E-commerce is the present reality that we all need to acknowledge. In 2023, Statista recorded global e-commerce sales at 5,784 billion U.S. dollars and expects the figure to hit 6,330 billion in 2024. But, e-commerce is not only experiencing a boom in value. It’s also expected to change in dynamics in the foreseeable future. 

With the advancements in technology, the discovery of new strategies in digital marketing, the emergence of 5G networks, and the invention of IoT devices, we can expect to see a revolutionary future in e-commerce. In today’s blog, we’ll talk about five trends that we should expect to see in the future of e-commerce. 

But first, let’s understand what e-commerce exactly is. 

What is E-Commerce? 

E-commerce is the buying and selling of goods and services online. The term was first introduced by Michael Aldrich in 1979. Michael took the first step in the world of e-commerce when he attached a modified TV to a transaction processing computer and wired it with a telephone. The technology allowed for the secure transfer of payment data. 

But, that was just the “whisper in the wind.” The first e-commerce company was launched in 1982 by the name of Boston Computer Exchange, a platform for people who wanted to sell used computers. These transactions shaped the future of e-commerce as it is today. Fast forward to 2024, e-commerce transactions are done through websites, social media channels, and mobile apps. 

Notable e-commerce websites are: 

1. Amazon. 
2. AliExpress. 
3. Flipkart.
4. eBay.

Now, let’s dive into our core topic of five e-commerce trends that will shape the future of e-commerce. 

5 Future Trends to Look at in E-Commerce

The future sees an advancement in everything. The same goes for e-commerce. Here’s what we could be looking at: 

1. The rise of AR/VR.
2. Subscription-based e-commerce.
3. Chatbots. 
4. The use of Big Data.
5. Flexible payment methods.
6. The role of IoT devices in e-commerce. 

Now, we’ll look at each one of these separately. 

1. The rise of AR/VR

AR/VR is a major reality that we are already experiencing. Look around you and you’ll find notable AR headsets such as Meta Quest 3, Apple Vision Pro, and Sony’s Spatial Content Headset. 

AR/VR headsets will greatly shape the future of e-commerce. Users will be able to try out products virtually using them. 

The biggest limitation of e-commerce is the user’s inability to touch and feel products physically. This gap is filled with the help of AR/VR headsets. Now, users can view the products they buy in different scenarios. This allows them to experience the product from different aspects to their liking.

For example, if you have bought makeup online, you can try the makeup by using a VR headset. Thus, you can see whether a particular shade of lipstick suits your face or not.

2. Subscription-based e-commerce 

Subscription-based e-commerce is another trend that will be prevalent in the future of e-commerce. 

Creating a subscription model is advantageous for your business. It ensures that you receive continuous revenue for your business without any payment hurdles. One example of the subscription model is Amazon’s Subscribe and Save. 

Using this model, you can have recurring household goods, grooming products, and healthcare products delivered directly to your home. 

Using a subscription model for your e-commerce business facilitates ease, which helps you build customer loyalty. 

3. Chatbots

Chatbots are a major feature that we can see in e-commerce platforms. Now it’s not about hiring a team of customer sales representatives to tend to customer needs. Simply add a chatbot into the mix, and everything will go smoothly. 

Chatbots in e-commerce are powered by AI. They are similar to AI interfaces such as Chat GPT and Gemini. What’s better about e-commerce chatbots is their ability to understand customer emotions. 

In a typical case, customer support agents tend to thousands of queries daily, which gets tiring and takes a toll on their mental well-being. As a result, agents might suffer a block, or enter into a panic state if they encounter an angry customer. 

However, since e-commerce chatbots can understand customer emotions, they can easily provide a befitting response which helps calm down the customer. Thus, AI chatbots make e-commerce customer dealing easy and will be a major trend in the future of e-commerce. 

4. The use of Big Data

Big Data will play a major role in the future of e-commerce. Big Data typically includes the processing of large amounts of customer data. It can be used in e-commerce to help with: 

1. Managing inventory levels for products and services.

2. Designing marketing strategies for various products and services. 

3. Providing training to AI chatbots to deal with common customer queries. 

4. Managing product listings by analyzing which products sit well with customers. 

5. Providing competitor SWOT analysis by analyzing large datasets of competitor information. 

Thus, Big Data will play an integral part in e-commerce business decision-making. 

5. Flexible payment options

Another trend that will shape the future of e-commerce will be flexible payment options.  Checks and cash on delivery are outdated methods not preferred by businesses anymore. They are a hassle because of the need to withdraw cash and the extended clearance windows that come with checks. Now, we’ll see other payment options such as: 

1. Mobile wallets. 

2. Credit cards.

3. Debit cards.

4. Buy now and pay later.

So, from 2024 onwards, we’ll see a shift in payment methods from cash/checks to digital payment methods. 

Now, let’s end the blog with a recap of what we learned throughout. 

The Recap

E-commerce is the present and the future, with current global sales standing at 5,784 billion, and expected to rise to 6,330 billion during the current year. The future of e-commerce is likely to see various trends that will change the industry altogether. Moreover, we can expect to see the rise of Big Data to create marketing strategies, manage inventory levels, provide training to AI chatbots, manage product listings, and help with designing customer SWOT analysis. Furthermore, we can expect the addition of flexible payment options such as mobile wallets, credit cards, debit cards, and buy now and pay later. So, these are the trends that we should expect to see in e-commerce in the coming years.