate in 2023. This indicates that customers are not only seeking innovation in online stores but also in brick-and-mortar establishments. Despite visits to physical stores, buyers have become increasingly at ease with online shopping.
Given that customers are becoming accustomed to the seamless online shopping experience, investing in eCommerce technology holds significant promise. Let’s examine the features and trends that are currently reshaping the industry to identify which technologies warrant strategic investment.
Key Technology Trends in eCommerce for 2023
The future of eCommerce looks promising and full of potential. However, to navigate this path successfully, it’s crucial to have a clear direction. We’re here to assist you in taking the first step by highlighting the most current eCommerce trends for 2023.
Social networks have evolved beyond mere communication tools. They now serve as platforms for various business endeavors, including brand marketing, customer support, and driving client engagement.
This leads us to the concept of social commerce, which involves directly selling products on these platforms. It provides customers with a comprehensive shopping experience, from initial product discovery to the final payment.
Over 100 million Americans engage in shopping through social media, with Facebook leading the way as the most popular platform. Considering this substantial user base, the trend is poised for continued growth.
According to Statista’s forecast, social commerce is anticipated to generate a staggering $2.9 trillion in revenue by 2026, marking a fivefold increase from 2020.
TikTok also emerges as a viable platform for sales. However, it’s crucial to conduct a thorough assessment to determine its suitability for your specific target audience. In the case of Facebook, approximately one-third of its US user base utilizes the platform for shopping purposes.
Livestream commerce involves hosting a live video on a commercial platform where a host showcases various products in real-time. Viewers have the option to make purchases directly on the shopping site. This form of eCommerce has gained significant popularity in China, as demonstrated by the Global Shopping Festival on the Taobao platform in 2022, which attracted over 300 million users to live streamed sessions. In the United States, businesses have also taken notice of this trend towards an enhanced form of ‘shoptainment.’ The following data illustrates the sales generated through livestream eCommerce in the US.
This method of online retail allows you to showcase products in a dynamic way, piquing customer interest through tactics like limited-time offers or exclusive, limited-quantity items. Additionally, you have the opportunity to address viewers’ questions about the products in real-time.
Click and Collect or BOPIS
An emerging trend in e-commerce technology is “Buy Online, Pick Up In-Store” (BOPIS), also known as click-and-collect. This method allows customers to purchase or reserve items online and then retrieve them at a designated store or pickup location. For businesses, implementing click-and-collect means reduced spending on delivery expenses and an increase in foot traffic at physical storefronts.
In the United States, click-and-collect sales reached an estimated $96 billion in 2022, and this figure is projected to rise to $154 billion by 2025.
Buy Now, Pay Later (BNPL)
A rising trend in eCommerce technology is the “Buy Now, Pay Later” (BNPL) service, which enables customers to acquire goods through interest-free installment payments. This service gained significant traction during the pandemic, as individuals sought alternative financial options and greater flexibility. Many customers opted for BNPL as an alternative to using their credit cards for shopping.
There are several types of Buy Now, Pay Later (BNPL) services:
- Direct providers like Afterpay and Klarna have played a significant role in popularizing BNPL.
- Facilitators, represented by payment companies such as Mastercard, Shopify, and Stripe, act as intermediaries and integrate their services into the BNPL framework.
- Retroactive service providers, like American Express, offer flexible payment alternatives for the buyer’s credit card post-purchase.
The Buy Now, Pay Later trend is on the rise, with projections indicating it may reach a global value of $680 billion by 2025.
Mobile shopping has transitioned from being a mere trend to a fundamental aspect of today’s retail landscape. With each passing day, the number of people using smartphones continues to grow, solidifying the pivotal role these devices play in eCommerce. Many consumers now opt to make purchases through their phones.
While computer-based shopping remains prevalent, the smartphone is poised to become indispensable in the realm of online retail. According to Insider Intelligence, it is projected that 69.9% of retail eCommerce sales will be conducted via mobile phones in 2024, amounting to approximately $4.5 trillion.
If you’re involved in online retail and haven’t yet developed a mobile application for your store, it’s crucial to take heed of this significant trend.
Progressive Web Apps
Key functions of PWAs include:
- Application access through the smartphone’s home screen
- Offline application access
- Push notifications
Interestingly, according to a Statista survey of eCommerce companies, 17% have already invested in PWAs or have plans to do so. Additionally, 28% of businesses are currently evaluating their potential for integration.
Here are a few advantages of Progressive Web Applications:
- Broad Audience Reach: PWAs adapt seamlessly to various screen sizes and function on any platform, making them accessible to a wide user base, which benefits the e-commerce company.
- Cost-Efficient and Swift Development: PWAs are versatile and operate on any platform, be it Android, iOS, Windows, or macOS. This eliminates the need to create multiple versions of an app, allowing for the development of a single, universal PWA.
- Speed and Responsiveness: Users highly value fast-loading websites. PWAs are designed for swift and seamless operation, and they can even function without an internet connection.
In conclusion, PWA stands out as a compelling alternative to both native mobile apps and conventional websites. Integrating it into your online shopping technologies can significantly enhance the overall buying experience for your users.
Personalization is a crucial element in driving business profitability. Approximately 49% of consumers are more inclined to make repeat purchases when a retailer offers a personalized shopping experience. One of the most recent trends in e-commerce technology is the integration of Artificial Intelligence (AI) to customize online stores.
AI plays a pivotal role in enhancing various aspects such as product and search recommendations, customer segmentation, and support services. This, in turn, significantly boosts the effectiveness and impact of your brand. Leveraging AI and machine learning analytics allows you to track customer behavior patterns, interpret user data, and subsequently provide tailored recommendations.
Here are some key areas where artificial intelligence can be applied:
- Voice assistants: Consumers often rely on voice search to find the products they’re looking for. AI is instrumental in understanding and interpreting customer search queries, delivering the most relevant results.
- AI-powered chatbots: These chatbots in e-commerce are designed to elevate the customer experience and bolster the brand’s image. They can offer information on order status, address user inquiries, and assist with the purchasing process.
AI Content Creation
A standout trend in eCommerce technology for 2023 is the integration of AI-based content creation. While we’re familiar with how artificial intelligence enhances personalized shopping experiences, its capabilities extend beyond that.
Ross Beyeler, the COO of Trellis Commerce, believes that AI will revolutionize content creation and brand marketing, providing automation and scalability. According to Beyeler, artificial intelligence can be particularly beneficial in the following areas:
- Visual design: Tools like Synthesia or Designs.ai leverage AI to generate logos and video content.
- Advertising campaigns: Services such as Pencil, Bannerbear, and EXOD utilize AI to automate the creation, testing, and optimization of advertising campaigns.
- Content marketing: AI-powered platforms like Frase and Jarvis assist salespeople in generating copies for blogs, products, and landing pages.
Emerging Technology Trends for the eCommerce Security
In today’s digital landscape, the internet offers abundant opportunities for both business growth and potential threats. However, safeguarding your company’s security should be a top priority. In this discussion, we’ll emphasize the significance of prioritizing security for your online store and explore the evolving risks and cutting-edge technologies utilized in eCommerce security.
DDoS attacks, once the exclusive realm of contemporary cybercriminals, have now evolved into more intricate and potent methods employed by hackers to jeopardize businesses. Consequently, it is imperative for every retailer to prioritize the protection of their online store.
Below, we’ll outline the existing threats faced by online retail platforms:
More Sophisticated DDoS Attacks
If an attacker succeeds in causing your website to become unresponsive, many operations of your online store may experience significant delays. This can lead to both financial losses and dissatisfied customers.
Weak VPN Servers
While severe DDoS attacks tend to draw public attention, hackers are aware of a more discreet method to target online retail platforms. This involves focusing on employees who work remotely and access your system through a VPN. By exploiting a vulnerable VPN server, an attacker can quietly disrupt your remote workforce.
Online retailers should take heed of hacktivism, a hacking technique employed to promote political agendas. This concern arises, in part, due to the perceived adverse effects of capitalism.
Shortage of Security Personnel
The foremost responsibility of security professionals is to ensure the safety and integrity of your online store. Without these experts in place, your eCommerce platform could be vulnerable to potential attacks.
Omnichannel marketing refers to the coordinated dissemination of promotional messages across various channels, such as social media, email, and more. However, with multiple channels comes the risk of potential interception of your messages by attackers.
Phishing stands as the prevalent form of fraud, where perpetrators use deceptive links to obtain personal information from your customers, including sensitive details like bank account information. Now that you’re aware of the vulnerabilities in today’s eCommerce platforms, it’s crucial to prioritize the protection of your online store. Let’s delve into the key technologies, trends, and security strategies for 2023.
Consider a Strategy Against DDoS Attacks
Having a well-prepared action plan in place will enable you and your team to efficiently respond to a DDoS attack. This ensures prompt problem identification, minimal damage, and a swift restoration of your retail platform.
Set Your Traffic Baseline
When implementing traffic management strategies, it’s crucial to train your staff to recognize DDoS attacks. Familiarity with the typical traffic patterns on your platform will enable them to promptly identify any deviations from the norm.
Familiarize Your Customers with Cybersecurity
Simply instructing your employees to identify suspicious activity on the platform is not sufficient. It’s equally important to educate and inform your customers. With the rise of phishing and other scams, it’s crucial to raise awareness among your customers about potential threats.
Increase the Security by Using APIs
Online stores can enhance customer recommendations and targeted advertising by gathering user data. However, safeguarding this data is of paramount importance. One prudent approach is to process payments through third-party gateways for added security.
Add Multiple Levels of Security to Your eCommerce Platform
To bolster the security of your online retail platform, consider implementing the following strategies:
- VPN (Virtual Private Network)
- Two-factor authentication
- Anti-spam measures
- Malware protection programs
- Content filtering
- Load balancing
Use Cloud Providers for Traffic Overflow
When dealing with large-scale DDoS attacks, there’s a significant risk that local equipment may not withstand the assault and could potentially fail. It’s advisable to explore third-party vendors that offer cloud-based servers. The cloud provides greater bandwidth, reducing the likelihood of your online store crashing during a DDoS attack.
Simulate a DDoS Attack to Test Your Online Store Security
Conducting a simulation is the last crucial step in safeguarding your eCommerce platform. By implementing the security measures mentioned earlier and running a simulation, you’ll be able to evaluate the current level of security and address any vulnerabilities that may arise. This proactive strategy ensures that your platform is robustly protected.
Industry-Wise eCommerce Trends in 2023
Technology is a driving force across various eCommerce sectors, including beauty, food, retail, and more. Let’s explore the latest trends and innovations in eCommerce technology for each of these industries.
In the B2B sector, there will be a notable emphasis on personalized pricing, with a particular focus on real-time pricing. Additionally, this industry will integrate comprehensive customer journey analysis and prioritize expeditious order fulfillment.
In 2023, this sector will place a strong emphasis on promoting diversity and enhancing product customization. The primary objective is to establish a seamless connection between online and physical beauty stores.
In this sector, we anticipate a surge in digitalization of food-related services. This will manifest in the form of an abundance of food delivery platforms and restaurant reservation applications.
Retail & Grocery eCommerce
Livestream shopping is poised to gain significant momentum in 2023. Additionally, expect to see purpose-driven retail brands making a notable presence in the industry.
We can anticipate an increasing number of automotive companies embracing technology from the online shopping sphere, particularly focusing on mobile-friendly solutions. Additionally, virtual showrooms are likely to see a surge in popularity within the industry.
Concluding Remarks on eCommerce Technology Trends
The eCommerce sector is experiencing rapid growth. With a growing preference for online shopping, the potential for investment in this industry is substantial.
Among the most recent eCommerce technology trends, key highlights include social and livestream commerce, BOPIS, BNPL, mobile shopping, progressive web apps, AI-driven personalization, and AI-content creation.
If you’re looking to integrate any of these trends, enhance your current online store, introduce new functionalities, or build an eCommerce platform from the ground up, our team is here to support you. Simply reach out to us, and we’ll be happy to assist.