Around 2.64 billion people shopped online in 2023. That means about a third of the population are choosing to make purchases through the internet, whether alongside or in place of going into physical storefronts. With online shopping here to stay and growing in relevance every day, it’s clear that everyone operating as a seller in 2024 needs to have a strong understanding of eCommerce trends.
A Changing Landscape
Almost 3000 physical stores of at least 20 major retailers shut their doors in the last year in the US alone, further denoting just how essential it is for anyone selling a product or service to have a good handle on online dynamics in the modern day. With software becoming more and more advanced every year and the ability to leverage data becoming an increasingly important commodity, successful online entrepreneurship has never had more facets to it.
What to Expect
We’ve put together this blog to expand upon and dig deeper into a few core eCommerce trends of recent years, making it clearer where entrepreneurs stand in today’s market. Covering B2B eCommerce software, the increasing number of web solutions every seller needs to be aware of, and the most popular product categories of the day, you should leave this article with a more comprehensive view of the online landscape as a whole!
The Rise of eCommerce: Then & Now
To understand the eCommerce trends of today, it’s important to look back at where the sector began. While the first form of online shopping arose in the early 1980s, invented by Michael Aldrich, this system was a crude one, connecting computing systems to television sets. The first online retail transactions as we know them today took place in 1994 on NetMarket, with Amazon.com’s first transactions coming soon after in 1995.
Ease of Use, Globalization, and More
The doors of eCommerce opening for members of the public and business owners alike proceeded to change the landscape of business forever. While long waits for shipping, subscription models, and expensive delivery fees were the norm at the concept’s inception, and for many years after, consumer convenience has become the name of the game in recent years. The most likely reason for an online shopper to abandon their cart is that they’ll have to pay some additional costs like shipping, taxes, and fees.
With access to hyper-convenient eCommerce readily available to anyone with the ability to use the internet, it’s no surprise that online selling has had such an impact on globalization. People now can secure clothes, toiletries, and any other products they can think of from all over the world at the push of a button. The landscape of eCommerce has truly made the world smaller than ever.
Modern eCommerce Trends Shaping the Online Market Landscape
With eCommerce expected to account for 24% of all retail purchases by 2026, it’s important to take notice of the core trends that are influencing these kinds of figures.
Mobile Commerce:
Something that’s grown exponentially alongside the eCommerce industry is the use of smartphones. With this in mind, it’s important to note how commonly mobile devices are used for making purchases. Around 91% of online shoppers make purchases using their phones, however, the abandonment rate on mobile devices is also much higher. This is indicative of the kind of convenience society that the modern consumer exists in.
Personalization & Data-Driven Marketing:
By now, we’ve all agreed to “cookies” on more websites than we can remember, but what many don’t realize is that these decisions we all make are influencing the products that are marketed to us. Across social media and other platforms, data is being collected and analyzed, for use by marketers to tailor campaigns in segments. This kind of personalization is a core facet of eCommerce software development in today’s world.
Major Platforms are Dominating:
While there are around 14 million eCommerce sites in the US alone and countless independent sellers, it’s clear that the industry is being monopolized by a few core brands – with one in particular dominating the market. Of course, we’re talking about Amazon, with the platform accounting for 37.6% of all eCommerce sales in 2023. In second place are Walmart, who control 6.4% of the market, with Apple taking 3.6% for third place.
White Label Products are Massive:
With the landscape of online selling more accessible than ever, it’s worth noting that many entrepreneurs are opting to build brands around white-label products. This means that business owners are finding manufacturers that create products in mass, buying them in bulk, and then packaging them with their own branding. This has created a simple pathway to online selling for many people who don’t have access to the means of production.
It’s clear that eCommerce has been and will continue to remain on the rise for the foreseeable future. With both buying and selling more accessible than ever and fewer people opting to shop in physical stores, the question is no longer whether to sell online, but rather how to leverage data and industry know-how to generate success.
Trending eCommerce Products
With so many sellers, either white-labeling, private-labeling, or making their own goods to sell online, one has to wonder - what is everyone buying? We’ve broken down some of the most popular eCommerce product categories of the last few years, so you can consider how your plans or products fit into the broader view of the industry.
Health and Wellness Products:
Health and wellness are at an all-time high in terms of relevance right now, especially following the Covid-19 pandemic. With this in mind, products in this sector have exploded in eCommerce.
This encompasses:
- Basic workout gear (resistance bands, yoga mats, dumbbells
- Supplements and vitamins, especially those focused on immunity
- Mental wellness products, ranging from stress-relief tools to online therapy
With information about health, fitness, and general wellness more readily available than ever, it’s no surprise that products in these categories are doing so well online.
Tech Gadgets and Accessories:
With smartphones becoming more and more advanced every year, along with the rise in smart homewares, it only makes sense that accessories and compatible gadgets have become such popular eCommerce items.
This includes:
- Wireless earbuds and headphones.
- Smartwatches and fitness trackers.
- Phone accessories like pop sockets, phone cases, and screen protectors.
- Home automation devices such as smart bulbs, smart plugs, and smart thermostats.
With connectivity increasingly integrated into everyday life, fewer people feel the need to visit stores before purchasing gadgets and items of technology.
Home Office Essentials:
Along with a rise in wellness interest, the pandemic also triggered something of a work-from-home revolution. While it started as a temporary measure, many companies have opted for fully remote systems, making home office equipment hugely popular online.
The kinds of products sold for home offices include:
- Ergonomic chairs and standing desks
- Blue light-blocking glasses
- Noise-canceling headphones
- Productivity tools and software
With millions working from their kitchens, bedrooms, and other nooks in the house, home office essentials have no signs of slowing down as a trending product range.
Sustainable and Eco-Friendly Products:
Sustainability is becoming increasingly important to consumers, and purchasing trends are reflecting that. With the state of the environment a major topic of both social and political discussion, a lot of people are looking for products that they feel are more responsible.
Sustainable products increasing in popularity include:
- Reusable water bottles and coffee cups
- Eco-friendly cleaning products and formulas
- Bamboo-based or biodegradable household items, eg. coffee filters & toilet paper
- Sustainable fashion – clothing made from organic or recycled materials
Being sustainable is less a trend than a way of life for many consumers, which is why many brands are trying to incorporate it into their business plans in one way or another.
Beauty and Skincare Products:
Beauty and skincare products are part of a lot of people’s daily routines, which explains why so many consumers are opting for the convenience of online shopping for them, rather than finding the time to visit a specialist store.
Commonly purchased items include:
- Clean beauty products with natural or organic ingredients
- Skincare tools like facial rollers and gua sha stones
- Hair care products, including regenerative hair masks and scalp treatments
- Men's grooming products, such as beard oils and skincare sets
Grooming has become a more universal thing in the last few years, with gender divides becoming less and less relevant, leading to the sector booming online.
DIY and Craft Supplies:
Home gardening kits and indoor plant accessories.
DIY craft kits for adults and children.
Knitting and crochet supplies.
Art supplies like paints, brushes, and canvases.
Pet Care Products:
Premium pet food and treats, including organic and grain-free options.
Pet grooming tools and supplies.
Interactive and enrichment toys for pets.
Pet accessories such as stylish collars, harnesses, and beds.
Fashion and Apparel:
Loungewear and athleisure wear.
Sustainable fashion brands.
Statement jewelry and accessories.
Gender-neutral clothing and inclusive sizing options.
Challenges and Opportunities of the Modern eCommerce Market
At this point, it’s clear that eCommerce is here to stay as a massive part of the global economy. However, while eCommerce innovations and developments offer massive opportunities to independent entrepreneurs and major brands alike, it’s important to note that the developments in the last few years also bring challenges to them.
Challenges & Difficulties of Modern eCommerce
While the eCommerce boom can feel like something of a modern-day gold rush, it’s vital to accurately anticipate the aspects of the industry that can make it tough to navigate.
Competition & Market Saturation: With so many brands choosing to build their presence off the back of white-label products and purchasing trends so easy to monitor, new sellers have to go up against a lot of competitors in a potentially saturated market. Brands must make an effort to stand out in both personality and quality.
Logistics & Supply Chain Management: By opening up your business to a global marketplace, you allow yourself a lot more space in which mistakes can be made on the logistical side of things. It’s important to have clear and effective systems in place to manage supply chains, regardless of your audience range.
Customer Experience & Building Trust: As stated before, there are millions of eCommerce sellers in the market. What are the things that will make a consumer choose one over the other? A major facet of success is ensuring a good customer experience, especially in a world where physical customer service is so scarce compared to the past.
With these challenges and others in mind, it’s important that eCommerce newcomers and retail veterans alike put the work in to stand out as obvious choices for consumers.
Opportunities in Modern eCommerce
The modern state of eCommerce involves some risks and challenges, but it’s also important to note the way the digital age can benefit entrepreneurs in terms of opportunity.
Brand Building & Personality Communication: The reach offered and approaches favored by social media platforms have created a new world in terms of brand building. By offering followers and consumers a peek behind the curtain, brands can communicate who they are, building more of a memorable parasocial relationship with their target audience.
New Methods of Marketing: Beyond social media and content creation, there are countless new methods of marketing that the eCommerce industry has given birth to. With the right data tools and web solutions, businesses can effectively market to their audience through a variety of different targeted channels, often leading to increased retention.
Access to Global Products/Talent Pools: Perhaps the biggest innovation in eCommerce and retail as a whole is the access to the global marketplace of both products and talent. People can build powerful brands with manufacturing, operations, and customer service all working in different countries, without the need for corporate-level infrastructure.
The Future of eCommerce
With a clear view of what eCommerce looks like today, it’s important to take what we know and use it to make educated guesses on what the future holds. A few of the core trends we expect to see growing in the near future include:
- AI and machine learning: From customer service chatbots to predictive marketing, AI is going to be a huge part of eCommerce going forward.
- AR/VR: augmented and virtual reality are becoming more accessible every year, expected to become a huge part of the shopping experience very soon.
- Sustainability and ethical consumption: As touched on already, sustainability is a huge part of today’s economy, and will only continue to grow as time goes on.
While it’s all well and good to keep up with the trends of the present day, the best eCommerce professionals are the ones with their ears to the ground on the things to come. Adaptability and the ability to roll with the tides of the industry will separate the casual participants from those who actually build well-respected, lasting brands.
Conclusion
With everything we’ve touched on today, you should be abundantly aware that operating within eCommerce is an absolute necessity for anyone selling products in the modern world. The trick to success is staying on top of the trends in terms of products, practices, and technology – by staying abreast of the newest developments and figuring out how to leverage them effectively in your own business, you can establish a sustainable business model.
To learn more about eCommerce, online selling, and white-label products, why not take a trip to the White Label World Expo in New York this May? It’s going to be one of the world’s leading conventions for professionals in this field, featuring a range of amazing product showcases, educational seminars, and interactive networking opportunities. For any aspiring professionals, it’s a must-visit, so secure your ticket now.