The future of e-commerce is seen through the integration of advanced technologies such as virtual reality, augmented reality, and artificial intelligence. These tools are reaching an undeniable turning point, though currently within reach of large-scale enterprises capable of exploring them without immediate profitability concerns.
Nevertheless, there are those who foresee different directions for the future: a decline in purchasing power, the emergence of “budget” category products, and reduced shipping costs. For them, advancements like virtual try-ons or AI-based recommendations are not prioritized. Let’s now carefully analyze the trends, distinguishing between major players in retail and smaller actors, while also considering the role of information technology in this shifting landscape.
Transformation in Supply and Demand in Economic and Surplus Segments. Unfortunately, it appears that market interest in establishing D2C solutions (direct-to-consumer sales through online stores and mobile applications) will be limited in the coming year. With low-value orders, shipping costs won’t be covered by the order margin, rendering the economy of this model unviable.
However, D2C selling could make sense in specific scenarios:
- When an order includes items from different categories (e.g., groceries and household chemicals).
- When the Click & Collect model aligns with the client’s business (such as in fashion and pharmacy, where physical points of sale already exist).
- When the product price is relatively high, even in the economic segment (like jewelry or repair items).
- When the product is unique and/or the service is of significant importance.
- In the D2C realm, internal economy can be supported by economies of scale, with information technology playing a crucial role. It facilitates managing higher workloads and helps reduce costs and downtime through demand planning and logistics automation. Additionally, it aids in introducing new brands and services to the market, making them more accessible through digital channels.
Market Development
Competition in digital markets is increasing, demanding greater technological integration. This includes implementing intelligent systems for assortment management, promotions, billing, and margin analysis on commercial platforms, as well as price calculation, costs, and reporting. Simultaneously, some companies may choose to strengthen their own brand and invest in their own online stores, considering that digital markets might become more stringent.
For instance, major brands like Zara are diversifying their offerings by creating their own markets. In Portugal, these companies can sell additional products from other suppliers thanks to their logistical and warehousing capabilities, thus complementing their inventory and increasing their revenue.
Omnichannelity
Seventy-three percent of consumers make purchases through multiple channels simultaneously (such as social media, apps, web, and physical stores). Hence, retailers operating in three or more channels increase customer engagement by 251% compared to those operating in a single channel.
To ensure a consistent brand experience, retailers must maintain their presence across all online platforms, including their own website, social media, and third-party stores (such as Amazon).
E-commerce Trends for 2024 in the Omnichannel Experience:
- Offering customers the choice of where to buy, receive, and return products (either online or in-store).
- Embracing social commerce comprehensively (or risking losing the millennial and Gen Z audience).
- Providing personalized customer service to empower customers and make them feel at ease.
- Social Commerce Development
- In the United States, approximately 96.9 million people make direct purchases through social media. As young millennials and Gen Z continue to dominate the market, this number is only expected to grow.
Eighty-three percent of Gen Z consumers indicate that social media is their primary touchpoint when making purchasing decisions.
More and more brands are streamlining the search and purchase process directly from platforms like Instagram and TikTok, thus generating social interactions and raising consumer expectations globally.
Social commerce is projected to reach a volume of $2.9 trillion by 2026, making it imperative for retailers to adapt to this trend.
Building Customer Relationships
When companies reach their limit in terms of attracting new audiences, a more active approach to interacting with the existing audience begins, through the implementation and development of loyalty programs, for example.
This involves personalizing interactions with customers, achieved through technologies like artificial intelligence, customer data platforms, and the creation of unique offers, discounts, and promotions tailored to the individual needs of each customer.
Additionally, it’s possible to employ demand forecasting tools based on data analysis and competitive pricing. These strategies aren’t just useful for enhancing the customer experience but can also be creatively applied, such as in packaging design using generative artificial intelligence or analyzing reviews to glean ideas for product improvement.
Customer relationships are a crucial and ever-evolving topic. Through specialized applications, various areas can be addressed, from implementing loyalty programs to rating systems for products, points of sale, and vendors, to feedback and gamification to stimulate sales.