Last year was a year of great learning for the ecommerce and online shopping industry. Customers, their preferences and markets were redefined owing to increasing penetration of internet and smartphones. With soon-to-be-launched 5G services experts believe that the transition from in-store to online shopping will be quicker and easier with the blazing speed of 5G. With these optimistic elements around we are witnessing some major trends which are shaping the future of ecommerce.
Ecommerce beyond metros
The growing number of online shoppers, mainly in Tier-II and Tier-III cities, have increased spending on essentials, electronics, and fashion which has accelerated sales. Grocery, fashion and apparel are the key drivers of incremental growth. As of August 2022, the Government e-marketplace (GeM) portal served 11.14 million orders worth Rs 294866 crores (US$ 36.88 billion) to 62,192 buyers from 5.04 million registered sellers and service providers. Much of this growth in the industry has been triggered by increased usage and availability of the internet and smartphone and their penetration. The number of internet connections in 2021 increased significantly to 83 crores, driven by the ‘Digital India’ program. The major Hubs for Ecommerce in India are Karnataka, Delhi, Maharashtra, Tamil Nadu, and Andhra Pradesh.
Ai and Augmented Reality shopping
Customers’ inclination towards online shopping has been increasing. Visual commerce has addressed the brands’ online appeal to increase sales. It allows for a more immersive manner. That is why a significant increase in the use of augmented reality (AR) for products and services is anticipated, particularly in lifestyle and home decor. India has the highest data consumption rate worldwide at 14.1 GB of data per person a month. India’s e-commerce sector is expected to reach US$ 111.40 billion by 2025 from US$ 46.20 billion in 2020, growing at a 19.24% CAGR, It will allow extended reality and artificial intelligence to unleash their true potential, resulting in a plethora of new shopping experiences. With powerful 3D interfaces, the customer can check out a product from all angles and order it from the comfort of their homes.
Continue growth of Omni-channel
Retailers have shifted gears and are switching to an Omni-channel form of doing business. Here not only is the customer engaged but also held with providing consistent service, data & products across multiple platforms.
Multiple modes of Payment
With today’s technological advancements, we can anticipate for even more ways to pay. Making payments easy by offering multiple modes of payment increases conversion. And going a step further, customers’ payment details can also be saved securely, so the next time the sale is easier & quicker.
Voice searches
Everyone obviously knows the kind of service or utility they’re looking for online. With all smartphones, conducting a search online with voice commands has picked up greatly and is definitely expected to get more efficient in recognizing regional languages and slang even.
In 2023, the population of India stood at 141.7 crores with 96.6 crores mobile users, of whom 90.7 crores would be internet users. Penetration of the Internet in general and the ecommerce business model, in particular, have been phenomenal. Therefore, ecommerce business in India is expected to surpass that of the USA by 2034, to become the 2nd largest e-commerce market in the world.
The post Trends that are shaping ecommerce sector in 2023, By Mitesh Bhandari Co-Founder & CFO, IndiaShoppe appeared first on Startup Reporter.
