eCommerce Trends That Will Dominate In 2020: The Future is Here

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Accountable to a generation of consumers that demands seamless experiences across diverse channels, the eCommerce industry is on the cutting edge of innovation.

Here we are, at the start of a new decade. While many of us might not have felt any different waking up on January 1, the beginning of 2020 signals an era of transition.

From eCommerce operations to consumer preferences, the retail industry is swiftly becoming accustomed to change. Technological innovations have not only improved fulfillment efficiency but laid a corresponding effect on consumer expectations as well. Yet, with global, political and financial uncertainties hanging in the balance, many in the retail industry are left wondering what’s next.

Despite these mounting concerns towards 2020, consumer spending is on the rise and shows no signs of slowing down.

Global ecommerce sales are anticipated to hit $3.9 trillion by the end of the year from $2.8 trillion in 2018. Further, by 2022, eCommerce sales are expected to reach $892 billion in the U.S. alone.

Due to the pace of change in eCommerce, the future is not something that merchants have the liberty of planning for—it’s happening right now, all around us.

So, if the future of eCommerce is already upon us, what can merchants expect over the next 12 months? Our PrestaShop developers and experts have provided their thoughts on the top eCommerce trends to watch in 2020.

eCommerce Trends

Personalized Shopping Experiences
People are inundated with emails, text messages, Slack messages and much more on a daily basis. As per the latest eCommerce trends, brands will create personalized experiences to stand out, which is why it’s more important than ever to utilize the customer data you have to create relevant and engaging personalized experiences for them, every time you communicate with them.

Not only this, basic personalization won’t stand the test of time. If merchants want to deliver relevant and personalized experiences to their customers, they must use artificial intelligence (AI). AI-powered experiences would not just extend across different channels but offer the most relevant encounters based on the context of a customer’s interaction.

Leverage User-Generated Content
Consumers today are shifting away from traditional advertising and relying more on recommendations and reviews.

According to a study, sixty-eight percent of people said trustworthy reviews were the strongest influencing factor that helped them shop online. Product reviews will serve as the most popular type of user-generated content submitted by online shoppers in 2020.

Make sure you encourage reviews of both your business (customer service, quality of your products, etc.), as well as reviews of your products to engage consumers.

Subscription-Based Services
Customers love subscription-based businesses and these will continue to expand in 2020. If you don’t currently offer any of your products in the form of a subscription model, now is the time to begin brainstorming ways to fit your product into a subscription-based business.

Subscription-based businesses also allow you to better manage your inventory and provide additional customization options to build customer relationships. Most of all, subscription services provide recurring and predictable income that can help you better forecast sales goals.

Headless Commerce
Headless architectures and lean microservice stacks deliver enhanced agility and performance in comparison to monolithic systems. Plus the benefits are delivered almost instantly. With the ability to develop apps in parallel, isolating and scaling microservices is possible so new front-end experiences, like PWAs, can be launched swiftly and efficiently.

Historically, if a UX team made changes in design to boost sales, they’d have to sit on that change until a developer could get to it. This, in turn, slows down the growth process. On the other hand, when marketing and creatives have the liberty to implement changes, they’re able to conduct experiments more frequently, gathering richer insights and ultimately higher conversions.

Progressive Web Apps (PWAs)
Mobile has always topped the list of eCommerce trends for several years. PWAs are the next evolution of mobile commerce and will become the standard in 2020.

PWAs helps customers in interacting with brands in their preferred manner seamlessly. For instance, a customer visiting a furniture store can have the in-store experience, mobile experience and online experience all provided by the same PWA that guides him/her from the first visit to the store to the delivery of the new furniture. So As more and more consumers begin to expect an omnichannel experience from their favorite brands, the use of PWAs in eCommerce will soon be seen not as “a little something extra,” but as an essential part of the customer experience.

Dynamic Pricing
You probably know that optimizing product prices isn’t as simple as undercutting the competition.

In fact, going in this direction will only start a “race to the bottom,” which will ultimately devalue your products, overall.

As an eCommerce specialist puts it:

“To stand out in this highly-competitive environment, eCommerce companies need to monitor their competitors’ prices, analyze seasonal and historical demand, and react to these insights in nearly real-time.”

The goal here is to nail down the optimal price for a given product at any given time. By “optimal,” we mean the price at which you have the best chance of selling your product while making the most possible profit. To achieve this, access data that involves your competitors’ prices, market demand and perceived value of your products. Moreover, this data needs to be delivered and acted upon in real-time to be useful at all.

What to Expect in 2020?
2020 will be another year of extraordinary growth in the eCommerce space and staying on top of the latest trends will be extremely crucial to your business growth and success. Focus on understanding how consumers are choosing to shop, what they’re looking for and how you can create more personalized experiences to meet their demands. Once you crack this, you’ll be able to climb up the ladder to success and have a great year ahead.

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