7 eCommerce Technology Trends to Watch Out For in 2022
Anticipating future trends in the eCommerce industry is a necessity. It keeps the businesses prepared for uncertainty and also provides a competitive edge by staying on top of the upcoming opportunities. For instance, the pandemic impacted businesses substantially and we saw a paradigm shift in eCommerce.
The intensity of online trends can be accessed by the fact that in 2021 retail e-commerce sales were recorded at approximately 4.9 trillion U.S. dollars worldwide. This figure indicates a growth of 50 percent over the next four years, which takes the figure up to 7.4 trillion dollars by 2025. So, it won’t be wrong to state that the shift in customer behavior is here to stay.
The effect is obvious with many well-known brick-and-mortar retailers having upped their online game, and creating a buzz around eCommerce. This change contributed to delivering some truly innovative trends. It leaves no doubt that it’s an exciting time to be involved in online retail. As we started with a focus on anticipating future challenges, we will now highlight ways to successfully compete in 2022 by adapting to these eCommerce trends.
6 eCommerce Technology Trends for 2022 you need to adapt
- Mobile payment technology is a must
It is no longer optional to enable mobile payment functionality, commonly known as mobile wallet for your customers. Digital payments are projected to reach a startling 6.6 trillion dollars by 2022.
Mobile payment usage provides customers with ease of use and increased security in addition to boosting sales and conversion rates for merchants. There is no need to enter Credit card information on and most of these payment systems require dual authentication making them extra secure.
- Product Upselling and cross-selling fueled by personalized recommendations
ECommerce stores can increase the likelihood of a purchase by personalizing product recommendations to the tastes and interests of customers.
With 92% reporting that their customers and prospects expect personalized experiences, online stores have recognized the importance of personalization to buyers. Personalization efforts have led to quantifiable business results – 97% report seeing a positive impact on their brand after personalizing the buying experience.
Personalized product recommendations leverage the details of users’ previous purchases and searches to deliver recommendations.
- Customer experiences improve thanks to better CRM integration
To carefully manage and ensure the best customer experience, online retailers are connecting with buyers through a variety of channels, including online marketplaces, eCommerce websites, chatbots, email, and social media. This is why eCommerce businesses are implementing integrated eCommerce customer relationship management (CRM) systems to keep up with the intense competition.
In addition, eCommerce CRM integration provides a central location for customer data which in turn can be used for more effective marketing. Furthermore, sales data can be used for improved inventory forecasting and planning. In essence, automated, synchronized data increases overall business efficiency.
Retail technology has moved beyond just integrated eCommerce CRM systems with Customer Data Platforms (CDP). Online retailers have started using native integrations to connect all the retail systems that gather customer data, across channels. That way, they ensure a smooth customer experience across platforms and channels.
- Chatbots are personalizing eCommerce
The use of chatbots is on the rise in creating valuable customer experiences. These chatbots are computer-based programs that imitate human conversation. It can be used on various platforms that use artificial intelligence to anticipate customers’ preferences in creating a customized online shopping experience. These chatbots initiate a conversation with customers to resolve their queries 24/7. It’s no wonder their popularity is rising.
- Voice search is growing in popularity
Mobile and smart gadget users of devices like Amazon Echo are comfortable with verbally making their purchases. The predicted growth of voice-based shopping is a whopping $40 billion. It is obvious as almost one-third of internet users preferred to use the voice search method, either to shop or find information about a product. eCommerce retailers need a successful voice search strategy in place that includes a proven SEO strategy, blueprints of information skills and an action set for building brand affinity along with a focused approach to delivering a high-class customer experience by infusing voice-based product features and review videos.
- Live Streaming Commerce
Have you ever noticed TV channels on Home Shopping Network that sells earrings, and you may wonder who on earth would buy a pair of earrings from a stranger that too on TV. Well, something similar has happened with eCommerce.
Live Streaming Commerce is a new emerging trend where brands or influencers (that businesses hire) do live streams i.e., go live and interact with their audience while placing products at the center. They share usage, benefits and testimonials with live audiences. Some live video streaming platforms actually make actual sales possible by giving live discounts and locking the deals on the spot. A report from McKinsey predicts that live commerce could account for 10-20% of all eCommerce sales by 2026.
Live stream commerce is quite popular in China, U.S. and India. Several brands conduct live streaming on omnichannel mediums and connect with customers directly.
Amazon has a standalone livestream platform called Amazon Live for its audience. The platform broadcasts an ongoing queue of shoppable live streams where sellers, influencers and curators post product-oriented videos along with exclusive offers.
Shoppable Live Streams create an opportunity for customers and sellers to communicate directly. Viewers can ask product related questions on chat and can share their instant reviews. This trend is primed to become a significant means of increasing customer engagement and filling the sales funnel with fruitful conversions.
At the other end of the spectrum, you will be amazed how impressively Facebook live streaming is creating a huge marketable opportunity for small personal brands. Several retail personal brands go live with the audience and showcase their products. Viewers get awareness about the latest trends, and prices without stepping out of their house. The benefits of Live Streaming Commerce are:
- Better way to reach customers
- Creating brand awareness
- Lesser sales returns
- Improved customer engagement
- The Sharp Rise of Mobile Commerce
Mobile Commerce (also called mCommerce) is an extension of eCommerce but it highlights only mobile users. With mCommerce, buying products on smartphones and tablets becomes easy. Industry reports suggest that by 2025, mCommerce will account for over 10.4% of all retail sales in the US.
Many eCommerce businesses like Myntra are building mobile-first strategies as mobile traffic continues to rise. In addition, peer-to-peer (P2P) payment systems on mobile phones make transactions easier. This strategy helps to reduce the sales cycle. Focusing on mCommerce can help:
- reach more customers
- attract new customers easy
- encourage repeat business with push notifications
- make location-based sales
Adapt to the ever-changing world of Digital Commerce with Concord
Retail is one of the oldest business models in the world, but eCommerce is forever evolving. Understanding the latest technology trends can help you stay ahead of the competition.
Keep an eye on your competitors, observe the new techniques and the technology they use and evolve. It can have the greatest impact on your bottom line. Contact us today to explore how Concord Commerce can help you adapt to the latest eCommerce trends in 2022.