These 7 Trends Will Change the Future of eCommerce Companies in 2021
In February 2020, eCommerce companies were quick to break their predictions and make demand forecasts. The world was going to be unlike anything we have ever seen. This uncertainty is still present, but we can now look to it to find patterns and set expectations for 2021. Keep the salt in your mouth, because nobody knows what the year will bring.
We have compiled a list with seven predictions for eCommerce in 2021 and what they mean for small and large brands. These predictions are based upon elements that will help you build better customer relationships, limit disruption and strengthen your store. We are constantly changing the economy and customers. Let’s take a look at what the driving forces behind change have taught us.
1. Greater social integration
eCommerce marketing follows broader social trends and sales. It prioritizes ease of access for its innovation. Instagram’s Shoppable Stories and posts allowed users to shop almost instantly and were a huge success. They were instrumental in the creation of Shops, which were launched during the COVID crisis. These tools helped companies improve their eCommerce capabilities and attract more customers.
As 2020 came to an end, other social media channels made progress. Shopify’s partnership with TikTok is one of the most talked-about moves by brands and consumers. Ads can appear in users’ feeds and are designed like other content.
This trend is expected to continue, as many of the social media gains from the past year will become more permanent. Engagement increased in mobile, and TikTok’s mobile focus made TikTok a top spot for social eCommerce. Companies will need to monitor which channels their audience uses, but they should expect to shift some traditional advertising spending to social shopping or new integrations between social channels.
2. Customers expect you to get out from under them
One feature of 2020 was the sharp rise in digital self-service tools. Because of the need for remote access, chatbots powered by humans and phone service tools have also grown in number. McKinsey found that while these options were liked by the average consumer, 75% now prefer them.
The same research shows that B2B and C customers have different preferences. Only 20% of B2B buyers want to go back to face-to-face sales. This is a stark contrast to many other practices in this space. It also shows that relationship building will be necessary through content and websites. Digital interactions are now common and customers’ preferences will ensure that they continue to be digital.
It is important to offer customers easy ways to browse and shop online, so they can make a decision quickly. Customers should drive most of the touchpoints for human interaction in the sales process. It is now self-directed. Customers should have the ability to click to call or access a chatbot or tweet for service or to schedule a demo/video conference.
The report shows that sellers and buyers expect these patterns will continue through at least 2021. This gives you ample opportunity to optimize your efforts and test the preferences of your customers.
3. The rise of niche markets is a major play
The biggest digital marketplaces were the first to benefit from the eCommerce boom in 2020. Amazon, for example, posted its highest-ever profit and will likely blow that number again.
Amazon’s profits and its CEO have prompted some discussion about how consumers should spend their money. Small communities are turning to other options due to the company’s treatment and delays of its workers. People are increasingly shifting their money to bookstores. Niche markets that do not include the big companies may be more appealing to those who want to support their local communities and small businesses.
It’s been evident in the marketing and sales of smaller eCommerce businesses and some B2B circles. It’s important to be local and smaller. A seller who is present on a smaller scale can respond more quickly to customer demands. This can open up significant opportunities, especially if your audience drives the conservation.
In 2021, eCommerce companies need to be aware of how their competitors are capturing niche markets and what can or cannot be copied. The Capitol Hill Books bookstore in Washington D.C. attempted to replicate some of its competitors’ exclusive shopping offers, but it was unsuccessful. A single email sent by a customer became one of the most effective sales tools for the company during the COVID-19 pandemic.
4. Voice will be a priority for better buying
Personal assistants like Siri and Alexa are making voice interactions easier on both touch-screen and non-touch devices. Voice search and purchasing have been a popular trend for some time. We agree that this space is growing in exciting ways for eCommerce.
We saw 2020 as a turning point in eCommerce. People are more comfortable purchasing via voice. This trend was expected by the industry, but it has now been seen in the U.S. with 43% of smart speakers owners using voice technology to make purchases. This is roughly 17 million Americans.
This applies to eCommerce. This review should be applied to everything you do from your search ads, website capabilities, emails, and offers. You’re more likely to be a sales prospect if you are simpler and more easily understood.
These search tools are often used by smaller eCommerce companies that don’t know about Bing. This should help guide your marketing and site development efforts at least partially. This will require additional effort and focus, but it can help you to land additional eCommerce sales by ensuring your content is correct on Bing.
5. Dynamic pricing will be subject to a rigorous test of the data
The dynamic pricing trend saw an increase in the pandemic and is expected to continue, according to companies that have data about it like 3dcart. This has a lot to do with customer satisfaction and revenue potential. However, customers may perceive you as price-gouging and experience significant price increases in their buyer’s journey.
Online retailers will likely conduct more competitor research in 2021. This will inform prices and possible yield changes. This data can be gathered and more information about consumers will enable businesses to create “price intelligence”, which will allow them to maximize their revenue and minimize threats and cannibalization.
Demand and supply will remain in flux. This allows for new dynamic pricing models to be tested. Pricing intelligence product makers will likely offer more data and tools. Retailers will have to prioritize metric tracking, forecasts, and how competitors adjust promotions that may push something under an advertised price.
Customers can also do dynamic pricing work. Browser extensions such as Honey, Amazon Assistant, and Invisible Hand allow you to compare prices, apply coupons and track your pricing over time. Consumer tools will be able to use the data they have available to inform their shopping decisions and final vendor selection.
You should plan to adjust pricing frequently if you want your 2021 customers to learn. They may reward you or punish you depending upon how great a deal they offer and if you are being greedy.
6. Customers will need more information about shipping and other details
Red Stag Fulfillment is a provider of eCommerce fulfillment services that specialize in large, heavy, or bulky products. We track a wide range of customer and company requests regarding shipping and fulfillment.
eCommerce companies saw an increase in customers looking for more information and options regarding shipping capabilities, starting with 2019. Customers desired to be able to choose from different shipping speeds and pricing options during checkout. They also wanted estimates. Many customers liked the integration with cart tools. However, they were able to estimate the price but still had to note that final selections depend on the ZIP code of the shopper.
Starting 2020 was all about transparency. The market was then subject to some of the most severe disruptions in fulfillment history. Although local and regional sales were less likely than the global market, we still saw an increase in information requests about availability, reliability, processing times, and speed. Customers are more knowledgeable about fulfillment than ever before and will ask deeper questions.
eCommerce companies will want to know how they can automate and provide information while offering fast and free options. They’re not just interested in broad categories. They also want to know about specific industry elements. Customers who purchase fragile goods or luxury goods will demand a better experience when unboxing their products. This includes inserts and branding. Be prepared to answer any questions you may have about sustainability when shipping to customers who are health- and environment-conscious.
If a brand wants to be innovative and offer the best fulfillment options, free shipping is not the only thing they will need.
7. Rapid decision-making could be a permanent feature
We’re focusing on 2021 because the customer’s decision-making processes drive all other factors. Consumers expect more information from you and that you can provide them with options and information while meeting their needs at the places they shop and play. They will spend more at your store if they are satisfied with the service they receive.
Customers are in control. Customers are in control of their destiny. With the explosion of eCommerce options, it’s easy to switch lanes whenever you want. They might need to work together to overcome a break in their sales journey. eCommerce businesses will need to set expectations and test again to make sure everything works. Data on returns, refunds, shipping, and sales are all always available.
Although customers were very patient after making purchases in 2020, it is not clear if they will be as forgiving in 2021. Your goal is to assist them, not get in their way, and make it easier for them to buy. Once they have decided to buy from you, don’t let them change their mind.
Be prepared for more changes
The pandemic caused eCommerce companies trends to develop at an incredible rate in 2020. These changes may become a necessity throughout 2021. You should be ready to take advantage of these changes and make necessary adjustments to your eCommerce business to remain competitive. You have less time to wait, and you will soon find yourself struggling if you don’t adapt to at least a few of these trends.
Disclaimer. The opinions and views expressed in this article are the authors Judge Napolitano.
