E-commerce evolution: Changing expectations are reshaping online shopping

11/16/2017

Customer expectations continue to change on a dime, making it imperative for retailers to learn new ways to attract and drive shoppers online. Here’s a sampling of what to expect in the coming year:


Mobile commerce. By 2020, mobile commerce is expected to account for almost half (48.5%) of retail e-commerce sales, about the equivalent of $250 billion, according to “The 2017 UPS Pulse of the Online Shopper.” To grab this wallet share, retailers will be increasingly challenged to adopt solutions that deliver optimal mobile experiences.


Some of the easiest ways to prepare include optimizing apps and mobile websites, tightening navigation and streamlining links in emails to the mobile landing page. Brands should also step up mobile search functionality. This means making the task as simple — and even as visual — as possible, so it’s easier for shoppers to find and purchase merchandise through their devices.


And of course, fast and secure mobile checkout is a must, from shortening checkout forms to minimizing the number of clicks to make a purchase.


Social shopping. As retailers step up their social game, they are learning of the value and power of social shopping. By combining the influential aspects of an individual’s social media followers, commentary and polls with the ease of e-commerce, social shopping will drive online purchases going forward.


“Retailers need to capture the shopper’s attention, and consumers want to be inspired,” said Jill Standish, senior managing director for Accenture’s retail practice. “When shoppers are in a mode of ‘inspiration,’ they are also less price sensitive. Social shopping is a great way to get away from the race to the bottom price war, and keep your brand showing up when they are ready to make a purchase.”


While social shopping still has a long way to go, it’s gaining traction. For almost half of shoppers (47.7%), Facebook was the social network of choice to make a purchase, followed very far behind by Instagram with a mere 8.6% of respondents, according to a study by Open Influence.


Virtual reality applications. While it has been a slow climb, VR applications are increasingly finding their niche in the customer experience. The technology has really taken off across home furnishings and decor, and that’s only expected to continue next year. Retailers like Wayfair, Ikea and, most recently, Target are offering solutions that enable users to place virtual merchandise into digital replicas of rooms in their homes. Virtual technology is so hot that 50% of consumers use it when making home purchases (59%), according to data from IFTTT.


Walmart virtual reality training

Expect retailers to find new uses for the technology in the coming year. On the heels of a successful test, Walmart is rolling out VR in all 200 of its Walmart Academy training centers. The retailer will use it to train associates to handle everyday situations, such as managing the fresh area of a store, to the rare, like Black Friday. Meanwhile, Walgreens is using VR to streamline planograms and improve its assortment planning.


Subscription commerce. A service that curates a selection of trending or coveted merchandise, subscription boxes are giving e-commerce strategies an adrenaline boost, attracting loyal shoppers and driving sales.


In fact, 36% of customers currently use at least one retail subscription service (such as Stitch Fix, Bark Box or Harry’s Razors), and 53% are interested in using one, according to IFTTT’s data.


Savvy omnichannel brands are getting in on the game. Gap introduced the BabyGap Outfit Box, a quarterly subscription box focused on infant merchandise. Each box is customized with six BabyGap mix-and-match pieces, based on the customer’s selected style preferences.


For one year, members will receive four boxes packed with items worth more than $100. Each shipment is also packed with seasonally relevant pieces. The service costs $70 every three months for a full year’s worth of boxes. Gap plans to expand the program with additional sizes in the near future, according to the company’s website. And at press time, Gap’s Old Navy division was reportedly set to launch its own subscription box program.

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