The e-commerce industry was already growing at a high rate, and then the pandemic happened, and it almost doubled the already rapid growth of the sector. As retail stores were closed or instructed to open for a short specific period of time due to lockdowns and pandemic-related restrictions, more and more people started optingfor online shopping.
As of now, there are 12 to 24 million e-commerce platforms globally. According to Infiniti Research Limited’s Global E-Commerce Market 2021-2025 report, the e-commerce industry is expected to grow by nearly $11 trillion from 2021 to 2025. [fs1] The factor that is to give credit to e-commerce’s success is technology.
Technological advancements have enhanced customer experiences. However, with e-commerce giants in the game like Amazon, businesses must maintain a technological edge to stay ahead in this highly competitive field. So, it’s best if you are aware of the emerging technologies and trends in the ecommerce sector to integrate them into your business model accordingly.
Here are five emerging technologies that will improve the e-commerce sector even more in the coming years.
- Artificial Intelligence:
Yes, you have heard this term a thousand times before, but prepare yourself as AI is here to stay, andas it seems, it will continue to be the top trend for a long time. AI customizes users’ experience when visiting an online store; it looks into their data and gathers crucial information to show them products depending on their preference.
AI looks at consumers’ previous transactions, website interactions, browser history, location, etc., and suggests products most relevant to their needs in the form of pop-ups or embedded ads. And it does all of this within seconds.
AI is the most important emerging technology in this sector, and you must not shy away from investing in it, as it will end up generating higher profits for you. You can utilize the services of AI and machine learning companies for this. For example, you can leverage AI-based product data classification software from such companies and other similar services they offer.
Since most consumers use their mobile phones foronline shopping, there has been a lot of development in mobile applications to elevate the experience of mobile users. New mobile services and apps are attracting more customers. This trend is so strong that market analysts have given it a separate name i.e., m-commerce or mobile commerce.
Due to frequent trends of freelancing and online earning and almost all transactions done through online banking, mobile devices have become the center of the finance world of people. Everyone is either getting paid via a mobile app or is paying for a service with one. Thus, it is the best strategy for retailers to target mobile customers as a primary channel to increase sales.
Out of all e-commerce transactions, nearly three-quarters are done through mobiles. Moreover, the upcoming era of 5G will further improve the performance of mobile apps, resulting in easier and more engaging browsing and purchasing.
You definitely must have heard about cryptocurrency, and thus you must also be familiar with blockchain. Blockchain technology wasinitially designed and used for bitcoin transactions and other matters related to cryptocurrencies. But due to its impressive capabilities regarding security and protection, it is now becoming a vital force in the e-commerce sector as well.
The feature that has made it the most impactful emerging technology is that it is not under the control of any entity, hence why, while it enables everyone to assess information, it does not allow anyone to change any information. Thus, it is extremely helpful for product traceability and security in the e-commerce industry. Furthermore, it protects the consumers’ account and card details against security threats, online fraud, and cyber attacks.
- Internet of Things:
The Internet of Things (IoT) has made it easier for devices to communicate with each other. And this easy and fast communication is the backbone for sharing information and relaying commands to improve tracking coordination.
In the e-commerce sector, the product tracking stage is the most critical as consumers demand transparent tracking of their purchases and live location updates. So with IoT, the inclusion of sensors and RFIDs has enabled customers to monitor the product to-be-delivered,in real-time.
Similarly, it is beneficial for the warehouse staff as well. As they can monitor the upcoming products and keep in mind the available space in the inventory, they can decide how to adjust space for coming products. Thus, it is helpful in inventory management. IoT offers real-time tracking and accurate location information of the package, thus streamlining the coordination between sellers and buyers.
- Social Commerce:
Social media is not only for communication anymore. Now it has become a tool to enhance your e-commerce business by marketing your brand on social media with business accounts, posting product information, providing customer support, etc.
Nowadays, people engage more in online shopping through social media apps. Selling goods directly on social networks is called social commerce. More than 30% of purchases in America are made on social media. Statista predicts that by 2026,social commerce revenues will grow to $2.9 trillion. Social media platforms like Meta, TikTok, Instagram, and Snapchat show many ads and are viable social sales channels.
The E-commerce sector is booming as more and more people have started shopping online. The automation and machine learning technologies in e-commerce provide consumers with an individually customized experience. Thisbenefits both the customers and the businesses. Customers get a personalized shopping experience, and businesses enjoy increased sales.As a consumer, you can also confirm that you enjoy your experience now more than in the past years because of technological advancements. And the above-mentioned five emerging technologies will further impact the e-commerce sector.