The Future Of E-commerce: Trends and Innovations

The history of e-commerce, the buying & selling of products or services online is interesting. The first ever e-commerce company was launched in 1982 – Boston Computer Exchange. It was essentially an online marketplace for pre-loved computers. However, the formative elements of what can be termed e-commerce had started much earlier around the 1960s to 1970s. The e-commerce you are familiar with today began to emerge from around 1990. That is when the likes of Amazon stepped on to the scene. The arrival of the World Wide Web during that time was the boost. Fast forward to the COVID-19 pandemic years, to now and it is apparent e-commerce is now main stream. Here are some trends & innovations in the future of e-commerce. 

Increased Focus On ESG In E-Commerce

ESG stands for Environmental, Social, and Governance. It can be defined as a framework that measures an entity’s operations and performance by exploring ethical and sustainability metrics. It is a yardstick that is used to determine whether or not an entity conducts its business responsibly. In other words, ESG explores how sustainably or not an entity conducts its operations.More and more consumers now want to only buy from businesses that are operating with strict adhere to ESG principles. Consumers are now big on shopping sustainably & ethically. Even more and more investors are opting to focus only on such businesses. 

E-commerce entails lots of processes which if poorly handled or considered can have negative environmental, social, & governance effects. If you want to properly position yourself in e-commerce you have got to prioritize ESG. If you do not you may miss out on a large pool of ESG-conscious consumers. In some countries legal frameworks are now being drawn to mandate businesses to comply with sustainability provisions. ESG is here to stay and in e-commerce the focus is surging so you need to pay attention to that. No wonder there is an increasing demand by consumers for businesses to avail their sustainability reports and or certifications. 

Short Form Videos – The Best Content Marketing Approach In E-Commerce Right Now

Content marketing is no doubt your go-to if you are to make a mark in digital marketing. After all, e-commerce heavily relies on digital marketing. Now, if you are wondering what the best content marketing approach is,think short form video. Short form videos now rule and it is evident by the popularity of reels, shorts, and the like on social media platforms. That is why social commerce is now a buzz term. There is also an interesting rise in e-commerce on or through TikTok. All of that is premised on the efficacy of short form videos. More and more consumers are looking to find out and know more about products & services via short videos. 

It is also worth mentioning that influencers largely prefer to package & deliver their content this way. Remember that influencer marketing is highly effective for e-commerce. So in whatever digital marketing regime you will settle for in e-commerce you better settle for short form videos more. It is also interesting to note the potential benefits that can be realized from Augmented Reality (AR) & Virtual Reality (VR) shopping. There is a steadily growing interest in using those innovations in e-commerce. The fact that they are immersive, interactive, and accessible from anywhere via mobile devices makes them perfect for e-commerce. 

Strategic Innovations To Adopt In E-Commerce

There are a number of innovations that are shaping the trajectory of e-commerce now moving into the future. Obviously blockchain & AI are leading the pack with many innovations now being premised on them in e-commerce. They are taking centre stage in areas such as omnichannel support, secure transactions, supply chain management, and advanced data analytics. We already highlighted VR & AR for use in providing remote & immersive customer shopping experiences. There is also a rise in the use of smart logistics where IoT devices & systems are being used for managing inventory more proactively. 

Another innovation to consider is mobile-first UX design. Evidently the bulk of e-commerce consumers are searching for & buying products or services online using their mobile devices. Thus there is need to prioritizemobile responsiveness in the UX design of your e-commerce platform(s). These are just a few examples to paint the picture for you. Overall, pay the most attention to innovations that have AI’s tentacles in them. They are now highly likely to pay dividends when applied to e-commerce. 

E-commerce is now a powerhouse and will continue to be moving forward. In 2024, global revenue from e-commerce is projected to surpass US$6 trillion. That is a staggering figure and clearly demonstrates how lucrative this space is. It is reported that China will be responsible for over 50 percent of that US$6 trillion. This suggests that China is worth keeping an eye on in e-commerce. The e-commerce industry is poised to continue growing & with AI applications, there is no telling the lofty heights it is headed to.