These e-commerce trends will continue to grow in 2024

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Artificial intelligence (AI) and machine learning (ML) are having a significant impact on e-commerce and are contributing to its development and innovation in many ways. Here are some key areas where AI and ML play a prominent role:

• Personalized customer experience: AI-based recommender systems enable e-commerce stores to offer personalized product offers and content. AI analyses customers' browsing and shopping data to identify individual preferences and interests and then recommends relevant products based on this information. This can also help to increase user engagement with the brand.

• Automated customer service: Among other things, they can answer common questions and assist in the purchase process.

• Inventory and supply chain management: with AI and ML, e-commerce businesses can get a more accurate forecast of demand, optimize inventory management, and improve supply chain efficiency. This can reduce excess inventory, minimize the possibility of product shortages, and improve customer satisfaction.

• Pricing: Automated pricing software, such as PriceKit, supports the acquisition of the necessary market data with an accurate price and stock information. What's more, they also provide artificial intelligence-generated suggestions for setting new prices that fit perfectly with your business's pricing strategy.

PERSONALISATION

As mentioned above, AI is paramount in supporting merchants to effectively optimize every aspect of the e-commerce experience. However, the powerful impact of AI on personalization is worth a separate mention. 

As consumers learn more and more about AI and become more accustomed to its "presence", their expectations are rising for businesses to use the technology in ways that maximize their customer experience. According to research published in 2023, 24% of consumers believe that retailers should use AI to make recommendations as personalized as possible.

When a shopper gives consent for an e-tailer to use their customer data, they have a right to expect something in return - in the form of a truly personalized experience, every step of the way. 

What are the basic expectations? Among others:

- Guide them to products they like, based on past purchases and behavior. 

- Offer personalized rewards and discounts, for example as part of loyalty programs.

- Messages targeted specifically to them through their preferred channels.

E-tailers who do not provide personalized, relevant experiences for their customers risk losing them in the long run.

You can read more on this topic in our article How to deliver a great e-commerce experience with data.

AUGMENTED REALITY AND VIRTUAL REALITY

Augmented Reality (AR) and Virtual Reality (VR) are becoming increasingly important in e-commerce, opening up new dimensions in both customer experience and product presentation (for example, a 2022 survey found that 22% of German shoppers and 16-16% of US and French shoppers cited augmented reality as a tool that can influence purchase intentions).  

These technologies allow users to interactively experience goods before they buy them - and can also increase consumer engagement with brands.

• AR applications allow shoppers to virtually "try on" products; for example, they can see how a piece of furniture would look in their home or how a garment would look on them.

• VR technology offers an immersive shopping experience, allowing users to feel like they are in a real offline store: walking through the aisles, and browsing products.  

• AR and VR applications can also play an educational role, as they can be an excellent tool for demonstrating how products work and how to use them, which is particularly useful for more complex items. This can also have the positive effect of reducing the number of dissatisfied customers and returns as customers become more familiar with the product.

SUSTAINABILITY

Sustainability is becoming more and more important for consumers every year. For example, a Hubspot survey in the US last year found that 46% of consumers are more likely to buy from a company that actively donates to charity.

Environmental and social responsibility can also play an important role in many areas of e-commerce, such as, but not limited to, green logistics and transport (e.g. use of electric vehicles, carbon reduction, more efficient routing of transport); environmentally friendly packaging (including packaging made from recycled materials or biodegradable packaging); ethical purchasing practices and use of sustainable resources; reducing the digital carbon footprint.

COMMUNITY TRADE

With over 4.5 billion social media users worldwide, it's no wonder that social media is ushering in a new era of digital commerce! Platforms are now much more than just places to connect with customers and promote. 

Those who use social media as a direct sales channel - making it easier and faster for users to buy products - have access to a huge and growing customer base, predominantly from Generation Y and Z. 

In addition, social commerce has many other benefits, including providing a very smooth and convenient shopping experience! By minimizing the steps from discovery to purchase, social media platforms significantly simplify the shopping process. This simplicity in a good way can also increase engagement with your business and/or brand! Useful features such as in-app checkout and saving payment details make this a highly convenient way for consumers to shop. 

VOICE COMMERCE

Google Assistant, Amazon Alexa, Apple Siri: the rise in popularity of virtual assistants means that voice search and shopping is also becoming more prevalent in e-commerce (according to the Hubspot survey mentioned above, around 40% of internet users in the US use a voice assistant at least monthly). Although voice-activated solutions are not yet widespread in Hungary, they are growing rapidly worldwide - and for good reason, as they make both searching and shopping incredibly easy and fast. A good example is Walmart's solution in the US, which allows consumers to place a voice order for any of their products via Google Express.