Six e-commerce trends to reshape the e-commerce industry worldwide

1. Mobile commerce

Also called m-commerce, the growth has been noteworthy, with $359 billion in sales completed on mobile devices in 2021, a surge of 15.2% over 2020. As the world is becoming increasingly mobile-centric, not optimising your sites for mobile can result in missed opportunities. A study by Google found that 61% of users are unlikely to return to a site that’s not mobile-friendly, and 40% will visit competitors’ websites. That’s a significant number!

Before you think this growth will slow down anytime soon, here’s another important statistic. Insider Intelligence predicts mobile commerce to hit $534.18 billion in 2024, nearly 40% of the expected e-commerce sales.

2. Millennials’ shopping habits

According to the Millennial Shopping Habits Trend Report, two out of three online shoppers are aged between 25 to 40. This part of the demographic dividend is redefining the e-commerce landscape. These young shoppers rely more on social media platforms such as Tiktok and Instagram to buy products, leading to a boom in social commerce. As per Statista, social commerce sales are predicted to reach $2.9 trillion by 2026.

3. Virtual reality

The increasing application of Virtual Reality (VR) technology will give online shoppers more power to visualise the products before purchasing. For eg: VR can offer virtual fitting room experiences in the fashion and apparel industry. Customers can virtually try on clothing items, accessories, or even cosmetics and see how the products look and fit without physically trying them on. This reduces the need for returns and improves customer satisfaction.

4. Personalisation

As per the State of Personalization 2022 Report by Twilio, 49% of customers are considering repeating purchases with a brand offering a customised experience. This only tells us that more and more users want a tailored experience, for example, personalised recommendations, local payment methods, websites in their local language, and more.

5. Visual search

Visual search has gained significant traction, especially if we talk of the fashion and home decor industries. So what is it? Here, users can upload images of things they wish to buy and find similar products, enabling them to shop based on their visual preferences or specific design ideas. Gartner predicts that early adopters of visual search have the potential to increase their digital commerce revenue by 30%.

6. Pay by link

Pay by link is another innovation changing the way customers pay. They are a secure, hassle-free way to let customers pay online by clicking on a unique link to enter their card details without using a card machine.

As necessary as it is to learn the trends the digital commerce industry is witnessing this year, consumer attitudes and behaviour are also shifting rapidly. So, as an online seller, how can you stay competitive and adapt to changes with strategies designed for success?

Let’s answer this burning question with three winning strategies to help you pivot and prepare your business for success. These tactics are not just limited to addressing consumer needs better. They will help you create a holistic plan to build customer loyalty, reduce costs and increase revenue.

1. Perfect your marketing strategy
2. Improve profitability
3. Maximise operational efficiency

Let’s break them down.

Three strategies to grow your online business

1. Perfect your marketing strategy

There has been more emphasis than ever on designing an effective marketing strategy backed by data. How? Start with clearly defining your target market, identifying their needs, preferences, and pain points and conducting extensive research to guide your marketing strategies. But it doesn’t end there.

Along with a comprehensive 360-degree marketing plan, it is also becoming imperative to personalise experiences for your customers. This article highlights nine effective online marketing strategies that can help you increase your revenue.

2. Improve profitability

To reach new heights, e-commerce companies must stay agile and design a plan to keep costs minimal. Having done this, thinking of ways to optimise Customer Lifetime Value (CLV) is also crucial.

Whilst we have covered a few simple ways for online sellers to exploit new opportunities and drive profitability in this detailed blog, we list some key highlights here.

• Design a risk management plan to manage your currency exposure when transacting globally.
• Minimise your returns that can burgeon your costs. With this, identify ways to tackle shipping costs, duties and storage for maximum profits and customer satisfaction.
• Most important is to optimise cash management. Ensure access to flexible working capital when needed to support your growth plans when needed.

3. Maximise operational efficiency

As your online business grows, it becomes important to streamline complex business processes to achieve scalability. This will reduce the workload for you and your team, thus helping you focus more on identifying new growth opportunities.

For example, e-commerce platforms and automation can help you digitise operations, reduce manual work and improve efficiency. Also, explore ways to optimise your supply chain management to offer a smooth experience to your customers. If you wish to learn more, here are six tips to improve your operational efficiency.

After looking at the trends and tactics to put online businesses ahead of the curve, beware of the most common mistakes to avoid. Preventing these mistakes will help you speed up your transition from just ‘an online store’ to a ‘successful online store’.

Five common e-commerce mistakes to avoid when selling online

1. Not testing the waters

Only invest significantly in your global expansion plans after you validate your brand fit (product, pricing, positioning) with target customers in the target country. Remember to test, observe and improve – it always pays off.

2. Not investing in your technology

You can start your online store with a low amount – but to build a sustainable and scalable business, you must invest time and money in the tech stack. Not using the right technology means additional time and energy in migration. But if you use the right platform from the start, amplifying user experience, security, and customer retention becomes more effortless.

3. Not designing a risk management plan

When transacting in different countries, FX fluctuations can lower your profits. But this is just one of the risks that can derail your planning. With this, don’t forget to manage your operational and technological risks to reduce costs, improve profitability and achieve your goals.

4. Complex user journey

Prioritise your user experience. A complicated checkout process, poor website design, lacklustre product details, low-quality images, cluttered pages, weak navigation, and many more can push your audience away from your online store or make them reconsider their purchase.

5. Not investing in responsive websites

With m-commerce becoming more relevant, create a webshop that works seamlessly on mobile and desktop to avoid low conversions and cart abandonment.

By staying ahead of these trends, implementing the tips we have listed here, and avoiding the most common mistakes – marketplace sellers can thrive in this competitive landscape.

Supercharge your online business with Ebury

With Ebury’s custom solution, online sellers can grow their business with ease and without limits. They can pay in 130+ currencies worldwide, plus access local collection accounts in 11+ currencies and multi-currency accounts in 29+ currencies.

With our complete suite of FX solutions, you can manage your currency risk when making or collecting cross-border payments.

Plus, Ebury allows integration with marketplaces for seamless collection of funds and repatriation. Also, e-commerce companies can boost their cash flows with working capital and support their growth ambitions.

Want to take your online business to new places and succeed in the year ahead?

To help you stand out in this competitive landscape, we have created an ultimate guide covering the latest trends to keep an eye on, easy tips to succeed and common mistakes to avoid.

📚 Click here to download your free copy

The information provided herein is general in nature and should not be construed as financial or investment advice. The information provided here is not legally binding. The information, data or views expressed here is for the exclusive use of the recipient and is subject to changes without any notice. You may ask the support team or your dedicated relationship manager to provide additional information regarding Ebury products.