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The year is starting and it is time for every marketer out there to learn everything about online retail in 2024 to get their plans and budgets in order. From new trends to unavoidable challenges (don’t worry, we will tell you how to avoid them), this blog will be your full guide to the industry this year.
Shopping has never been easier, so to truly stand out in the online retail game in 2024, you need to bring your game face!
Top Trends To Watch in Online Retail in 2024
First things first. Let’s start on a high note with some new trends that have the potential to reshape online retail in 2024.
AI and high customer expectations might be the key factors driving every trend this year. But there are countless new things to look out for as an eCommerce business. On top of that long list comes:
1- TikTok Shop
Facebook and Instagram have conquered that conquest, and now it is time for TikTok to join the race. Recently, the platform has introduced an integrated virtual shop where brands and creators can showcase and sell products.
It is also worth noting that TikTok currently has 1 billion monthly active users globally.
2- Voice Commerce
Voice assistants like Amazon's Alexa and Google Assistant have become household names, and their integration with online retail is growing rapidly this year.
Basically, voice commerce allows customers to make purchases from online stores using voice commands. This makes the customers’ shopping experience more convenient and hands-free.
To take advantage of that trend, all you have to do is optimize your online store for voice search.
3- Subscription-Based Models
Subscription-based models are gaining popularity in online retail in 2024. Consumers tend to go for that option instead of ordering the same thing over and over again.
In addition to the obvious benefit of a secured sale, introducing this model to your online store can help you increase retention and encourage long-term customer loyalty.
4- Ethical Consumerism (Green Commerce)
Ethical Consumerism may sound a bit scary, but it is actually one of the easiest trends to follow - just stay ethical!
On a more serious note, this trend presents an opportunity for online retailers to align their values with customer expectations and promote environmentally friendly practices like recycled products and eco-friendly packaging.
5- Augmented Reality (AR) and Virtual Reality (VR)
Augmented reality (AR) and virtual reality (VR) technologies are revolutionizing the way consumers engage with online retail in 2024.
Both allow customers to visualize products, such as clothes or furniture, in their own environment before placing an order. This experience reduces the chances of returns and drastically enhances customer satisfaction.
6- Live Commerce
Live commerce, or livestream shopping, is gaining momentum in the online retail industry. This trend involves real-time video broadcasts where hosts showcase products, interact with viewers, and offer exclusive deals.
With collaboration with the right creators and influencers, live commerce can help your eCommerce brand enhance brand awareness and encourage immediate purchase decisions.
7- Payment Options
Some customers like to pay from mobile wallets, while others like to pay in cash (yes, those still exist in 2024!). So simply put, your online store needs to offer numerous payment options.
Many eCommerce businesses are even starting to introduce the Buy Now, Pay Later option. Which is basically a system for customers to make a purchase, get their order on time, and pay with a flexible payment plan.
** Discover more trends in Top 16 E-Commerce Trends in 2024: Reshaping Online Shopping
Important eCommerce Statistics in 2024
We can’t talk about online retail in 2024 without mentioning some hard facts and numbers.
- Global ecommerce marketing is estimated to hit $6.310 trillion by 2024 with expectations for a further increase.
- More than half of consumers shop online for free delivery, followed by those driven by coupons and discounts at over 38%.
- 33% of the world's shopping takes place online.
- 50% of online consumers are likely to return to a website that offers personalized recommendations.
- 60% of online shoppers will check the store's return policy prior to placing an order.
- Around 30% of adults in the US shop on social media platforms.
- Almost 60% of the online audience makes at least one purchase weekly.
- A recent study showed that 71% of online shoppers prefer personalized experiences, and 76% would be frustrated without them.
- After China and the United States, the United Kingdom is the third-largest e-commerce market, accounting for 4.8% of total retail e-commerce sales. Bear in mind that the UK is expected to have more than $143 billion in e-commerce sales.
- In 2023, the Philippines experienced the fastest eCommerce growth with a rate of 24.1%.
- Cross-border e-commerce is expected to rise by 108% over the next five years.
- Over 70% of shoppers reported they are more willing to purchase a product if a trusted social media influencer suggests it.
We gave you some hints on which direction you should take in 2024. But to have a foolproof plan, you also need to learn which pitfalls to avoid.
Emerging Challenges in Online Retail and How to Avoid Them
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High Competition
You must be thinking that an increase in competition is something every industry is suffering from, but did you know that there are over 26.5 million eCommerce stores? So, high competition in eCommerce is something else.
How to avoid it: To stay ahead of the competition, you need to highlight your unique selling points. Also, you can differentiate your brand by leveraging data-driven insights to understand and meet customer needs effectively.
It also won’t hurt if you keep a close eye on your competitors and always meet or exceed what they are offering their customers!
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Delivery Time
Nowadays, customers are expecting quick or even same-day delivery and eCommerce businesses that fail to meet that are losing their clientele to other businesses.
How to avoid it: To offer fast delivery and meet customers' expectations, you can optimize your supply chain and have partnerships with local delivery services. Also, you can implement automated sorting and fulfillment systems and leverage data analytics to enhance your delivery time efficiency.
If you want to go the extra mile and ensure an order is never late, you can invest in data analytics and forecasting tools to perfect inventory management!
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Returns
The ease of online shopping has led to an increase in returns. If not done right, managing returns and reverse logistics efficiently can be a complex and costly process for eCommerce businesses.
How to avoid it: By having clear return policies on your online store and a constantly updated inventory system, you won’t ever worry about returns. You can also remind customers of your return policies in order confirmation emails.
** Discover more in Top 13 E-Commerce Challenges In 2024 With Tips On How To Deal With Them.
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Cybersecurity Threats
With the drastic increase in online transactions, the risk of cyberattacks and data breaches is also on the rise.
How to avoid it: As an online retailer, you must continually invest in cybersecurity measures to protect customer data and maintain trust.
Utilizing encryption technologies, implementing multi-factor authentication, and adopting security protocols are crucial steps in safeguarding sensitive information.
And after doing all that hard work, don’t forget to tell your customers the measures you are taking to protect their data and information!
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Going Omnichannel
Despite the emphasis on the importance of offering the same experience through multiple channels, delivering a seamless omnichannel experience remains a massive challenge for online retailers.
How to avoid it: To overcome this challenge, you need to stay consistent across channels. Needless to say, in order to create the best omnichannel strategy, you need to conduct thorough research on your customer base, learn which platforms they are on, and how they are using it.
By doing all that, you can easily be where your customers are.
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Global Economic and Political Crises
It is no secret that the global economic and political scene is undergoing some great challenges these days. From boycotts to inflation, it might be getting worse by the minute.
How to avoid it: Unfortunately, this one doesn’t have a cheat sheet. But you have to stay well-informed about all political and economic issues going around the world (or the countries you are operating in at least). Then adjust your business plans, operations, and budgets accordingly.
Final Thoughts
Successful online retailers must navigate the previous challenges while staying ahead of the trends and leveraging data-driven insights and statistics to provide exceptional customer experiences in 2024.
If you want to uplevel your eCommerce marketing game this year, marketing operating systems ConvertedIn can be of great help to you.
Book a demo now with one of our experts to learn about our innovative solutions and grow your eCommerce business.
