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From Couch Potato to Click-Happy Consumer: Understanding revolutions in the ecommerce industry
Author – Amarinder Dhaliwal, IndiaMART
Driven by cutting-edge technologies like AI, machine-based learning for better customer experience, e-commerce is a $70 billion industry right now and is expected to reach a staggering $300 billion by 2030. As consumers embrace technology in their daily lives, it has transformed the way we shop. It is not just limited to the screens anymore, instead offline purchases are also getting deeply influenced by online space. Close to 66% of Indian consumers conduct online research before making in-store purchases. E-commerce is in a constant state of flux and is giving rise to tech trends every day.
Customer shopping experience via AI/ML:
Customer’s experience with the vendor at every touchpoint, from opening the app to making the payment for a purchase – all are a part of customer shopping experience (CSX). Use of AI and ML to transform and personalize user experiences is a rising trend in the industry. A McKinsey & Company study suggested that companies that embrace AI in e-commerce can experience a 20-30% increase in conversion rates. Online marketplaces are using AI’s enhanced search capabilities to ensure users find what they need quickly, even when dealing with misspellings or using multiple languages. Platforms can now understand and process ‘Hinglish’—a mix of Hindi and English- and still get the precise search results.
Moreover, AI-powered tools are revolutionizing catalog management with features such as automated image editing, background removal, and cropping to make product cataloging more efficient and enhance the visual appeal of listings. This technological advancement promises a more engaging and visually appealing e-commerce landscape, opening up new possibilities for marketers and enthusiasts.
Mobile-first
Mobile devices continue to dominate the e-commerce landscape, accounting for a significant portion of traffic and transactions. More than 56% of global consumers prefer their mobile devices for shopping, evidently indicating the rise of mobile commerce. India, with its dynamic audience demographics, has also embraced this trend wisely. Small business owners in tier II and III cities may not be able to afford a laptop or tablet, but are surely conducting businesses and shopping via mobile phones. At IndiaMART, 75% of traffic comes from mobile devices.
Voice based commerce:
Voice-based commerce, an exciting emerging trend powered by AI, is also set to revolutionize e-commerce interactions. In a country as diverse as India, voice commerce has the potential to lead to hyper-personalization, removal of language and geographical barriers, thus broadening the reach of e-commerce. Natural Language Processing (NLP) enables users to interact with platforms using voice commands, simplifying the process of finding products and placing orders. Voice based commerce market is expected to grow at a CAGR of 27.28% during the forecast period, 2024-2031, as per DataM intelligence.
Generative AI and Conversational Commerce
Companies are also integrating Generative AI into various aspects of e-commerce to enhance user interactions and platform performance. Conversational commerce, powered by AI, is paving the way for personalized interactions within chat systems. This deepens the bond between buyers and sellers, creating a virtual environment that mimics human interactions, resulting in more meaningful engagements and improved sales outcomes.
What lies ahead:
Ecommerce industry is poised for significant growth in the coming years, owing to a conducive policy environment and increase in tech-savvy customer base. There is no better time to embrace technology and invest in the right direction. These technological revolutions are not mere additions of new features; they are transformative, reimagining how businesses interact and thrive in the digital space. This reimagining is making e-commerce more accessible, efficient, and reliable for everyone involved, inspiring a new era of possibilities.
Online Coverage: The Entrepreneur Today