10 Important eCommerce Trends That Will Dominate In 2020
For many, keeping up with the latest trends doesn’t mean a whole lot, but for online retailers eCommerce trends in 2020 can make or break your year in sales.
Every single year, dozens of market research companies publish statistical reports with a review of the most significant, in their opinion, marketing trends. Apparently, not everyone has the time or desire to go through all these reports, especially when, as ill luck would have it, the data of each report is often radically different.
We analyzed several popular studies, including a famous annual review of eCommerce trends from Absolunet, and selected the most important eCommerce trends in 2020. Most of them, by the way, are already changing the world of online retailing. Keeping up with those trends may not only increase a company’s revenue but also make the marketers’ lives way easier.
But before we move on to top 10 latest trends in eCommerce 2020, here are a few stats:
In 2020, eCommerce will account for 15% of all North American retail sales. At the same time in China, eCommerce will account for 23% of all retail trade;
A total of digital technologies (including offline payment with cards, mobile apps, and similar offline technologies) account for almost 60% of America’s total retail sales;
Thanks to the increase in mobile sales (up to 55% in 2018), eCommerce in North America grew by 16% in 2018 and the annual turnover exceeded $ 500 billion.
1. Voice Search is Changing the World
The main function of any browser today is an information search. The platforms’ traffic and revenue are no longer dependent on them. Most likely, browsers will be transformed into something really different than of what they look like now. But their future is foggy.
According to Comscore study, by the beginning of 2020, voice search will take up to 50% of search queries.
This will most likely shape the next changes in SEO. If the search inquiry is a voice request, the top search results will be those websites with a voice control function. Many experts recommend starting to integrate a voice search feature in your online shop now.
In 2017, Walmart streamlined thousands of products for its voice search on Google Express and Google Home App for their home delivery. Other companies like Amazon and Domino’s Pizza, as well as many B2B platforms, followed the same example.
Although the stats about the eCommerce trends in 2020 prediction was attributed to Comscore, the original prediction came from Andrew Ng, then Chief Scientist at Baidu. The quote was included in Mary Meeker’s timeline of voice search in her Internet Trends 2016 Report, with “2020” as the year by which this prediction was slated to come true.
2. Mobile Commerce Is Rushing Ahead
Let’s thank Google, Samsung, and Apple for introducing simplified smartphone payment systems because now mobile commerce is developing faster than other eCommerce industries combined. Investment in the company’s app is a priority because there is always a way to make mobile service better – whether it’s adding voice control, simplifying the ordering process, experimenting with Augmented Reality or anything else.
Statista forecasts say: by 2020 mobile commerce revenue will be $ 189 billion, and the majority of sales will be made through apps. The reason for such prediction is obvious: it is often easier and more convenient to use the app than a computer browser.
What we are also seeing these days is the erasing boundaries between an app and a website. Brands and retailers will move to a new standard – Progressive Web App (PWA) – a hybrid of sites and apps, which not only features the advantages of both but also lacks their inherent limitations.
The PWA features are:
- Loads 2-10 times faster than mobile sites;
- Work offline;
- Can be added to the home screen with no need to be updated later;
- Support push notifications.
The PWA of famous furniture and home décor brand West Elm provides an instant page view. The company noted an increase in the time spent on the site by 15%, meanwhile, the income from one visit grew by 9%.
3. Augmented Reality Will Become an Integral Part of the Service
AR blurs boundaries between the digital and the physical world. Buyers are already “trying on” many products without leaving their homes. Introducing augmented reality, you’re about to solve one of the major online store issues – the impossibility of prior contact. For instance, Sephora allows you to virtually test makeup products on yourself, while the IKEA app lets you virtually “try on” the selected furniture in your home.
According to the Retail Perceptions survey, 71% of respondents would prefer a store supporting augmented reality. The AR development will supposedly increase eCommerce profits up to $ 120 million by 2020.
4. Artificial Intelligence Sets New Standards
A couple of years ago, investing in artificial intelligence was expensive. However, with the development of machine learning, the great benefits of AI became available for almost any business, including website building. First of all, artificial intelligence means more personalized service and simplified work with Big Data.
The more data you can collect about customers, the more accurate the recommendations will be, and therefore the higher conversions and profits you’ll get. The earlier impossible 1:1 marketing is gradually becoming a reality. Online stores will know the customer as well as small store owners once remembered the name and preferences of each visitor.
5. Omnichannel Becomes a New Habitual Reality
There have been a lot of talks about the necessity of omnichannel previously but now is clear: this is a must-do strategy. Omnichannel means providing the client with positive and seamless client experience via all possible retailer’s channels: from retail shop to social media.
A special place is occupied by the study of the principle of ROPO (research online, purchase offline).
The Absolunet statistics says: 82% of users are looking for directions of retail stores using mobile devices, and 18% of them make a purchase within 24 hours after the search.
6. Social Media Stimulate Sales
Social media platforms now participate in eCommerce by supporting transactions, which means users can now make purchases without leaving their social network account. For example, in China, shopping in social networks has become a common practice – almost 55% of users reported make purchases in the app.
87% of online shoppers believe that social networks help them make a decision regarding the purchase. 1 out of 4 business owners uses Facebook for sales. Most importantly, 30% of consumers say they are ready to shop directly in social networks.
Instagram is already working on launching a shopping app. Currently, one has already presented some of this functionality, including the product’s image, description, and price, as well as a direct link to the retailer’s website.
Kylie Cosmetics is one of two dozen brands presented in the “Shop and Cop” section of Snapchat.
7. Automate Everything That Can Be Automated
Automation is a general trend concerning all retailers worldwide, although eCommerce is the one to take the greatest benefits out of it. Automation is currently used in production, delivery, warehouse management, marketing, and direct sales. From the first to last interaction, automation can significantly improve the customer’s impression of your brand.
For a marketer, automation offers the following features:
- Simultaneous publication of new offers in all social media, app, and other channels;
- Quick communication with the client;
- An accurate understanding of failures;
- Customer segmentation by interest;
- Tracking customers’ actions on the site.
In addition to convenience, automation brings other significant profits – from saving the employers’ time to direct sales and revenue generated without human intervention. As a result, the marketer’s time saving can reach 80%.
8. Customers Expect More From Delivery
When it comes to good online shopping, speed and the efficiency of the delivery matter a lot.
Last year, 44% of customers used the “same day” delivery.
Pick-up points greatly simplify the delivery system. Buyers no longer need to wait for the delivery man, while delivery men no longer need to drive from around all day and waste time staying in traffic jams. Everyone benefits.
There have been even more daring experiments with the delivery lately. For example, Amazon is actively testing drones and delivery robots:
9. B2B Borrows Service Features From B2C
In 2017, B2B sales exceeded B2C by $ 5 trillion dollars. By 2020, leading B2B companies will spend more on network technologies than online stores oriented for end users will. Therefore, if you provide services for another business, think of how and who your customers work for.
Remember that businesses show the desire to simplify the ordering process as much as possible. Extra paperwork and other formalities are left in the past. Many retailers would want to make a quick purchase of the product or service package right on your website.
10. Search Engines Are Replaced By Marketplaces
Recently, search engines were the absolute leaders when it came to product queries. Today, however, 55% of Americans start searching for products from Amazon. This marketplace accounts for 44% of eCommerce and 4% of retail sales in the US.
According to Forrester Research, more than 50% of online purchases worldwide were made through marketplaces (primarily Amazon, Alibaba, JD.com, and eBay). The forecast for 2022 is reaching 67%.
Ecommerce continues to change at such a rapid pace that it’s almost impossible to keep up with the curve, but these 10 eCommerce trends will help you dominate in 2020. If you’re looking for an eCommerce marketing agency to help you capitalize on the opportunities available to eCommerce stores these days, or for help optimizing your website and digital marketing don’t hesitate to reach out to the team at Pixel.
Hungry for more eCommerce insight? Check out the blog.