The last few years have been huge for Ecommerce, now a booming industry where there is only one way to look and that is into the future. Here at Demoup we have made some predictions and forecasts of Ecommerce trends that we expect to flourish throughout 2017 and continue into 2020.

Development of 2016 Ecommerce Trends:

 

Let us start by analyzing some Ecommerce trends that were forecast in 2016 to see how they have played out so far!

1) Developing countries will become the largest Ecommerce markets – This has proven to be true, developing markets such as China and India are growing each year, and if continued could well become some of the biggest.

2) Will Amazon and Alibaba keep up with new Ecommerce trends? – Absolutely! Amazon is now the market leader in the USA and Alibaba takes the lead in the Chinese Market.

3) Is the future of Ecommerce mobile? – Whilst more people are browsing on mobile devices, mobile conversion is not increasing – desktop still takes the win.

1) The first Ecommerce trend is Same-Day Delivery:

A trend which is already growing and we believe will absolutely grow over the next years is that of Same-Day Delivery. With the ever-growing bubble of consumerism and the rising expectations of customers following closely in tow, it’s not a surprising prediction that Same-Day delivery will become somewhat of an expectation in the future. In fact, in a recent survey carried out by Stuart, a delivery service in the UK, 32% of consumers would always choose a high street retailer that offers same-day delivery over one that does not. An impressive 62% would be willing to pay a premium for a Same-Day delivery option: that’s a potential of an extra £94m in revenue from deliveries alone according to Stuart. Take a look at some of the stores that are and aren’t offering this option.

 

Ecommerce Trend: Business that offer Same-Day delivery

 

The list does look impressive, with a large amount of businesses offering Same-Day Delivery. However it is important to remember that none of these have yet established a fixed same-day delivery option. For example, as the earliest to establish same-day delivery in 2009, Asos extended this offer only to people in the London area, and since then there has not been much sign of its continuance. Zalando carried out a pilot test in 2015, and Macy’s followed in the same steps as Asos, offering delivery only in its major city- New York. In fact, the most advanced retailers are Saturn and Media Markt Germany, who offer this service country wide.

 

However, Same-Day delivery exerts a huge logistical exhaustion on a company, as well as a huge demand on its labour forces, in order for this complex method to be executed ethically and effectively it will have to be planned and implemented thoroughly – so we predict this trend will develop slower than most!

 

2) The new look of Ecommerce: Less clutter, more visualization:

When consumers are shopping, it’s important that they don’t get lost in the clutter of the website. One thing businesses don’t want is for a customer to click off their website, or experience conversion losses because their website is either too hard to navigate or too cluttered to find what they want. Therefore it seems that businesses are heading more and more towards visualization in a minimalist and simple form, rather than a cluttered website. Take a look at how these businesses have been providing a ‘cleaner’ website for their consumers from 2012-2014-2017.

2012 :

Asos Ecommerce Trend Website in 2012 and Zalando Ecommerce Website in 2012

 

2014:

Asos Ecommerce Trend website in 2014 and Zalando Ecommerce website in 2014

2017:

Asos Ecommerce Trend website in 2017 and Zalando Ecommerce website in 2017

 

We are able to see the trend transitioning slowly from cluttered, in-your-face visuals, to minimalist, easy to navigate websites.

We predict in the future the home pages are going to become even more simple, with one striking visual and an extremely simplistic navigation bar. One thing is for sure, the days of clutter are over!

 

3) The next stop is India, but the Indian Ecommerce market is brutal!

The Ecommerce industry still has so much potential for growth, and right now its focus is on India. According to the Internet and Mobile association of India, their online population should reach 450-465 Million by June 2017, and by 2020 the online sales should come to between 45-48 Billion US Dollars.

 

 

Ecommerce Trend Revenue Projections for India's Ecommerce Market

2017 seems to be the year that companies are making moves to really establish themselves in India’s booming Ecommerce Industry, in particular the two giants Alibaba and Amazon. Since 2014 Amazon has already invested $2B into their India based operations. Not only this, but they also launched the pilot ‘Sell as an individual’ recently, which allows people to sell their used goods for which Amazon will handle the packaging and shipping at a small cost. Along with this, Amazon announced a $3B investment in India in 2016. Alibaba recently backed Indian commerce company Paytm for the third time, and this time they bought 36.31% of its stake in the Ecommerce industry, which according to Reuters was worth $177M. Ebay, Alibaba and others have already invested $1.5B into Snapdeal, and DHL plans to invest $268M in India to meet its Ecommerce demands. Other giants also have plans of making moves in India, with Walmart’s Chief Executive Doug McMillon labeling it as one of their ‘key growth markets’. 

 

 Ecommerce TrendExpected Annual Revenue Growth Rate

 

If we compare the annual revenue growth rate within the Ecommerce Markets of 10 major countries including India, we can see that at 22.6% India is the lead. Its growth is substantially bigger than its competitors, even developing market leaders such as China. 

 

It is going to be a tough competition for a business to establish itself as a winner in India’s market, the US market has been dominated by Amazon, China by Alibaba, but who will claim India? At 222.7M unique visitors per month, Amazon is very much making way for itself within the Indian market. However Flipkart, combined with its subsidiaries, is giving amazon a good run for it’s money. Time will tell which company has the time and money to win the battle for 1st place in India’s budding Ecommerce market.

 

We believe India is the market to watch, but only the biggest companies, with the greatest amount of resources, will take top place in their market.

 

4) Ecommerce sees increasing video use and recognition:

Using videos has many benefits for a business, among these are an increased add-to-cart rate and higher conversion rates. More and more companies are beginning to reap the benefits of videos within the last year.

Ecommerce Trend Digital Vs Ad Spending in the US

 

As a nod of recognition from the industry, for the first time it is expected that this year digital ad spending will exceed that of TV. As a part of the digital collective, this also incurs an increase in spending for the production of videos, used exclusively online to help boost sales. According to EMarketer, in the US it is expected that the total digital spending will grow to $113.18B by 2020, from the $72.09B that was spent in 2016 – that’s a $41.09B increase. In the meantime TV spending will increase by only $9.05B in this same period.

 

At DemoUp we looked at some video coverage for a group of product categories, we took the coverage of the overall category and compared it to the video coverage of its top products; as you can see the smartphone category is extremely well covered, however other categories such as sofas and apparel are not so much. For example, Buggy’s average video coverage comes to about 10%, however the amount of top selling products supported by videos is only 30%. As the popularity of these products increases so will the importance of videos. There is so much room for growth in many of categories, the future of video use within Ecommerce looks bright.

 

We predict that there will be a lot of video growth in categories such as apparel and furniture, and the categories such as smartphones will always be saturated with videos.

 

 In short, what can you expect?

 

Videos in Ecommerce

Sources:

https://techcrunch.com/2017/03/06/alibaba-paytm-amazon-india/

https://www.emarketer.com/Chart/US-TV-vs-Digital-Ad-Spending-2015-2020-billions/196603

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