Big Things Happening in Ecommerce in 2020

By Luigi Wewege Wednesday, June 24, 2020

Ecommerce is gearing up for some significant changes in the way it works. The global commerce market predicts that by the end of 2020, ecommerce sales will make up 16% of all retail sales globally, a drastic change that has happened over only a number of recent years.

AR Enhances the Reality of Online Shopping

There are so many advantages to shopping online: you save time, you can research well, and are in the privacy of your own home. While these fast shopping options have so many advantages over going out, like saving you time and money, there has been one huge downside — the fact that you can’t try anything on. 

That’s what augmented reality (AR) is for. In places like clothing stores, all you need to do is take a full body picture, and the clothes will automatically be put on you so you can see how you’d look in them. AR for ecommerce is still relatively new, so shoppers may still prefer to go out to a traditional storefront. Soon enough, however, it will improve and maybe even give the entire store experience. Gartner predicted that 100 million customers would be using AR in 2020 — it will be interesting to see how that prediction turns out.

Voice Search Grows in Volume

It is forecasted that 75% of Americans will own a smart speaker by 2025. A growing number of individuals depend on voice associates like Google Assistant or Amazon’s Alexa to perform tasks. 

As an ever-increasing number of family units adopt this innovation and grow more comfortable buying things, there's a great deal of undiscovered potential for online business organizations hoping to get in on the ground floor. David Zimmerman, Director of eCommerce Solutions at Kensium, included "more involvement of voice-empowered arrangements in the trade space with Amazon Alexa and Google Home" high on his rundown of 2020 patterns to watch out for.

More Ways to Pay

Ecommerce websites are increasingly incorporating new methods of payment, many of which in-person stores cannot provide. Even online versions of walk-in stores help with a faster checkout by saving your details for next time. You can even buy items with one click of a phone button by using Apple Pay, PayPal, and other services that enable a frictionless checkout. 

Companies are even allowing people to pay in installments for people who want something that is a bit out of budget at the moment. They can choose to pay for it over the next couple of weeks or months, using services such as Klarna and Afterpay.

Sustainability Becomes Increasingly Important

In what is hopefully not a passing trend, people are becoming increasingly mindful of the role their purchasing decisions have on the Earth’s constrained resources. Sustainability is becoming a restored significance for present-day customers, and brands are discovering approaches to mesh that into their items and operations. 

A survey found that 50% of respondents wanted more sustainability in the fashion industry, and a whopping 75% wanted less packaging for items. Many companies have heeded this message, and some are trying to change the way they pack to limit the resources wasted. Ecommerce is great for this strategy, as most things are delivered in recyclable cardboard boxes.

Subscriptions Keep Customers Coming Back

Subscription plans are great for retailers in many ways. They make it easier to predict fulfillment needs by looking at customers’ previous purchases and sending them things related to what they have previously bought. Due to the ease of it all, customers are bound to buy more, allowing businesses to maintain customers for much longer.

However, subscriptions have become increasingly common, and many businesses offer them. It may be that consumers have seen too many and will become more selective in the future. This shift could explain why some businesses are choosing to be less invasive and give consumers discounts or stock tailored to them specifically.

About the Author

Luigi Wewege

Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.

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