As we step into 2024, the world of e-commerce is undergoing a transformative evolution. There’s a lot going on, from the boom of social shopping to the growing popularity of subscription services. It’s like a whole new world out there! But what does all this mean for businesses and everyday shoppers? Let’s break it down in simpler terms and explore the latest trends in 2024 shaping the digital marketplace.
Learn more about how we can help your e-commerce business: from MVP launch to platform migration and maintenance, we’re your strategic e-commerce partner!
One big trend is the rise of mobile shopping, often called m-commerce. Every year, more and more people are buying things using their phones. This growth isn’t just because of the pandemic; it’s also because so many people now have smartphones.
In 2023, people spent $2.2 trillion shopping on their phones. By 2027, it’s expected to hit $3.4 trillion. That’s a huge jump of 45.2% from 2018, when it was $982 billion.This shows how much people are turning to their phones to shop.
So, how many people use mobile phones for shopping?
Around the world, a whopping 2 billion people have bought something online at least once.And when it comes to online shopping, mobile phones are incredibly popular. About 3 out of every 4 online stores worldwide use their smartphones to make purchases.
What’s interesting is that many people use both their computer and their phone to shop. They might look at things on a website using their computer but then actually buy them using their phone. In fact, 58% of all purchases made on multiple devices end up being completed on a mobile phone.
It’s clear: mobile shopping is becoming more and more popular.
In 2024, this trend is set to continue its upward trajectory, with more people turning to their smartphones to make purchases than ever before. As the convenience and accessibility of mobile shopping continue to improve, businesses are adapting their strategies to capitalize on this growing trend. With innovative mobile shopping features and optimized user experiences, e-commerce platforms are poised to reshape the way we shop online in the years to come.
Social media has a big impact on what people think and buy. A study by PwC found that 45% of people who shop online around the world are influenced by social media suggestions before they buy something. Things like recommendations from friends, ads from famous people, and content made by regular users on sites like Instagram, YouTube, and TikTok have a big effect on what people like to buy.
“Shopping” Feature Enhances Convenience for Consumers
And the shoppable features that become available on social media platforms allow users to purchase without leaving the platform. For example, Instagram has a “Shopping” feature where businesses can tag products in their posts and stories, making it easy for users to shop right from the app. Statistics say that 70% of people use Instagram to find new products, showing how important these shopping features are.
TikTok Emerges as Key Player in Social Commerce Spending
Increased spending on social commerce is expected to shift towards TikTok, trailing behind Facebook and Instagram. TikTok has emerged as a potent platform for discovering products and engaging in e-commerce. Successful campaigns by brands like Adidas and Chipotle on TikTok have spurred others to join in. Beyond being a mere video app, TikTok has evolved into a hub for interactive shopping experiences. A recent TikTok study revealed that 51% of users are inclined to discover relevant products through advertisements on the platform.
Statista forecasts that sales from social commerce will hit €1.12 trillion by 2024, showing a quick upward trend.
As social commerce continues to evolve, businesses must adapt their strategies to take advantage of this trend and tap into its enormous potential for driving sales and connecting with customers.
Consumers are more cautious about sharing data. Online shoppers are becoming more cautious about sharing their personal information with e-commerce services. They want to know exactly how brands are using their data and are demanding greater transparency and responsibility.
According to a study by Shopify, 61% of people surveyed said they would only share their private information with a website if it’s necessary. Additionally, 57% expressed growing concerns about how their data is being used, and 40% have stopped buying from brands if they had concerns about their data practices.
Apple’s New Data Tracking Opt-Out Feature
A major shift in data privacy emerged with Apple’s introduction of a data tracking opt-out feature in iOS 14.5. This move significantly impacted brands’ ability to create targeted offers and attract new customers based on their behavior. Notably, Facebook, a platform reliant on user data for targeted advertising, felt the impact the most. As a result, brands that heavily advertised on Facebook experienced increased ad costs without the expected return on investment.
Google’s Privacy Update: Phasing Out Third-Party Cookies
In February 2020, Google announced plans to phase out third-party cookies in Chrome by 2022, later extending the timeline to the second half of 2023. While Google acknowledges that competitors may still use third-party cookies for tracking, Chrome’s dominance — with over 65% of worldwide users — means brands and advertisers must find alternative ways to reach their audience.
The rising awareness of data privacy among consumers poses new challenges for e-commerce businesses and advertising platforms. Instead of relying on traditional tactics like tracking user behavior online, companies will need to explore more innovative approaches to target their offers.
A noteworthy e-commerce trend gaining traction is subscription e-commerce. This sustainable model involves e-commerce sites regularly shipping products to customers on a schedule — whether biweekly, monthly, quarterly, or yearly. Subscription e-commerce offerings span a wide array of products, from pet food and bathing essentials to candles, perfume, or flowers.
This model holds advantages for both businesses and buyers. Businesses benefit from predictable revenue, improved customer retention, and streamlined inventory management. Meanwhile, buyers enjoy a personalized shopping experience, a steady supply of essentials, and the opportunity to automate the process of purchasing products. As such, subscription stands as a significant trend shaping the e-commerce landscape in 2024.
Love it or hate it, AI is here for good. Estimates show that the AI market has been growing tremendously, skyrocketing from about $126 billion in 2015 to over $3 trillion in 2024.
Almost every day, new apps based on artificial intelligence are being developed and implemented. The impact of AI is particularly pronounced in the retail industry, more so than in almost any other sector.
A lot of things are going to change with AI presence. Let’s name a few, the most prominent AI e-commerce trends in 2024:
1. Personalization
Artificial Intelligence (AI) opens doors for highly customized marketing approaches. First of all, it offers a solution by minimizing the wastage of marketing budgets.
As retailers gather more data about consumers, AI plays a crucial role in analyzing this information continuously. With a deeper understanding of individual preferences and behaviors, retailers can deliver more personalized advertisements, making it easier to influence purchasing decisions. This tailored approach ensures that marketing efforts are more efficient and effective.
An overwhelming 94% of e-commerce business owners emphasize that personalization is crucial for both their current and future success. Additionally, a significant 91% of consumers say they are more likely to shop with stores that consider their preferences and use them to customize offers.
2. From Basic Chat Bots to Clever Helpers
A lot of chatbots work mainly using rules and automatic responses. They are not really smart. But there are also bots that can learn from the information you give them (machine learning). These bots can handle more complicated tasks and are getting better at acting like humans when they chat with you. In these cases, calling them virtual assistants makes more sense.
In the far-off future, you might not need to do anything yourself. You could just let your “virtual twin” do it all. These advanced algorithms will know you so well that they’ll search the internet for products and deals that are just right for you.
3. Optimization and Automation
Artificial intelligence (AI) has a powerful ability to extract useful information from huge amounts of data. This allows for more precise predictions that consider many different factors. Retailers can use these predictions to automatically adjust their promotions.
Learn how we can help you outsource high-quality software development expertise without breaking the bank.
Let’s say a sudden trend emerges where people start showing interest in a particular type of fitness equipment due to a new workout craze. A sporting goods store using AI can quickly recognize this trend and ensure its shelves are filled with in-demand equipment, helping to capitalize on the trend and meet customer demand without delay. Or if temperatures start to rise, indicating an early end to winter, a clothing store can automatically switch to showcasing its spring collection sooner.
In summary, the e-commerce world in 2024 is changing fast. With more people shopping on their phones and the rise of subscription services, businesses are adapting to keep up. Plus, technology like artificial intelligence is helping to make shopping smarter and more personalized. To succeed in this ever-changing landscape, companies need to stay updated on these trends and be ready to embrace new innovations. By focusing on making shopping easier and more tailored to customers, businesses can thrive in the digital age.
If you’re seeking help to navigate these changes, our company provides comprehensive support for e-commerce businesses, from launching minimum viable products (MVPs) to crafting effective marketing strategies and facilitating platform migration. With our expertise, we ensure that businesses remain ahead in this dynamic market.
MVP
Magento
Custom Solutions
Migration
