5 Key Tools Shaping the Landscape of E-commerce and Digital Marketing

The e-commerce sector is currently described as a trillion-dollar industry, and its value is expected to soar even higher in the coming years. MarketWatch predicts a global e-commerce penetration rate surge from 15% in 2020 to 25% in 2025.

E-commerce brands are rapidly increasing their investments in MarTech, incorporating artificial intelligence, machine learning, virtual reality, voice and image recognition, social listening, and social media profiles.

To stay at the forefront of evolving technological advancements, many industry players seek the guidance of technology consulting services to navigate the complex MarTech landscape.

In this article, we will delve into the major technological trends that will shape the future of e-commerce and online businesses in 2021 and beyond.

1. Personalizing Sales through Customer Journey Enhancement

With the abundance of online customer data, consumers now prefer e-commerce stores that provide personalized shopping experiences. Utilizing artificial intelligence and predictive analytics based on contextual (navigation and transaction history) and declarative (surveys and image recognition tools) data, e-commerce stores can recommend products most appealing to their customers.

Social media profiles offer in-depth analysis of customer interests and preferences from the very first moment of browsing, enabling e-commerce to tailor content, and recommendations, and enhance mutual buying and selling.

2. Voice-Activated Payment Technology and Virtual Assistants

According to a Nielsen survey in 2018, over 72% of Americans used digital assistants, with nearly 25% of American households owning smart speakers. This trend is expected to persist, making voice-activated virtual assistants a staple in the years to come.

Given the current global situation with COVID-19, people worldwide are opting for voice-supported payment methods for their online transactions. E-commerce platforms that successfully enhance their online applications with voice-supported payment options are poised to outperform those that lag behind.

Major players like Google and Amazon are already offering voice payment options for their users.

3. AI-driven Chatbots and Virtual Reality in E-commerce

In the upcoming years, consumers in the e-commerce realm will increasingly interact with digital robots and virtual assistants. By implementing artificial intelligence, e-commerce stores can design and develop their digital robots to assist online customers, providing professional guidance and making the entire user experience more convenient and stress-free.

Simultaneously, virtual reality will continue to grow as a prevalent trend in e-commerce. Online stores leverage this technology by creating virtual reality experience rooms for their customers. The broad scope of virtual reality technology allows e-commerce stores to benefit in various ways, whether it's as simple as bags or clothes or more complex items like home furniture.

Virtual reality technology enables consumers to inspect and experience products firsthand before making a purchase.

4. Increasing Use of Mobile Devices and Social Media for Online Ordering

In the past decade, smartphone usage has skyrocketed, with nearly 50% of adults relying on their smartphones for internet usage and online shopping. As a result, various social media platforms such as Facebook and Instagram have become pivotal for both buyers and sellers in different purchasing activities.

Sellers can either post images of their products on their official Facebook or Instagram pages or conduct live selling sessions. This selling technique is cost-effective for individuals or small businesses that cannot afford the expenses of designing and optimizing the necessary services for creating a suitable e-commerce website.

New features like payment options on Instagram and Facebook are accelerating and improving the shopping experience for buyers.

5. Environmentally Friendly E-commerce Practices

In today's world, every industry is environmentally conscious, adopting more eco-friendly practices to control the emission of harmful chemicals and radiation that pollute the environment. In the coming years, e-commerce stores will embrace more energy-efficient practices to reduce the production of toxic waste.

To satisfy their customers, e-commerce stores will pay special attention when sourcing external goods with various brand labels. Companies will adopt waste-free approaches and prefer recyclable packaging. Standard delivery package sizes will be reduced by companies aiming to create more environmentally friendly practices in the e-commerce industry.

Conclusion

The future of the e-commerce industry is expected to be more exciting and rewarding in the years to come. Buyers and sellers alike stand to benefit significantly from the application of the latest technologies in the e-commerce industry. As more e-commerce stores adapt to the evolving e-commerce practices focused on customization and loyalty, they can improve the overall user experience, ultimately leading to enhanced profits and growth.