Top 15 Expected eCommerce Trends in 2021

As we approach the final weeks of 2020, it’s time to consider what’s ahead in eCommerce in 2021. Here are the expected top 2021 eCommerce trends.

1. Retail eCommerce Sales Will Continue to Grow.

As should surprise no one, eCommerce sales are expected to continue to grow in 2021. According to Statistica, total adjusted eCommerce sales in the US rose to $160.4 billion in the first quarter of 2020, up from $34.5 billion in the first quarter of 2009. Online sales had been increasing for years, and the COVID-19 pandemic has only accelerated that trend. Total online spending in the US hit $82.5 billion in May alone, up 77% year-over-year, according to Adobe. Without the pandemic, it likely would have taken between 4 and 6 years for May eCommerce spending to have reached that level. These trends are expected to continue.

2. Social Media Activities Will Influence eCommerce Retail Behavior.

Another of the top 2021 eCommerce trends includes the increased influence of social media. Brands have known for some time that content users find on social media can influence how they feel about brands and impact their buying decisions. “Social shopping,” or when stores feature “Buy” buttons on social media and allow purchasing directly within the social media platform, is expected to increase as well. Some eCommerce platforms allow companies to easily link their online stores with social media sites. In addition, new social media platforms like TikTok will become a bigger force in driving consumers eCommerce buying decisions.

3. Smart Speaker Use for eCommerce Will Continue Rising

. Over the last few years, Smart Speakers have hit the consumer scene in a big way. In March 2019, 66.4 million people in the U.S. used a smart speaker, according to TechCrunch. The U.S. is expected to see 46% growth in the installed Smart Speaker user base this year, with a total installed base of 90 million smart speakers  by the end of 2021.

4. Omnichannel Shopping Will Become More Normalized

. Omnichannel shopping experiences have grown more popular over the last few years, and this trend is expected to continue in 2021. An omnichannel shopping experience is a cross-channel content strategy that involves improving the user experience and engaging with them across multiple channels. Consumers are used to purchasing from many different retailers online, and for beginning their purchasing journey on one platform and ending in another. Whether that means clicking a social media ad, going to the website to place an order, and have that order delivered at home, or whether it means buying something online and then going to the store to pick it up, it’s clear that omnichannel experiences are here to stay.

5. Increased Use of Artificial Intelligence and Augmented Reality

. The use of both artificial intelligence (AI) and augmented reality (AR) in eCommerce has been increasing for some time. Examples include the use of chatbots, or algorithms that use a customer’s past purchases to make product recommendations. By 2022, global retailers are expected to spend $7.3 billion on AI per year. Differentiation and improving customer service will be the main drivers behind this investment, according to research. By 2022, 3% of eCommerce revenue, equivalent to $122 billion worldwide, will be generated through AR experiences. Using AR in the eCommerce space allows customers to virtually “try on” items and see how they look in different colors and styles.

6. Use of New Payment Options, including Cryptocurrency.

The increased availability of new payment options online has been a trend for some time. Consumers expect online shopping to be convenient, and part of that convenience includes being able to pay how they want. Currently, nearly all online stores accept credit and debit cards, and an increasing number of them accept digital wallets such as Google Pay, Apple Pay, Samsung Pay, and PayPal. According to HSB, 36% of small-to-medium sized businesses (SMBs) accepted cryptocurrency as of the beginning of 2019. Several large businesses also accept cryptocurrency, including Wikipedia, Microsoft, AT&T, Overstock, and Twitch. In 2021, we may see an increasing number of online retailers accepting cryptocurrencies as well. While accepting cryptocurrency may pose some risks for retailers, it offers benefits as well, including low transaction fees and no reverse transactions.

7. Increased Use of Dynamic Pricing.

Anyone who has purchased a plane ticket online or tried to book a rideshare service after an event like a football game should be familiar with the concept of dynamic pricing, which is also known as surge pricing, time-based pricing, or demand pricing. Basically, dynamic pricing involves the use of sliding scale in which the price of the item or service based on factors including current market demand or the perceived ability to pay. Historically, dynamic pricing has been used most frequently in the travel and hospitality industries. Now, with the use of algorithms and big data, eCommerce retailers can continuously monitor factors like competitor pricing, market demand, and perceived value to determine the best price for their products.

8. Mobile Commerce to Dominate eCommerce Space.

Mobile commerce, more popularly known as mCommerce, involves purchases made using a mobile device. In 2019, mCommerce is expected to represent 44.7% of total US eCommerce sales, up from 39.6% the previous year. In 2018, mCommerce sales accounted for about 30% of total eCommerce sales on Black Friday, up from 29.1% the previous year. This trend is expected to continue, with mCommerce expected to represent 53.9% of total US eCommerce sales in 2021, equivalent to $424.3 billion.

9. Continued Rise of Green/Sustainable and Socially Conscious Consumerism.

Particularly among younger consumers, there has been a trend toward socially conscious and/or green consumerism for a while. These socially or environmentally conscious consumers have been pushing companies to change their corporate practices and take a stand on divisive topics. Green consumerism in particular is when consumers look for products that have been produced in an environmentally friendly manner, which might mean using recycled or sustainable materials or using processes that reduce waste. Socially conscious consumption is when people make a commitment to buying products that have a positive, social, economic, and environmental impact. According to the Harvard Business Review, 65% of consumers indicate that they want to buy from brands that advocate for sustainability. Another survey found that 75% of consumers want to know what steps companies they buy from are taking to address social and environmental issues, while 46% pay attention to a brand’s efforts to be socially responsible when buying a product. These trends are unlikely to go away and should play an even bigger role in 2021.

10. Increased Use of Visual Commerce

. Visual commerce is an umbrella term for a concept that involves using powerful visual content to encourage consumers to engage with your brand and buy your products. Examples of visual commerce include using up-close, 360-degree product shots, collecting user generated photos and videos and repurposing them into your marketing materials, or adding shoppability layers that allow users to click on photos and go directly to the product pages. The idea behind visual commerce is that it overcomes one of the main barriers to eCommerce shopping—namely, the inability of consumers to touch or feel your products. Visual commerce allows them to get the best possible visual online engagement with your product and may allow them to picture how it would work/look in their own lives.

11. Headless Commerce.

Headless Commerce involves an eCommerce platform with decoupled back-end and front-end systems. This allows developers to easily make changes to their eCommerce system without needing a full development update for the platform. For larger companies, it also allows eCommerce brands to deliver their content to other objects such as smartwatches and kiosk screens. In contrast, in a traditional or non-heedless eCommerce environment, the front-end and back-end remain tightly coupled. This limits customization, imposes design constraints, and means that changes to the front-end system require extensive work on the back-end as well. Given the advantages that it offers in terms of implementation time and the consumer experience, it’s no wonder the headless commerce has become more popular with online retailers. This trend is expected to continue into 2021 and beyond.

12. eCommerce Retailers Moving into Offline Commerce

. ‘Offline commerce’ is a fancy term for when traditionally online-only retailers like Amazon open brick-and-mortar stores. This is a reversal of the usual trend of legacy brick-and-mortal brands establishing an online presence. Amazon has more than 600 physical retail locations across the U.S. Other online retailers are expected to follow suit in the coming years as they find new ways to reach their customers and attract new ones.

13. Subscription Models Will Be Normalized.

This is not a new trend, but it is expected to intensify in 2021 as companies search for reliable new revenue streams. Microsoft Office switched to a subscription model in 2013. Consumers will be familiar with other streaming services including Netflix, Hulu, and Disney+. From the company’s perspective, a subscription service eliminates many of the hassles of selling and distributing physical copies of your software, provides a reliable and consistent revenue stream, and helps companies build long-term relationships with their customers.

14. Increased Personalization in eCommerce.

Companies have been offering customers more personalized and differentiated for some time as a way of competing in a crowded marketplace. This trend is expected to continue into 2021 as companies leverage customer data to deliver better, more personalized experiences, including tailored product recommendations.

15. More Integration.

The key to any successful online business is providing a good customer experience. That means your website loads quickly and is designed around your customers’ needs, and that it is easy for your customers to place and pay for orders. Then, on the backend, it means that products are quickly shipped to your customers and that the product availability listed on your website matches what you have in your warehouse. That’s where integration comes in. Businesses that integrate their warehouse and retail operations by using solutions like enterprise resource planning (ERPs) software will have an advantage over those that don’t. Integrating operations across your company saves you time and money, reduces hassle, and provides a better experience for both your employees and your customers. For these reasons, we expect to see increased integration across departments among companies in 2021.