Staying ahead of eCommerce trends with cutting-edge technology

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Female eCommerce owner stacking packages on a desk.

eCommerce is experiencing a period of unprecedented growth as businesses worldwide embrace digital technology to tap into new markets and opportunities.

More businesses than ever before are going online to sell products and services, with eCommerce estimated to make up more than 22% of all trade worldwide, according to Morgan Stanley, and the value of the industry is set to exceed a staggering US$7 trillion by 2025.

Like the rest of the world, Australia has witnessed a massive explosion in eCommerce. Currently, the Australian eCommerce market, as per Statista, is worth around $65.4 billion, with that number forecast to hit around $97.2 billion by 2027.

With such rapid growth, fuelled largely by advances in technology, it’s essential that online businesses stay ahead of the curve when it comes to the latest eCommerce trends, to remain relevant and top-of-mind with consumers.

Given the fast-changing landscape, this guide will help you stay ahead in the world of eCommerce. From sales to sustainability, learn what trends your business can benefit from.

The growth of buy now, pay later options

Once upon a time, pretty much all that was expected of a good eCommerce business on transactions was reliable and secure tech. But today, shoppers expect a variety of payment choices, including buy now, pay later (BNPL) options from the likes of brands such as Afterpay and Zip.

A relatively recent development in eCommerce, these types of electronic instalment payment options have become prominent in stores across the country. According to Statista, nearly three-quarters of Australians were aware of buy now, pay later payment options, with around 70% of consumers aware of market leader Afterpay.

The industry has evolved fast. In fact, the Reserve Bank of Australia (RBA) reported there were around six million active BNPL accounts last financial year and $16 billion in transactions, a lift of around 37%. The value of BNPL transactions has also increased with a 55% growth in 2019/20.

This growth suggests that an increasing number of people view these services as a cost-effective and convenient way of making purchases. It also may explain why there has been such a big uptake from sellers of BNPL services for online transactions.

Merchants are generally charged transaction fees for accepting BNPL payments. Even so, they remain attracted to BNPL as a payment option due to their ability to generate extra sales and keep up with competition.

Research backs up this perspective, with studies from the Australian Financial Industry Association revealing that in 2022, BNPL created an additional $2.7 billion in new revenue for merchants. This was achieved through new customer acquisition, increased basket sizes and increased customer satisfaction and retention.

An additional benefit is that businesses are also paid in full by the BNPL provider at the time of purchase, removing the risk of unpaid invoices.

How to provide BNPL services

As advised by the Australian Government, all an eCommerce business needs to do to offer BNPL services to customers is research and select a BNPL provider that suits its needs.

Once a seller selects a provider, they’ll need to sign up with them as a merchant and apply. Once completed, all that’s left is to integrate the system into the store’s payment platforms, which is usually a seamless process.

Establishing and maintaining consumer trust

Trust is key when choosing where to buy from but breaking it can have dire consequences. Recent research from Adobe found that more than half of shoppers would never return to a brand that betrayed their trust.

Building trust with customers is even more important in eCommerce than in bricks-and-mortar retail, due to the uncertainty that’s present online in areas like privacy. There are also persistent issues online around customers providing credit card security and personal information.

Given these factors, it makes sense for eCommerce businesses to establish trust signals with customers. Here, factors that can help are positive reviews and testimonials, a clear ‘about us’ section stating business values, and easy-to-find contact information.

As a seller, it’s important not to waste time establishing trust, as first impressions count. Ensure everything about your eCommerce business indicates professionalism. This includes high-quality site design, as well as well-written and easily accessible product information.

Cybersecurity is another major factor. According to Software Advice, 40% of Australian online shoppers say that data privacy is the responsibility of the companies they purchase from. That’s why it’s critical that eCommerce businesses have policies and procedures for a solid cybersecurity framework. Measures such as data security software and tight access control for staff help keep defences high. This is key so that in the case of a cyber-attack, customer data is not compromised.

The endgame in making cybersecurity a priority, and ensuring customer data is secure, is to mitigate the financial and reputational damage to the online store in the event of a hack.

Eco-shopping

Sustainability is another key trend in eCommerce, and it’s increasingly important for online stores to integrate elements of sustainable and ethical shopping into their offerings.

As Forbes points out, consumers in recent times have become more conscious of the potentially harmful impact daily purchasing decisions have on the natural environment. This has led to more interest and desire from shoppers for eCommerce businesses to integrate sustainable and ethical practices in areas such as product sourcing, packaging, and manufacturing.

Recent data from Australia Post makes it obvious that Australians view eco-shopping as very important. Nationwide, 92% of businesses and 91% of consumers are concerned about environmental sustainability, while almost half of consumers would choose to buy from retailers taking steps to reduce their environmental impact over those that are not.

eCommerce businesses may wish to look at ways to become more sustainable. Common methods include bolstering the sustainability of materials used in products, a principles-based approach to business, and minimising waste in operations.

In Brother Australia’s case, this involves being able to recycle your ink and toner cartridges for free through its Cartridges 4 Planet Ark program. Brother Australia has also embarked on a new journey, offering a range of high-quality, refurbished products through its partnership with Circonomy - a profit-for-purpose enterprise committed to keeping electronics in circulation longer.

Furthermore, Brother has a long-term partnership with environmental charity Earthwatch Australia to facilitate critical conservation efforts focused on climate change and sustainable resource management, including supporting research in the Great Barrier Reef and Ningaloo Coast.

Future tech trends in eCommerce

There’s also eCommerce technology to stay on top of. This is essential as alongside the big transition from offline to online shopping have come new technologies like artificial intelligence (AI), blockchain, the Internet of Things (IoT) and augmented reality (AR)/virtual reality (VR). These have given rise to new possibilities in eCommerce.

Advances in tech are predicted to be one of the big future drivers of eCommerce, helping to increase its share of retail trade in the years ahead. By 2033, Australia Post forecasts around 1 in 3 dollars across the country will be spent online.

AI and AR

One of the new technology frontiers in eCommerce is AI. According to ChannelLife, the global artificial intelligence in retail market is expected to reach US$10.76 billion by 2023, with demand for AI in retail predicted to grow at a CAGR of 28% and surpass US$127.09 billion by 2033.

eCommerce is already witnessing a surge of AI-driven functions. Innovations like chatbots are transforming the industry, performing eCommerce tasks automatically, without the need for employee oversight.

A key area is using AI to help learn about shoppers’ behaviour and then offer a more-personalised shopping journey. In a practical sense, this is where AI, in the form of ‘augmented reality’ (AR), helps shoppers enhance their online store experience.

For instance, AR allows customers to visualise how a product looks in their homes via a computer or mobile device. This makes online shopping a more immersive experience with the aim of boosting customer engagement and conversion rates. It’s especially useful for products like clothes, glasses, furniture and footwear that have a high return rate.

There’s also so-called virtual try-on. This is where shoppers ‘try on’ clothes, accessories, and even makeup, virtually, with tech helping them to visualise how a product looks in real life. Brands in the optics industry such as Bailey Nelson and Quay are leading this charge, allowing customers to virtually try on glasses.

Gamification

Gamification in eCommerce also looks set to play a large role. Gamification, as the name suggests, involves the use of video game elements like rewards, points and leaderboards, to engage customers and boost sales in the online shopping experience.

It appears to be a powerful tool and one that’s on the rise, with the global gamification market set to reach US$30.7 billion by 2025, at a compound annual growth rate of 27.4%. We are also seeing increasing demand in Australia with 68% of Australian shoppers saying they would enjoy gaming elements when shopping online, according to Inside Retail.

The main aim of gamification is to make the user experience more emotional and engaging. According to Mobindustry, research shows positive outcomes for online sellers that incorporate game elements, with gamification said to be able to boost website browsing time by 30%, comments by 13%, social sharing by 22%, and content discovery by 68%. 

Mobindustry also suggests that this bolstered engagement from gamification leads to higher revenue for stores. It points to consumer electronics where engaged buyers visit an online store 44% more often than an average user and spend 29% more per visit.

Australian-based cosmetics retailer Mecca provides a great example of gamification in practice with its Beauty Loop membership program, providing gifts and perks to regular shoppers.

Expectations in shipping

Accompanying the trend of shopping online, there has been increased demand for faster shipping options. According to global consulting firm McKinsey, fast shipping is increasingly important, with almost 50% of buyers prepared to go elsewhere if they think it’s too slow.

When it comes to figuring out how fast shipping needs to be to meet consumer demands, the firm found that more than 90% of online shoppers expect free two-to-three-day shipping. To keep customers happy, it advises adopting some key elements that, taken together, create an impression of efficient and fast shipping with shoppers.

Looking locally, shipping platform ShipStation reported that over 90% of Australian consumers state that a lack of adequate delivery options can influence whether they abandon their cart at the online checkout. Additionally, over 80% of Australian consumers said they would not be likely to shop with a brand again following a sub-par shipping experience.

Any discussion of shipping also needs to consider labelling and invoicing.

Here, a great option is to use a label printer that’s capable of printing shipping labels, logos or barcodes quickly and efficiently. The QL-1110NWB can print an array of labels from desktop and mobile devices from popular eCommerce platforms like WooCommerce, Shopify, eBay and more. With wide-format printing up to 102mm, the QL-1110NWB makes printing shipping postage labels for parcels a breeze.

As an online seller, invoicing can be a cumbersome task. Thankfully, there's a simple solution - Brother's INKvestment Small Office Range. Investing in a multi-function printer like the MFC-J4340DW XL has fast print speeds, mobile connectivity, automatic 2-sided printing, as well as quick and easy access to cloud storage. Invoicing processes can be streamlined as files can be printed via a smartphone or scanned to OneDrive or Dropbox.

Personalisation

Personalisation platforms use AI and machine learning-driven algorithms to give a ‘unique’ experience to each site visitor. That can mean online businesses personalising a range of things like product recommendations, onsite search, and even creating dynamic pricing.

eCommerce experts see personalisation as often meaning the difference between customers opting for your brand or shopping somewhere. As McKinsey explains, when executed well, such personalised retail experiences enable businesses not only to differentiate themselves but also to gain a sustainable competitive advantage. 

One of the most important aspects of personalisation in an eCommerce setting is that it helps online shoppers to more easily find what they’re looking for.

Benefits include more conversions, given the process helps customers cut through the online noise and find exactly what they’re looking for faster and with less hassle. Increased loyalty and an overall better customer experience are other upsides of the tech.

Remember, just because a business is online it doesn’t take away from shoppers wanting to feel like they’re being tailored to and listened to. You can even start by personalising your products and packaging, a creative and effective way of making your brand stand out.

Think big and start small by deploying custom labels and ribbons using Brother’s durable and versatile TZe label range. By pairing with a label printer like the P-Touch Cube PT-P710BT, you can add a layer of flair and originality to your product offerings.

As eCommerce becomes a larger part of the Australian retail landscape, online businesses have more opportunities than ever before to grow and thrive, so long as they can keep pace with the many changes set to reshape the market in the years ahead.

If you’d like to discuss how labelling or printing can be better incorporated into your operations, please reach out to Brother today.

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