It’s always helpful to be able to see how E-Commerce trends change over time. We’ve seen a lot of flux in the industry and technology, and have a lot of data from our clients and various publications that we believe will really help you plan for the coming year.
Check out these 7 E-Commerce trends that will affect businesses in 2017!
1. Smartphone Traffic And Purchases Are Increasing (Still)
In the US, website visits in the last 3 years using a smartphone have increased 69%. In the same time, desktop traffic fell 23%, with traffic from tablets decreasing only slightly less at 19%, despite massive price discounts in the last year.
The upward trend only applies to mobile web however, as app installs have decreased 38% in the last 3 years. The number of times an app is launched has decreased 28% in the same time. (Internet Retailer, 3/2)
50% of consumers are making purchases with smartphones with women outpacing men: 45% to men’s 40%. Mobile Commerce is jumping 36% this year to $157b and will for the first time reach 1/3 of online retail sales. 25% of consumers have made a purchase on a smartphone after receiving a push notification, text or email.
Email still holds an edge over push notifications and text when inciting a purchase from customers. (WWD)
2. E-Commerce Is Growing
Perhaps one of the most relevant E-Commerce trends in 2017, this is due to better interfaces, fulfillment and increased mobile shopping. Online retail is set to grow 16% in 2017 to $462b.
Regular retail sales by comparison is set to grow at 3.5% to $5t. (eMarketer)
By 2021 US online retail is expected to leap to $789b by 2021, representing 13.9% of all US retail sales. (WWD)
3. Apparel And Accessories Captures The Largest Share Of Online Spending In 2017
This E-Commerce trend continues from years past, as Apparel and Accessories will take 19% of online spending in 2017, followed closely by Computers and Electronics at 17%. (WWD)
4. Chatbots Will Be Tested
Chatbots with robust capabilities are still being tested, but we expect consumers to start seeing these go live in 2017. Live chat users spend an average of 5-30% more, and the buyer conversion rate is 5-10 times higher following a chat session. These chatbots serve as an aid to the customer throughout their time on a retailer’s website. This mirrors (and even enhances) the experience a customer might get with an associate at a brick and mortar location. (Orb Online)
5. Artificial Intelligence Will Outperform Everyone
After partnering with Retention Science, Dollar Shave Club is reporting a 60% decrease in churn while increasing their resubscribe rate by 5x. BCBG Max Azria increased their email revenue by 1.5x in 6 months, increased customer engagement by 20% and saw a 3x lift in conversion across lifecycle campaigns.
Netflix uses AI to provide personalized recommendations to subscribers based on their streaming habits.
Under Armour uses IBM’s Watson to help it’s customers track their health and fitness activities. According to Gartner, 85% of interactions with a customer will be handled without a human by 2020. By 2018, faces and voices of customers will be recognized by digital assistants. AI doing what has yet to be done- create a brick and mortar experience online. (Entrepreneur)
6. Email Marketing
Email marketing constantly drives more conversions than any other marketing channel, including search and social. EConsultancy asked brand side marketers what the future of email would be. Their response? Personalization, Automation, Data, Devices and Content.
Companies like Retention Science are already helping brands match subscribers with content or the perfect product recommendations using AI. Video will go a long way in email marketing with 30% of marketers having tried embedded video in email by the end of 2017.
7. Subscription Businesses Will Win… If They Can Figure Out How To Keep Customers On Board
In the last 5 years, the subscription economy has been growing 200% a year (Fast Company.) Retention Science predicts subscription box revenue sources will expand to providing unique curated products in stores as a way to increase engagement with subscribers and potential customers. Subscriptions companies who flourish will focus on eliminating customer churn and increasing the longevity of the customer lifecycle.
Thanks for checking out these 7 E-Commerce Trends for 2017!
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