2023 had a lot to offer when it came to eCommerce. Many stores opened, and the rise of the use of artificial intelligence had a great impact in the industry. It would be very interesting to see what the new year has in store, as well as what will change. The experts have commented on what they think this year will look like, and we have a 2 part series filled with insights and predictions:
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Our Experts:
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- Isabelle B茅nard, Chief Product Officer, Mirakl
- Amal Ahmed, Director, Financial Services and EMEA Marketing, Signifyd
- Steven Athwal, Founder and Managing Director, The Big Phone Store
- Bogdan Marinescu, Co-Founder and Managing Director, Digital Trails
- Paul Heimann, Head of Re-Commerce, Adevinta and CEO, Kleinanzeigen
- Andy Mills, VP of EMEA, Cequence Security
- Aaron Peters, Founder, Sprout Media
- Permele Doyle, US President and Co-Founder, Billion Dollar Boy
- Ian Clayton, Chief Product Officer, Redpoint Global
- Nathan Lomax, Co-founder and Director, Quickfire Digital
- Rasa Urbonaite, CMO, Breezit
- Elisah van Allen, Head of Social, 33Seconds
- Mateusz Calik, CEO, Delante
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Isabelle B茅nard, Chief Product Officer, Mirakl
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鈥�2024 marks the start of the era of AI-first marketplaces. AI-driven innovations and conversational commerce will drive disruption in the way consumers search, discover and shop at a pace never seen before.
鈥渆Commerce players across both B2C and B2B industries should be looking to leverage AI to improve their operational efficiency and create a best-in-class and highly personalised shopping experience.
鈥淎I-driven technologies make it easier to unlock the pool of supply (especially of third-party products, for companies operating online marketplaces), as well as generate increased demand from customers and monetisation opportunities.
鈥淭ake the shopping experience for example: it is being radically transformed by conversational commerce, with the generative AI-powered chatbots that can help you find exactly what you are looking for and offer recommendations based on your preferences.鈥�
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Amal Ahmed, Director, Financial Services and EMEA Marketing, Signifyd
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鈥淢erchant innovation is at the heart of shaping the future of commerce; that鈥檚 nothing new. But in a rapidly evolving landscape where consumer expectations are higher than ever, staying ahead of the curve is not just an option鈥攊t鈥檚 a necessity.
鈥淪ignifyd鈥檚 State of Commerce report has revealed that 37% of UK consumers said two or fewer bad online checkout experiences would cost a merchant their business for good. The importance of CX in driving loyalty has undeniable impacts on a retailer鈥檚 bottom line, and ultimately, this experience 鈥� if good 鈥� turns into revenue both immediately and in the future.
鈥淗eading into 2024, consumers are continuing to feel the financial pinch, which is compelling them on making a conscious effort to spend wisely. Every retailer now needs to offer more than just a technological facelift; it requires a profound shift in how they cater to the modern shopper鈥檚 demands.
鈥淗owever, amidst this digital evolution, a twist emerges: the era of future-focused ecommerce, marked by instant approvals, also widens the door for potential fraudsters seeking to exploit rapid transactions.
鈥淔or businesses, the sweet spot lies in harmonising three key elements: CX, fraud protection, and reducing friction in payments. Merchants must be more savvy about the evolving fraud landscape, particularly in Europe, where issues like friendly fraud and returns abuse compound challenges in an era of squeezed margins.
鈥淎 holistic, tailored strategy is crucial. Businesses need to determine their specific profile鈥攚hether UK-focused, UK/EU, or operating on a broader international scale. This awareness is integral to navigating the challenges and achieving success in 2024 and beyond. Striking this balance necessitates partnerships among merchants, payment service providers, and payment-focused tech companies, fostering innovative payment solutions.
鈥淪o, as we delve into 2024, let鈥檚 not forget: the real trick is not just in the show but in keeping fraudsters off the stage entirely.鈥�
Steven Athwal, Founder and Managing Director, The Big Phone Store
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鈥淚 recently made the mistake of opening a high street shop for The Big Phone Store, immediately we were running at a loss. Soon, though, I realised that the other high-street phone sellers were in a similar position to us.
鈥淔or most product niches, the high street has become a race to the bottom; the main reason so many phone shops remain open is that their competitors are also still open.
鈥淲e closed our store after only two years, to focus on our ecommerce site 鈥� which has exploded in traffic. With much lower overheads, a nationwide target market, and the ability to rapidly scale the business as needed, we grew to selling hundreds of devices every day in no time at all.
鈥淚 think that for niches such as consumer tech, the high street is dead and will never return. Even niche ecommerce sites are getting better and better over time, and tools like shopify are making it easier than ever for new competitors to enter and turn a profit.
鈥淚t鈥檚 the big brands, still wasting money on their in-person stores, that need to watch their backs.鈥�
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Bogdan Marinescu, Co-Founder and Managing Director, Digital Trails
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鈥淎s we advance into 2024, prioritising the ownership and optimisation of owned channels becomes crucial for e-commerce businesses.
鈥淭his trend is fuelled by the decline of cookies and the growing challenges faced with third-party channels, which are becoming increasingly competitive, costly, and less effective for customer acquisition and retention.
鈥淭he key to e-commerce success will lie in utilising first-party data to cultivate direct relationships with customers, improving personalisation and the overall customer experience鈥嬧��.
鈥淭his strategic shift is not just a reactive measure to market pressures but a proactive embrace of digital evolution.
鈥淏y controlling their channels, businesses can gain deep insights into customer preferences and behaviour, allowing them to provide customised content, recommendations, and services that truly resonate. This level of personalisation is fundamental to forging lasting customer relationships and driving sustainable growth.
鈥淔urthermore, a focus on owned channels offers businesses the agility and control needed to navigate the fast-paced changes in the e-commerce landscape, driven this year by sophisticated AI and machine learning technology, a move towards environmentally friendly shopping preferences, and the growth of social commerce.鈥�
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Paul Heimann, Head of Re-Commerce, Adevinta and CEO, Kleinanzeigen
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鈥淟ooking ahead to 2024, the cost-of-living crisis will continue to drive cash-strapped consumers to put value first. A major beneficiary of this trend is classified marketplaces, where peer-to-peer trading of second-hand goods provides an attractive route to cost-efficient shopping.
鈥淚n fact, recent research conducted by Adevinta found four in ten (40%) European consumers say the rising cost of living has encouraged them to buy second-hand to save money on purchases, and even more (44%) have been encouraged to sell second-hand in this context.
鈥淗elped along by the changing perception of second hand in Europe 鈥� from simply cost-driven, to smart and sustainable 鈥� classifieds marketplaces will continue to boom through 2024, emerging as the responsible and affordable way to shop.
鈥淭he desire to live more sustainable lives means that many consumers 鈥� especially younger generations 鈥� already prefer to shop with brands that prioritise responsible consumption.
鈥淗eading into 2024, this 鈥減reference鈥� is becoming a demand. Brands without strong sustainability credentials will be shunned by a larger than ever cohort of 鈥渃onscious consumers鈥�.
鈥淚ndeed, Adevinta鈥檚 latest polling amongst European consumers shows that over half (54%) think more carefully about what they buy these days because of the climate crisis. And a further 4 in 10 (37%) consumers cite the desire to shop more sustainably as a key driver of wanting to shop second hand this Christmas.
鈥淲hilst brands promoting instant delivery of new, mass-produced items will inevitably hold on to a strong following, for many, this type of commerce is no longer a guilty pleasure, but an inexcusable indulgence.鈥�
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Octavie Gosselin, Vice-President Mirakl Ads, Mirakl
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鈥淚n 2024, we will see industry pioneers finally grab their share of the retail media opportunity and seek more AI-powered solutions to optimise revenues while offering personalised customer experiences.
鈥淩etail media is projected to reach $176 billion by 2028, surpassing advertising spend on TV. By enabling retailers to monetise their site traffic through sponsored ads, retail media enables retailers to unlock new revenue sources with margins of up to 70-90%.
鈥淚n 2024, retail media will continue to provide both brands and marketplace sellers with unparalleled access and visibility to relevant audiences. Marketplaces in particular will play a large role in the expansion of retail media as third-party sellers are keen on increasing the discoverability of their products and reaching new customers through retail media platforms offering measurable results.鈥�
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Rob Shaw, MD EMEA, Fluent Commerce
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鈥淲e鈥檙e going to see a huge drive in personalised customer experiences in 2024. Today鈥檚 retailers will utilise technology like AI to learn much more about consumer behaviour, likes and dislikes, informing predictive recommendations.
鈥淩etailers are already spending on enhancing online experiences, making the most of channels such as social media to advertise products and services. The focus now will be how to utilise these platforms to get more 鈥榚yes on鈥�, making more people want to shop with the brand.
The number of channels retailers use will continue to expand over the next year, leading to deeper omnichannel integration. To take full advantage, supply chain optimisation will be key, especially when thinking about demand forecasting.
鈥淣obody wants to waste budget advertising items that are no longer in stock and consumers don鈥檛 want to chase unavailable deals. By taking a more inventory-aware approach to advertising, retailers can have a more comprehensive view of inventory across all channels, making it easier to set alerts to stop an online ad if a company runs out of stock. This will set them up for positive shopping experiences in the year ahead and improve long-term customer loyalty.鈥�
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Andy Mills, VP of EMEA, Cequence Security
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鈥淓commerce has always prioritised bot detection and mitigation but in doing so it has left the backdoor open for the abuse of Application Programming Interfaces (APIs). We鈥檝e seen e-retailers mystified as to why bot attacks are still getting through even though they鈥檝e got bot detection in place. The reason for that is they haven鈥檛 addressed the API element.
鈥淎ttackers delivering automated attacks will probe the network for public-facing APIs that they can then conduct reconnaissance on by sending requests to detect its make-up, function and access to other APIs or data. So effective defence against automated attacks requires both bot and API defence.
鈥淭his year we鈥檒l see a move to more cohesive approach that integrates the two by blocking and tackling bot traffic and through the discovery of APIs and monitoring for unusual calls made to them using behaviour-based analytics.
鈥淭his provides the retailer with more defence options too, because in addition to blocking, mechanisms can be deployed to frustrate the attack by giving the illusion of access, decreasing pivoting and exhausting the resources of the attacker. It鈥檚 only by taking this dual approach that retailers can hope to stop the compromise of their systems and data.鈥�
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Aaron Peters, Founder, Sprout Media
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鈥淲e鈥檙e in the age of customer personalisation, and with the pace that automation and AI are moving, we鈥檙e going to start seeing new ways to enhance the customer experience and service through tech such as AI chat bots.
鈥淎ugmented and virtual reality tools are likewise seeing greater use, with major ecommerce platforms like Shopify continuing to invest into AR tools. These built-in features can take 3D scans of products directly from a seller鈥檚 mobile phone, enabling fast and seamless online selling.
鈥淚 think we鈥檙e also going to see these tools applied much more to the buyer experience, with AR and VR tools that allow unprecedented levels of 鈥渢ry before you buy鈥� for customers.
鈥淢ore broadly, social media platforms are keen not to get left behind, with platforms like TikTok further integrating ecommerce features and allowing users to make purchases directly in-app.鈥�
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Permele Doyle, US President and Co-Founder, Billion Dollar Boy
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鈥淚 am really excited about TikTok Shop. It has the potential to pave the way for the social commerce success of the platform and creators in 2024. Many beauty and retail brands, like Benefit Cosmetics, Tarte Cosmetics and PacSun, have already seen massive success, both in driving sales and brand awareness, on the platform.
鈥淏y leveraging the vibrant creator community on the app and minimising the steps to purchase, there鈥檚 a huge opportunity this year to capitalise on the rising e-commerce sales.
鈥淎lthough some consumers are still getting comfortable shopping this way, young consumers who tend to embrace the impulsive #TikTokMadeMeBuyIt culture will continue leading the way on the platform. TikTok Shop has also taken steps to ensure consumers grow more comfortable shopping in-app.
鈥淔or example, by integrating pre-payment tools it鈥檚 avoiding the main problem Instagram had, which was skepticism among consumers to put their payment information into the app. The platform incorporated TikTok user reviews, user videos and ratings pulled from search engines, which builds consumer trust and confidence in making purchases.
鈥淭ikTok Shop is also really positioning itself to compete with Amazon this year with its decision to handle fulfillment operations and manage logistics, which will likely bring in more sellers and appeal to consumers with its quick delivery.
鈥淲ith creators having access to an e-commerce platform on TikTok, where many have built their following, 2024 could see a rise in creator-founded businesses and creator-owned product launches. Also, the affiliate program has the potential to create new revenue streams, enabling creators to earn commissions by recommending products directly from live and regular videos.鈥�
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Tony Preedy, Managing Director, Fruugo
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鈥淒uring periods of economic challenges like this, the knee-jerk reaction for retailers will be to lower prices to encourage sales. However, this will not help stimulate revenue in the long run.
鈥淲ith interest rates widely predicted to remain at a high level throughout 2024, consumers will be more price conscious when it comes to their shopping habits and increasingly agnostic about where they purchase products from. Instead, they will focus more on value and availability.
鈥淲ith this in mind, retailers will need to be savvier about where and how they list products. Instead of relying on just one market, retailers will start to diversify their audience via cross-border selling which has become much more popular and accessible via marketplaces.
鈥淭he rapid rise of Temu is a prime example. In doing so, they can more easily capitalise on overseas demand, which in turn helps to boost turnover and profit growth. It鈥檚 no longer a question of whether retailers should sell on marketplaces, but how many they should sell on.鈥�
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Ian Clayton, Chief Product Officer, Redpoint Global
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鈥渆Commerce companies will work to implement more Artificial intelligence (AI) into their CRM strategies, but customers are still wary
鈥淒ata clouds have caught fire not just because they offer a clear throughline between customer data and profit, but also because they help future-proof a business against emerging technologies, AI included.
鈥淚f the business needs to quickly implement a generative AI use case, connecting into a data cloud is a practical way to spin up an application. The need for consistent innovation also explains why composable CDPs are also trending, particularly for AI use cases that rely on the most accurate, complete and reliable unified customer profile data.
鈥淐ustomer profile management and enrichment capabilities are essential to optimising emerging technologies like AI. Consider, for example, an AI chat bot engaging with a customer on the website.
鈥淚t stands to reason that the more intelligence the system has about an individual, the more relevant the 鈥渃onversation,鈥� particularly when it calls for a real-time response 鈥� such as having a real-time view into an active browsing session. Experimenting with AI use cases in a crawl, walk, run approach is a sensible way for an organisation to highlight any data deficits they may have, and underscore the need for a robust customer profile.
鈥淎 highly accurate profile, however, does not give a company carte blanche to use AI indiscriminately. It鈥檚 important to always remember that there is a customer at the other end of the interaction, and customers are still somewhat leery.
鈥淚n a 2023 Dynata survey that explored consumer sentiment on AI, 58% of respondents said it is important that a company is transparent about when AI is being used. While nearly half (48%) said they would interact with AI more frequently if it would make their experience with a brand more seamless, consistent and convenient, a majority (77%) said that CX still needs to have an element of human touch.
鈥淎I will continue to gain a foothold in delivering a more personalised CX in eCommerce, but 2024 will still be marked by a methodical approach, as companies recognise that getting their data in order must come first.鈥�
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Nathan Lomax, Co-founder and Director, Quickfire Digital
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鈥淎I noise this year will continue to intensify. Retailers needing to differentiate themselves in the e-commerce space are increasingly looking to cutting-edge technologies beyond solutions such as ChatGPT and auto-generated product descriptions; this surge in interest will reflect a broader trend toward technological innovation within the industry.
The imperative to achieve net zero emissions is also set to take a prominent position in the consciousness of business owners and their e-commerce agendas this year. This shift is driven largely by escalating consumer expectations, with more customers prioritising purchases from genuinely environmentally responsible brands. These brands, demonstrating tangible sustainability initiatives like carbon footprint reduction and transparent supply chains, are compelling businesses to adapt.
However, amidst the ongoing cost of living crisis, passing on additional expenses to customers may not always be feasible. Consequently, retailers will need to seek efficiencies elsewhere. This flags the importance of omnichannel commerce, which absolutely should be a pivotal trend for 2024.
鈥淭he potential that projects in the space yield is significant. They include initiatives such as reducing returns, leveraging social media and live shopping for increased sales, and exploring novel platforms.鈥�
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Elisah van Allen, Head of Social, 33Seconds
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鈥淭here鈥檚 a trend amongst younger social media users to default to TikTok and Instagram in the same way older users default to Google for product and location searches. Gen Z鈥檚 reliance on visual search and reviews from trusted creators and brands is such that this behaviour is synonymous with their shopping habits.
鈥淭o tap into this, ecommerce brands need to be offering a streamlined buying experience within social media. This includes implementing native shopping features to drive a higher return on investment and an enhanced user experience, particularly for new and smaller brands where website optimisation for search and discovery is harder.
鈥淔rom a content strategy perspective, investing in social formats with shoppable links will contribute to more click-throughs to products 鈥� with ongoing improvements being made in tracking commerce data to measure success and sales performance.
鈥淥ptimising content for SEO is also important to ensure your social media content is discoverable via search 鈥� alt text, keyword research and subtitles will help to improve visibility in tougher to reach algorithms.鈥�
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Mateusz Calik, CEO, Delante
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鈥淚 am more than convinced that eCommerce will continue its exponential growth, as it鈥檚 shaped by technological advancements and evolving consumer behaviours.
鈥淲e鈥檙e introducing AI into about every territory imaginable and eCommerce won鈥檛 hide from it. But it鈥檚 a change for better in my opinion. AI and machine learning can easily improve personalised shopping experiences.
鈥淎nd as these tools will become increasingly more popular, they are going to be more accessible to small businesses. Maybe the market will become a bit more even and fair this way, giving some advantage to smaller fish in the pond.
鈥淚 am also seeing that social media platforms are becoming more integrated with e-commerce functionalities, allowing users to make purchases directly through these platforms. It鈥檚 a cool integration that will make shopping more seamless and accessible!
鈥淎nd of course sustainability will become a crucial factor in consumer decisions. Especially Gen Z consumers are known for caring about this awareness and slowly they are becoming the majority of consumers on the eCommerce market.鈥�
