The global retail landscape has seen the rapid rise of e-commerce due to digitalization, and there are no signs of it slowing down. The number of digital shoppers is steep, with Statista projecting global e-commerce retail sales to surpass $6.3 trillion in 2024. The trend towards growth is set to continue, with sales predicted to reach a staggering $8 trillion by 2027.
In 2023, e-commerce made up over 19.4% of global retail sales. By the first quarter of 2024, compared to the previous quarter, e-commerce accounted for 20.1% of total retail sales in the U.S. (per Statista).
The accessibility of online shopping, coupled with the ability to view products, read reviews, and compare prices, has endeared it to a wide range of consumers. Customer-friendly marketplaces and online stores have made e-commerce accessible to everyone, from tech-savvy youth to more conservative generations.
The term e-commerce is becoming increasingly recognizable, and during the Christmas holidays, it’s common to hear news about server crashes from various companies due to website overload. The rush to grab Christmas discounts online has become as hectic as the crowds in offline stores during this time.
A 2022 survey revealed that half of the shoppers were drawn to online shopping because of home delivery and the lack of crowds, which were very convenient. On top of that, there’s the more nuanced impact of online advertising compared to the “visual noise” of street billboards, as well as the speed and ease of ordering, primarily through smartphones.
In the long run, digital marketing tools have proven to be as influential in real business as traditional ones. Using the latest IT innovations, web development companies such as Asabix are enhancing the smoothness and speed of online shopping.
They integrate AI bots and chatbots, such as ChatGPT, into their websites, elevating their business operations to a new level. These new AI technologies are inspiring both businesses and consumers. B2C businesses are more likely to experiment with AI than B2B, so we’re seeing a revolution in customer service.
It is becoming increasingly difficult for shoppers to distinguish between highly targeted product recommendations and human suggestions. A Statista survey shows that 45% of millennials and the same percentage of Gen Z shoppers desire personalized product recommendations while shopping online.
Currently, chatbots are only part of the equation, as multimodal systems can handle various media, including photos, text, charts, sounds, and videos, and then produce their text, images, and sounds. Such technologies intrigue customers.
The largest retailers have introduced artificial intelligence and machine learning into their online technologies, presenting impressive personal AI assistants. As a result, they saw nearly double-digit sales growth in 2023-2024 compared to the previous years.
That is why the retail sector invested $19.7 billion in 2023 in AI, trailing just slightly behind the banking industry (according to Statista). According to predictions, by 2027, online sales will account for approximately 25% of global retail sales, and that’s not all. The growth of e-commerce correlates with increasing access to the Internet, simultaneously developing its distinct segment — m-commerce or mobile e-commerce.
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