Ecommerce is expected to continue its growth trajectory in 2024 as its growth rate is expected to hit 9.4% with global ecommerce sales exceeding $6 trillion.
2024 is here now and we are ready to take it head-on to seize all the opportunities the ecommerce arena may have for our businesses! However, as we finetune our strategies and prepare our toolkits to build a successful year ahead, we must take a moment to understand some important industry trends that are expected to influence Amazon and ecommerce this year.
We have curated a list of some of the most prominent predictions and trends that may influence online retail this year and are sharing them with you in this blog. Read on!
Ecommerce Trends and Predictions 2024
All successful businesses often have something in common. They work with a proactive rather than a reactive approach.
Understanding the trends that may shape the year ahead can help us enter the new year with a more proactive approach. Knowing what to expect in the coming months can help us streamline our strategies so we can ride the high waves when they come and battle the headwinds in case they change directions and impact us.
Below are some of the most important ecommerce and Amazon-related trends for us to watch out for as we step into 2024:
AI Might Find New Applications in Retail
AI in retail is not something new or unheard of. The technology has been revolutionizing the retail and particularly the ecommerce landscape for a while now as brands have been researching innovative ways to leverage AI and improve their customer experience.
2024 may be the year we see the results of some of these efforts manifesting as AI’s impact in retail may increase.
Machine Learning technologies, chatbots, Natural Language Processing, etc. are all AI technologies that may drive the expected impact.
Personalization and customer journey may be two areas that may see the most influence as AI grows and flexes its muscles in retail.
Virtual try-ons and product demos are already bridging the gap between the physical and digital worlds and enhancing customer experience. We might see wider adoption of Augmented and Virtual Reality in retail with the sole aim of improving shopper experience and thereby sales.
Focus on Personalization
Customers have grown to expect curated, personalized experiences from the brands they shop with. Customers’ affinity towards personalization has reached a point where some people don’t mind sharing their data in exchange for a curated shopping experience.
While personalization has been growing for quite some time, 2024 may be the year of hyper-personalization. We may see hyper-personalization outpacing traditional personalization this year as AI is heavily leveraged to improve the personalization capabilities of relevant software.
Amazon’s Share May Increase in Five Categories
Amazon already rules the retail sphere, however in 2024, we might see Amazon growing its market share in some important categories. These categories include:
Health and Personal Care
Computers and Consumer Electronics
Office Equipment and Supplies
Apparel and Accessories
Furniture and Home Furnishings
The growth in the Health and Personal Care category may be driven mostly by Amazon’s trademark fast and free shipping as the customers in the category may want their orders delivered sooner.
As for Computers and Consumer Electronics, Amazon already holds nearly 50% of the market share and is one of the leading websites for buying electronics. The company's sales from this particular category may exceed $88 billion, significantly higher than even Apple and Best Buy.
For brands selling in any of these categories, many exciting opportunities may be coming your way. Make sure your campaigns and strategies are well-oiled well before time to ensure you can seize all the perks that come from selling in growing categories.
Also, ensure that your listings are retail-ready to avoid any missed opportunities and potentially improve conversion rates.
Sustainability and Climate Friendliness
The call for sustainable and climate-friendly business practices has gained steam as the world and its inhabitants suffer the consequences of global warming and depleting natural resources.
60% of customers are happy to pay more for a sustainably-packed product and the revenue share of the sustainable segment of the apparel market is expected to continue its growth trend till 2026, increasing from 4.7% in 2023 to 6.14% by 2026.
Consider integrating sustainable and environment-friendly practices within your business operations and make sure they are well demonstrated across your brand’s presence.
Letting customers know you are committed to sustainability is an excellent approach to maximizing sales and building a loyal customer base.
As an Amazon seller, you can do this by working towards getting the Climate Pledge Friendly badge. This badge appears on your listing and lets shoppers know you are committed to sustainability and environment-friendliness. You can also inform the customers how your brand practices sustainability through the content you upload on your Amazon listing.
Diversification of Payment Methods
Improving the Customers’ shopping experience is one of the key goals this year and diversifying payment methods is one way of getting to that goal.
After debit and credit cards, customers now have the opportunity to buy a product, say, right now, and pay for it later on through the BNPL payment model.
Rising inflation and a struggling global economy is pushing people towards BNPL and other similar payment methods. The global BNPL transactions are expected to increase by over $400 billion between 2021 to 2026.
But it's not just BNPL, we may see a rise in the use of cryptocurrencies as well.
Around 2300 US businesses accept Bitcoin. Going forward, we might see more and more companies joining the league and allowing customers to shop with their digital currencies.
Final Word
Retail and ecommerce may be shaped by some very interesting trends and we may need to adapt according to these strategies to continue our business’s growth.
We may see a rise in AI applications in retail and shopping payment methods diversified. Amazon’s share may increase in five product categories and we might see increasing hyper-personalization.
Is your business ready for Q1 2024? Have questions? Reach out to us!