This write-up introduces some fascinating facts and figures on the global & US eCommerce industry to help understand the stiffly competitive eCommerce industry and how online retailers can mark their presence by adopting top-notch web development technologies.
Apart from this, it discusses the growing importance of eCommerce websites and how that has influenced the masses. The essence of technological innovations has also been discussed briefly followed by the challenges that the eCommerce industry faces today.
Table of Contents
- Introduction:
- The Growing Popularity of eCommerce
- Essence of Adapting to the latest eCommerce Technologies
- Challenges Faced by the eCommerce Industry
- Dominating eCommerce trends in 2022-23
* Buy Now Pay Later
* Serverless Architecture
* Switching to headless CMS
* Mobile Commerce
* AR/VR Technologies
* The Big Data Secret
* Blockchain - Endnote
Introduction:
Pandemic played a crucial role in the upheavel of the eCommerce industry. As per the United Nations Conference on Trade and Development, this upsurge is happening at a global level with consumers making the greatest shift to online shopping.
Ever since the pandemic hit worldwide countries, there was a boom in the eCommerce industry. Today, eCommerce websites have become one of the most rejoiced ways to buy and sell products online.
- Today, the eCommerce industry is flourishing at a CAGR of 23%, and after China, the US remains the second-largest eCommerce market in the world.
- The highest CAGR was noticed in the food segment (26.2%) while segments like fashion, food, and personal will continue to grow at a CAGR of 14%.
- The annual eCommerce revenue in the US is expected to be USD 875 billion by the end of 2022. Statista Digital Market Outlook forecasts that it will exceed USD 1.3 trillion by the end of 2025. (Source: Statista, 2022)
Technology has made it possible for online retailers to overcome several business challenges and offer a highly scalable and fluid-performing eCommerce website for their target audience. The performance of an eCommerce website simply depends on the type of software used to develop it and the expertise of eCommerce development services that you choose.
This post will highlight certain future trends in eCommerce development that will dominate the eCommerce industry in the coming years. Make sure that you switch to these changes to ensure sustainability and enhance profitability in this stiffly competitive eCommerce industry.
The Growing Popularity Of eCommerce
eCommerce has recently become an indispensable part of the global retail framework. The industry has undergone substantial changes with the advent of faster internet and massive reliance on digitized modern life.
Moreover, more than 58% of internet users make an online purchase once a week. The global eCommerce market has already reached USD 5.5 trillion in 2022 and there has been a 17.9% increase in eCommerce market share over the past two years.
The Essence Of Adapting To The Latest eCommerce Technologies
We have already discussed the kind of competition and growth that the eCommerce industry is facing right now. More eCommerce stores are entering the market besides unprecedented growth in eCommerce users.
Cut-throat competition and rising demand for tailor-made shopping experiences have compelled eCommerce store owners to focus on their sustainability. Technological innovations have opened seamless opportunities for eCommerce stores to leverage their fullest potential.
Consumer tastes and preferences keep on changing with the passage of time and online retailers need to adapt to these changes as and when required to remain competitive.
Challenges Faced By The eCommerce Industry
With the growing popularity and number of eCommerce websites, online retailers are facing some major challenges that need to be addressed astutely.
With global consumers heavily relying on eCommerce websites to access products and services, online retailers need to be more responsible and agile in delivering absolute contentment to their online customers.
Here are some major challenges faced by eCommerce websites worldwide.
- Cyber Data & Security
- Converting visitors into loyal customers
- Online Identity Verification
- Competitor Analysis
- Product Return & refund policies
- Finding the right eCommerce development services
Dominating eCommerce Technologies and Trends in 2022-23
Having a feature-packed eCommerce website must be a priority for businesses looking forward to going global. By leveraging technologies at their best, online retailers can ensure smooth shopping experiences, coherent customer journeys, and enhanced CTR, besides attractive UIs.
Hence, you need to adapt to these following eCommerce trends to mark your presence in the stiffly competitive eCommerce landscape.
1. Buy Now Pay Later: Enticing The Masses
As per Adobe’s 2022 Digital Economy Index, BNPL options have marked an increase of 166% year-over-year. Considering this innovative aspect in your eCommerce website will certainly allow you to entice 14% of the US population that falls under the age group 15 to 25 years.
Statistics reveal that youths prefer this option much while making an online purchase through an eCommerce website.
2. Serverless Architecture: Encounter Changing Business Requirements
With the growing number of eCommerce websites, there will be a need to cope with the surge in demands. In serverless architecture, the cloud service provider allocates resources dynamically to scale the elasticity of your eCommerce website without managing the server.
This is a proven technology in different sectors and will certainly benefit the eCommerce industry as well. Some of its obvious benefits are no downtime due to scaling issues, decreased costs on servers, and easy debugging from a single point of entry from any eCommerce development company.
3. Switching To Headless CMS: Rule The Content
A content management system is meant for non-technical teams for updating regular and relevant content on eCommerce websites. The concept is to eliminate the dependency on an external eCommerce development company or service provider for content updates.
There are several other benefits attached to a good CMS. A headless CMS basically deals with serving multiple front-ends and aligning them perfectly with the back-end content database. Unlike a conventional CMS like WordPress, a headless CMS is highly compatible with APIs and supports all of your channels and devices.
The best part is that a headless CMS can host your content in the cloud so that it can scale easily with traffic floods.
4. Mobile Commerce: Becoming Highly Popular
There are more than 6.64 billion smartphone users worldwide and among these almost 79% of smartphone users have made an online purchase through their smartphones. Apart from this, the share of mCommerce in global eCommerce has already reached 72.9% in the previous year.
Developing a Progressive Web App (PWA) will be highly advantageous in the coming time when people will be even more reliant on smartphones to purchase things online. A PWA is just like a website that is compatible with smartphones.
These apps are much more cost-effective to develop and take much less time to be developed when compared to costly native apps.
5. AR/VR Technologies: For Immersive Shopping Experience
Both these technologies have proven to be a game changer in the eCommerce landscape. It allows online shoppers to virtually view any product before paying for it. It can really transform the entire shopping experience of your online shoppers.
People prefer shopping online more if their favorite eCommerce store allows them to virtually try on a product before buying it. It can offer some exciting features to your eCommerce websites like product visualizers, product builders, and 3D mapping.
This elevated product merchandising will certainly reshape online shopping by offering an immersive experience for online buyers.
Moreover, you can compel users to spend much more time on your eCommerce website with engaging functionalities and user-centric features incorporated by an eCommerce development company.
Also Read: How Businesses Can Use Virtual Reality in Real Life to Monetize
6. The Big Data Secret
Leveraging Big Data is the key to entering an amazing future in the eCommerce industry. It helps online sellers to gather maximum relevant information regarding their users and monitor their tastes and preferences. Using this crucial data, you can improve decision-making, and gain a competitive advantage to a great extent.
The technology offers much required and crucial information on 3 V-, volume, velocity, and variety. This will give you access to various kinds of information on customers’ experiences, financial transactions, and the competitiveness of the marketplace.
7. Blockchain: Utterly Secured Transactions
Whatever conception you may have regarding this dominant technology, the fact remains that it has successfully proven its worth in offering highly secured payment processing, product searches, and even enhancing customer service in the eCommerce industry.
eCommerce development services have already started leveraging Blockchain-related technologies to deliver safer and faster payment options. Offering multiple payment options on your eCommerce website will certainly add an advantage that will attract maximum customers for your eCommerce store.
Endnote
In the coming years, eCommerce customers will look for a more enhanced shopping experience that perfectly caters to their convenience and flexibility.
Investing in the right eCommerce trends will give you an extra edge over your competitors and you can mark your presence easily among the millions of eCommerce websites.
