Chap 1:

✅ 1. What does omni-channel mean in terms of e-commerce presence?

Omni-channel refers to a coordinated presence across multiple platforms—such as physical stores, desktop
websites, mobile apps, and social media—allowing consumers to interact and transact across them seamlessly. For
example, Puma's strategy integrates online and offline touchpoints to deliver consistent brand experiences, enabling
functions like buy-online-pickup-in-store (BOPIS).

✅ 2. What is the deep Web?

The deep Web includes web content not indexed by standard search engines. This comprises password-protected
sites, encrypted networks, private databases, and dynamically generated web pages. Unlike the surface web, deep
web pages cannot be accessed through conventional browsing.

✅ 3. What are some of the unique features of e-commerce technology?

Seven distinctive features:

●​ Ubiquity – Available anytime, anywhere.​

●​ Global reach – Access to international markets.​
●​ Universal standards – Shared technical protocols (e.g., TCP/IP).​
●​ Richness – Multimedia communication (text, video, audio).​
●​ Interactivity – Two-way communication with users.​
●​ Information density – Reduced costs and increased accuracy in information.​
●​ Personalization/customization – Tailored experiences for individuals.

✅ 4. What are some of the factors driving the growth of social e-commerce?
●​ Social sign-on (e.g., Facebook login)​
●​ Network notifications (likes/shares)​
●​ Social recommendations​
●​ Integration of “Buy” buttons on platforms​
●​ Use of influencer marketing and community commerce (e.g., Facebook Marketplace)

✅ 5. Why is it likely that the Internet and e-commerce are entering a period of closer regulatory oversight?
Due to rising concerns over:

●​ Data privacy and user tracking​

●​ Cybersecurity and fraud​
●​ Anti-competitive behavior by tech giants​
●​ Tax avoidance​
Governments are now pushing for more transparent and enforceable digital commerce regulations.

✅ 6. How does the ubiquity of e-commerce impact consumers?

It reduces transaction costs by making it easier to access services and products 24/7. Consumers no longer need to
travel to physical stores, saving time and enabling spontaneous purchases from any location.

✅ 7. What impact does the increased interactivity provided by e-commerce technologies have on business?
Businesses gain the ability to engage customers directly, gather feedback, adjust offerings in real time, and
personalize marketing. This strengthens customer relationships and brand loyalty.

✅ 8. What difficulties are presented in trying to measure the number of web pages in existence?
●​ Many pages are dynamically generated and ephemeral.​

●​ A large portion of the web is hidden (deep Web).​

●​ Pages are constantly created, deleted, or duplicated, making precise counting difficult.​

✅ 9. Why is the mobile platform not just a hardware phenomenon?

The mobile platform represents a shift in consumer behavior and digital interaction. It includes mobile apps,
optimized websites, mobile payment systems, GPS/location services, and personalized notifications—not just
smartphones themselves.

✅ 10. What is conversational commerce and how does it relate to m-commerce?

Conversational commerce involves using messaging platforms (e.g., Messenger, WhatsApp) and AI chatbots to
facilitate transactions and customer service. It is a subset of mobile commerce (m-commerce), leveraging the
mobility and personal nature of smartphones to enhance user engagement.

✅ 11. Describe the three different stages in the evolution of e-commerce.

1.​ Invention (1995–2000):​

○​ Rapid innovation and launch of first websites (e.g., Amazon, eBay).​

○​ Focused on retail goods with limited media richness.​

○​ Fueled by venture capital; ended with the dot-com crash in 2000.​

2.​ Consolidation (2001–2006):​

○​ Emphasis shifted from experimentation to profitability.​

○​ Growth slowed, but solid business models emerged.​

○​ Integration of traditional companies into online space began.​

3.​ Reinvention (2007–present):​

 ○​ Driven by mobile, social, and local commerce.​

○​ Smartphone revolution, app economy, cloud computing, and personalized AI experiences now
dominate.

✅ 12. Define disintermediation and explain the benefits to Internet users of such a phenomenon. How does
disintermediation impact friction-free commerce?

●​ Disintermediation is the removal of intermediaries (e.g., wholesalers, retailers) in a supply chain.​

●​ Benefits to users:​

○​ Lower costs​

○​ Faster service​

○​ Direct access to suppliers​

●​ It promotes friction-free commerce by reducing layers between buyers and sellers, enhancing efficiency
and lowering prices.

✅ 13. What is the difference between a PWA and a regular app?

●​ PWA (Progressive Web App):​

○​ A web-based application that behaves like a native app.​

○​ Runs in a browser but offers offline access, push notifications, and quick installation.​

●​ Regular App (Native App):​

○​ Must be downloaded from an app store.​

○​ Installed directly on a device’s operating system and typically has deeper device integration.

✅ 14. What is driving the growth of social e-commerce?

Key drivers include:

●​ Widespread mobile device usage​

●​ Embedded shopping tools in social apps (e.g., Buy buttons on Instagram, Facebook Shops)​

●​ Social proof (likes, reviews, shares)​

●​ Integration of influencer marketing​

●​ Rise of community commerce and peer recommendations​

✅ 15. Discuss the ways in which the early years of e-commerce can be considered both a success and a failure.
●​ Success:​

○​ Created foundational technology and business models​

○​ Attracted huge investment​

○​ Pioneered retail digitization (e.g., Amazon, eBay)​

●​ Failure:​

○​ Poorly planned businesses led to the dot-com bust​

○​ Lack of profitability and infrastructure​

○​ Overhype and market crash around 2000​

✅ 16. What are five of the major differences between the early years of e-commerce and today’s e-commerce?
1.​ From dial-up to mobile broadband​

2.​ From static sites to interactive platforms with AI​

3.​ From desktop-only to mobile-first design​

4.​ From general offers to personalized marketing​

5.​ From experimental startups to trillion-dollar global firms (e.g., Amazon, Alibaba)​

✅ 17. How do the Internet and the Web fit into the development of corporate computing?
They enabled:

●​ Global communication​

●​ Real-time collaboration​

●​ Cloud computing​

●​ Web-based enterprise systems (CRM, SCM, ERP)​

●​ Enhanced reach and scalability of corporate IT​

✅ 18. Why is the term “sharing economy” a misnomer?

Because companies like Uber and Airbnb are not truly “sharing” resources.

●​ They operate commercial platforms with centralized control, charge service fees, and facilitate paid
transactions.​

●​ There is no genuine peer-to-peer sharing without economic exchange.

✅ 19. What are those who take a technical approach to studying e-commerce interested in?
They focus on:

●​ IT infrastructure (hardware/software)​

●​ Networking protocols​

●​ Web and mobile technologies​

●​ Security and encryption​

●​ System architecture (e.g., cloud, microservices)​

✅ 20. What have been some of the surprises that have occurred in the evolution of e-commerce?
●​ The dominance of mobile commerce​

●​ Social media evolving into shopping platforms​

●​ Users' willingness to share personal data​

●​ Emergence of platform monopolies (e.g., Amazon, Google)​

●​ Rapid consumer trust in digital transactions​

●​ Impact of AI, voice assistants, and real-time personalization

Chap 2:

✅ 1. What distinguishes an e-commerce business plan from a traditional business plan?

An e-commerce business plan is built specifically around digital platforms and technologies. Unlike traditional
plans, it emphasizes:

●​ Online value propositions​

●​ Web and mobile presence strategies​

●​ Digital revenue models (e.g., subscription, advertising, transaction fees)​

 ●​ Technology infrastructure (e.g., hosting, analytics, scalability)​

●​ Online customer acquisition and retention tactics​

✅ 2. Identify and describe the business model element that specifies how the company’s product will fulfill the
needs of its customers.

That element is the Value Proposition.​

It defines how a company's product or service solves a customer problem or satisfies a need better than
competitors. In e-commerce, value propositions often include:

●​ Convenience (e.g., Amazon's fast delivery)​

●​ Personalization (e.g., Netflix's recommendations)​

●​ Lower prices through cost efficiency​

●​ Access to exclusive or customized goods

✅ 3. How can e-commerce technologies be used to improve a firm’s value web?

A value web is a dynamic network of suppliers and partners. E-commerce technologies improve it by:

●​ Enhancing real-time communication​

●​ Automating transactions (via APIs, ERP systems)​

●​ Improving coordination among suppliers and distributors​

●​ Allowing shared data access for inventory, logistics, and demand forecasting​
This boosts responsiveness, efficiency, and innovation within the network.

✅ 4. What are some of the traditional sources of capital for startups?

Traditional sources include:

●​ Seed capital (founders' personal savings, friends & family)​

●​ Angel investors (early-stage private investors)​

●​ Venture capital firms (institutional investors focused on high-growth potential)​

●​ Commercial banks (loans, though rare for risky startups)​

●​ Government grants or innovation funds​

✅ 5. What is a disruptive technology, and how does it differ from a sustaining technology?
 ●​ Disruptive technology transforms an industry by introducing innovation that makes old models obsolete
(e.g., streaming vs. DVD rentals).​

●​ Sustaining technology enhances existing products without altering the industry fundamentally (e.g.,
improving smartphone cameras).​

Example: Uber disrupted taxi services by removing dispatchers and licenses with an app.

✅ 6. How does e-commerce enable competition based on cost?

E-commerce reduces operational costs by:

●​ Eliminating intermediaries (disintermediation)​

●​ Automating customer service and supply chain​

●​ Requiring less physical infrastructure​

●​ Using data to optimize pricing dynamically​

These savings allow firms to offer lower prices and compete more effectively.

✅ 7. What is an on-demand services company?

An on-demand services company provides instant access to services via digital platforms—usually through mobile
apps.​
Examples:

●​ Uber (transportation)​

●​ Airbnb (lodging)​

●​ DoorDash (food delivery)​

They use algorithms to match supply and demand in real-time, offering convenience and speed.

✅ 8. What are some of the ways a firm can pursue a differentiation strategy?
Firms can differentiate by:

●​ Offering unique features or products (e.g., Apple’s design)​

●​ Creating superior customer experience​

●​ Leveraging branding and storytelling​

●​ Using technology (e.g., personalization with AI)​

 ●​ Exclusive partnerships or licensing​

This approach justifies premium pricing and builds customer loyalty.

✅ 9. What are the benefits offered by incubator investor firms over other traditional sources of capital?
Incubators provide:

●​ Office space and infrastructure​

●​ Mentorship and business advice​

●​ Networking with investors and industry experts​

●​ Access to legal, marketing, and technical support​

These benefits go beyond funding, increasing the startup’s survival rate.

✅ 10. What is an unfair competitive advantage?

It’s when a firm has an advantage that cannot be easily replicated or purchased by others.​
Examples include:

●​ Proprietary technology​

●​ Exclusive partnerships​

●​ Brand loyalty or trust​

●​ Network effects (e.g., Facebook’s user base)

✅ 11. What is an industry structural analysis and what is its place in the e-commerce business plan?
Industry structural analysis involves evaluating the competitive forces within an industry using tools like Porter's
Five Forces:

1.​ Threat of new entrants​

2.​ Bargaining power of suppliers​

3.​ Bargaining power of buyers​

4.​ Threat of substitute products​

5.​ Rivalry among existing competitors​

In an e-commerce business plan, this analysis helps determine:

 ●​ Market attractiveness​

●​ Competitive challenges​

●​ Barriers to entry​

●​ Pricing strategies​
It provides a strategic context for positioning and profitability potential.

✅ 12. What is the key to success for content providers?

The key to success is developing unique, engaging, and high-quality content that attracts a loyal audience and
can be monetized through:

●​ Advertising​

●​ Subscriptions​

●​ Affiliate links​

●​ Sponsored content​

Content must be targeted, regularly updated, and optimized for both search engines and social sharing to remain
competitive

✅ 13. Discuss the impact of e-commerce technologies on inter-firm rivalry (competition).

E-commerce technologies:

●​ Lower entry barriers, enabling more competitors​

●​ Provide transparent pricing and real-time comparison tools​

●​ Reduce switching costs for consumers​

●​ Enable dynamic pricing and faster product cycles​

Result: Intensified competition across industries, forcing companies to constantly innovate, lower prices, and
improve customer service.

✅ 14. What disadvantages are faced by “first-mover” companies entering a marketspace?

Disadvantages include:

●​ High research and development costs​

 ●​ Market uncertainty and risk of failure​

●​ Inefficiency due to immature infrastructure or untested technologies​

●​ Later entrants can learn from early mistakes, improve the model, and outcompete the first-movers (e.g.,
Google over AltaVista)

✅ 15. Why is the e-tail sector so competitive?

Reasons include:

●​ Low entry barriers (easy to start an online store)​

●​ Low switching costs for consumers​

●​ Price transparency forces price wars​

●​ Many firms offer similar products​

●​ Customer loyalty is weak without strong differentiation or value

✅ 16. Describe the feature of ubiquity as it applies to e-commerce technology and describe how it has affected the
business environment over the past decade.

Ubiquity means that e-commerce is available everywhere and at any time via the Internet.

Impact:

●​ Reduced transaction costs for consumers and businesses​

●​ Increased access to markets globally​

●​ Enabled remote work, mobile commerce, and always-on service​

●​ Reshaped consumer expectations (24/7 availability)

✅ 17. What kinds of firms are considered to be e-commerce enablers?

E-commerce enablers provide the tools and infrastructure that support e-commerce operations, such as:

●​ Shopify, WooCommerce (store platforms)​

●​ Stripe, PayPal (payment processing)​

●​ Amazon Web Services (cloud hosting)​

●​ Mailchimp, Google Ads (marketing services)​

These firms lower barriers for businesses to launch and grow online.

✅ 18. What is an initial coin offering (ICO)?

An ICO is a fundraising mechanism used by startups to raise capital by issuing digital tokens or cryptocurrencies
(like Ethereum). Investors purchase tokens expecting future value or usage within a blockchain-based platform.

Note: ICOs are unregulated, often high-risk, and subject to fraud.

✅ 19. Define market opportunity and describe how you would determine a new company’s realistic market
opportunity.

Market opportunity is the total potential revenue available in a given market segment for a company’s products
or services.

To determine it:

●​ Analyze the total addressable market (TAM)​

●​ Define the specific market niche or target customer base​

●​ Study competitors, pricing models, and unmet needs​

●​ Estimate how much of the market your company can realistically capture

✅ 20. What are the main elements of an elevator pitch?

An effective elevator pitch includes:

1.​ The problem – What customer pain point is being solved?​

2.​ The solution – Your product/service offering​

3.​ Value proposition – Why is it better/different?​

4.​ Target market – Who is the customer?​

5.​ Revenue model – How you make money​

6.​ Call to action – What do you want from the listener (e.g., investment)?​

Timeframe: 30–60 seconds, concise, and persuasive.

E-commerce trends 2024: 15 eye-popping insights for the future of online shopping
E-commerce trends 2024: What’s shaping the future of online selling today

So, what does it take to deliver e-commerce experiences that will shine in 2024?

Here are the top 15 e-commerce trends you need to know in 2024:

1.​ Unified omnichannel experiences

2.​ Artificial intelligence
3.​ Social commerce
4.​ Sustainability
5.​ Personalized customer service
6.​ Voice search
7.​ Mobile-first UX design
8.​ Inflation and redefining value
9.​ ROPO (research online, purchase offline) + BOPIS (buy online, pickup in store)
10.​ AR and VR-enhanced shopping
11.​ Hyper personalization
12.​ Privacy and transparency
13.​ “Human as a premium”
14.​ Direct to consumer
15.​ Subscription commerce

1. Seamless omnichannel experiences will make or break online retailers in 2024

In 2023, consumers fully embraced returning to in-person shopping, but that doesn’t mean that
e-commerce started to lag. Rather, customers are shopping across multiple channels and touchpoints for
any given purchase.

From online shops to third party marketplaces to social media apps, to brick and mortar stores—people
are researching, comparing, shopping and seeking support just about everywhere you can imagine. And
they expect to be able to do so easily with virtually no disruptions.

73% of retail consumers shop across multiple channels, and retailers who use 3 or more channels
increase customer engagement 251% more than single-channel retailers
To ensure a cohesive brand experience, retailers need to maintain their presence on all online
platforms—including their own website, social platforms and third-party marketplace shops (such as
Amazon).

Not only that, but they need to optimize the omnichannel customer experience by unifying things on the
back-end, so that no matter where a customer chooses to pick up their buying journey they are able to
seamlessly continue right where they left off.

2024 ecommerce trends included within omnichannel experiences:

●​ Enable flexible fulfillment, allowing customers to choose whether to buy, service or return
purchases online or in-store
●​ Embrace social commerce once and for all (or risk losing millennial and gen z audiences)
●​ Provide personalized customer service that puts customers in control and at ease

(More on these later.)

Brands that are able to unify their omnichannel strategy and provide seamless, personalized experiences
will continue to win in 2024.

2. Artificial intelligence (AI) is revolutionizing e-commerce

2024 has made it clear: Love it or hate it, AI is here to stay. It’s been a useful tool for e-commerce
businesses for a while now, but has recently hit the mainstream with generative AI—showing consumers
just how powerful it can be.

With AI becoming increasingly prolific, it’s clear why it ranks as #2 for 2024 e-commerce trends.

For online retailers, AI can be a powerful tool that helps them:

●​ Personalize customer experiences and recommendations

●​ Optimize everything from supply chain logistics to inventory management
●​ Fine-tune their digital marketing strategies and reach their target audiences more effectively

It’s no wonder that 97.2% of businesses are investing in big data and AI. And 91% of top businesses
report having an ongoing investment in AI—which they’re hoping to increase.
Retailers who remain wary of artificial intelligence and machine learning will soon find themselves in
trouble.

Instead of avoiding the technology, integrate it into your 2024 e-commerce strategy thoughtfully and
intentionally. Understand the risks, build trust through transparency and be proactive in facing common
challenges.

3. Social commerce drives massive engagement in 2024

96.9 million people in the U.S. shop directly on social media.

And as younger millennials and gen z continue to consume the market, that number is only going to grow.

83% of gen z consumers say their shopping starts on social media.

More and more brands are making it effortless for people to discover and purchase directly from their
favorite social apps (primarily Instagram and TikTok), not only earning themselves social currency, but
elevating consumer expectations across the board.

It’s expected that social commerce will reach $2.9 trillion by 2026. Meaning the time for retailers to get
social is now.

2024 ecommerce trends included within social commerce:

●​ Delivering seamless omnichannel commerce that lets consumers build their own buying
journey
●​ Embrace authenticity when engaging with your audiences
●​ Take a mobile-first approach to UX design (more on this later)

4. Sustainability: It pays to go green

Sustainability remains at the forefront of consumers’ minds as they increasingly experience the impacts of
climate change firsthand. This trend will only continue to build momentum in 2024.

Consumers are seeking out and prioritizing eco-conscious options and are even willing to pay premium
for sustainable goods and businesses.

But it’s not easy being green: especially in the U.S., people are becoming increasingly skeptical of
“greenwashing.”
Mintel’s latest consumer report shares that:

60% of U.S. consumers think many companies are just pretending to be sustainable.

“Waiting for regulatory pushes and industry accreditations will not be enough to satisfy
consumers’ expectations. To stay ahead of their competitors, brands need to … demonstrate
meaningful and measurable progress towards sustainability targets, and quickly make
changes based on changing circumstances.”

E-commerce companies need to double down on their sustainability practices and demonstrate a clear,
definitive and authentic commitment to the cause. Younger consumers especially want to support brands
that align with their values. But if they suspect your heart’s not in it, they’ll be quick to miss you.

5. Know thy customer: Personalized customer service is a requirement

Say goodbye to the one-size-fits-all mentality when it comes to customer service.

Consumers expect personalized experiences at every step of the journey – including customer service.
Their personal preferences, transaction history, and past service interactions should all inform how you
engage with them today.

In recent years, companies have recognized that customer service is a very real extension of the brand, a
human face or voice that ideally represents the best of the brand’s desired attributes.

Going forward, however, simply acknowledging that service agents are part of the overall brand equation
isn’t enough.

Why?

Because at the moment of customer interaction, the service actually becomes the brand.

When a customer engages with your service department, that interaction has enormous power to shape
their perception of your brand. The more that customers embrace digital channels, the truer this becomes.

This customer service trend means organizations need to think creatively about how to solve for
intangibles like empathy and tone of voice. They need to ensure agents have ready access to the right
information, at the right time, to solve whatever issue or customer pain point that may arise – even in
rapidly changing situations.
6. Hear this: Voice search won’t be silenced according to 2024 e-commerce trends

As smart speakers and assistants become even smarter, consumers are using them more consistently.

Around 40% of U.S. internet uses use a voice assistant at least monthly. E-commerce brands must
optimize their sites for voice commerce to stay ahead of the curve.

Major retailers have already started enabling customers to place orders directly through smart speakers,
and more are in the process of doing so now.

Digital retailers should focus on optimizing their commerce experiences for natural language patterns.
(Ask yourself: How do real people – not algorithms – talk about your products?)

And remember, voice search isn’t just about what they ask; it’s also about how you respond. Skip the
preambles and keep content short and clear, or risk the dreaded: “Alexa, stop.”

Of course it’s not just smart speakers driving voice commerce. Many searches are done via smart phones
as part of a blended commerce experience. Which leads us to our next 2024 e-commerce trend…

7. Mobile-first dominates UX design

Remember back in the days of yore (2010 or so), when mobile-optimized websites were the new big
thing? Mobile commerce has only grown in popularity and ease over the past decade+.

So much so that the balances have shifted. Now, instead of optimizing desktop sites for mobile, brands are
designing experiences mobile-first.

91% of consumers make online purchases on their smartphones.

And in 2024, m-commerce is expected to account for 40.4% of all e-commerce sales.

And mobile commerce is expected to account for $710 billion (or 10.4% of all retail transactions)in
commerce sales by 2025.

Time and time again, consumers show that they want to shop from their mobile devices. Digital retailers
must start delivering experiences that are purpose-built for mobile:
 ●​ Adopt fingerprint and facial recognition technology to simplify everything from logging in to
checking out
●​ Develop a dedicated mobile app with e-commerce features specifically optimized for smaller
screens
●​ Offer mobile-friendly payment options (like Apple Pay and Google Pay) to streamline
checkout

8. Inflation is changing how people spend online

Inflation was on everyone’s mind in 2023, and in 2024 promises more of the same. As consumers’
budgets tighten, they will likely curb online spending as a way to introduce barriers against impulse buys.

But it bears mentioning that consumers aren’t halting all discretionary spending. Instead, they are being
highly thoughtful and intentional about where, how, and on what they spend their hard-earned dollars.

They want to see the value of their purchases.

But value can mean a lot of things.

Indeed, Mintel’s 2024 Global Consumer Trends reports that consumers are reassessing what constitutes
value for them:

“Consumers have increasingly diverse ideas of what indicates ‘quality’ in a product or

service. As budget pressures force tighter trade-offs, consumers are becoming more realistic
in their search for value as they strike a balance between quality received and cost incurred.”

Retailers should continue to embrace the tried-and-true methods of easing shoppers anxieties:

Offering easy returns and budget-friendly options:

●​ 67% of shoppers check the return policy before buying online—and a bad policy could keep
them from buying, whereas
●​ 92% of shoppers will purchase from a brand again if the return process was easy
●​ Offering “basic” packages and other budget-conscious options can make all the difference for
consumers trying to cut costs

On top of these, retailers can level up their focus on the ways they deliver value beyond cost-savings. For
example:
 ●​ Employing ethical, sustainable and socially conscious business practices (which consumers
feel good about spending on, even when money is tight)
●​ Providing reliable, predictable, top-tier service (because as soon as it becomes a hassle, they
may bail)
●​ Rewarding loyalty with perks and bonuses they actually want

9. Wake me up before you go-go: ROPO (research online, purchase offline) + BOPIS (buy online, pay
in-store)

With consumers upending the customer journey, retailers may struggle to effectively track how and when
their virtual UX translates into physical sales.

ROPO (“research online, purchase offline”) is not a new phenomenon, but it’s grown in popularity as
more and more people blend their buying journey across multiple channels. People like to do product
research online, using companies’ e-commerce sites, third party marketplaces and especially online
reviews, but then go make their purchase in-store.

While the experience itself hasn’t evolved drastically, our ability to track the journey has.

BOPIS and curbside delivery appear simple: Just shop online and opt for in-store or curbside pickup. A
confirmation email follows, then a phone call or location-based check-in alerts an employee to come out
with packages. Pop the trunk and head home. But for most retailers, scaling these services can create
monumental challenges. It requires agility and quick pivots to turn traditional stores into fulfillment
centers so consumers can get what they need quickly and seamlessly.

Thanks to an onslaught of ownable, trackable data and advanced analytics (and of course, AI), we’re
better equipped to map out our customers’ journeys and better understand what’s working (and what’s
not).

Retailers who haven’t already invested in a unified customer data platform (which pulls customer data
together from multiple sources) should do so now in order to keep up with this e-commerce trend.

2024 ecommerce trends related to ROPO + BOPIS:

●​ Frictionless omnichannel commerce that lets consumers build their own buying journeys
●​ Privacy and transparency remain critical for customer trust
●​ “Human as a premium” (more on this later)
10. AR and VR make e-commerce immersive

One of the top challenges online shoppers face is being able to “try on” products or fully imagine how
they’ll fit in their space. Augmented and virtual retail experiences have transformed that challenge,
allowing shoppers to visualize—or even interact—with products online before buying.

●​ Shoppers can “try on” everything from clothes to makeup using their smartphones
●​ They can use AR to see how furniture and home appliances will fit in their spaces (like with
IKEA’s AI-driven app)
●​ VR showrooms allow shoppers to virtually interact with products, or even configure them
before buying (like with Audi’s earlier Oculus experience)

AR and VR e-commerce helps ease customers’ anxieties about online purchases.

A survey conducted by Snap/Publicis Media found that 80% of shoppers feel more confident in their
purchases when using these technologies, and 66% of shoppers who use AR are less likely to return
their purchases.

And while the immersive technology has come a long way in the past few years, we’re still just getting
started.

Expect to see e-commerce businesses across all industries rolling out augmented, virtual, and mixed
reality experiences in 2024.

11. Personalization and curated experiences are in high demand

We’ve already talked about how AI will continue to help retailers optimize every aspect of the
e-commerce experience. But its powerful impact on personalization warrants its own focus.

As consumers become more aware and comfortable with the advanced capabilities of AI, their
expectations of how businesses use the technology are increasing.

24% of consumers think retailers should use AI to make recommendations more personal.
When a customer gives consent for you to use their customer data, they expect to see a return on that
investment—by way of hyper-personalized, curated experiences. Things like:

●​ Guiding them to products they’ll love based on past purchases, behavior, and cross-channel
engagement
●​ Offering personalized rewards for as part of loyalty programs
●​ Reaching them on their preferred channels with targeted messaging that resonates with them
specifically

As personalization capabilities continue to get more powerful, retailers that don’t deliver tailored, relevant
experiences to their customers risk losing them for good.

But success also depends on customers’ trust of your data practices. Which brings us to…

12. Privacy and transparency remain paramount to consumers

E-commerce customers want incredible, personalized, seamless experiences, but not at the expense of
shady data practices.

Gartner expects that by the end of 2024, 75% of the world’s population will have its personal data
covered under privacy regulations. Meaning companies found in breach of compliance will face hefty
fines and legal consequences.

But on top of the financial risks of regulatory violations, brands that break customers’ trust—especially
when it comes to their personal data—risk losing their business for life. (Not to mention the negative
reviews they’ll leave in response.)

Data privacy and transparency must be at the forefront of any personalization or CX strategy for
e-commerce in 2024.

As companies lean in to new AI capabilities and hyper-personalization strategies, it’s critical that they
keep customer trust a top priority.
13. “Human as a premium”

In the world of digital commerce, it’s no surprise that we are fixated on the ways emerging technologies
can help businesses grow and scale and deliver exceptional virtual experiences.

But in the wake of AI-everything, people are starting to appreciate a human touch even more.

As Mintel reports, consumers are beginning to “appreciate what makes humans so unique—emotions,
empathy, creative ideas and the desire to connect with fellow human beings. To strike a balance between
progress and preservation, brands and consumers will increasingly seek out uniquely human elements as a
contrast to faceless algorithms.”

58% of U.S. consumers says that communicating with an actual human is what makes interactions
with sales people and customer service reps a positive experience.

They go on to predict that in the coming years, we can expect to see an emerging trend of
“human-as-a-premium” start to take effect.

“Brands will focus on connecting the dots as connectivity takes on a new emotional
meaning alongside a tech-focused one, driving their focus on how one product or purchase
can improve multiple parts of one’s life.”

As brands evolve and adopt tech that increases efficiency, productivity and scale, they’ll be wise to
remember when and where a human touch can improve even the most digital experiences.

14. Brands and retailers thrive with direct to consumer

The DTC (direct to consumer) model used to be reserved for digitally-native brands looking to save costs
and differentiate with their own branded customer experience.

Now, brands of all shapes and sizes are embracing the DTC approach. This is due partly to the quest for
first-party customer data, but also in response to sky-high rent for physical retail space.

The U.S. is home to the world’s highest share of DTC brands, and DTC sites were the third-most
popular online purchase channels in 2023.
Consumers opt to bypass third-party retailers when the brand’s customer experience is easier, more
reliable, or offers better rewards or pricing.

As we head in to 2024, expect to see more brands and retailers optimizing their DTC experiences in an
effort to collect more, higher-quality customer data that will allow them to deliver the level of
personalization that breeds ongoing loyalty.

15. Subscription commerce drives retention

Subscription models continue to be popular with consumers, mixing the ease and convenience of
automation with the “surprise and delight” feeling of getting packaged delivered (in the case of physical
product subscriptions).

E-commerce retailers like it because it provides predictable, ongoing revenue.

Global subscription e-commerce is expected to reach $904.2 billion by 2026.

From physical products to streaming services, it feels like almost any type of digital seller can benefit
from effective subscription commerce. Brands can set their subscriptions apart by offering personalized
options like:

●​ Budget-friendly pricing options

●​ Products personalized based on consumer preferences, and
●​ Easy, flexible fulfillment options

Of course you want your subscription members to stick around, but remember it’s crucial that you make
easy for them to cancel and manage their memberships. Not only are governments cracking down on
shady subscription practices, but making it difficult for customers to break ties will cancel out any
good-will you built up by making it easy to order.