Innovations in E-commerce that will Shape 2017

The ending 2016 have been quite impressive for e-commerce. If we would take a look at the US, e-commerce sales for the first 3 quarters totalled to nearly $300 billion. This is about 15% increase year-over-year concerning each named quarter. And the 4th quarter is still missing – with holiday shopping, Thanksgiving, Black Friday etc.

2016 have been impressive for e-commerce.

If we would analyze the world data, we would find that worldwide e-commerce sales in 2016 are expected to reach about $22 trillion, which is 6% increase from the last year. Hence, it is clear that this year was HUGE for e-commerce as such.

Nevertheless, billions spent online accounted for just approximately 10% of overall retail sales in the US. Since United States can be considered as a rather mature market, numbers in other countries are in fact lower. The exceptions that can be named here are UK, China, Finland and Norway with about respective 15, 14, 11, and 11% of e-commerce sales from the overall retail sales.

Most purchases are still taking place offline.

Taking these numbers into account, it is more than obvious that e-commerce spending will grow. But as for now, most purchases are still taking place offline. Thus, it is interesting to take a look at what has been done in order to (or can have an impact for) push(ing) customers online. I suggest to look at 3 things.

Beacon Technology

Despite of the fact that it has been around since 2013, Beacon Technology (BT) started really catching on only in the last year.

Basically, once a customer has downloaded your app, BT allows to monitor each user’s location (internet connection permitting). From there, whenever the user in question is within a certain distance from a branch of a particular store, it fires them a message designed to lure them in (it is usually an offer, but not necessarily).

Why is it important? Generally, there are 2 types of customers: the ones that prefer buying from home, and the ones that love touching in-store experience. With the help of BT, it no longer has to be that way. BT removes the “barrier” and helps consumers to diversify the way they shop, and brands, they way they market to them. Research has showed that combined in-store and mobile shopping experiences helped UK retailers to unlock an additional $244 million in sales each year and drove more foot traffic.

Mobile Payments

I have written quite a lot about mobile payments (see the links below) and their importance, as well as challenges they face. Now I would like to put an emphasis on Apple Pay. As an online payment method, Apple Pay allows to easily complete a purchase by tapping Apple Pay button, and scanning one’s fingerprint.

Why is it important? Convenience and speed, which increase the odds that the purchase will be completed. In turn, it means more sales, higher conversion rates, and increased revenue.

Chatbots on Facebook Messenger

Facebook Messenger is one of the most popular (and hence most important) messaging apps worldwide. Its introduced bot powered by Artificial Intelligence (AI) is capable of automating a lot of tasks – from running ads on Facebook or Instagram, to distributing email campaigns. It also allows customers to shop, ask questions, or receive updates about their purchases, all without ever leaving Facebook Messenger (read about eBay & Facebook below).

Why is it important? Convenience and reachability. Customers do not have to visit particular sites to interact with retailers or even make a purchase. Now the entire process can take place without the customer ever needing to leave their comfort zone – in this case, the Facebook Messenger. Of course, it is important for the entrepreneurs as well, since it decreases the costs needed to start a business.

Anything to add? Feel free to comment below.

Read more:

Social Commerce. When?

Facebook & Payments. What to Expect?

Facebook: Emerging E-commerce Powerhouse?

Facebook Marketplace: A Threat or An Opportunity?

Facebook and eBay Partnership. Why it is Important?

Mobile Payments. Why Not Yet?

One Thing We Need to Take Out From Black Friday  

M-Commerce. Motivations & Barriers.

Mobile Commerce. The Rising Giant.

Forget the New iPhone – Apple Pay is the BIG Thing

Online Shoppers – To Buy or Not To Buy?

How Mobile Payments Are Doing?