No business today can survive without a strong online presence and without providing e-commerce facilities to customers. The pandemic pushed businesses to their limits, and only those survived who adopted e-commerce technologies to provide customers with the best online shopping experience. The share of e-commerce sales in total retail sales globally was 17.5% in the past year.
Even before the pandemic, e-commerce was becoming a tremendous success, and the pandemic only accelerated the growth of the e-commerce industry. Technology has played the biggest role in ensuring the success of e-commerce. According to Statista, worldwide retail e-commerce sales were approximately $5.2 trillion in 2021 and will increase by 56% in the coming years, reaching $8.1 trillion by 2026.
The boost in e-commerce is showing no signs of stopping anytime soon. So let’s look at four e-commerce technologies boosting the e-commerce sector in 2022.
- Mobile Commerce (M-Commerce):
Mobile commerce, or m-commerce, is the biggest technological breakthrough in the e-commerce industry, without a doubt. According to stats, up to 125 million Americans use smartphones, so it makes sense why tapping into such a vast audience is beneficial. More and more people use their mobile phones to search for and buy products they want. Not everyone carries a laptop everywhere, which is why the number of mobile purchases in e-commerce is increasing. To increase your business’s sales, you must ensure that your business has a perfectly working mobile-friendly website.
Users who visit your mobile website must easily find the information and products they are looking for. You can use the help of a professional company and use their services to improve your website. For example, if you want your products categorized automatically according to google product taxonomy, Width.ai can help you with that and provide many other amazing services. This way, your products will be perfectly organized, and consumers will find products with the least effort, time, and clicks. If customers do not quickly see the product they are looking for, they will switch to your competitor’s website within a few seconds.
Eye-catching graphics, using multimedia like videos and pictures, appealing color themes, excellent product hierarchy, etc., are all important factors that make your customers’ m-commerce experience exceptional. This increases both conversion rate and sales. According to reports, the number of mobile shoppers will exceed 187 million users in the US alone. Hence, this is a big customer base that businesses are focusing on to boost their success.
2. Artificial Intelligence (AI):
Talking about technology without mentioning artificial intelligence (AI) is impossible. Artificial intelligence integrates machine learning (ML) and big data technology resulting in the best experience your customers can ever ask for. According to a poll by Google, 90% of marketers say that personalization is the major factor in increasing a business’s profitability. Thus, any business that wants to increase its profit employs AI-powered technologies to increase its e-commerce sales.
With the help of machine learning technology, artificial intelligence collects consumers’ data, i.e., big data, and then analyzes it to find patterns of repeated consumer behavior. Through all this, AI learns everything about each customer and provides them with a unique and personalized experience by sending customized offers, recommendations, etc. When customers get a personalized experience from a brand, their brand loyalty also increases.
AI allows you to personalize your online store. It helps improve customer support, search recommendations, segmentations, etc., by analyzing and interpreting customer data. AI-powered voice search and chatbots are the latest trends in e-commerce, as these things improve the customers’ experience, leading to increased sales.
3. Social Commerce (S-Commerce):
The best use of social media technology is to interact with customers and generate leads. Social media platforms are now increasingly being used for e-commerce, resulting in a significant increase in sales. Brands increase awareness and revenue by making business profiles on social media platforms like Meta, Instagram, YouTube, Pinterest, Snapchat, WhatsApp, Twitter, TikTok, etc. All these are the best ways to attract a huge amount of customers.
E-commerce businesses run interactive social media campaigns to attract more buyers. With DMs and messages, customer support has improved manifold. When brands use new features of social media platforms, it easily increases their reach. Thus, social commerce has become a huge part of e-commerce. Not only can you promote your products on social media, but you can also collaborate with social media influencers. All reputable brands nowadays send PRs to influencers who then recommend brands and products to their huge fan following, generating more traffic.
Global social media commerce sales were $492 billion in 2021 and will triple and become $1.2 trillion in 2025.
4. Virtual Reality (VR) Shopping Experience:
Virtual reality and e-commerce go hand in hand. By integrating virtual reality into shopping experiences, e-commerce businesses increase their sales. With virtual reality, a customer can have a virtual tour of the store, just like they would go to a physical store.
This technology is way ahead of merely viewing product pictures and videos. Also, with virtual stores, customers can try on products and see if they would fit or how they would look – just as they would do by visiting the store. This has solved the most criticized aspect of e-commerce, that customers do not get to try on products before ordering. With virtual reality, customers get to try products before ordering them while seated on a couch at home.
Similarly, with virtual reality applications, you can see, for example, whether a sofa set will look good in your living room or not. There are endless possibilities that virtual reality has unlocked, and now, with more advancements in technology, virtual reality headsets are becoming readily available at affordable rates. This has significantly added to the success of e-commerce. In fact, by 2030, the augmented and virtual reality market size will reach $856.2 billion.
The Bottom Line:
E-commerce is becoming an enormous industry with each passing day. The credit for the success of the e-commerce industry goes to technological advancements. But the pandemic also boosted e-commerce businesses, as physical stores were shut down and people started shopping online. People’s need for shopping online and technology worked together to boost the e-commerce business. It is widely believed that with increasing innovations, e-commerce will soon take over physical stores completely. Hence, as an entrepreneur it is important to incorporate the technologies mentioned above into your e-commerce store and stay ahead in the game.