E-commerce trends in 2020
In 2019, the value of the e-commerce market was estimated at around $ 3.53 trillion. It is a huge possibility that it will increase to $ 4.5 trillion this year! The dynamics of this market’s development are visible all over the world. It is then safe to predict what the new trends will be in 2020. Let’s have a look.
This should be and is one of the most important issues in e-commerce. The emergence of new technologies such as the Internet of Things, AI and machine learning increases the risk of attacks and data breaches, so it is vital to improve defensive measures. Although GDPR (General Data Protection Regulation) launched last year, forcing many companies to invest in improving the privacy and security of their customers, over 42% of Internet users still believe that their data is subject to abuse.
Voice search has been around for several years now, but it gained more significance lately, all thanks to the introduction of Voice Assistants created by huge players like Google, Apple and Amazon. According to research we are becoming so comfortable with voice search that it is beginning to surpass the traditional one. As a result, search queries will have to change as well. Short phrases like “cheap games” will no longer do. They will be replaced by much more precise formulas, e.g. “cheap RPG games created by X,” which give direct answers to specific questions. The solution will then emphasize the so-called long tail keywords that respond to specific customer queries.
The shift from “mobile first” to “mobile only”
Pretty much every store manager knows how important it is to optimize your website for smartphones. According to Hootsuite and We Are Social’s reports from 2018, 80% of European users watch videos on their mobile devices, while 36% do the shopping using these. The number of smartphone users rose by more than 100 million since 2019.
Establishing good relationships with customers is now more important than ever before. Customers themselves say that building a positive image of your online store is crucial, since this often works better than traditional forms of advertising, and offers some interesting opportunities for SEO and the like. What clients expect today is open interaction and a platform where they can freely express themselves and exchange opinions. If a company neglects the needs of its customers, this can easily backfire and become a disadvantage. So, the trend for 2020 is a pleasant, fast and interaction-oriented customer service.
AI & the Internet of Things
Global conferences give you an impression that our industry is focused on the development of artificial intelligence and the Internet of Things. These will definitely see some major improvements, but voice-based e-commerce will also become more mature. 2020 is shaping up to become a sensational year when it comes to challenges for the industry and life-changing improvements for consumers.
Marketplaces growing in importance and controlling an increasing share of the market is more of a 2019 trend. In the USA where Amazon holds over 50% of e-commerce it’s hard to pretend this is not a major distribution channel. Marketplaces are becoming a big challenge for brands that need to come up with new strategies on how to establish their presence on such platforms. On the other hand, they also offer great opportunities for local brands (including Polish ones) to quickly enter new markets.
This concept is worth a brief mention here, as not everyone might be familiar with it. It’s basically using social networking in the context of e-commerce. To put it in simpler term: it’s selling through social platforms. The thing is that points of purchase are now closer to buyers than ever before. These days you can buy something via Facebook or Google without going to the actual store. This seems to be the focus in 2020, which becomes apparent when we take look at marketing budgets in e-commerce. We can clearly see the emphasis on Google and Facebook Ads.
Mobile phone technology is constantly evolving and users are becoming more trusting towards mobile payments. According to the Global Web index, 37% of Internet users worldwide already pay using mobile wallets. In Poland it is 28%, rather well below the world average.
2020 will see further development in e-commerce and new technologies, but also fresh trends, such as subscription economics, interbranch partnerships, as well as activities focused on sustainable development. This is all to meet growing consumer requirements. Technology indeed is something our imaginations have a hard time keeping up with.