Shaping the future of ecommerce: Trends and insights from the LA summit

The landscape of retail ecommerce is evolving rapidly, with new trends emerging that are set to shape the future of the industry, from influencer marketing to AI. At the recent Los Angeles eCommerce Summit, experts discussed various factors influencing conversion rates, demand drivers, operational efficiencies, and the strategic use of digital platforms. Here’s an in-depth look at the key takeaways and trends shaping the landscape of ecommerce.

Conversion influencers and demand drivers

Ease of doing business

In ecommerce, a critical element impacting conversion rates is how easy it is to do business with a merchant or online store. This includes activities like tracking shipments, facilitating returns, and streamlining payment authorization. For example, mistakenly flagging a valid payment as fraudulent can lead to lost sales—and they can stack up quickly. 33% of U.S. consumers drop retailers after a false decline, making fine-tuning payment systems to minimize false declines crucial.

Furthermore, displaying delivery dates at checkout and facilitating easy returns can be the difference between you—or your competitor—getting the sale. In fact, 60% of shoppers are more likely to pick a retailer who can give them a delivery date. A seamless post-checkout experience, including a frictionless return process, not only enhances customer satisfaction but also drives repeat sales.

Personalization and the role of AI

Personalization remains a powerful tool in ecommerce, enabling businesses to improve engagement and conversion rates by tailoring the shopping experience to distinct consumer groups. This can involve recommending products based on past purchases or creating customized buying journeys for different customer segments. Additionally, influencer marketing is crucial for driving demand, with brands increasingly collaborating with influencers on platforms like Pinterest and TikTok. Selecting influencers who resonate with the target demographic is essential for maximizing impact, and though leveraging these channels can be challenging at first, those who succeed can achieve substantial growth.

Artificial Intelligence (AI) is revolutionizing personalization in ecommerce by offering AI-driven product recommendations and targeted communications that enhance the user experience. This technology allows businesses to analyze vast amounts of data to provide personalized solutions and recommendations tailored to each customer’s specific needs, leading to higher conversion rates and greater customer satisfaction. By integrating AI into their strategies, companies can significantly improve their ability to meet the unique needs of their customers.

Streamlining operations and supply chain

Optimizing customer experience

Meeting customers where they are—whether online, through social media, or other channels—is key to building loyalty. But 85% of shoppers say online retailers have failed to meet their expectations and, ultimately, dissatisfied customers aren’t repeat customers. 

To close the gap, retailers need to look at their disconnected processes and data silos which are often to blame for customer dissatisfaction. Imagine this scenario, a new customer finds your product on TikTok Shop, checks out on the app, but the confirmation email and subsequent delivery is delayed because of a clunky backend process between TikTok and your order processing. Nowadays customers expect fast updates—and even faster shipping. To maintain a smooth flow of data throughout the ecommerce process and optimize the customer experience, automate pivotal tasks like order processing, inventory management, and customer interactions. 

Lessons from COVID-19

The COVID-19 pandemic underscored the need for agility and resilience in supply chains. Businesses were forced to adapt quickly to disruptions, highlighting the importance of contingency planning and cost control. Companies like Nissin Foods stressed the necessity of having a flexible operational strategy, including opening facilities worldwide to mitigate risks and maintain fulfillment capabilities during crises. Planning and preparedness are now integral to building a robust supply chain capable of withstanding future disruptions.

TikTok strategies for customer acquisition

TikTok has emerged as a formidable platform for customer acquisition in the ecommerce space. To leverage TikTok effectively, companies need to identify their unique selling points and communicate these through engaging content. For example, Stratia, a skincare brand, showcased its manufacturing processes and ingredient transparency on TikTok, differentiating itself from competitors.

Interaction with followers is another crucial aspect of a TikTok strategy and one way to maximize your ecommerce potential on the platform. Engaging directly with customers, as Stratia’s founder did by responding to comments, fosters a sense of community and loyalty. Instead of focusing solely on conversion, brands should plan events and activities for their followers, enhancing customer relationships and fostering long-term engagement.

Conclusion

The ecommerce landscape is continuously evolving, with new trends and technologies shaping the way businesses operate and interact with customers. By focusing on these key areas, retailers can navigate the complexities of the digital marketplace, power their ecommerce operations, meet the rising expectations of their customers, and drive sustained growth. As the industry continues to adapt and innovate, staying informed about these trends will be crucial for success in the competitive ecommerce marketplace.

Curious to learn more about trends in B2C ecommerce? Celigo surveyed over 1,500 U.S. and U.K. consumers about their recent online shopping experiences, as well as preferences, habits and purchasing plans for 2024. Download the report to learn more.