In 2020, 29 percent of the German online retailers surveyed plan to invest in security features. In a global comparison, only an average of 21 percent invest in it. Mobile applications are also one of the most important e-commerce trends. In 2019, German retailers invested an above-average amount in mobile apps, namely 39 percent compared to the global average of 33 percent. In addition, the use of artificial intelligence in online retail will increase significantly over the next five years, 31 percent of the retailers surveyed are convinced.
E-commerce trends 2020: added value for customers
The study, carried out by the e-commerce software provider and the market research contains five fundamental trends:
- Mobile use leads to higher conversion rate: Several trends relating to mobile use have made it to high ranks in the survey. Merchants use modern apps, social media and new payment models to increase the conversion rate.
- The future lies in artificial intelligence: AI is the most important trend for the future of retail. In e-commerce, the technology ensures that retailers understand data better and can provide customers with more relevant purchase suggestions.
- Security is at stake: companies regularly bring new solutions to the market. At the same time, there are numerous security gaps, many of which are only discovered in the long term. As a result, the need for data security should also be reconsidered.
- Asian markets set new standards: Asian countries have already outgrown many old technologies and are now concentrating on developing new innovations such as cryptocurrencies, AI and chatbots. You are taking significant steps towards understanding customer behavior.
- Technological natives are on the rise: companies that have digital technologies in their DNA have an advantage worldwide because they can quickly adapt to new customer needs. The rapid introduction of new solutions enables them to identify niches and create new benefits.
E-commerce trends 2020: the most important investments in 2019
Experts see the most important investments in 2019 in the areas of mobile payments, mobile apps and security, each with 33 percent. Social commerce, i.e. sales via social media (32 percent) and advertising and sales on marketplaces (28 percent), are also important Developments classified.
Own and external marketplaces play a leading role in increasing online sales. A lot has been invested in mobile technologies such as payment methods, native apps, progressive web apps and mobile-first technologies. Social commerce has developed into one of the leading communication channels between customers and brands. In addition, solutions that improve the convenience of online shopping are still in demand. Free shipping, returns and same-day delivery are taken for granted by customers.
German online retailers have invested the most in these areas in 2019:
- Mobile apps (39 percent)
- Mobile Payments (32 percent)
- Advertising and sales in marketplaces (32 percent)
- Security (32 percent)
- Cloud hosting (29 percent)
Investments in mobile payments (13 percent), social commerce, i.e. sales via social media (13 percent) and mobile apps (12 percent), brought the highest return in 2019. The conversion rate could be improved by a better offer in the area of mobile payments. Social commerce, i.e. sales via social media such as Instagram and Facebook, is an alternative to traditional online trading. In Europe, mobile apps have a 19 percent lead, with advertising and sales in marketplaces also playing an important role with 16 percent.
Outlook: The most important investments in 2020
Security will also be one of the most important best e-commerce development trends in 2020 because it is the core of customer trust. Social media have appeared on the scene and will not disappear anytime soon. E-commerce features bring more traffic, more engagement and more profit.
Mobile apps continue to invest more than progressive web apps, but the mobile sales market is huge and both solutions can exist at the same time. Content marketing is a long-lasting trend that has been one of the most important e-commerce trends since 2017. In 2020, solutions based on data acquisition and processing, such as AI, CRM and big data, will be particularly important.
In 2020, online retailers are planning to invest in the following areas:
- Security (21 percent worldwide, 29 percent in Europe)
- Social commerce (20 percent worldwide)
- Mobile apps (19 percent worldwide)
- Content marketing (19 percent)
- Artificial Intelligence (19 percent)
- CRM (19 percent in Europe)
These five trends will have the greatest impact on online retail in the next five years:
- Artificial Intelligence (31 percent)
- Mobile payments (23 percent)
- Cryptocurrencies (20 percent)
- Social commerce (20 percent)
- Virtual reality (20 percent)
Methodology of the study: In the third quarter of 2019, the Kantar market research institute surveyed over 250 CTOs, CEOs and e-commerce experts in companies in various industries. The respondents were involved in the establishment or expansion of the online sales channel