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E-Commerce Trends to Watch in 2020

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By Published On: December 16, 20191 Comment

As the final few weeks of the decade fly by, it may not be a time for reflection for businesses. As retailers look back at the biggest trends of the last decade, everyone should take a step forward and see what's coming our way in 2020. 

Online retailers are buzzing to get final Christmas orders out of warehouses, there are more sales in the arena than ever before and competition is ramping up to maintain steady sales into the new year. Here are some of the biggest trends to expect in the next year.

  1. The Generational Shift

    Much to retailers delight, the Millennial shopper is no longer a mystery. There have been numerous studies, reports and data over the last decade that dissects this generation, and many retailers are finally understanding what makes them tick and click. However, as we enter the next decade, it’s time to shift focus to Gen Z.

    “2019 was the first year that Gen Z overtook Millennials as the largest percent of the global population and in 2020, I think we will see the effects of this transition,” Charlie Youakim, CEO and Co-Founder of Sezzle, tells Power Retail. “This new generation is propelling ahead at full speed and bringing with it a completely new wave of consumerism. I predict that this new decade will see a revolution of e-commerce trends stemming from the minds and habits of Gen Z-ers who look at money differently and are wary of the broken credit system. This incoming generational shift will also see the emergence of great technological trends. From what I have witnessed of Generation Z, they are doers. They have an entrepreneurial spirit and I think this will translate itself into technological advancements in all aspects of the e-commerce space and retail.”

  2. Alexa, What’s the Future of Retail?

    Over the past decade, AR and VR were on the rise – from virtually ‘trying on’ shoes and dresses to making an order from the touch of a button, there have been advances that many retailers never thought possible. In 2020, it’s expected that retailers embrace the technology behind voice commerce, allowing users to make an order using the likes of home automation, including Amazon Alexa and Google Home.

    “So far, it’s been difficult to gauge the effectiveness of voice search initiatives. At present, all we can really see is the sporadic use of ‘OK Google’ in Google Ads search term reports and the conversion rates aren’t great – but they are rising dramatically year-over-year, which is encouraging for voice enthusiasts and early adopters within the voice space,” says Luke Fitzgerald of Wolfgang Digital.

    “As such it’s been difficult for e-commerce brands to justify the investment in voice search optimisation without this performance visibility, so we really feel it’s only a matter of time before we get this – it makes sense from an advertiser’s perspective and from Google and Amazon’s own perspective too – if we know just how well Google Home and Amazon Alexa devices contribute to sales conversion paths, then we’ll be pushing even harder for their inclusion on every home’s must-have list on 2020, meaning a win-win for both advertisers and the tech giants, and so long as consumers continue to allow these dives into their homes, the future looks bright for voice!”

  3. Finding the Omnichannel Fit

    For retailers, having an omnichannel presence is the safest bet for bolstering growth and maintaining solid exposure. Last week, Anchor Shops debuted its first store that is specifically made for digital natives, providing a ‘turnkey solution’ for e-commerce retailers who struggle to capture a broader audience. This isn’t anything new, of course, but it does highlight the importance of cross-border strategies to power through multiple channels.
    “The retail paradigm has shifted to require a brick and click approach. It has been much easier for legacy retailers to build out their online infrastructures, but digitally native brands have found it difficult and cost-prohibitive to develop physical footprints,” said Shlomo Chopp, Founder and CEO of ShopFulfill. “We are offering online-first brands something that is entirely unique and practical – the only all-in-one solution that empowers them to achieve profitability, establish a physical retail presence and build stronger customer connections.”

  4. Further Integration with AI

    Over the last few years, there has been a surge of popularity for Artificial Intelligence. Key factors of this technology are integrated into improving customer personalisation, apps and warehouse automation, which help drive growth, trust and better customer experience for digital shopping.
    “Developments in artificial intelligence (AI) will become integrated into more business practices to reduce time and cost. Looking at capabilities such as machine learning and logical reasoning, AI will become more advanced and will streamline tasks. We’ve already seen the rise of banks using chatbots for customer service and I believe this will continue throughout 2020,” Fred Schebesta, Co-Founder of Finder, tells us.

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About the Author: Daniel Thompson

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One Comment

  1. Oliver December 30, 2019 at 5:01 PM - Reply

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    informative. I appreciate you spending some time and energy to put this article together.
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