In 2017, we witnessed a huge surge in online shopping and the rise of online marketplaces. This, among many other business and technology trends, made a significant impact on how business takes place both offline and online. Fast forward to 2024, online sales have continued to rise exponentially. With global e-commerce sales projected to hit $6.33 trillion this year, the impact of digital shopping platforms remains profound. Now, it comes as no surprise that online sales will continue to rise however this ongoing growth underscores the necessity for businesses to adapt to the evolving digital landscape and leverage emerging technologies to stay competitive​.

In 2024, global e-commerce sales are projected to reach approximately $6.33 trillion. This marks a significant increase from the $1.85 trillion recorded in 2016. The rapid growth is attributed to factors such as the widespread adoption of mobile commerce, advancements in technology, and increased consumer preference for online shopping. E-commerce sales have more than tripled in the span of eight years, demonstrating the sector’s robust expansion​

Considering this scenario, it is likely that the number of entrants to this evolving and slightly volatile marketplace will keep increasing. Hence, e-commerce marketplace players will need to plan ahead. As a marketplace owner, you will have to analyze and understand the consumer data, find out why and when they buy a product or abandon a purchase within your site. And with this, you will need to keep track of the emerging trends.

Mobile: E-Commerce to turn into M-commerce?

That prediction turned out to be spot on. By 2024, mobile commerce, or m-commerce, has become just as familiar to us as e-commerce. The growth of mobile commerce has been astonishingly rapid, with a significant portion of online shopping now conducted via smartphones and tablets. The convenience and accessibility of mobile apps have made them a staple in our daily lives, further driving the expansion of m-commerce. This shift highlights the importance for businesses to optimize their mobile platforms to stay competitive in the ever-evolving digital marketplace.

According to Statista, over 54% of the world’s web traffic comes from users on their mobile devices. 

It’s no more secret that today mobile is eating the biggest piece of the e-commerce cake. But why is it so and what marketplace owners need to do to stay ahead in the competition?

Mobile apps are in vogue. There is an app for everything and it works wonders in bringing ease and efficiency for the users. To illustrate, with the Flipkart app, you can browse and buy anything instantly even when you are traveling by car and have no access to desktop/laptops or whatever. No wonder, Myntra, the online shopping portal, went all app just a few months back. Also, the bigger screens of the Smartphones make every action so seamless whether is it searching, buying or making payments to complete the purchase.

So, the bottom line is that as of 2024, mobile commerce has firmly established itself as a dominant force in the e-commerce space. Your marketplace must have a strong presence on mobile platforms. Re-marketing remains a crucial marketing activity for e-commerce players, gaining even more momentum with the widespread use of mobile apps by users. The ability to reach consumers directly through their smartphones has proven to be highly effective in driving sales and enhancing customer engagement.

Sending users a follow-up message after an initial marketing message proves significant lifts in several categories. Another reason why mobile marketing is on the rise is its assurance of improved and secure payment processes. Several e-commerce marketplaces, today, are developing wallets allowing customers to load money onto their account. This scheme was introduced by Starbucks and is now followed by many.

Mobile had been a tremendous digital force earlier and now, it is influencing the e-commerce scenario. With brilliant modes of implementing mobile marketing strategies coming up, we can anticipate an extraordinary upsurge in the ROI of online marketplaces in the year to come.

Millennials: Coming of Age

E-commerce in 2018 will be driven by the needs and preferences of a prominent generation: the Millennials. The term is a commonplace today. But then, who are the millennials and how are they going to be the next dominant trend in online marketplaces?

Millennials are precisely born between 1980-2000, according to a report by Goldman Sachs Global Investment Research. The generation Y is in focus because they are growing up in a time of rapid changes. The millennials are found to have a set of priorities and expectations distinctly different from the previous generations. Now, their strong technology orientation is profoundly reshaping the consumer experience.

Statistics reveal that by 2018, this group will have more spending power than any other generation.

The interesting part is the way they are going to wield that power will drive the way online retailers think about consumers and create shopping experiences.

So, let’s analyze what the millennials look for from a marketplace or say, how they can be satisfied.

• Social information: Millennials continue to be highly connected to their social networks, which play a significant role in their purchasing decisions. A strong social media presence is essential for e-commerce businesses to attract Millennials, as peer reviews and social media endorsements greatly influence this generation’s shopping behavior.

• Product reviews: Reviews filtered from people with similar attributes motivate the millennials and influence their purchase decision. 51% of millennials say that consumer opinions found on a company’s website are more important to them than recommendations from family and friends.

• Price and Brand Value: As much as the millennials are willing to pay more, it is true that their affinity lies with brands having deep-rooted values and personalities. The Vend University report shows that 63% of Millennials say that knowing that an e-commerce marketplace is mindful of its social responsibilities, makes them ready to pay higher prices. Millennials seem to be motivated by the prospect of their spend going to help causes they support.

As of 2024, Millennials continue to be a powerful market force. To stay competitive, e-commerce players must cater to Gen Y’s demand for trustworthy information, personalized experiences, and socially conscious products. This generation values authenticity and transparency, expecting brands to uphold ethical standards and social responsibility. Therefore, businesses need to adapt by offering personalized shopping experiences and demonstrating a commitment to social and environmental causes to effectively attract and retain Millennial customers​.

Personalization: Defining Customer Experience

While technology is binding the world together, e-commerce marketing is getting more individualized. And this is because the present-day customers resist homogeneity. They look for a customized experience each time. Hence, personalization is growing to be a marketplace trend that will require even global brands to decentralize their structure and interact on a more personal basis.

Broadly, personalization is about reaching out to each customer individually, understanding that they are different from each other and delivering a unique experience in the process. 

Recent data indicates a significant increase in the adoption of personalization strategies among e-commerce businesses. Approximately 74% of e-commerce companies now have a website personalization program in place. This growth underscores the importance of personalized experiences in driving consumer engagement and sales​.

Moreover, personalization continues to be a key focus area for businesses, with many employing advanced technologies like AI to enhance their strategies. Over 90% of businesses are using AI to power their personalization efforts, highlighting the widespread integration of these technologies into their marketing approaches​

Having said that, there is no clear formula that defines what it means to deliver a personalized experience. Here are some ways in which marketplaces can embrace personalization:

• Marketplaces need to understand the customer’s needs throughout the entire sales funnel. That is to say, allow them to feel that you are making an effort to understand their demands. So, the ads they see, the emails they receive and the landing pages they are directed to should echo the same message.

• A sense of urgency instills the belief in your customers that you want them to strike the best possible deals. This way, you also target the undecided buyers. An example? The numerous promo codes and offers that marketplaces put up.

• Asking questions goes a long way in creating a more tailored shopping experience. Studying the behavior of your potential customers will give you an idea of what offers will suit them best in near future.

Personalization, in its entirety, is becoming integral to how marketplaces devise their e-commerce strategy.

A survey by Forrester shows that 74% of e-commerce channel strategy professionals consider personalization as their top investment priority.

And this being a two-way process, 40% of consumers say that they buy more from retailers that personalize the shopping experience consistently across all channels.

While this post talks about some diverse trends and predictions for 2024, it all comes down to improving the customer experience. Also, for each marketplace and each brand, the trend that will most affect their operations will vary. Overall, keeping track of these dominant trends is sure to help e-commerce players gain deeper customer insight and have smooth sailing.

Is your marketplace targeting the new-age buyers aka Millennials? Or do you have a marketplace that allows you to target them? Let’s introspect now.