In the not so distant past, online shopping was relegated to desktop computers. Fast forward to present day and consumers mostly do their shopping using handheld devices. What major trend might e-commerce face next? Read below to find out what’s trending in the sector for this year:
Automated Algorithms Are Driving Sales
The crux of modern online shopping is not branding or price cuts, but artificial intelligence. Automated algorithms are not only assisting customers but are improving the overall online shopping experience. AI now intervenes in e-commerce in ways previously thought impossible. Take, for example, the chatbot programs that have near-revolutionized customer service. Thanks to chatbots, customer service is readily available and highly responsive. E-business websites with chatbots are more likely to experience higher conversion rates than those without.
The use of chatbots is not the only example. Online shopping is significantly assisted by personalized recommendations, a procedure that was first pioneered by Amazon. Personalized recommendations are quickly churned out by automated algorithms based on a user’s browsing history. These recommendations engage customers, prompting them to spend more time on the website so they can consider additional products.
AI offers tangible benefits for the business-side of e-commerce as well. This includes a more efficient management of inventory and cost reduction by lowering the need to rely on human labor. Automated algorithms make it easier and less costly than before for businesses to follow market trends and hone in on top products in demand. In the future, it is expected that AI will introduce radical new changes to e-commerce.
Voice Search Will Change How Products Are Discovered
Voice search is poised to take over online search, fundamentally affecting how the sector operates. Instead of customers typing into a search engine, they can now voice out a search or a question into a smartphone or smart home gadget. Voice search was initially considered technology that could improve online accessibility for the disabled and elderly whom otherwise might be unable to physically type. Surveys have since revealed that voice search is increasingly more popular among the younger, millennial generation. Since 2014, voice search usage has increased among teens and adults.
The rise of voice search can be attributed to increased sales of smart home devices. Voice-assisted AI exclusively powers gadgets like the Amazon Echo and Google Home. Even smartphones are becoming more reliant on programs like Siri, Bixby, and the like. This means that customers in the near future would be more likely to speak into a search engine than to type words or phrases. While type search is still the dominant form, this could soon change if more households adopt these smart home devices. The e-commerce sector should brace itself for the impact.
Virtual Reality Is Improving the Shopping Experience
Virtual reality is a subject that has been buzzing in the news lately, mainly due to its entertainment applications, but VR also has major implications in store for e-commerce. Already, companies are willing to pay as much as a million dollars for VR-supported online store simulations. VR, in simple terms, refers to a digital recreation of a real-world object or an environment. VR is related to augmented reality, or AR, where digital objects are placed in real-world environments. Both AR and VR can affect how e-commerce companies advertise products and place them in the hands of consumers.
One of the most prominent examples of AR is the Snapchat filter. Brands have found enormous success using AR-supported Snapchat filters to sell products. The selling power of AR and VR was most recently demonstrated by the Pokémon Go phenomenon, which drove real-world sales thanks to a virtual game. This is only a glimpse of what VR and AR can do for e-commerce. As the technology advances, brands and businesses will be able to create visceral and engaging digital environments to drive traffic and sales.
Video Marketing
Video is already a popular format for advertising products and creating brand awareness. In fact, its importance in e-commerce could increase in the future. Data shows that consumers are highly partial to video content. Surveys indicate that over half of consumers are more likely to purchase a product after watching a video sponsoring it. Unlike graphic ad content, video can be used to drive customer engagement. Potential customers are more likely to share videos than graphic ads. In general, people prefer to watch short videos than read long ads. Such data increasingly indicates that video will become crucial to e-commerce in the future.
The above trends hold great promise for e-commerce advancement in the immediate future. Current e-businesses should prepare for the impending trends and changes to come.
