Have you noticed that all the innovations are all about making things easier, quicker, and more feasible? With the rise of the internet and subsequently e-commerce, transactions and the steps leading to transactions had to be transformed, especially when over $63.2 billion was changing hands! The e-commerce landscape is ever-evolving and requires constant changes to keep up with changing consumer behavior. Primarily stimulated by the overhaul of technology in the very workings of the online retail world, digital commerce has been embraced as its intrinsic cog. If you are good at it, you are successful!

But what is digital commerce? Well, in the most simple sense, the process by virtue of which one can buy things online without any human intervention is what digital commerce is.

Consider a normal weekday where you, after work hours, are browsing a popular social media platform and come across an ad for something you would like to buy. You click on the buy now option but get reminded of an important chore and leave the platform without transacting. Now, the next day, whenever you are online, you see the ad for the same product. You get reminded of it and end up buying it. This showing of ads, to retargeting, to the transaction and the subsequent delivery, it’s all a part of digital commerce.

Even the marketing activities that support these transactions, including technologies, people, and processes, content marketing, user experience mapping, promotional campaigns, social media engagement, pricing, customer acquisition, customer service, and retention, product descriptions, images, and other media, analytics, the customer experience at all touchpoints throughout the customer’s buying journey, and order fulfillment and supply chain management, are a part of the digital commerce universe. And since all the elements of purchase decisions have to be accounted for in digital commerce, the digital commerce experience would be inadequate without these important elements as the strategies and the subsequent allocation of milestones, KPI, and mapping of the consumer journey are based on them.

In my opinion, automation is the foundation of successful digital commerce. When supported by the next level of data and analytics capabilities, digital commerce becomes even more successful and effective. Digital commerce necessitates detailed mapping supported by roadmaps drawn for all possible scenarios and automated by tools that control everything from marketing, ordering and inventory movement to customer satisfaction.

Digital commerce surely amplifies all the benefits of e-commerce by generating more value and revenue over a longer period. It’s safe to say that unless brands adopt flawless and effective digital commerce, they run the risk of disappearing into oblivion.
Today’s consumers prefer a seamless transaction regardless of the platform. This channel-agnostic buying journey leads to increased visibility and multiple sales opportunities. With so many brands visible to the TG, it’s imperative for businesses to gain the trust of their customers and be considered authentic, credible, and genuine. With multichannel strategies, digital commerce has the potential to drive more sales with increased visibility.

According to Statista, by 2026, the number of users in the digital commerce segment will reach 5.17 billion. The transaction value in this segment is expected to grow at a rate of 11.31 percent CAGR from 2022–2026, resulting in a projected total amount of US $8.37 trillion by 2026.

Merchants continue to follow consumer demand online, flocking to e-commerce in record numbers. Online stores are popping up daily, with an estimated 12–24 million e-commerce sites across the globe. This means more brands competing for the same set of customers. As a result, digital advertising is more costly by as much as five times and is less lucrative than ever before.

Some of the most important questions digital commerce latest trends appear to have answers for include: how to combat rising customer acquisition costs; align brand activities with brand top-level goals; explore new channels to reach new audiences; highlight your brand differentiators at every possible customer touchpoint; align brands with customer value; spend low for high engagement and sales, and sell everywhere your customers are. The success of some of the trends has cemented their position as the driving force behind the ever-growing and incredibly successful digital commerce. Some trends which are here to stay, not only because they are relevant to the brands and consumers alike, but also because they are scalable and adaptable.

A few of the digital commerce trends that I believe will continue to make waves in the future are:

Personalized Commerce: Want a ready-made package of a certain quantity and brand of hair care products based on your last search and purchase? Want to create a grocery list and frequency of delivery of the same? Fret not! Digital commerce does that for you. This level of personalized automation is one of the most popular trends in digital commerce. According to research by Monetate, marketers see an average increase of 20 percent in sales when using personalized experiences. In another study by Epion, 80 percent of shoppers were more likely to buy from a company that offers personalized experiences. A survey by Forrester found that 77 percent of consumers had chosen, recommended, or paid more for a brand that provides a personalized service or experience. However, that same survey also found that 53 percent of digital experience delivery professionals lacked the right technology to personalize experiences. Personalization is driven by the analysis of personal data and is the future of digital commerce if used with some restraint. Over-personalization may repel customers, especially those who are sensitive to their personal data. According to a Forrester Consulting study conducted on behalf of Shopify in September 2021, almost 40 percent of the customers spoken with refused to buy from a brand because of concerns around personal data use. While 85 percent of brands believe they’re offering personalized experiences, only 60 percent of consumers seem to agree.

Interactive Products: Now one can easily try on lipstick virtually or see how a couch would actually look in their living room. Why would that person spend their time and money going to a retail store? According to recent e-commerce statistics, approximately 22 percent of customers return products because the product they received did not match the images on the website. According to Bizfeel, the most significant disadvantage of online shopping for customers is the inability to touch, feel, and try a product. The lack of a physical shopping experience and interactivity are among the disadvantages of online shopping. As a result, the market for interactive product visualization is expected to reach $3.7 billion by 2026. With the emergence of product visualization, consumers now have the chance to see, understand, and experience a product thoroughly online before making a purchase, just as they would in-store. Augmented and virtual reality are two of the most important tools driving this trend. From 3D walkthroughs to filters used by beauty brands, this tech-driven trend will help convert customers faster.

Inventory Control: Inventory has always been the greatest expense in retail. Digital commerce, however, is now enabling businesses to solve this problem with the help of data and analytics. Problems like high investment in inventory, storage space, inconsistent tracking, lack of warehouse efficiency, inaccurate data, changing demand, limited visibility, supply chain complexity, evolving packaging, ever-expanding product portfolios, overstocking, inventory loss, and inefficient processes are now met by Centralized Tracking, Demand Forecasting, Preventive Control, Automated Reorders, Multi-Location Warehousing, Plan Demand, and Dashboard Collaboration for much relief from the slow and wasteful exercise brands were forced to. While in the B2C domain, Walmart is using its own system called Retail Link to predict demand and Walmart inventory levels, whereas BOSSARD in B2B is using Smart Factory Logistics (SFL), which is key to smooth and seamless supply chain performance, helping achieve a cost-effective business model.

Progressive Web Apps (PWAs): A study has shown that approximately 20 percent of people lose interest in an app due to app fatigue (when they encounter many steps such as finding the app, downloading and installing it, and then opening it). Since a PWA requires no such steps, works on every browser, and can deliver offers and reminders too, it’s becoming an important tool for digital commerce. PWAs can efficiently re-engage users periodically, for weeks or even months, after their initial experience with the software and deliver key solutions without too much effort. Since PWAs are always up-to-date and accessible on all devices and platforms, they present an effective way for businesses to stay engaged with customers who may not always be connected to the internet. Starbucks, for example, has already seen significant results from the launch of a new PWA. The PWA is 99.84 percent smaller than Starbucks’ existing iOS app, making the web app a user favorite. As a result, they have more than doubled the number of web users who place orders every day, with desktop users now ordering at roughly the same rate as mobile users.

Customer Analytics: Analytics is the key to understanding consumer behavior and market trends and helps in making informed, data-driven decisions. They are perhaps the most important asset a market can own. With the advent of technology, businesses have been able to leverage the power of data to optimize marketing strategies. Mapping the important micro-moments of a customer’s buying journey and using monitoring algorithms with analytics software are helping businesses optimize social media marketing strategies for better ROI.

Artificial Intelligence: When it comes to digital commerce, artificial intelligence has a wide range of applications. Nowadays, websites are using AI to provide personalized product recommendations, suggest relevant cross-sell opportunities and even help customers navigate through their websites. It also helps vendors by optimizing their marketing spending and improving their conversion rate.

From content creation to customer service, AI is being used in digital commerce for almost everything. According to a recent Business Insider study, up to 85 percent of customer interactions are handled without the involvement of a human. This enables businesses to generate new leads, better understand their existing customers, and provide a better customer experience. It also contributes to a more seamless consumer purchase journey by providing relevant information at all stages of the consumer lifecycle. AI in Digital Commerce provides tremendous information to the sales team, allowing them to personalize sales. These artificial intelligence-powered applications assist sellers in engaging the right prospects with the right message at the right time.

Be Where Your Customers Are: E-commerce is migrating to social media platforms. Ecommerce activity is congregating on social media platforms, from brand marketing to customer service to automated shoppable advertising. Social media platforms are opening up new avenues for customer engagement. Diverse platforms and rapidly evolving features enable brands to create one-of-a-kind customer experiences, encouraging them to reimagine consumer engagement. Video is enhancing social commerce and unlocking the power of digital commerce. Leading brands are emphasizing social-first strategies such as behind-the-scenes live streams, video consultations, and personalized product recommendations. Global sales via social media channels are expected to nearly triple by 2025. Although approximately 30 percent of internet users in the United States already make direct purchases on social platforms, China is the clear global leader. Almost half of all internet users in China shop on social media, generating more than ten times the sales of the United States.

Cryptocurrency: Bitcoin, Dogecoin, and other cryptocurrencies are gaining popularity as payment methods. According to a report from coinmap.org, more than 15,000 merchants worldwide accept Bitcoin, of which 13 are major national companies. Google Trends shows that the number of people searching for ‘cryptocurrencies’ or anything to do with crypto has increased by over 274 percent since 2012. By accepting cryptocurrency payments, businesses can benefit from reduced transaction fees and faster processing times, as well as improved security compared with traditional methods such as credit cards or PayPal. Cryptocurrency adoption is increasing all over the world. With over 300 million cryptocurrency users, the global cryptocurrency market is growing at a CAGR of 56.4 percent between 2019 and 2025.

Omnichannel Content and Commerce: Consumers have become omnichannel, which means that their behavior often spans multiple channels as they research, discover, and buy products. This seemingly simple shift has had a profound impact on the retail industry. A robust content strategy raises brand awareness and unifies the customer experience across all channels. According to the Harvard Business Review, 73 percent of all customers use multiple channels during their purchasing journey. Starbucks’ loyalty rewards program is an excellent example of an omnichannel strategy. While the rewards program is mostly operated through a participant’s mobile device’s rewards app, customers can fund their rewards account through a variety of methods, including their cell phone or by using their website.

Open Network for Digital Commerce: The ONDC will allow consumers to transact with sellers registered on any e-commerce portal through one single portal, which is expected to increase competition among different e-commerce companies. ONDC aims to revolutionize the way e-commerce is done by giving all market participants, including consumers, equal opportunities. This means that buyers and sellers can transact on ONDC regardless of affiliation with any e-commerce portal. Essentially, if you are a seller, ONDC will allow you to sell your products on any platform that best meets your needs while still communicating with your customers via the open network. If you are a buyer, ONDC will help you find products and services that are relevant to your needs, regardless of where they are available, giving you access to the best deals available. And, if you’re a business owner looking to expand your company by selling online, ONDC can assist you by providing access to buyers and sellers in an open market. This will make it easier for buyers, sellers, and business owners because they will no longer have to register on multiple platforms or deal with multiple registration processes.

Although the seamless processes, less manpower utilization, easier scalability of the business, the value-adding trends, and better user experience will always keep digital commerce going strong, it will be a challenge for businesses to deliver a consistent customer experience, innovate new technology, convert, and retain customers by deploying strategies to generate more traffic. Though all of these current and future trends would definitely give digital commerce a boost, what will always lead to a win is the understanding of the market and what trends and technology resonate best with your brand and the audience.

Source : https://www.indianretailer.com/article/technology/digital-trends/future-trends-of-digital-commerce.a7968/