eCommerce has become an integral part of our lives, and most businesses, regardless of size, are shifting to online platforms to thrive in the dynamic digital retail landscape. So, whether you are a small boutique or a mid-size retail business, you need to establish an online presence for your customers to find you. Let’s explore some of the top technology trends in the eCommerce and third-party logistics industry in 2024.
eCommerce has undergone a massive evolution in the last few years, and the market is expected to keep expanding, driven by technological advancements and consistently changing customer expectations and behavior. The global retail eCommerce sales reached 5.8 trillion US dollars in 2023 and are expected to surpass 8 trillion dollars by 2027, growing at a rate of 39%. The industry owes a significant part of its success to the supply chain and logistics industry, which facilitates and ensures that consumers get their deliveries accurately and on time.
Driven by the eCommerce boom, the landscape of Third-Party Logistics [3PL] is also evolving rapidly. From Artificial Intelligence [AI]-driven supply chain optimization, blockchain, or robotics to sustainable logistics practices, ground-breaking technologies are reshaping the 3PL industry. Revenue in the 3PL market is expected to reach a projected market volume of US$1.44tn by 2028, growing at a CAGR of 2.39% from 2024 to 2028.
Consequently, the global eCommerce boom and the growth in the 3PL industry go hand-in-hand to provide a streamlined and personalized shopping experience to the 2.64 billion global online shoppers by 2023, making up more than 33% of the world population.
Let’s explore some of the rapidly emerging eCommerce technology trends in 2024.
Tech Trends Revolutionizing the eCommerce Landscape
The boom in the online retail landscape drives the speedy advancement of eCommerce technology that empowers merchants to thrive in this competitive market and meet ever-changing customer expectations. These technologies impact how online purchases are performed, managed, and optimized. Here are some of the top emerging eCommerce technologies:
• Artificial Intelligence [AI] and Machine Learning [ML]
AI and ML are taking the eCommerce industry by storm with cutting-edge solutions and automation proficiencies. Examples of applications of these technologies include the following:
- Chatbots and intelligent virtual assistants [IVA]
- AI-driven personalization
- AI-enables supply chain optimization
- Price adjustments and dynamic pricing
- Detection and prevention of fraud
• Augmented Reality [AR] and Virtual Reality [VR]
AR and VR are transforming how online customers relate to products and make purchases by providing a realistic and engaging shopping experience, narrowing the gap between online and offline shopping. Here are some examples of the utilization of AR and VR technologies:
- Virtual product try-on
- Virtual showrooms
- Product visualization
- Virtual events
• Voice Commerce
Also known as v-commerce, this technology enables your customers to make purchases through voice commands leveraging voice assistants on their smart devices. With the increasing usage of Alexa, Siri, Google Assistant, and other virtual assistants, voice commerce has gained traction by offering a convenient and user-friendly shopping experience. Moreover, with increased accessibility and inclusivity, voice commerce is making online shopping easy and hassle-free for people with disabilities.
• Progressive Web Apps and Mobile Commerce
The digital-first world is becoming mobile for savvy customers who prefer online shopping, especially millennials and Gen Zs. Consequently, mobile commerce significantly impacts eCommerce growth, driving brands to adopt Progressive Web Apps [PWA] to impart a native app-like experience to mobile devices. Learn some of the advantages of PWA:
- Cross-platform compatibility with several OS and devices
- Capability to work offline or in low-connectivity environments
- Fast loading and seamless user experience
- Provides app-like experience
- Less costly development and maintenance
- Better visibility and shareability
• Diverse payment options
Offering your customers various payment options has become almost mandatory if you want to thrive in this dynamic eCommerce marketplace. It gives them freedom of choice, thus ensuring they don’t abandon the cart due to a lack of options. Here are some of the most prevalent payment options in the eCommerce landscape:
- Cards – credit and debit
- Bank transfer
- Digital wallet
- Buy now, pay later [BNPL]
- Prepaid cards
- Cryptocurrency
• Live-stream Commerce
With live-streaming platforms gaining popularity, you can leverage these platforms to showcase and sell your products in real-time. As a perfect combination of entertainment, social interaction, and shopping, live-stream commerce offers an enjoyable shopping experience to consumers.
Exclusivity and time-limited deals, such as special discounts, packaged deals, or exclusive products showcased, drive its popularity among consumers, creating a sense of urgency and excitement.
• eCommerce Security
With cyber threats becoming serious challenges in the virtual world, providing top-notch eCommerce security is the most crucial feature to offer your customers. These technologies safeguard you and your customers from malicious endeavors and empower you to sustain the trust and confidence of your customers. Here are some emerging eCommerce security technologies:
- Biometric authentication
- Blockchain technology
- Cloud-based security features and solutions
- AI and ML-driven security features
- Tokenization
Knowing the latest trends in eCommerce technologies, we will now delve into the emerging 3PL technologies.
Emerging Technologies Reshaping 3PL Operations
The latest technologies are transforming the domain of 3PL operations. From AI and ML-driven optimized supply chain efficiency to adopting blockchain for transaction security and transparency, 3PLs are embracing leading, innovative tech solutions to stay ahead in the cut-throat, dynamic, and evolving world of logistics. Let’s explore some of these technologies that are making waves in the industry:
• Artificial Intelligence [AI] and Machine Learning [ML]
AI and ML empower 3PL providers to offer more adaptive and smart supply chain management. While AI algorithms analyze huge amounts of data and help in demand forecasting, route optimization, and efficient inventory management, ML helps improve decision-making by learning from data patterns and trends.
• Blockchain
It provides security and transparency to 3PL operations. It can safely track the handling and movement of products by creating a decentralized and immutable ledger. It helps you comply with regulatory guidelines and fight fraud.
• Internet of Things [IOT]
IoT devices such as sensors and RFID tags enable real-time tracking and monitoring of shipments. Such visibility is crucial for you and your customers, enabling prompt and proactive responses to transit issues. It also provides condition monitoring, crucial for perishable or temperature-sensitive goods.
• Automated Vehicles and Drones
3PLs nowadays transform last-mile delivery and reduce delivery time and costs by leveraging autonomous trucks and drones. These technologies operate efficiently in places where conventional methods can be challenging.
• Robotics and Automation
These technologies are crucial in improving operational efficiency with automated storage and retrieval systems [ASRS], robotic picking systems, and automated guided vehicles [AGV] to accelerate warehouse operations.
• Advanced Analytics
Incorporating advanced analytics and big data is a major differentiator for 3PL providers. Advanced data and analytics enable better strategic decision-making with actionable insights into supply chain operations, customer preferences, and market trends. It leads to automated logistics, enhanced customer service, and prompt response to market changes.
• Cloud Computing and SaaS platforms
These technologies are rapidly becoming a worthy and indispensable part of efficient 3PL operations, providing flexibility and scalability to logistics processes. While cloud computing provides real-time access to data and applications, SaaS platforms deliver cost-effective and customizable logistics management solutions.
Conclusion:
As the eCommerce industry continues to evolve rapidly, the future of the 3PL industry is also promising and will be evaluated by innovation, sustainability, and customer-centricity. As a significant supply chain division, the 3PL industry is expected to undergo a major shift to accommodate market trends, emerging technological innovations, and global trade arrangements. It will be crucial for the leaders in the eCommerce and 3PL industry to understand the distinctive, industry-specific impacts of cutting-edge technologies and trends before adoption.
If you seek a 3PL provider for efficient and seamless eCommerce fulfillment, contact XPDEL and see how your business soars.
About XPDEL:
XPDEL is not just another 3PL provider but a growth enabler. We are a leading hi-tech Fulfillment and Logistics company supporting direct-to-consumer (D2C) and business-to-business (B2B) supply chains. Our widespread network of Fulfillment centers enables us to handle nationwide delivery in the US efficiently. Data analytics is at the heart of our 3PL services, powered by advanced technology and led by industry experts.
