Ecommerce is a constantly evolving world, and staying on top of the latest trends is crucial for success. Now we know at this time of year, the prediction and forecasting posts come out in their hundreds but it is for good reason. As we look towards the future, it's important to understand the things that are going to be crucial to success.
Trend predictions, while numerous, are a great way to stay up to date with what could be a needle mover for you in the year to come and allow you to put a few miles between you and your competition.
Therefore, in this article, we aim to explore 11 trends that could prove crucial to ensure your ecommerce business is thriving in 2024. We will cover:
- Data Analytics
- AI
- Video marketing
- Social Media
- Working Capital
- Sustainability
- Mobile shopping
- UGC
- AR
- Customer Experience
- Subscription
We hope these 11 tips will put you on the path to success this year and beyond.
1. The continued rise of data analytics
Data analytics has been a buzzword in ecomm for some time now, but it's only going to become more important in the coming years as data capabilities become more sophisticated, easier to deduce and brands dedicate more time and resource to appropriately understanding the swathes of information at their fingertips.
In 2024 and beyond, the ability to harness the power of data analytics will play a crucial role in vital functions such as better understanding customer behaviour, predicting trends, and making informed business decisions. Ecommerce businesses that embrace data analytics will have a competitive advantage over those that don't.
Personalisation at Scale
One of these such benefits will be having the ability to more accurately personalise the customer experience at scale. By analysing customer data, ecommerce businesses will be able to learn about their customers on an individual basis and therefore be able to create hyper targeted marketing campaigns and personalised product recommendations that resonate more with individual customers.
Fail to personalise, and your marketing efforts will struggle to compete so get cracking on understanding how you harness the power of data analytics.
2. AI reigns supreme
Yes yes we know. AI this. AI that. Recently you can’t move for AI related shenanigans. Looking at you Open AI board. However, we must face the facts. AI is here to stay and will change the way we work and, similarly to data analytics, if we don't find ways to harness it, we will be left behind.
In ecommerce, the effects of AI are already being felt but 2024 will be the year the applications will continue to mature and develop. The Times have been running a series on the early applications of AI propelling brands forward. Check out the second edition of The Times series on how Cubitts used AI to streamline operations. Two areas that are predicted to feel massive enhancement are:
Customer Experience and service
AI will be instrumental in creating a smooth and seamless customer experience. From acting as a recommendation engine ensuring consumers get what most aligns with their needs, to a cross-sell/upsell function, to dynamic pricing and chatbots, AI will be game changing.
Supply chain optimisation
From demand forecasting to logistics and route optimisation, AI will help to find cost and time saving options for ecommerce brands from factory to delivery. When dealing with high volumes of orders and a complex logistics engine, this could prove life saving both for the company coffers and your team’s peace of mind.
There are countless other applications from social media to fraud protection but we predict that the above two will be 2024’s shining lights for the ecommerce world.
3. The importance of video marketing
When an ecommerce brand nails its video marketing, its impact can be felt across the business. In fact, 46% of consumers have suggested they made a purchase after watching a brand video.
From social media to explainer videos on product landing pages, video has an unparalleled ability to engage, inform, and emotionally connect with audiences.
Maybe this writer is just speaking for himself but attention spans are limited these days and video marketing is an effective way to capture attention by providing visually compelling and an easily digestible way of showcasing products.
Other reasons video are particularly effective are:
- Easily demonstrate product features
- More easily foster relationships and community with your audience
- Video is highly shareable
- Search engines algorithmically favour video
- Benefits SEO performance and discoverability
- Authenticity and personality of brand can be laid out for all to see
- UGC - more on that later
- Connect with customers in real time with live streaming capabilities enabling you to connect with your audience in real-time
Video marketing isn't new but has quickly become the consumers favourite way to interact with brands in the modern age. In 2024, video should be a crucial component of any successful e-commerce marketing strategy. So build it in or get left behind.
4. The growing importance of social media
No, we haven't been living under a rock. We know social media isn’t a new phenomenon and in fact the majority of Uncapped’s capital provision gets spent on marketing on Meta. Check out Hedoine’s story here.
However, it is an ever evolving landscape and the ways in which brands win on the platforms changes constantly. Two areas brands need to be particularly aware of going into 2024 are:
Social Commerce
Social commerce, or the ability to sell products directly through social media platforms, has skyrocketed in recent years with features like TikTok Shops and Instagram Checkout allowing businesses to sell where they promote. TikTok states that 62% of weekly users have participated in ecommerce shopping demonstrating the power of connected platforms. Refine your store and don't miss out on sales opportunities.
Influencer Marketing
Influencer marketing has become an industry staple. Crucial to today's marketing matrix, influencer marketing can be a great way of infiltrating new audiences as well as expediting trust and credibility building with potential customers.
5. Access to working capital
Ecommerce is an industry defined by rapid change meaning agility is paramount. However the ability to be agile is hindered without appropriate and timely access to working capital. From reactivity to cash flow management, supplier management to international expansion, working capital fuels it all.
In 2024, brands with access to working capital will far outperform those without it. Therefore, perhaps unsurprisingly, in order for brands and retailers to win this year, we recommend getting in touch with Uncapped to discuss financing options that will allow you the flexibility to scale.
Learn more about working capital options from Uncapped here.
6. The Importance of Sustainability
With COP 28 taking place at the back end of 2023, sustainability has been an even hotter topic as we enter 2024. With consumers becoming more conscious of the environmental impact their dollars can have, it is vital to be a business that acts accordingly and looks to implement change right the way down the supply chain.
It is particularly important for those whose ICP sits in the younger generations. Recent studies found that over 50% of Gen Z shoppers would be willing to pay 10% more for a sustainable product. So better get it right as this generation has a massive amount of purchasing power and this will only grow!
Sustainable Packaging and logistics
It isn’t just your products that need to be environmentally minded. Packaging, shipping, delivery and the entirety of the supply chain should be moving towards a more positively impactful direction. Consider using biodegradable materials, reducing packaging waste, and implementing recycling programs. Uncapped partners ShipBob and Packhelp can help here and do your due diligence when finding transport and delivery for your brand.
Ethical Sourcing
Consumers are also becoming more aware of the ethical implications of their purchases, and they're looking for businesses that prioritise ethical sourcing. In the age of greenwashing, transparency is key. A great example of this is Tony’s Chocolonely who do a great job at contextualising their mission, following through and laying out the tangible steps they have taken in order to maintain integrity.
With sustainability going to be an important factor in purchase decision making, it is important you have all your ducks in a row.
Bonus tip: list your products on sustainable marketplaces, like Canopey, to provide even more credibility to your brand and provide your customers with tangible results for shopping sustainably.
7. The growth of mobile shopping
Shockingly, we now spend in excess of 6 and a half hours per day on our mobile phones. Being creatures of convenience, it is therefore no surprise that mobile shopping’s prevalence has only grown in popularity over the past few years. In 2024, mobile shopping will continue to grow, and businesses that don't prioritise mobile optimization will struggle to compete.
Key areas to focus on to ensure it is as smooth of a ride as possible are:
Mobile-First Design
With so much of our time glued to our mobile screens, optimising for mobile purchasing is key. Gone are the days of web design being a blanket thing. Look to implement or optimise your responsive design, touchscreen compatibility, mobile navigation, loading speeds and streamlining the checkout process.
Mobile Payment Options
Speaking of the checkout process, ensure there are no barriers when it comes to payment. With mobile payments, a combination of ease and variety is often the winner when it comes to meeting the needs of the customer and ensuring carts go unabandoned.
You should offer traditional options as well as options like Apple/Google Pay, PayPal, Klarna that encourage speedy checkouts and less chance of losing sales due to clunkiness.
8. Use of User-Generated Content (UGC)
UGC is such a powerful marketing tool for so many reasons. Everything from community trust building through to cost effective marketing strategy, UGC has the ability to have a huge impact on the success of online sales.
To get the most out of UGC however, you have to nail two elements:
Leveraging UGC
Incorporate UGC into your marketing campaigns across all channels be it social, email, website or any other focus channel. A great example of a brand world famous for their utilisation of UGC in their marketing is GoPro who expertly use a combination of influencer and regular customer content to create a sense of authenticity and accessibility.
Encouraging UGC
However, before you become a GoPro of the UGC world, you must encourage customers to create and share their content. This of course starts with a great product but can be incentivised in different ways including:
- Contests, challenges and competitions
- Review incentives
- Branded hashtag
- Engage with your audience
- Include them in developments
This will make them feel part of the movement and get them excited at the prospect of having their customer story told.
9. Going all out on augmented reality
We have done AI but now we are going to talk about AR. Augmented reality (AR) has been on the rise in the e-commerce industry, and is being used both from a sales and marketing perspective. It is having a great impact on allowing customers to visualise products in their own space, providing a more immersive shopping experience.
AR for Product Visualisation
AR has been revolutionary for allowing businesses to help customers visualise products before making a purchase. This could include features like virtual try-on for clothing or AR product demos for home goods. It has many benefits both in terms of conversion but also for cost efficiency and environmental reasons as well. It can reduce return rates due to the fact that the buyer has a clearer idea of how it will look, act or be used.
AR for Marketing Campaigns
AR is also being rolled out across marketing channels to encourage purchases as well. A prime example of this was the partnership struck up between Amazon and Snap which encouraged customers to use a filter to see what different pairs of sunglasses looked like. This of course encouraged sharing of this content thereby creating an effective organic campaign after initial hit.
10. Customer experience unlocking advantages
All of the previous points have something in common. They all contribute to a positive customer experience. From the moment of discovery through to purchase and beyond, the real winners in 2024 will be the brands and retailers who recognise the fact that consumers have more options than ever before and therefore pump time, effort and resource into creating a seamless customer experience.
Two elements to look at is:
Chatbots for Customer Service
Many customer requests are simple and relatively easy to address. Because of this, chatbots have proved to be an incredibly effective way of ensuring 24/7 support is available to answer customer queries as and when they come through. It is an easy, low cost way of leaving the customer with a positive experience when they have questions they need answering.
Post purchase communication
An area of the customer experience that often is neglected is the post purchase follow up. This provides a great opportunity to differentiate oneself and give your brand the best chance of converting a first time purchase into a returning customer. Through personality injected order confirmations, shipping notifications and post purchase surveys you can ensure you leave them with a feeling of being important and worth the time it takes to keep them updated and involved in the process.
11. Subscription a key part of distribution
Now, not all your products need to have a subscription offering but it can help when looking for ways to progress your offering, retain customers beyond first purchase as well as scale revenue streams.
CAC and LTV awareness
Subscribers often have a higher customer lifetime value compared to one-time buyers. The recurring nature of subscription models can contribute to a longer and more profitable relationship with customers.
Acquiring new customers can be an expensive ordeal. Subscription models reduce the need for continuous marketing efforts to attract new customers, as the focus shifts to retaining existing subscribers.
Convenience and predictability
Subscriptions offer convenience both to customers and to brands. Customers can receive products regularly without the need to reorder each time and brands can benefit from the convenience of clearer inventory management on product lines as well as predictable revenues.
This convenience factor can be particularly appealing for consumable goods or products that customers regularly need or want. Take Uncapped customer Freja Foods who offer customers who know they will get through a 6 pack of their incredible bone broth a chance to subscribe and save with monthly delivery. Convenient and predictable for all parties.
Conclusion
It is impossible to know what the future holds but as we look towards a new year in this wild ride of ecommerce, it is clear that the overarching themes are using tech to your advantage and making sure you are doing everything in your power to differentiate yourself in a hugely busy space. Your success and growth depend on it.
These 11 predicted trends are not to be ignored in 2024 and should you implement these changes or improvements in these areas, we are sure you will see positive impacts across sales and business functions.
Now go give it hell!
