As reported by a study published by eMarketer back in 2016, the ecommerce market is poised for substantial expansion, with projections indicating sales surpassing $4 trillion by 2020.

This optimistic outlook is a rarity in the business world, making the future of ecommerce a captivating subject. In this analysis, we delve into seven prominent ecommerce trends anticipated to reshape the landscape for both businesses and consumers in 2018. We will explore the present state of each trend and look ahead to potential opportunities and obstacles for ecommerce retailers throughout the year.

1. Enhanced Shipping Speed and Delivery Strategies

Beyond the distinct characteristics of individual ecommerce platforms, shipping times and delivery logistics remain key differentiators in the ecommerce industry. Amazon, the undisputed leader in ecommerce delivery, shows no signs of relinquishing its dominance. While the company is notoriously private about its data, a recent an infographic from Amazon revealed that over 5 billion items were shipped globally through Amazon Prime’s free one- or two-day shipping option in 2017. Even more impressive is the company’s achievement of delivering a forehead thermometer in just eight minutes and five pints of ice cream in a mere nine minutes.

As we move into 2018, both Amazon and its ecommerce competitors are expected to elevate their logistics game significantly. With over 8,000 Amazon Prime subscribers already enjoying Amazon Now’s one-hour delivery service – a service Amazon plans to expand further this year – minimizing delivery times will likely be a fierce battleground in the ecommerce arena. This, coupled with emerging technologies like driverless freight being developed by car manufacturers like Mercedes-Benz, suggests that logistical advancements will be a driving force in the ecommerce sector’s progress.

2. AI and Machine Learning: A More Integrated Future

The strong interest in machine learning in Silicon Valley and beyond ensures its continued disruption of the ecommerce sector through increased integration of artificial intelligence and machine learning technology in 2018. Machine learning is already embedded in various aspects of ecommerce, from product recommendation tools to enhanced search features. However, 2018 is expected to witness a surge in the applications of these technologies, allowing ecommerce companies to anticipate and fulfill customer needs more efficiently.

One area of ecommerce that has already experienced notable progress in both complexity and implementation is the emergence of customer service chatbots. This trend is likely to persist in 2018, with further development of these “conversational agents.” These applications will continue to evolve, handling an increasingly complex array of tasks, from addressing customer issues to providing support during transactions. Facebook has already granted some retailers access to new chatbot tools that enable these conversational agents within Facebook Messenger to to handle payments directly within the app without requiring users to leave the platform. Machine learning is also set to make product recommendations even more precise and relevant. We can anticipate a shift away from keyword-based suggestions towards systems that take into account a wider variety of factors, including purchase history, thematically similar products, semantically related items, and increased personalization based on individual shopping habits.

Image via Vibetrace Advertisers can also look forward to greater integration of machine learning within Google Ads (previously Google AdWords) and other digital advertising platforms. Features such as Smart Goals and Smart Bidding are set to become even more sophisticated and accurate, leading more advertisers to adopt these tools – despite their lack of transparency – to maximize their campaigns’ effectiveness.

3. Augmented Reality: Moving Towards Widespread Adoption

Until quite recently, developing augmented reality technologies have been seen mainly as novelties – think Snapchat filters rather than the revolutionary potential once promised by Google Glass and similar devices. This year, however, will see AR technology take a major leap towards becoming mainstream, with ecommerce companies at the forefront of this shift. Leading retailers have been diligently refining their AR offerings, with some impressive results. IKEA, the beloved Swedish furniture giant, launched its its Place app last year, allowing users to visualize how different IKEA products would look in their own homes. While early app versions had some glitches (especially in smaller spaces), more recent versions are said to be much more stable and user-friendly.
Naturally, IKEA isn’t the only contender in the ecommerce arena vying for a share of the augmented reality market. Amazon’s AR View app provides similar functionality, enabling customers to see how various products would look in their homes before committing to a purchase.

The competition in the ecommerce AR space is expected to intensify throughout 2018.

4. Mobile Checkout and IoT: Anticipating Explosive Growth

No discussion about anticipated ecommerce trends would be complete without mentioning the continued rapid growth of mobile, specifically mobile checkout and payment options, and the continued expansion of internet-connected devices. Mobile payment has revolutionized the shopping experience in ways comparable to the emergence of ecommerce itself. Since 2015, the mobile payment market has seen consistent year-over-year growth, and today, there are at least 10 different mobile payment platforms available, including established players like Apple Pay and Google Pay (the recently announced merger of Google Wallet and Android Pay), along with services offered by banks like Chase and Softbank. (And let’s not forget the ever-popular cryptocurrency, Bitcoin.) With the decline of cash transactions, the adoption and development of mobile payment systems are expected to continue growing throughout the year and beyond.

Image/data via Statista However, this is not to say that the mobile payments landscape is without its challenges. Research published by a recent study at the University of East Anglia in England found that while mobile devices accounted for 46% of all ecommerce transactions in Q2 2016, mobile conversion rates significantly trailed desktop conversion rates. This is largely due to consumer apprehensions about mobile shopping, highlighting the need for retailers to focus on gaining the trust and confidence of their potential customers. Another related ecommerce trend likely to gain momentum (unfortunately) in 2018 is the Internet of Things (IoT). It seems many companies are in a relentless race to claim the title of “Most Ridiculous Connected Device,” despite it making little sense. To date, we’ve witnessed “smart” condoms, toasters, bathroom fixtures, and even even luggage, and there’s no telling what’s next.

Besides reminding us that not everything can or should be “smart,” this trend highlights that any internet-connected device can become a point-of-sale system. This prospect suggests a future where even our toasters and refrigerators bombard us with irritating ads and promotions.

5. Voice Search: The New Frontier

In today’s tech landscape, it’s nearly impossible to discuss mobile without mentioning voice search. In 2018, voice is predicted to be a leading force behind innovation in ecommerce – and not just on mobile devices.

Image/data via Adobe Digital Insights The increasing popularity of smart home devices like Amazon Echo and Google Home has significantly contributed to the rise of voice search, particularly within the ecommerce sector. Data from Walker Sands Digital reveals that almost one-quarter of consumers (24%) own a voice-controlled smart appliance own a smart speaker such as an Amazon Echo or Google Home, with another 20% planning to purchase one in the next year. The use of these devices for purchases has also risen, with 19% of consumers having used their smart appliance to buy something and an additional 33% planning to do so in 2018. Voice search, particularly in the smart speaker market, is more than just a cool feature or passing trend; it’s shaping the future of customer loyalty. Data from Consumer Research Intelligence Partners, an equities securities research firm, shows that consumers who make purchases through their Echo devices are among Amazon’s most loyal customers, spending an average of $1,600 annually. This is 66% higher than the average Amazon customer’s yearly spending and considerably surpasses the $1,300 average annual spending of Prime members. Sales generated through Amazon Echo devices also provide retailers with ample upselling opportunities, with some product categories witnessing upsell rates exceeding 60%.

6. ROPO on the Rise

ROPO (Research Online, Purchase Offline) is an established consumer shopping behavior, driven by budget-conscious consumers and savvy shoppers seeking the best deals. This trend is expected to become even more prominent in the ecommerce landscape in 2018.

Image/data via Bazaarvoice ROPO is not merely a natural progression of bargain hunting in the digital age; it represents the culmination of the past 15 years of online shopping technology. Consumers appreciate being able to research products online before making offline purchases as it allows them to find the desired products at the best prices. For retailers, ROPO represents the pinnacle of offline conversion tracking.
According to Absolunet, a Montreal-based ecommerce agency, 82% of consumers use their mobile devices to research local businesses, with 18% of local searches resulting in a sale within 24 hours. Through a combination of techniques and metrics such as mobile payment data, CRM and point-of-sale systems, geolocation tracking, consumer purchase history, social media integration, and increasingly targeted advertising, retailers can construct comprehensive profiles of shoppers who research online before buying offline. This data can be gathered at every step of the customer journey. For instance, British clothing retailer Matalan discovered that for every £1 invested in Google Ads, they generated £46 in revenue, with £31 of that revenue coming from in-store sales.

7. Storefront Apps: The New Norm

With the significant shift from desktop to mobile, storefront apps are set to further reshape the ecommerce landscape this year. Many major retailers have been offering apps for years, and shoppers are accustomed to using dedicated storefront apps to browse and make purchases on their mobile devices. However, 2018 is expected to see a surge in smaller businesses adopting storefront apps to boost sales and, more crucially, foster customer loyalty.

Image via Cobalt Apps Data from ecommerce app platform Poq reveals that storefront apps boast conversion rates that are approximately 40% higher than those of mobile sites compared to mobile websites, making them an attractive option for many retailers. Moreover, storefront apps have a significantly longer average session duration and a higher average order value (AOV) than mobile sites. These factors indicate that dedicated apps are likely to become even more prevalent throughout the year. With the barriers to app development lower than ever, even small, locally owned businesses can now offer dedicated apps to their customers – a trend we expect to see increase significantly in 2018.
What trends do you foresee in the ecommerce space this year?