Global Trends Of 2021 Ecommerce
According to a recent report by UNCTAD, the global ecommerce industry is worth $25.6 trillion. This is an industry with tremendous potential for growth, and it always keeps changing. All over the world, businesses and merchants have been changing approaches to provide their customers with the best experience. Global ecommerce trends are worth knowing since this is a powerhouse industry that grew 32% from 2019 to 2020. Here are the latest ecommerce trends for you.
- The Industry Is Adopting Artificial Intelligence (AI)
- Marketplaces Are Harnessing the Power of Social Media
- Sustainable Ecommerce is Becoming Very Important
- The Pandemic Has Changed the Human Race Forever
- Versatility in Overall Payment Methods
- The Rise of Online Marketplaces and Aggregators
Ecommerce platforms have started to use AI and deep learning to provide their huge customer base with a personalized experience. AI systems in place are always mining for data about the preferences and buying habits of consumers. The data collected is used to send targeted emails, ads, discount offers, etc. It is expected that even smaller websites and online marketplaces will implement AI systems by 2025 or 2026.
In a 2019 study, it was found that 20% of customers are comfortable doing their shopping by communicating with a chatbot. Most ecommerce platforms today have AI bots that address customer issues, resolve doubts, etc. When it comes to ecommerce industry trends, nothing else but AI has the power to shape the human race's abject future. Chatbots, smart product recommendations, personalization, and automated inventory management are some of the things being realized by the widespread adoption of AI.
One of the major ecommerce trends of the past year is the power of social media. With the COVID-19 pandemic putting a halt to human activity in 2020-2021, social media has played a big role in keeping everyone connected and informed. Ecommerce brands haven't wasted any time in shifting to an "omnichannel" strategy. They've learned how to leverage the reach and potential of platforms like Instagram, TikTok, and Facebook.
The story feature of Instagram is a huge hit among brands. Markle reported that 35% of all impressions come from ads placed in Insta stories. In fact, story ads account for 29% of the total amount of money spent on ads. TikTok is the newcomer with maximum potential, and the platform has even announced a tie-up with the Shopify ecommerce platform. Brands on Shopify can now run TikTok campaigns directly from within their main Shopify dashboard.
One of the major ecommerce trends 2021 has to be on the lookout for is the rise of sustainable business practices. With activists like Greta Thunberg and Vandana Shiva campaigning to adopt sustainable business practices, even the average consumer has become much more aware. 73% of consumers are willing to change their shopping habits so that they can reduce environmental impact. Brands are expected to comply with environmental standards and even go above and beyond to ensure the planet's safety. Businesses have switched to biodegradable packaging, recyclable supplies, etc.
It can be safely said the COVID-19 pandemic has left an indelible mark on the human race. The world has changed completely, and the way humans interact with one another has also been completely modified. In 2020 and 2021, all pandemic-related goods were the most trending ecommerce products in the world. In fact, online grocery sales in the US were worth almost $7.2 billion by June 2020.
After the pandemic outbreak, a whopping 79% of US consumers were opting to do their weekly grocery shopping online. Amazon saw a huge jump in the amount of Amazon pantry purchases, Prime subscriptions, etc. Due to the wave of pandemic shopping for groceries and everyday essentials during the lockdown, the global ecommerce giant managed to post record sales/profits, even in the first quarter of 2021. Even smaller brands managed to get their share of the spoils.
Ecommerce brands have figured out that it's very important to offer customers a wide variety of payment methods. Customers have shown that they'd be willing to cancel a purchase if they cannot find a payment method they like. Having a wide variety of payment methods is the best way to increase conversion rates. Securely saving customer payment information is also very important, as it increases the checkout speed the next time. Many people have been toying around with the idea of providing a centralized system of payments for all.
The underlying tenet of consumer behaviour in the 21st century can be whittled down to just one word - convenience. Given several choices, a customer will always go for the one that is easiest and most convenient. Despite a sharp rise in the number of ecommerce platforms and websites, customers prefer to use aggregators like Amazon. Existing firms like Amazon and Walmart already have systems in place, while newcomers do not.
Despite significant delays caused worldwide due to lockdown, Amazon and other aggregators have managed to do very well. Amazon posted a record annual revenue of more than $386 billion in 2020, increasing over $100 billion from 2019. Brands providing deals and discounts on Prime Day in 2019 also saw a 240% increase in sales. All over the world, these aggregators and marketplaces are growing in size, number, and relevance.
Summing Up
These are all of the important online shopping trends of 2021 that you need to know about. In short, you need to keep an eye out for AI. Ecommerce sites are also harnessing the power of social media platforms and vying with aggregators like Amazon and Walmart. In 2020-21, there has also been a significant rise in the call for sustainable ecommerce. Last but not least, the COVID-19 pandemic has also changed how the ecommerce industry works.
