Latest technology developments and trends are reshaping the e-commerce world. They offer many new opportunities to both buyers and sellers. The rise of technology is enabling customers to meet their purchase needs easily as it provides them with more personalized service and support available no matter where they are, 24/7.
On the other hand, e-commerce companies are constantly seeking more efficient business solutions. Evolving technology can help businesses achieve these aims.
Here are the e-commerce technology trends are already changing the industry.
New payment options
To make the checkout process as simple as possible and reduce cart abandonment rates, e-commerce businesses are implementing new payment options. These options are better tailored to the behavioral patterns of the buyers.
With new technologies come new concerns, mainly regarding payment security. According to a study, 17% of shoppers abandon carts on checkout because they don’t trust the website with their credit card information. Moreover, 6% of shoppers state that the reason they abandoned a cart is due to lack of payment options.
Therefore, e-commerce businesses are always on the lookout for new and improved payment gateways that will
- alleviate privacy concerns
- streamline the checkout process
- reduce cart abandonment rates.
That said, credit cards are no longer the most popular payment method. They are slowly losing the race to alternative options such as eWallets, which account for 36% of e-commerce transactions worldwide, while only 23% of shoppers opt for credit cards.
With the rising popularity of mobile search, e-commerce is also moving to smart devices and mobile payments such as Google Pay, Samsung Pay, and Apple Pay are also becoming more and more popular.
Finally, the development of blockchain technology is also directed towards solving those concerns. Slow transactions and trust issues can be resolved using blockchain technology in the near future.
Chatbots
Conversational assistants, such as chatbots and virtual assistants, are opening the doors to two-way communication between the seller and the buyer online. Imitating human interaction, chatbots redirect communication according to customers interests.
Chatbots offer 24/7 customer service and support in the e-commerce space, saving time and expenses and bringing companies closer to the customers.
More advanced chatbots can even offer product suggestions based on order history and let you complete your purchase during the conversation. Some data shows that 1 in 5 users are willing to make a purchase from a chatbot, and 40% are already using them to research new products or services.
Another benefit of this technology is that it generates leads by gathering details of your prospects, so you can use this data to nurture them later on.
Artificial intelligence
Some predictions claim that by 2020, artificial intelligence will direct 85% of all customer interactions. Not only will AI lead the conversation and direct it towards the wants of the customers, but it will also be used to predict their behavior, and offer them products and services before they even know they need them.
Some of the current features that AI and machine learning are focusing on are visual and voice searches. This helps customers find the products they are interested in more easily. Instead of meta tagging the content manually, AI automates image classification and tagging. This allows for better alignment of search results.
Thanks to AI development, you can take a photo of a t-shirt and purchase it online in a matter of a few clicks.
AI can also be used in other e-commerce areas, such as predicting the most efficient delivery routes. Alibaba, for example, claims that such an approach resulted in a 10% decrease in vehicle use and a 30% decrease in delivery distances.
When it comes to fast and effective delivery, many companies can now benefit from the rise of technology. Using accurate fleet tracking software is one way to have better control of their resources.
Augmented and virtual reality
The use of augmented and virtual reality can be beneficial to many industries. Some examples are fashion, beauty, furniture and automotive brands.
Their development will completely change the way we shop and sell. Some companies are using these technology innovations already. Ikea lets you create your own kitchen using augmented reality glasses. Audi has used it in its showroom so customers can check out cars and customize them using a virtual reality headset.
Inventory Management
Managing e-commerce inventory can be a daunting task. It’s a difficult and complex process to handle and doing it manually leaves more room for mistakes. These can end up costing you a lot of money. You may end up with excess stock, poor cash flow and unsatisfied customers.
43% of small businesses don’t track their inventory at all or use manual processes. Shocking, because customers can place an order any time of day. Store and warehouse staff may or may not be available to update in real-time.
Opting for inventory management software can help you eliminate human errors. It also saves you the time and resources you would otherwise spend on manual data entry.
Some Inventory management software products are especially convenient for multichannel e-commerce businesses. They automatically update inventory information across all channels and help you keep it synchronized.
Using software to track your inventory will
- enable you to gather and analyze data that can help you manage your stock levels and
- keep your cash flow positive by avoiding excess inventory, and minimizing storage and maintenance costs.
Using technology to streamline your inventory management is essential if you want to gain a competitive edge in today’s crowded market.
Delivery
Customers love the convenience of low prices coming with fast delivery. Technology’s development is surely going to provide them with that. Amazon has been testing the newest technologies when it comes to shipping and delivery, such as drones. It is also considering the use of anticipatory shipping. This method delivers your products to the nearest warehouse before you have even placed an order.
So, having a drone deliver your favorite book or a new fancy dress at your doorstep in 30 minutes’ time is a dream not far from coming true.
Author Bio: Elaine Bennett is a digital marketing specialist focused on helping startups and small businesses grow. Besides that, she’s a regular contributor for Bizzmark Blog and writes hands-on articles about business and marketing, as it allows her to reach even more people and help them on their business journey.
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