In 2024, the old e-commerce environment will no longer exist. Changing economic conditions, marketing strategies, and a host of new retail challenges are calling for innovative solutions to solve new e-commerce problems.
Aging technology will be an issue for retailers clinging to existing marketing and business conveniences. However, advances in technology will also provide retailers and marketers with problem-solving approaches that result in safer online transactions and better customer engagement.
This year will be a response to changing consumer attitudes towards personalization, privacy, transparency, and improved customer experience (CX). Online shoppers are hesitant to fully embrace digital spending and are willing to resume cash transactions via digital wallets if vendors see value in their discounts.
E-commerce also faces supply chain issues that can fend off fraudsters, cause deliveries to be delayed and ultimately stolen by porch pirates. This growing trend has encouraged shoppers to order online and pick up at local stores.
Here we compile the latest predictions from e-commerce industry leaders. Their ability to stare into a crystal ball shows both problems and ways forward.
The rise of killer mobile apps
Today's uncertain economic climate requires retailers to increasingly focus on mobile apps to drive business growth and maximize return on investment (ROI), says CEO of mobile app solutions company Bryj , said Lawrence Snapp. However, to be successful, retailers need to do more than develop native mobile apps for their key customers.
“Brands must meet users' rising expectations for mobile app experiences, including leveraging AI to create targeted product promotions and personalized ads for customers based on their purchase history. This includes hyper-personalizing digital retail experiences and leveraging AI-powered platforms to enhance app performance, discoverability, and retail customer acquisition efforts,” said Snapp. told the Times.
He predicted that retailers will increasingly rely on native mobile apps as the most effective and affordable media channel for sustained business success in 2024 and beyond.
Over the past decade, e-commerce and digital technology have become integral to the retail industry. However, new data from Bryj suggests that less than half of consumers are completely satisfied with their retail mobile experience.
Digital wallets face battle with cash transporters
Digital wallets are convenient. However, despite these benefits, consumers are complaining about how they are used in various digital transactions. The limitations of digital wallets are becoming increasingly apparent, impacting further adoption.
These shortcomings will force widespread development of a consistent and secure digital payments infrastructure, predicted Aaron Alexander, CEO and founder of fintech company Runa. We will focus on strengthening merchant adoption and providing broad consumer access on a global scale.
“By building a more integrated digital payments ecosystem, we can pave the way for a digital wallet experience that truly empowers consumers,” he told E-Commerce Times.
Alexander observed that the return to cash is related to this downturn in digital payments. E-commerce vendors will have to deal with the resurgence of cash is back.
He suggested that as credit card company fees are rising, more merchants will offer cash discounts or add card surcharges to transactions.
“The proportion of transactions with cash discounts is increasing. Card surcharges are becoming unbearable for merchants already affected by increased borrowing and overhead costs due to rising inflation,” Alexander said. said.
Integrated omnichannel fulfillment
Megan White, head of marketing at modular commerce platform Kibo Commerce, says AI continues to bridge the gap between online and offline retail interactions by driving consistent and relevant omnichannel fulfillment experiences. I expect it to be. AI combines and analyzes e-commerce touchpoints, allowing retailers to create a unified customer profile that includes preferences, purchase history, and behavioral patterns.
“These forecasts deliver more accurate, timely, and actionable results, helping retailers reduce storage costs, minimize overstock, and ensure product inventory meets customer demand. ” she told E-Commerce Times.
White provided a list of some key retail trends that e-retailers will be able to integrate over the next year and beyond.
- AI-enhanced customer service capabilities — AI-powered chatbots and virtual assistants will become increasingly sophisticated and answer a wider range of customer inquiries.
- Advanced operational excellence — Predictive analytics predicts supply chain disruptions, allowing retailers to analyze historical data to identify potential problems.
- Level-up data integration — AI powers native search capabilities for non-technical users, either with composable commerce and order management solutions or standalone. These capabilities rely on generative AI processes such as natural language processing (NLP) and large-scale language modeling (LLM).
- Adoption of neural search function — AI-based neural search capabilities leverage deep learning models to improve search results by replacing traditional keyword matching with neural context and semantics.
Reinvent your rewards program in 2024
Runa's Alexander also sees more consumers relying on rewards and stored value programs to offset rising costs. This allows businesses to prioritize and reap the benefits of modernizing their customer programs.
“Consumers are already growing frustrated with inefficiencies in rewards and loyalty programs, and are ready to pounce if retailers' plans don't match their rapidly evolving expectations,” he noted. .
Loyalty programs are the cornerstone of customer engagement in e-commerce and play a variety of roles, from improving the customer experience to serving as fraud prevention. As these programs evolve to meet customer needs, they are also expanding into the realm of operational security.
Beyond customer engagement, modernizing loyalty programs also addresses fraud and policy abuse, which are significant challenges in e-commerce. Therefore, as loyalty programs evolve, they improve the customer experience, protect the business, and take on a dual role in today's e-commerce environment.
FTC crackdown sparks wave of brand integrity
Keith Nealon, CEO of social media and social commerce marketing firm Bazaar Voice, sees an impending FTC push to enforce corporate integrity. The crowded e-commerce space will require brands to be more conscious of the user-generated content they publish online.
Last year's massive adoption of generative AI has enabled AI to “enable real consumers with authentic product experiences to stay away from content, while at the same time protecting against the proliferation of fake content by bots and creators with ulterior motives.” It is important to reduce the risks that can be caused by “motivation,'' he offered.
“Authenticity – sharing only honest, transparent and authentic content – is without a doubt the most important attribute for brands and retailers in today’s retail industry,” said Bazaarvoice CMO. Zarina Stanford told E-Commerce Times.
Commerce continues to evolve at the speed of light, added Colin Bodell, CTO of Bazaarvoice.
“But right now, it's mainly driven by current economic pressures that are significantly changing consumer habits,” Bodell told E-Commerce Times.
Improving data transparency in online commerce
Research shows that 93% of online sellers offer generous return policies to stay competitive. But that is countered by similarly high rates of consumer abuse, said Eyal Elazar, a policy abuse expert at fraud prevention firm Riskified.
“[In] In 2024, retailers will need to increase their AI protection efforts to protect against long-term policy abuse. Going forward, more companies will prioritize data transparency to detect fraud trends, leverage AI and machine learning to automate fraud identification, and stay up-to-date on new fraud techniques. “We expect that it will be maintained at that level,” he told E-Commerce Times.
Elazar believes AI-powered solutions can help stem the tide of social engineering attacks by organized fraudsters. Enterprises are now susceptible to policy abuse and account takeover (ATO) attacks.
Emerging Loyalty Program Trends in 2024
Mandating account creation and promoting membership and loyalty programs are already gaining traction among merchants to improve customer tracking. This will lead them to adopt stronger methods to distinguish between real customers and fake accounts, Elazar said.
He warned of changes to merchant return policies based on customer reputations of honesty rather than abuse. AI solutions will drive much of the expected success.
“For us, [begin] In 2024, we expect more merchants to impose stricter parameters regarding customers' digital identities, gradually restricting in-store purchasing access, he explained.
In 2024, more merchants will use AI to differentiate between good customers and those who are more likely to abuse store policies. The latter are likely to have their shopping experience disrupted, as many merchants resist disruptive shoppers and may even refuse to accept new orders from habitual policy abusers. , he said.
