Future of E-commerce

Author: Jamal Talha
Published In: 2024/06/ 8

There have never been as many prospects or as much rivalry in the ecommerce market. Reduced return on advertising investment forces firms to focus on customer lifetime value and brand loyalty.

The seismic shifts in the retail industry in 2020 are here to stay. And now that sections of the world are opening up and consumers are clamoring for in-person shopping options, they demand a consistent online and offline buying experience.

In the second half of 2021, supply chains became the most discussed commerce component. As a result, it is unlikely that manufacturing, shipping, and fulfillment issues will alleviate in the months ahead.

Trends in E-commerce in 2022

Three patterns will emerge as a result of e-commerce in the future. The first reason is that escalating acquisition costs pressure firms to cultivate long-term connections with their customers.

While brick-and-mortar businesses have reopened, ecommerce sales continue to grow, resulting in an inflow of Direct-to-Client (DTC) enterprises competing for customer attention.

It is critical that digital advertising expenditures do not consume marketing budgets, jeopardizing performance marketing–heavy customer acquisition approaches. As more businesses move online, it becomes increasingly difficult to acquire new clients.

Due to the ease with which businesses can now start online, customer acquisition costs are increasing. Paid advertisements are becoming too expensive.

However, 41% of brands intend to boost paid and organic search expenditure. Businesses are gaining an advantage over their competitors by investing in brand creation, which raises client lifetime value, increases conversion rates in the short term, and draws out-of-market consumers over time.

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Consumer expectations have never been higher!

Consumers’ expectations of brands will also change. Customers are now expecting extra ordinary from the brands, and those that deliver in highly competitive circumstances will be the ones who succeed. To demonstrate this, we need simply to examine the illuminating data from Scalefast on this subject:

  • 61% of consumers would share additional information with brands to have a better purchasing experience.
  • 54% of buyers anticipate receiving a personalized discount within 24 hours of their initial contact with a brand.
  • 51% of consumers believe that receiving a personalized experience across a brand’s multiple digital platforms is critical.
  • 26% of consumers say that an improved payment gateway’s security and user experience enhances their D2C purchase.
  • At least 22% of buyers consider the option of same-day delivery when making a purchase.

Numerous further investigations corroborate this pattern. According to the Direct-to-Consumer Purchase Intent Index, more than 80% of end consumers are predicted to make at least one purchase through a direct-to-consumer brand within the next five years.

Even in Spain, a country that has traditionally lagged in online sales development, the trend is on experimentation.

The factors that contribute to D2C’s success

Direct-to-consumer marketing entails owning the entire customer connection and exploiting all available data to create unique, personalized, efficient, and high-return experiences.

D2C techniques are already enabling new recurring revenue streams through subscriptions, new product releases, and customized tactics that significantly increase customer loyalty compared to other channels.

There are at least four crucial underlying principles and competitive advantages:

• Profit margin expansion

By removing intermediaries, brands can save distribution costs while retaining greater control over their profit margins. Inefficiencies in distribution can be converted to more revenue in direct interaction with the client while avoiding feasible physical channels by hiring additional partners and maintaining a commercial legacy.

• Customizable experiences are possible

The company regains client connection control, allowing it to control the whole experience chain, from the website to personalized communications and product delivery. Rather than focusing exclusively on pricing, brands provide emotional and value-added purchasing reasons.

• Complete control over data

Maintaining an excellent client relationship requires real-time access to all data. This enables marketers to detect patterns, trends, demands, and preferences and have a much deeper understanding of their users’ likes.

Control of the data also enables new exploitation methods, ranging from audience clustering to incorporating intelligent Marketing Automation flows—additionally, new methods to innovate in product and service from a CRM that is 100 percent yours.

• The possibility of marketing exclusively via digital channels

Brands are joining the field of digital performance and gaining global management of all channels, consolidating their branding and conversion efforts into a single funnel, and finally closing the circle to ensure 360° communication for good.

The journey toward new D2C models may conclude with technology, establishing intelligent flows throughout the sales process, or selecting an appropriate MarTech to accomplish this. Still, its true essence and differential value proposition will permanently reside in the ‘C’ of Customer Experience.

  • By the end of 2022, digital advertising will account for more than 60% of worldwide advertising spending.
  • Retailer media advertising is expected to increase from US$77 billion (2021) to US$143 billion in 2024.
  • Next year, social media advertising will surpass television advertising.
  • Online video is expected to increase at a 31% annual rate from 2016 to 2021 as customers embrace streaming and sophisticated television.

Advertising across all digital channels will surpass 60% of global ad spend for the first time in 2022, accounting for 61.5% of overall expenditure; by 2024, their share will reach 65.1%.

According to the business world, worldwide advertising spending will reach US$705 billion in 2021, up from US$634 billion in 2019, and will reach US$873 billion by 2024.

While the introduction of the omicron variety is not considered into our estimate, it will raise the likelihood of more setbacks in the travel, hospitality, and bricks-and-mortar retail sectors, as well as further moves toward ecommerce and digital advertising.

Accelerated E-commerce promotes an increase in digital advertising spending

The pandemic has changed buying habits, propelling the use of ecommerce forward at a breakneck pace.

Businesses have responded by expanding their investments in new technology, infrastructure, organizational transformation, and – of course – advertising.

This comprises brand advertising to promote ecommerce platforms, performance advertising to drive traffic to them, and advertising within these platforms (referred to as retailer media advertising’) to advertise individual products, all of which have increased in popularity.

With a predicted CAGR of 13.9%, the global digital advertising and marketing industry is expected to reach US$786.2 billion by 2026.

Investment in ecommerce channels has increased as more individuals view online shopping as a need and as their degree of comfort with discovery and purchase via digital channels has increased.

As people revert to in-person shopping, we’ll witness a shift in marketing toward in-store communication. Zenith anticipates a 14% increase in digital ad spend in 2022, a 9% increase in 2023, and a 10% increase in 2024.

The rate of digital change has been faster than anticipated, as progress toward limiting COVID-19 has been slower than anticipated, and consumers have been hesitant to restart in-store buying.

Due to divergent views on vaccination effectiveness and desire to receive the vaccine, the return to stores has been delayed, requiring businesses to rely more heavily on ecommerce and digital channels than anticipated.

The global economy is benefiting from more excellent advertising.

Third-party cookie demise causes brands to reconsider customization —this is the second trend.

Consumers continue to seek tailored shopping experiences, even though restrictions make data monitoring more complex, and the most significant players phase out third-party cookie support.

While brands innovate using first-party data, customization alone is insufficient to foster long-term connections. Consumers are willing to disclose personal information with businesses whose identity matches theirs.

If businesses wish to gain access to client data, they must do so in a manner that fosters trust. While 85% of brands claim they provide individualized experiences, only 60% of consumers appear to agree.

Brand communities have become critical for establishing trust and brand equity and increasing consumer retention.

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The emergence of new commercial prospect

The final trend is the emergence of new commercial prospects on the most powerful social platforms.

Social media platforms are the epicenter of ecommerce activity, from brand marketing to customer care to shoppable advertising. Brands, not products, foster loyalty. They must design their direct-to-consumer strategy and plan to establish a solid and independent brand.

Diverse platforms and quickly growing features enable marketers to reinvent consumer engagement. Social commerce is becoming more sociable due to video and live chat.

It is critical for maximizing the potential of social connection. The most successful firms prioritize social media-first strategies such as behind-the-scenes live broadcasts, video consultations, and personalized product suggestions.

Brand building is helping attract and retain customers

Obtaining and Retaining Clients

Businesses that wish to increase their revenues and sales must invest time and resources in acquiring new clients.

To produce leads, businesses promote in media that reach new prospects, send direct mail and e-mails to potential new prospects, send their salespeople to trade exhibitions where they may acquire new leads, and purchase names from list brokers, among other methods.

Acquisition strategies

Different acquisition strategies result in consumers with varying lifetime values. According to one study, clients acquired via a 35% discount had around half the long-term worth of customers acquired without a discount.

Numerous clients were more concerned with the deal than the goods themselves. Similarly, numerous local businesses have leveraged Groupon and LivingSocial‘s “daily bargain” efforts to attract new clients. Unfortunately, these efforts have occasionally proven to be unprofitable in the long run due to the difficulty of converting coupon users to loyal clients.

It is not sufficient to gain new clients; the business must also retain existing ones and grow.

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Winning Companies Strategies

Too many businesses have significant levels of client defection. To reduce defections, a business must first define and measure its retention rate, then differentiate the causes of customer attrition and identify those that can be managed more effectively.

Finally, compare the lost customer’s CLV to the costs of lowering defections. Spend the money to retain the customer as long as the cost of defection is less than the profit lost.

Winning companies understand how to reduce customer defection, increase the longevity of the customer relationship, increase each customer’s growth through “share of wallet,” cross-selling, and up-selling, increase the profitability of low-profit customers or terminate them and treat high-profit customers differently.

Components of a community marketing

Communities differ significantly in terms of cohesiveness (members’ proximity), interactivity (members’ frequency of communication), and specialization (niche theme or more general focused). In that line, specific communities may be devoted to member socialization, while others may be entirely devoted to information exchange.

However, the following characteristics of community marketing activities are universal:

  • A group of individuals who share common interests and passions.
  • A natural sense of belonging and connection to something larger than oneself.
  • A sense of responsibility for other community members motivates people to lend assistance to one another.
  • Common areas for interaction or a collection of common traditions that bind the community and promote its culture.

How do you design a strategy for community marketing?

The important aspects contributing to communities’ success and boosting member happiness are perceived usefulness, trust, and dedication.

Members must have a sense of loyalty and emotional connection, communicate information often, and encourage membership to others.

We highlight the critical steps for establishing a community marketing strategy based on these characteristics:

  • Define the community’s mission and objectives.
  • Establish credibility and authority.
  • Encourage member involvement and networking.
  • Organize community events.

How to win at social commerce in 2022

Regardless of your age, gender, or location, social media is likely to play a role in your everyday life. People use social apps to share images, communicate with friends, and engage with brands—the latter of which is driving social media revenue upward.

Globally, sales via social media channels are predicted to nearly treble by 2025. As a result, over half of the brands intend to boost their social commerce spending in 2022.

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1. Increase your internet visibility

Given that 71% of adults with access to the Internet use social media, practically every business can benefit from marketing on social networks such As Facebook, Twitter, and Instagram. This is particularly true for retailers who conduct business online.

2. Find out where your target audience spends the majority of their time.

While optimizing your site for search engines and executing pay-per-click advertising enables you to reach customers while actively searching for certain products, you can also approach them via social media.

3. Establish a causal connection with your target audience.

Additionally, social media platforms provide a far more informal method of engaging with prospective customers than any other advertising channel, making it simple to participate in two-way dialogues with users interested in learning more about your products.

4. Assist in the spread of your brand online

Due to the nature of social media, it enables existing consumers to spread the word about your company to their family and friends – an ideal scenario for any online merchant.


When it comes to e-commerce, businesses can no longer afford the luxury of preparing for it; it’s already here and gaining momentum. It may seem difficult to change the way you do business, but it has been seen countless clients succeed in making the necessary adjustments.

The e-commerce revolution has already arrived and is gaining steam, so businesses can no longer afford to plan for it. It may seem difficult to change the way you do business, but we’ve seen our clients succeed in making the necessary adjustments.

Break down walls and exchange data to continuously improve the client experience by conducting audits and organizing around quantifiable goals.

It is critical to the future of commerce and your economic recovery.

Jamal is a Content Marketing Specialist based in Hamburg, Germany. Jamal does journalistic coverages for the World Marketing Forum. In his spare time he's a horse photographer.

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