The eCommerce industry is continually evolving. To attract customers, numerous retailers are creating or enhancing their online storefronts. According to recent research, eCommerce will account for more than 20.4% of all retail trade worldwide by 2022. This indicates that the eCommerce market is becoming increasingly congested.

The rise in eCommerce enterprises may be linked to multiple events, the most significant of which was the Covid epidemic. The uncertainty induced by the epidemic and lockdown measures has resulted in significant shifts in customer behavior, with physical traffic shifting to online retail businesses.

For eCommerce shops, keeping up with changing client behavior & other developments is not an option. It is a must. While many aspects of eCommerce retail are changing, the following are the most important trends influencing businesses today & in the long term.


1. Augmented and Virtual Reality Advancement

Augmented reality (AR) has transformed eCommerce. This technology allows internet customers to view and see things before purchasing them. This enables them to make more informed purchasing selections. Augmented reality has enhanced the purchasing experience for several industries, most notably home décor and fashion. It enables prospects & consumers to interact with items without physically being present.

While this has become a reality, multiple studies have revealed that 35% of online customers believe they will shop on the internet more if they can virtually try on things before purchasing. Likewise, 22% will cease buying in physical locations if their favorite online retailers implement augmented reality.

Customers may browse things in 3D & imagine themselves using them using augmented reality. With all these advantages, many eCommerce shops are ready to accept and integrate augmented reality into their online storefronts & social media accounts. Some of the most successful brands in AR and VR are;

Amazon - Using Amazon's AR Explore App, this massive online store lets users to view numerous things before purchasing. Customers may be confident that they are purchasing the correct thing since goods are represented to precise weights & sizes.

Zara - By holding their phones over these parcels, customers can experience holographic images of different models wearing their planned buy.

IKEA - Customers may use their studio app to record completely equipped room ideas in 3D. Customers may modify the colors of the walls and furnishings, as well as add bookshelves or storage as well as other decorations. The updated designs may be exported or stored in 2D and 3D formats.

Sephora - Customers may virtually test on numerous beauty looks and take photos with their clothing.

While present VR & AR ideas are mind-boggling, emerging technology will almost certainly bring about bizarre advancements. With this, it is predicted that over 57% of Generation Z will utilise AR to purchase things in the next 5 years.


2. Eco-Friendly Packaging and Delivery

More firms are becoming environmentally conscious. The epidemic revealed that eCommerce enterprises had huge carbon footprints, with industry titans under major criticism for their part in this increase. Similarly, customers are becoming more conscious of environmental changes that influence their purchasing decisions.

According to a poll, over half of customers want green initiatives implemented in the fashion industry, with 75% wanting less packaging.

As a consequence, eCommerce retailers should look into eco-friendly packing & delivery methods. Amazon, for example, has committed to a number of efforts aimed at reducing its carbon footprint in order to attain zero carbon emissions by 2040.

eCommerce firms commonly employ compostable packaging, recyclable materials, cycling couriers, or rechargeable vehicles for delivery to lessen their carbon footprint.


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3. The Ecommerce Market is Getting More Competitive

As previously said, more retailers are taking their offline companies online. As a consequence, both new competitors & incumbents compete for customers' attention & purchases. This results in higher advertising expenses and a considerable decrease in advertising effectiveness or returns on advertising expenditures. For example, the cost of Facebook advertising is 47% more than it was last year.

The adoption of data & privacy legislation is exacerbating the problem. For example, recent iOS 14.5 upgrades have privacy controls that ban data exchange across applications unless consumers affirmatively opt-in. These alterations have immediate consequences. Social media marketing, such as Instagram & Facebook, has grown less successful.

Ecommerce businesses should strive to increase the customer lifetime value to customer acquiring cost ratio. To combat this background, eCommerce retailers could investigate underutilized or new promotional tools such as TikTok & Snapchat.

The alternative approach to this difficult position is to improve client retention efforts. With client acquisition expenses rising all the time, eCommerce retailers must focus on boosting customer life value to improve profit margins.


4. Social Business

Every day, the average user spends over two hours on social networking networks. Ecommerce enterprises could capitalize on this opportunity by putting their items in the sights of potential buyers. Social commerce has emerged as a trend that internet retailers should adopt before being pushed out by competition.

Luckily, a number of companies have made it feasible to profit from social e-commerce. For example, Facebook or Instagram pioneered live streaming shopping, allowing users to engage with companies in real time while they present various items. Customers may use the live feed to ask inquiries and purchase things without exiting the platform.

The usage of social marketing has increased and is still evolving. It is a helpful instrument for eCommerce companies since it cuts down customer journeys, increases conversions, & enhances customer loyalty.


5. Conventional Financing Moves to the Sidelines

Alternative financing techniques are gradually gaining popularity as a source of finance for eCommerce enterprises. So rather than traditional loans or exchanging equity, eCommerce business owners are increasingly turning to inventory finance & revenue-based financing.

There were various causes for this paradigm change in finance approaches. The majority of internet shops cite the various points for shifting away from loans and towards alternative financing:

Requesting for bank loans takes time.

Most internet shops do not have assets that may be used as security, such as real estate or automobiles.

Fixed loan instalments put a strain on the company's cash flow.

Nevertheless, transitioning from traditional loans to alternative funding is fraught with difficulties. Alternative financing should be carefully considered by online businesses. In the recent decade, several funding solutions adapted to modern firms have developed. Online entrepreneurs should investigate and comprehend these financing sources.

There is a hitch to both traditional & alternative funding options. For example, while revenue-based finance does not have fixed monthly repayments, RBF platforms share a defined proportion of your income until the principal amount is returned. This implies that your company must generate regular income in order to qualify for revenue-based financing.


6. Alternative Payment Options

When it comes to payment channels, clients have reservations & preferences. Interestingly, if users cannot discover their preferred payment option on your eCommerce site, they may abandon prospective transactions. Offering a variety of payment alternatives is an effective strategy to increase conversion rates from online buyers. Furthermore, if clients save their payment information on your site, they will be able to checkout quickly the following time.


How to Pick Trends That Work for Your Company

Several additional developments have transformed the eCommerce sector. Not all trends, although, are worthwhile to consider. Ecommerce business owners should assess and discover particular trends that are worthy of their time & attention. While some bring significant value, others may not be appropriate for your audience or be expensive to deploy & maintain.

Understanding your consumers, rivals, & market dynamics is key to selecting a trend that is right for your company. The following factors should help you make your choice:

Monitoring industry influencers, journals, & publications - To remain up to date on recent changes, online merchants should constantly monitor blogs, influencers, or relevant news.

Examine the most current industry research studies - While all sectors evolve over time, new reports & data analysis can assist you forecast the potential. You should only depend on actual research studies rather than secondhand information.

Analyze and forecast consumer behavior using digital tools & analytics - Collecting & analyzing customer data may also assist online businesses in identifying the proper trend. Any concept that succeeds for another company will not necessarily assist your company. Use a variety of data.

To capture client trends from various sources, use a variety of data collecting techniques.

Collect client feedback - Don't be hesitant to ask your consumers what they anticipate from your company. Customer feedback is critical for gaining business-specific insights. Your clients may recommend something that has not yet entered the market.

Keep an eye on your rivals, as well as other competitive firms. Determine the trends they followed & how well they performed for them. Nevertheless, you are not required to follow all of your rivals' trends.



The eCommerce industry is changing rapidly. Shifting customer behavior & evolving technology have resulted in paradigm adjustments that eCommerce shops must adapt to in order to compete. Big data, bots, video marketing, voice-based search, or on personalisation should also be considered by businesses. Online shop owners need to stay on top of these & other developments, as well as incorporate the necessary technologies, in order to successfully grow their enterprises.