Key Technology Areas that eCommerce Companies Must Invest in

As the eCommerce market continues to expand, the integration of digital and physical experiences will become more prominent in 2023. It implies that customers not only expect innovation in online stores but also in brick-and-mortar establishments. With customers becoming accustomed to the convenience of online shopping, investing in technology within the eCommerce sector holds great promise.

Key Technology Trends in eCommerce

eCommerce has a promising future. So, to thrive in this space, you must be aware of the key technology trends emerging as the game-changer in the online retail and eCommerce space. Here are some of the major trends to follow:

1. Social Commerce

Social networks have evolved beyond mere communication tools and have become a gateway to various business opportunities. They now enable activities such as brand marketing, customer support, and driving customer engagement. It has led to the emergence of social commerce, which involves selling products directly on social networks. With social commerce, customers can enjoy a seamless purchasing journey, starting from product discovery to completing the payment process.

Over 100 million Americans have already embraced social media as a platform for making purchases, with Facebook being the preferred choice among users. Considering the substantial number of current buyers, this figure is expected to increase further. A recent report presents that social commerce revenues are projected to reach an impressive $2.9 trillion by 2026, which is approximately five times more than the figures recorded in 2020.

2. Livestream Commerce

This form of eCommerce involves live video streaming on a commercial platform, where a host showcases various products to viewers. The audience can purchase directly on the shopping site while watching the video. This type of interactive shopping experience has gained popularity in China. However, companies in the United States have also recognized the growing trend towards this enhanced version of “shoptainment,” which contributed to Livestream eCommerce sales for the US.

By adopting this approach to online retail, you can effectively present products in dynamic ways, piquing the interest of potential customers. Creating a sense of urgency through limited-time offers or limited-quantity products adds to the appeal. Additionally, you can address the audience’s inquiries about the products in real time, further enhancing their shopping experience.

3. Buy Online, Pickup in Store

One of the prevailing trends in e-commerce technology is the option of buying online and picking up the purchased items in-store, commonly known as BOPIS (Buy Online, Pick Up In-Store) or click-and-collect. This form of commerce allows customers to make online purchases or reservations and subsequently collect their items from a designated store or pickup location. For business owners, implementing click-and-collect translates to reduced expenses on delivery services and increased foot traffic to physical stores.

In the United States, click-and-collect sales reached an estimated value of $96 billion in 2022. It is projected that by 2025, this figure will surge to approximately $154 billion.

4. Buy Now, Pay Later

One of the emerging trends in eCommerce technology is the availability of “Buy Now, Pay Later” (BNPL) services. This service allows customers to make purchases and pay for them in interest-free installments. The popularity of BNPL soared during the pandemic as people sought alternative funding sources and desired more flexibility in their payments. Customers preferred to avoid using their credit cards for shopping, making BNPL an ideal choice.

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There are various types of BNPL services:

• Direct providers such as Afterpay and Klarna, offer the service directly to customers and have played a significant role in popularizing BNPL.
• Facilitators are payment companies that act as intermediaries and integrate BNPL services into their infrastructure. Prominent organizations in this category include Mastercard, Shopify, and Stripe.
• Retroactive service providers offer flexible payment options for a buyer’s credit card after the shopping has been completed. One notable company in this category is American Express.

5. Mobile Shopping

Mobile shopping has evolved from being a mere trend in retail technology to a prevalent reality in today’s world. With each passing day, the number of smartphone users continues to rise, and the significance of these devices in eCommerce is growing exponentially. Many consumers now prefer to make purchases using their smartphones.

While computer-based shopping remains prevalent, it is evident that smartphones will play a crucial role in the future of online retail. According to a recent report, an estimated 69.9% of retail eCommerce sales will be conducted through mobile phones by 2024, accounting for approximately $4.5 trillion in transactions.

6. Progressive Web Apps

Progressive Web Applications (PWAs) are a technology that enables creation of web applications that resemble native mobile apps. Developers utilize web technologies like JavaScript, HTML, and CSS to build these solutions.

Major players in the retail industry, such as Alibaba and Walmart, have leveraged PWAs to boost revenue and enhance conversion rates. However, progressive web apps are equally well-suited for small and medium-sized organizations.

Key features of PWAs include:

• Accessibility of the application from the smartphone’s home screen/li>
• Offline access to the application
• Push notifications

Interestingly, according to a recent survey of eCommerce companies, 17% have already invested in PWAs or have plans to do so, while 28% of businesses are currently evaluating the potential benefits and opportunities associated with this technology.

7. AI-Powered Personalization

Enhancing business profitability relies heavily on the implementation of personalized experiences. Approximately 49% of consumers exhibit a higher likelihood of making repeat purchases when offered a tailored shopping journey by retailers. The utilization of artificial intelligence (AI) is one of the cutting-edge trends in e-commerce technology that enables the creation of personalized online stores.

AI can greatly enhance various aspects of your business, including product and search recommendations, customer segmentation, and customer support. You can effectively analyze customer behavior patterns, interpret user data, and provide personalized recommendations by leveraging AI and machine learning analytics. This level of customization significantly enhances the effectiveness of your brand and fosters customer loyalty.

8. AI Content Creation

An upcoming and significant trend in eCommerce technology for 2023 is adopting AI-based content creation. While we know artificial intelligence’s role in personalizing the shopping experience, it offers additional capabilities that deserve exploration.

According to Ross Beyeler, the COO of Trellis Commerce, artificial intelligence will catalyze automating and scaling content creation and brand marketing efforts. This belief highlights the potential impact of AI in revolutionizing the way content is generated and marketed for businesses.

Significance of Security

In the vast landscape of the internet, there exist abundant opportunities for business owners, but it is equally important to recognize the presence of potential threats. Safeguarding your company’s online store holds paramount significance. In this discussion, we will outline why prioritizing your online store’s security is crucial and delve into the dangers associated with eCommerce, as well as the emerging technologies employed in eCommerce security.

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DDoS attacks, once exclusive to contemporary cybercriminals, have evolved into more sophisticated and potent techniques hackers utilize to inflict harm on businesses. Consequently, retailers must consider implementing robust security measures to protect their online stores.

Some of the current threats to online retail platforms include:

• More Sophisticated DDoS Attacks
• Weak VPN Servers
• Shortage of Security Personnel
• Omnichannel Marketing
• Fraud

Conclusion:

We can’t deny that the world today is driven by digital technology. So, it is imperative that to stay ahead of the curve, and you must invest in the right technologies that can also take your business to the next level. However, like any other element in the world, technology has pros and cons, of which you have to be careful to make a smart decision. With cybersecurity threats looming heavily, you should be careful about your online security and be very careful about the technology you invest in.

The smartest solution is to hire a third-party logistics provider who is an expert in fulfillment and provides you with the advanced technology you need for your business.

About XPDEL:

XPDEL is a leading hi-tech provider of Fulfillment and Logistics Services on a mission to enable growth for eCommerce companies. We are futuristic in our vision and constantly work on creating technology that helps us meet customer expectations for today and tomorrow. We have a wide network of Fulfillment centers that enables us to efficiently handle nationwide delivery in the US – same day, next day, and 2-day delivery. Being closer to the end consumer, we deliver much faster than others.