The e-commerce industry is booming. In fact, it is estimated that by 2021, worldwide e-commerce sales will have reached $4.9 trillion, with each consumer in the United States spending, on average, $1,800 online each year.
That being said, if you currently own an e-commerce business, you need to make sure that you are aware of the most recent industry trends if you want your business to continue to thrive into the next year and beyond.
From the rise in voice searches to the use of AR technology to the emergence of new payment options, keep reading to find out the key e-commerce trends for 2021 that you need to know about.
1. More focus on dynamic pricing
Even with the best product in the world, if you are not pricing it correctly, you will not make enough sales for your e-commerce business to be a success. Dynamic pricing is the process involved in pricing your products based on the current market conditions. For example, when demand is higher, you can increase the price of your product.
Dynamic pricing is crucial if you want your e-commerce business to survive as you can be sure that your competitors are already using this way of pricing to attract more customers.
The simplest way to make sure you are pricing your products right at any given time is to use dynamic pricing software. This tool will provide you with real-time insights into your competitors’ pricing and enable you to accurately price your products based on the current demand.
2. The evolution of Amazon
When someone says “e-commerce,” you can’t help but think of Amazon. The number one online retailer worldwide, Amazon has over 300 million active customers, with 90 million Prime subscribers in the United States alone.
In terms of innovation, Amazon are leading the way with their use of AI (artificial intelligence), home automation, and highly effective mergers and acquisitions.
If you would like a piece of this highly lucrative pie, you could consider launching an Amazon FBA business that allows you to sell your products via Amazon.
Not sure where to start?
Why not enlist the help of Nuanced Media New York, Amazon marketing specialists that can help you build and grow your new Amazon business.
3. An increase in voice searches
Currently 40% of adults use voice search daily, with an estimated 1 billion voice searches being carried out every month. Furthermore, a whopping 75% of U.S families will own a smart speaker by 2025.
From Amazon’s Alexa to Google’s own Google Assistant, consumers are using these voice assistant devices to do everything, including to purchase goods.
Therefore, as an e-commerce business, you need to be optimizing your site for voice searches.
Ways in which you can do this include:
- Optimizing your content with natural-sounding keywords
- Offering voice-based navigation on your website and mobile app
- Ensuring your products can be purchased using a simple voice command
4. AI & AR to enhance the user experience
It is estimated that online sellers will spend $7.3 billion on artificial intelligence by 2022. Furthermore, more than 120,000 stores will be using augmented reality technologies to enhance the user shopping experience by the same year.
From personalized guidance in-store to customized recommendations online, AI will be used to analyze a shopper’s past purchasing history and browning behavior to accurately predict their future purchases.
With the increase in shopping online only set to explode further in 2021 and beyond, augmented reality will allow shoppers to see how a certain product will look on them before they have even bought it.
The benefits of these innovative technologies for your e-commerce business include a decrease in returns and an increase in conversions.
5. The acceptance of cryptocurrencies
One of the biggest reasons why online shoppers may choose not to make a purchase from your e-commerce site, even if they love your products, is that you don’t offer the right payment method that they like to use.
No longer can e-commerce sites only offer credit and debit cards as a way of paying for products online. They now need to offer digital wallets such as Google Pay, Apple Pay, and PayPal.
In 2021, you will see a rise in the number of e-commerce sites that accept cryptocurrencies such as Bitcoin due to their low transaction fees and no reverse transactions.
6. The continued rise of mobile shopping
More and more consumers are choosing to make purchases on their mobile phones, with 51% of Americans having used a mobile device for online shopping. Mobile shopping, or m-commerce, is set to increase by a further 25% by the end of 2021, so it is crucial that your e-commerce site is mobile-friendly.
Ways in which you can make your site optimized for mobile include:
- Improve your page loading time
- Simplify the checkout process
- Ensure your product images are high-quality and stand out
- Check out what the big brands such as Amazon are doing
- Introduce one-click payments
- Target users with Facebook ads
7. Omnichannel selling
As touched on above, big brands such as Amazon and eBay are dominating the e-commerce industry, so why not start reaping the benefits of multichannel selling? Accordingly to recent data, this will be a key e-commerce trend in 2021, with online businesses embracing omnichannel selling in order to reach as many customers as possible.
In fact, with over 50% of units sold on Amazon already coming from third-party sellers, can your e-commerce business afford not to be taking advantage of this massive potential revenue stream?
Whether you are already an online seller or you are planning to become one in 2021, it is crucial that you stay informed of the latest developments in the world of e-commerce. If in doubt about where to look for information, Amazon is always a good place to start, as this e-commerce giant seems to be always at the forefront of innovation and transformation.
Nobody really knows what the future holds for the e-commerce industry, but whatever it is, it is guaranteed to be big!