5 ecommerce trends set to shape 2024
As we head into 2024, the ecommerce landscape is poised for unprecedented transformation. Technological advancements, economic uncertainty and shifting consumer behaviours, are propelling the industry into uncharted territories and changing the way we shop online.
At Loqate, we've identified the top 5 ecommerce trends that will shape the narrative of online retail in the coming year. To thrive in the ecommerce space, it’s more important than ever to stay ahead of the curve and adopt emerging trends. Let's delve into the key insights that can guide retailers towards success in 2024.
Real-time stock inventory
We’re seeing more retailers tapping into the trend of real-time stock visibility. In an era where instant gratification is the norm, consumers expect seamless and transparent shopping experiences. Real-time stock inventory management aligns perfectly with this expectation by providing accurate, up-to-the-minute information on product availability. Not only does it help improve the overall customer experience, but it also encourages consumers back into physical stores through Click and Collect which is incredibly advantageous for retailers as it’s been repeatedly shown to attract customers with stronger buyer intent who typically spend more.
Alternative payments
Alternative payment options are continuing to thrive and revolutionize the way we pay for goods and services. From the rise of digital wallets such as PayPal and Apple Pay to Buy Now Pay Later services like Klarna, it’s evident that shoppers are seeking a truly frictionless ecommerce experience.
The reduction in friction from Digital Wallets can be a huge conversion boost for ecommerce businesses, however, they can bring their own set of challenges for retailers.
One of the key issues with digital payment apps is the reliance on customers to keep their address details updated. If a customer moves, for example, they may not think to go into their digital wallet settings and change their address details. And even though the mistake was made by the customer, the error will cost the retailer time and money by having to cancel, decline, refund or re-route the customer’s order. This is where back-end processing of your data is crucial.
As we progress through 2024, businesses that embrace and optimize for digital wallets will undoubtedly gain a competitive edge.
The rise of China
The rising popularity of Chinese shopping apps and marketplaces like Shein and Temu, are changing the face of ecommerce and making the world’s most powerful export machine even more formidable. Aggressive pricing strategies, social selling and personalised marketing are the driving forces behind their phenomenal growth and as a result, changing the way we shop online. User-friendly interfaces and tailored product recommendations combined with fast cross-border delivery provide a strong customer experience which is hard to compete with. The rise in Chinese ecommerce cannot be ignored and is something we’re expecting to dominate in 2024.
Sustainability
Sustainability is shifting away from being just a buzzword – and is arguably a fundamental aspect of the ecommerce landscape that influences purchasing decisions. Consumers are increasingly conscious of the social and environmental impacts of their purchases. This was evident during Black Friday 2023, when many retailers chose to opt out of Black Friday offerings in favour of a more sustainable approach. And according to McKinesy and NielsenIQ it’s also lucrative – their recent study found that products making ESG-related claims averaged 28% percent cumulative growth over the past 5 year period. It’s clear that businesses that adopt and communicate sustainable practices—from eco-friendly packaging to ethical sourcing—will resonate with an environmentally aware customer base.
X-border commerce
One of the standout trends that will dominate the commerce sphere in 2024 is the surge in cross-border commerce. Thanks to advancements in technology, logistics, and payment systems, small and large enterprises alike can now tap into a global customer base. Consumers too are more open to cross-border shopping. All of this creates huge opportunities for retail businesses who can adapt effectively to capture international sales. However, retailers need to ensure they are well-equipped to handle not only cross-border logistics but also collecting and managing the complexities of international customer data.
As we head into 2024 it’s clear the brands that will thrive will be the ones that stay agile, keep ahead of the curve and put the customer first.