Another year, another report! As every year, we are pleased to present new eCommerce trends. In collaboration with top managers from the eCommerce industry, we have created a report of trends from 2016 to 2017. We invite you to read!
eCommerce investments in 2016
Your investment in 2016
eCommerce investments in 2017
Your predicted investment in 2017
Changes in investment goals
2017 is the year of the Bot
Two trends emerged
- popularity of mobile messaging apps
- artificial intelligence to enable a new generation of eCommerce tools.
Echo has been a surprise hit – over 3 million units sold in less than 18 months. The device has been receiving positive reviews from customers and has even prompted Google to develop its own version – Google Home.
What are the business trends that are going to revolutionize the eCommerce market in the next five years?
In 5 years retail will be a totally different place.
Amazon launches Amazon Go, a mind-blowing brick-and-mortar grocery store with no checkouts.
eCommerce Trends for 2017
B2C eCommerce Sales Worldwide
Global B2C eCommerce Turnover
- 26% (1.436 mln) people are eShoppers
- 7% is the estimated share of online goods within total retail of goods
- eCommerce Growth
– Asia-Pacific + 28%
– North America +13%
– Europe +13%
– Latin America + 28%
– Middle East and North Africa + 19%
– Others +23%
B2C eCommerce Sales Worldwide
- Asia is still the leading region for eCommerce sales. Asia holds a majority share of global online sales (52.5%).
- China – still the leader, even as growth slows .
- India – retail demand is increasing driven by urbanization, an expansion of the middle class and more women entering the market.
- Indonesia – the population of 256 million along with its market is opening to foreign investors.
- Cross-border – Canada, the UK, and Brazil are US merchants’ top cross-border corridors in terms of revenue.
Where to invest – The 2016 Global Retail eCommerce Index™
B2B eCommerce Sales
- Forrester forecasts that US B2B eCommerce will grow from $780 billion in 2015 to $1.13 trillion in 2020 – at which time it will constitute 12.1% of the total US B2B commerce market.
- 86 percent of B2B organizations say customers can make purchases via their website; only 14 percent offer no online purchasing options.
- B2B organizations rely (92%) on email marketing to promote online sales.
- Today, 74% of B2B buyers research at least one-half of their work purchases online.
Nearly 75% of B2B buyers say buying from an eCommerce site is more convenient than buying from a sales rep.
B2B companies are eager to invest in:
- Automated pricing optimization – 62%
- Personalized recommendations – 56%
- Use of wearable computing in distribution centers – 49%
- Sensors in shipments/products – 46%
- Robots/automation in distribution center/supply chain – 34%
- Shopping cart abandonment analysis – 32%
eCommerce Maturity x Percentage of Customers Buying Online
- Revenue in the “Digital Media” market amounts to $91.102mln in 2016.
- The market’s largest segment is “Digital Games” with a market volume of $46 billion in 2015.
- With a market volume of $32,510mln in 2016, most revenue is still generated in the United States followed by China, Japan, the United Kingdom and South Korea.
- The average revenue per user (ARPU) is the highest in the “Video-onDemand” segment and its amounts to $50.94 in 2016.
Top eRetailers (eCommerce retail sales)
- eCommerce accounts for the majority of the sales growth for many retailers today.
- Omnichannel retailers dominate the world of eRetailing.
- Alibaba is often cited as the largest eRetailer in the world but they mostly make money through sales on their marketplaces. They do however own a stake in Suning.
- The fastest growing eRetailer from the list is Suning (+95%) followed by JD.com (55%) and Amazon (13%).
- Casino Guichard
eRetailing, as defined in this analysis, includes business to consumer (B2C) eCommerce only, where the business owns the inventory and sales are made directly to the consumer.
The World’s Most Popular eCommerce Sites
- Top 10 eCommerce sites in the world based on visitors.
- Amazon accounts for 8% of global B2C eCommerce sales of products.
Indian sites gained more popularity: Flipkart, Snapdeal and Jabong.
- In this year to-date, the eCommerce sector saw just one global IPO.
- M&A activity is on track to outpace the last year, with over 100 M&A exits in 2016 to-date. The current run-rate would imply a full-year total of over 200 M&A exits in 2016.
- Alibaba Group paid $1bn for Lazada. Dollar Shave Club Sells to Unilever for $1 bn.
- Walmart Agrees to Acquire Jet.com for approximately $3 bn in cash.
- Salesforce spend $2.8 bn to acquire Demandware.
- Gilt Groupe’s acquisition by Hudson’s Bay Company for just $250mln, when Gilt had previously reached a valuation of $1bn in 2011.
These three hot eCommerce startups could have surprise IPOs in 2017
- Chewy – an online retailer of pet food, was projecting nearly $900 million in revenue for 2016 and $1.5 billion for 2017
- Stitch Fix – the online retailer and personal styling service, $500 million in annual sales
- Casper – mattress startup has built the best-known brand in the young bedin-a-box space, $200 million in annual sales.
Alibaba Group paid $1bn for Lazada. Dollar Shave Club Sells to Unilever for $1 bn
eCommerce Startups to Watch
- Operator – connects you with a network of concierges and can execute any shopping related request. You can order concert tickets, get gift ideas, or even receive interior design recommendations for new furniture.
- Rebagg – buys luxury pre-owned handbags and resells them online. Sellers can submit pictures of their bags by phone to receive pricing quotes and, if accepted, can ship the bags to Rebagg for free.
- ThirdLove – a more comfortable bra by providing a wider range of sizes than standard bras. ThirdLove’s smartphone app uses image recognition technology to offer personalized sizing in users’ homes.
Social Commerce is growing but there is no one path to follow
- US retailers attributed just 2% of their revenues to social commerce. In Q3 2016, social media only made up 3.1% of traffic to commerce sites. However 60 percent of marketers use the buy button. In 2017 Buy Buttons won’t gain traction in any meaningful way.
- People are using messenger apps more than they are using social networks. Messaging apps are the platforms of the future and bots could be how their users access all sorts of services.
- Conversational commerce – started with Uber and WeChat, fast followed by WhatsApp and Facebook.
Design Trends – mobile
- Growing importance of the user experience in general: The customer experience (including employees) is the ultimate goal. Every touch point matters.
- Mobile – for many eStores, most clients will use mobile devices. Websites will be designed for mobile first and made responsive for larger screens later.
- Material Design – many online stores have already adopted card-like layouts, responsive animations and transitions.
- GIFs are here – cinemagraph is really a still picture, a photograph to which a small repeating animation has been added.
- Personalization – soon sites could massively adapt to specific users – changing layouts based on user data.
- Hidden menus – have become tremendously popular thanks to clearing a lot of clutter on eCommerce sites.
- Push notifications.
Marketplaces – where growth can be found
- 50% of Europeans are shopping online and 50% of these shoppers engage in cross-border shopping.
- 82% of the world’s consumers have already shopped for products abroad but for the most part, they prefer to buy on global marketplaces with strong reputations.
- Marketplaces offer a real opportunity for merchants to boost their bottom lines. Retailers can get visibility in a foreign market without investing too much time or money.
- The marketplace business model – commission for sales that varies from 2.5% to 15% depending on the number of sales and product categories. Unlike price comparison sites, marketplaces don’t charge a few cents every time shoppers are referred to merchant sites and instead charge only when a sale is made.
- Marketplaces offer a logical starting point for retailers looking to expand internationally as they offer low barriers of entry and less risk than setting up a domestic website for each country.
Niche marketplaces dominate national markets
- UK – Play.com (Rakuten) and PriceRunner.
- Germany – Zalando and Otto.
- Poland – Allegro.
- Spain – Popular sites in Spain include BuyVIP and eBay.es. However, Amazon is the most dominant marketplace.
- France – RueDuCommerce, Cdiscount, Fnac, La Redoute and PriceMinister are among the leaders in the space, in addition to Amazon. 9 out of the top 15 eCommerce sites visited by French shoppers are marketplaces!
50 Places to sell online in 2017: eCommerce marketplaces and platforms – http://www.brisksale.com/blog/50-places-sell-online-2017-e-commerce-marketplacesplatforms/
Content Marketing is here for good but it will be harder to attract attention
- Mobile-friendly formats will grow
- Shift from creation to promotion – 80 percent of content marketing budget goes into content creation, about 20 percent of that same budget to promote or advertise content. This will shift somewhat toward promotion because of high competition.
- Video content is still hot! In 2017, marketers who admire the success of popular YouTube shows or podcasts may begin to release their own, episode-based content.
- Livestreaming – YouTube, Facebook and Instagram — have made livestreaming a priority as users increasingly utilize the format.
- There is still a big gap to fill in B2B content – even with product descriptions and photos.
- The New York Times, The Wall Street Journal and Condé Nast have all created content agencies that will help fuel this trend.
Virtual Assistants – Amazon is way ahead
- Alexa – made immense progress this year, both in its AI smarts and in its success as a commercial product. More than five million Alexa-enabled smart speakers have been sold so far
- Google Home – Developers can now create Actions for Google Home using Actions on the Google platform.
- Cortana, Siri, and Google Assistant lack the ability to make purchases today.
- Alexa Skills Marketplace, a single place to find every bot available. Competitors like Facebook and Microsoft aren’t as hip to this yet.
- Microsoft Bot Framework, Facebook Messenger bot platform, iMessage App Store, Lex Framework are other examples of bots.
Skills trending this week
Zen & relax
Top enabled skills
- Over 60% of clients want a same-day delivery option, while 82% want to be able to buy online and pick up in-store. 45% of customers want to buy instore and have goods delivered to their home or office.
- Currently, less than half of US or European retailers offer any of those options.
- There is a rise of local drop-off points for online orders and same-day delivery. A Forrester report states that 29% of consumers would be willing to pay extra for same-day delivery. UberRush and Postmates. Algorithmic Driven Supply & Demand – IoT and Big Data will create new customer experiences.
- Retailers who aren’t offering mobile in 2017 are really going to lose out.
- Conversational commerce – using messaging apps, chatbots and virtual personal assistants for buying things could be much easier with mobile.
- Mobile abandonment rates exceed 80% when customers are asked to input their credit card details. Now there are many mobile-friendly payment systems. Mobile wallets are becoming standard features of new smartphones. Conversion Rate in mobile will grow.
- Mobile Image Recognition will make snap-to-buy a convenient feature.
- Video content will be crucial for mobile commerce.
- Rise of Mobile Apps with augmented reality.
Wearables & VR
- Spectacles by Snap – the hottest wearables for people who probably don’t usually buy wearables.
- VR is getting serious – HTC, Oculus, Samsung, Google.
- In 2017 expect Facebook to start introducing VR experiences directly to its 1.79 billion monthly active users.
Intelligence in eCommerce
- Data-driven Loyalty – as more companies offer loyalty programs, top performers are settings themselves apart by using data.
- Visual search – particularly via mobile. This helps consumers to find exactly what they are looking for right away.
- Price intelligence is a commodity now. Quick win for eRetailers.
- Personalization – Personal representative for every customer.
Omnichannel: The gap is still here
- We noticed that there is a constantly growing gap between customer expectations and business possibilities. The companies that cope with these problems first will win the market and satisfaction of their customers.
- 71% of customers expect the possibility of checking the availability of goods online, but only 32% of retailers offer basic functions of Click & Collect and checking product availability.
- 45% of consumers agree to a home delivery of goods, which couldn’t be found in a store but only 32% of retailers enable such a process.
- You need to connect silos and encourage cooperation between various departments but only 6% declare that there are no major problems with channel Integration.
- Gartner predicts that by 2020, the customer will manage 85% of the relationship with an enterprise without interacting with a human.
- WorldPay estimates that payment systems such as PayPal, Apple Pay, Google Wallet, AliPay, MoPay, Square, direct app payments or pre-paid accounts will account for a massive 59% of m-commerce transactions in 2017.
- Ethereum – the smart contract platform itself (Ethereum) and its native token (ether/ETH) experienced a boom throughout the first half of 2016.
Why is Ethereum different from Bitcoin?
- Ethereum is not just a digital currency. It features smart contracts, the Ethereum Virtual Machine (EVM), and it uses its currency called ether for peer-to-peer contracts.
- The benefit of these contracts is that the blockchain provides a decentralized way to verify and enforce them. The decentralized aspect makes it incredibly difficult for fraud or censorship. Ethereum’s smart contracts aim to provide greater security than traditional contracts and bring down the associated costs.
https://bitcoinmagazine.com/articles/bitcoin-magazine-s-top-tech-trends-of-1483044744 https://www.cryptocompare.com/coins/guides/why-is-ethereum-different-to-bitcoin/ http://www.huffingtonpost.com/ameer-rosic-/ethereum-vs-bitcoin-whats_b_13735404.html
- Internet of Things (IoT) devices have already been conscripted as zombie troops for cyber attackers. This will get much worse in 2017.
- DDoS attack firepower in 2016 increased to frightening levels. – rising from 400Gbps bandwidth to 1Tbps or more becoming the norm – thanks to millions of IoT devices.
– That firepower will be used sometime in 2017 to take down critical infrastructure.
- Financial institutions will start testing the cloud on workloads and move some services beyond just the corporate data center.
- High-impact vulnerabilities from open source software will continue to be discovered.
15 Ways to Protect Your eCommerce Site From Hacking and Fraud
- WooCommerce expanding its share within the eCommerce platforms market.
- Magento 2 is released, with added omnichannel modules and acquired companies looks very close to hybris.
- Magento CE is more successful in 10K and 100K Alexa Top websites listings, while WooCommerce is bigger within Alexa, 1 mln
- Demandware is a part of salesforces, now acquiring clients aggressively. Demandware replaced Zen Cart among the most popular platforms with a 22.3% Relative Growth Rate.
- OroCommerce – a new, fast -growing, and strong eCommerce B2B platform (Open Source + Enterprise License) – https://www.orocommerce.com
https://blog.aheadworks.com/ecommerce -platforms -popularity -october -2015 -top -five -solutions -take -three – quarters -of -the -market
https://blog.aheadworks.com/2016 -ecommerce -platforms -analysis -and -comparative -report
Divante: eCommerce & eBusiness experts in the Omnichannel Era
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- We create a customized Omnichannel or Magento-based online platforms with CRM, ERP and PIM, a custom web application or a Big Data solution.
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