What the future holds for Ecommerce: New technologies and channels

In this article series, we are looking at what is happening in Ecommerce currently, how the landscape is changing for brands, and what new technologies are rising to bring forth high-level customer experiences.

 

• Part 1 – The current challenges
• Part 2 – Knowing your customers
• Part 3 – New technologies and channels

With technologies such as AI (Artificial intelligence), AR (Augmented reality) and VR (Virtual reality), online stores can begin to mimic experiences of real-life shopping. For example, with AR and 3D modelling, customers get to see the products in great detail from every angle and experience a virtual try-on with products, getting a more realistic picture of what the item would look like on them or in their house. The brands implementing augmented reality and 3D modelling technology on their websites have seen increased conversion rates and lower return rates. 

AI technology has also increased in popularity in eCommerce and there are countless ways that it can be used.  A great example is a software such as Ellis, that uses AI technology to predict customer behavioural patterns by analysing different data from a variety of sources. This helps to make better decisions that lead to better sales and customer satisfaction. Another example is Froomle, that uses AI technology to analyse customer preferences and provide them with personalised recommendations on the website. AI technology can also help with things like supply chain optimization or customer service with chatbots. 

As social media has become an integral part of most of our lives, it is no surprise that social commerce has been on the rise. In fact, according to eMarketer, social media sales are predicted to triple by 2025. In the “Future of Commerce Trend Report 2022” by Shopify, it is mentioned how Ecommerce activity is integrated with social media platforms with brands using it for building a stronger presence, advertising, and providing better customer service.

As shopping on social media becomes more popular, cutting through the noise becomes another challenge. Brands are finding new ways to use social media platforms to engage their customers, as an example, utilizing livestreams to show behind-the-scenes content and present new launches. Using livestream has several advantages: It gives a brand an opportunity to show the process of production, which provides the transparency that many customers are looking for, and it enables brands to connect with customers in real-time and answer any questions they may have. Lastly, having influencers collaborate on livestreams helps to engage a broader audience and build more hype around product launches.

Having a strong brand presence and a direct-to-consumer business model are certainly vital parts of future success for brands. Despite the growing popularity with online shopping, consumers are still looking for live shopping experiences, which is why brick-and-mortar stores are certainly not the thing of the past.

The next step for brands is to not just have a presence online and offline, but connect all channels in a seamless way and meet the customer at each touchpoint with consistent messaging and exceptional service. The omnichannel strategy can include being able to order online and offering pick-up locations locally or utilizing apps and QR codes that make the shopping experience more enjoyable in-store.

As a final point, we can see the rapidly evolving world of Ecommerce through the different growing trends currently taking place. For this reason, agility and adaptability is required of brands, as well as a defined customer-centric strategy to ensure commercial success for the future.