
The Latest Trends and Technologies in E‑Commerce
Key takeaways
- E-commerce is being transformed by technologies like artificial intelligence and augmented reality.
- Consumer shopping patterns have changed, with customers opting for social commerce and subscription services.
- While there are many exciting e-commerce trends, businesses should carefully consider their own circumstances before creating a new strategy.
In the e‑commerce world, consumer behaviour is undergoing a significant transformation, driven by emerging technologies, changing attitudes, and a growing consciousness around sustainability. Today’s shoppers are not just looking for products; they demand experiences that are personalised, environmentally responsible, and technologically seamless.
Included in this shift is the rise of eco-friendly options, as consumers increasingly prefer buying from businesses that demonstrate care for environmental issues. Subscription models are also gaining traction, offering convenience and personalisation while fostering brand loyalty.
Personalisation has become commonplace, with AI technology enabling businesses to tailor experiences and products to individual preferences to an even higher degree than before. Furthermore, augmented reality (AR) shopping is redefining the way consumers interact with products online, offering a virtual ‘try before you buy’ experience that bridges the gap between physical and digital shopping environments.
These trends (and others) highlight a noticeable shift in consumer attitudes. This article will explore more trends you can expect to see in 2024 and a discussion of how businesses can get involved:
1. Augmented Reality (AR) shopping experiences
The first trend we’ll discuss is Augmented Reality (AR) shopping. This is an innovative technology that superimposes digital information—such as images, data, and animations—onto the real world, typically viewed through a smartphone or AR glasses. This makes it possible for consumers to interact with products in a simulated real-world setting.
AR technology is revolutionising the shopping experience by allowing consumers to visualise products in their own space before making a purchase. For example, customers can see how a piece of furniture would fit in their living room or how a pair of glasses would look on their face. This immediate, immersive interaction reduces uncertainty and enhances decision-making, which is particularly valuable in an online shopping environment where the physical feel of a product is absent.
The rise of AR shopping aligns with consumer preferences for more interactive and personalised shopping experiences. Today’s shoppers seek confidence and satisfaction in their purchases, particularly as online shopping lacks the tactile engagement of traditional retail. AR meets this need by providing a hands-on feel virtually, appealing to the tech-savvy generation that values innovation and efficiency in their buying journey. AR also reduces the likelihood of returns, saves time, and ensures product satisfaction.
A notable example of AR in action is IKEA’s AR app, IKEA Kreativ.
This app allows customers to visualise furniture and decor items in their own spaces with high accuracy. Users can clear out their current furnishings in a virtual plan to see how new products would look and fit in their rooms. IKEA Kreativ also performs as a design aid, helping customers design their interiors with IKEA products.
By embracing augmented reality, retailers like IKEA are not only enhancing the customer experience but also setting new standards in the digital shopping realm, paving the way for a more interactive and satisfying e‑commerce future.
2. One-click payments
Next is the one-click payment – a streamlined online payment method that allows customers to make purchases with a single click, bypassing the need to re-enter payment details for every transaction. This feature requires retailers to store the user’s billing, shipping, and payment information to enable the instant transaction.
The primary benefit of one-click payments is convenience:
- Customers can complete purchases effortlessly without the repetitive task of entering their payment information each time.
- This ease not only saves time but also reduces the friction often associated with online shopping, leading to a smoother and more satisfying buying experience.
Additionally, it minimises cart abandonment, as customers are more likely to complete purchases without the deterrent of a lengthy checkout process.
Today’s consumers, accustomed to instant access and rapid service in digital interactions, expect similar efficiency in their e‑commerce transactions. This preference for quick and hassle-free processes has pushed retailers to adopt technologies that can deliver such experiences.
Amazon pioneered the one-click payment technology, which became a significant factor in its success by setting the standard for checkout convenience in e‑commerce. This feature has not only enhanced user satisfaction by making shopping quicker and easier but also reinforced customer loyalty and increased overall sales.
3. Personalised shopping journeys
Personalised shopping experiences refer to the customisation of the shopping process to the individual preferences and behaviours of each customer. They’ve been around for years, but the emergence of more refined AI technology promises to boost personalisation to the next level.
With AI and data analysis, businesses can create a unique and targeted shopping journey for each user. It might include personalised product recommendations, customised marketing messages, and tailored browsing experiences that adapt based on the user’s past interactions and choices.
Faced with endless choices, consumers often experience decision fatigue. However, personalised experiences:
- Help narrow down options and present choices that are more likely to appeal to the individual, making shopping faster, easier, and more enjoyable.
- Increase the efficiency of the shopping process and can lead to increased frequency and volume of purchases.
- Enhances customer loyalty as shoppers feel understood and valued by brands that “remember” their preferences and anticipate their needs.
The demand for personalised shopping is fuelled by consumer preferences for experiences that are specifically tailored to them. Consumers expect not just products but also shopping experiences that cater to their unique needs and lifestyles.
Advances in AI and machine learning have made it possible to meet these expectations by analysing vast amounts of data to discern patterns, preferences, and behaviours, enabling real-time personalisation at scale. These tools analyse customer data from various touchpoints to create detailed customer profiles, which are then used to tailor the shopping experience. By investing in these technologies, businesses not only enhance the customer experience but also improve conversion rates and foster brand loyalty.
The adoption of AI in creating personalised shopping experiences marks a significant evolution in how e‑commerce operates, placing greater emphasis on consumer-centric strategies that align with individual preferences.
4. Social commerce
By 2026, social commerce is expected to be worth $2.9 trillion. There’s no doubt that this is scaling rapidly – especially with millennials, Gen‑Z, and holiday shoppers.
The popularity of social commerce is driven by our modern consumer’s desire for seamless shopping experiences – and their love for their social media apps. Instagram and TikTok, favourites for many young people, offer shopping experiences that don’t require users to
leave the app. Consumers can buy products they discover through ads, influencer endorsements, or content shared by others within the platform.
Consumers can act quickly when they see a product they like without the friction of switching between apps or navigating to a web browser. This enhances the user experience, making shopping more intuitive and less time-consuming. Additionally, social commerce often includes social proof in the form of likes, comments, and shares, which can help users make informed decisions there and then.
Features include embedded links, shoppable posts, and integrated storefronts.
Businesses can adapt to this trend by optimising their social media presence for sales, as well as engagement. Partnering with influencers and creating more ‘shoppable’ content aligns better with how these consumers wish to engage with your brand. By investing in influencers, you’ll tap into an audience that makes purchasing decisions based on their social feeds.
Rather than searching for your product or brand via a search engine, these users value community approval and peer recommendations.
5. AI shopping assistants
We’ve all heard of chatbot assistants.
Well, AI shopping assistants are like chatbots, but they’re much more sophisticated.
AI shopping assistants are bots that have been trained to possess extensive knowledge of a company’s product catalogue. They are made capable of providing expert and personalised advice to customers.
These digital assistants interact with consumers via text or voice communication, often embedded on e‑commerce websites or through messaging apps. By utilising natural language processing and machine learning, AI shopping assistants can understand customer queries, recall detailed product information, and offer tailored recommendations based on individual preferences and usage patterns.
E‑commerce platforms can leverage these to:
- Advise potential customers on which product to buy.
- Explain and resolve any issues customers may have with their purchase.
- Quiz potential customers on their lifestyle to recommend a subscription plan or product that suits the customer’s needs.
AI shopping assistants offer several key benefits to consumers. They provide immediate, 24/7 customer service, answering questions and resolving issues without the wait times associated with human operators.
AI shopping assistants are transforming the online shopping experience by making it more interactive and responsive. Customers can receive personalised advice as if they were speaking with a knowledgeable salesperson in a physical shop. This level of interaction helps build trust and loyalty, as customers feel their specific needs are understood and catered to.
Consumers are increasingly looking for shopping experiences that are not only fast and easy but also accurately tailored to their personal needs and preferences. The growing complexity of product options and the desire for informed purchasing decisions drive the need for such sophisticated AI solutions in e‑commerce.
Businesses that are integrating AI shopping assistants into their e‑commerce platforms can:
- Handle a larger volume of customer interactions without additional staffing costs.
- Improving operational efficiency.
- Collect valuable data on customer preferences and behaviours.
- Analysed that data to improve product offerings, customise marketing campaigns, and predict sales trends.
- Handle increasingly complex interactions.
AI shopping assistants epitomise the integration of advanced technology into e‑commerce. They elevate personalisation to such a high degree that, if widely adopted, are set to redefine the norms of customer service and shopping in the digital marketplace.
6. Eco-friendly shopping options
The growing awareness of environmental issues and desire for a sustainable future are driving a demand from consumers for eco-friendly options. Many customers now prefer products that meet their needs with minimal environmental impact. This preference has spurred innovation in product development, packaging, and logistics, as businesses strive to meet these evolving expectations.
Eco-friendly shopping options encompass a range of practices aimed at reducing the environmental impact of consumerism. These can include:
- The use of sustainable materials in products and packaging.
- Greener delivery methods such as carbon-neutral shipping.
- Products that support sustainable living.
Retailers adopting these practices often emphasise the recyclability, biodegradability, or energy efficiency of their products and services.
The adoption of eco-friendly shopping options offers customers the opportunity to make purchasing decisions that align with their personal values. Customers are increasingly scrutinising product origins, the environmental ethos of companies, and the lifecycle impacts of their purchases.
This shift is leading to a demand for greater transparency in product labelling and a preference for brands that advocate for sustainability through their business practices. In response, many businesses are:
- Investing in sustainable technologies.
- Sourcing materials responsibly.
- Implementing eco-friendly manufacturing processes.
- Leveraging eco-labels and certifications to communicate their commitment.
- Incorporating sustainability into the core of their brand identity.
For example, Patagonia (a sustainable clothing brand) make a big effort to tell stories on their website of activism all over the world, regularly writing in-depth tales for their community of adventure-loving customers. Patagonia also supports grassroots initiatives that are working to solve the climate crisis through Patagonia Action Works. This brand has even dedicated itself to helping customers repair their Patagonia clothes to further protect our planet from unnecessary items going into landfill: WornWear.
Efforts like these are inspiring and they won’t go unnoticed. A recent survey found that 66% of people consider sustainability when shopping.
7. Subscription models
Subscription services have taken hold of the e‑commerce world, with offerings from HelloFresh, Scribd, Ring, flex, Graze, Skin Authority, Birchbox, Bloom & Wild, and countless more.
The subscription model is an excellent strategy where customers pay a recurring price at regular intervals to receive products or services. The most common subscriptions are in the entertainment sector (with Netflix, Prime, Spotify, Audible etc), but they also serve the world of fashion, personal care, and groceries. Subscriptions provide consumers with a convenient, continuous delivery of goods or services and often personalised experiences tailored to their preferences.
While customers appreciate the ease of receiving products or services automatically without needing to reorder, businesses benefit from long-term customer relationships and predictable revenue streams.
Subscriptions show a real change in attitudes to shopping, as they’ve fostered a more passive purchasing process. Customers don’t need to make repeated purchasing decisions when it comes to their necessities and businesses get locked-in loyalty.
Obviously, subscriptions don’t suit every kind of business. However, the Ring doorbell surprisingly has managed to offer a successful monthly subscription on a product that used to be a once-in-a-lifetime purchase!
Businesses will need to:
- Invest in sophisticated CRM systems to manage subscriptions effectively.
- Use data analytics to understand and predict consumer behaviour.
- Personalise offerings to increase customer satisfaction.
- Explore hybrid models (that combine elements of traditional shopping with subscriptions, such as offering members-only discounts or exclusive products) to enhance the attractiveness of their subscriptions.
A great example of a successful subscription in the UK is Who Gives a Crap – the toilet paper company. WGAC solves several customer pain points: 1) customers don’t need to make the embarrassing trip to the supermarket to buy just loo roll (we’ve all been there). 2) the toilet paper is eco-friendly (with recycled and bamboo options). And 3) WGAC donates 50% of their profits to fund clean water and sanitation non-profits around the world!
Amazingly, some brands just get it spot on.
Advice for e‑commerce businesses
These exciting trends and inspiring examples of new e‑commerce strategies are likely to grab the attention of many business owners and marketers.
However, not all these trends will apply to your business.
As you contemplate integrating these forward-thinking trends into a new approach, it’s essential to first assess which innovations align best with both your operational goals and customer needs. The key is not to adopt every trend but to select those that will genuinely enhance your customers’ experiences and foster sustained engagement.
Think about the current strategies that are effectively retaining customers and how these can be adapted with new technologies like augmented reality or AI shopping assistants.
Ultimately, the successful implementation of these trends requires a balance of inspiration and realistic planning. By thoughtfully considering your business’s unique circumstances, you can effectively leverage new e‑commerce trends to enhance your competitive edge and build deeper, more rewarding relationships with customers.