E-commerce Insights: Key Trends from the First Half of 2024

Competition never stops, especially in the technology-driven world of E-commerce. The economic environment and consumer behaviors evolve at lightning speed. To help you keep up with that pace, we’ve created this list of key E-commerce trends and insights we observed in the first half of 2024. 

Experts say that, despite economic crises, global E-commerce will continue to thrive. So far, researchers have forecast growth in total retail E-commerce sales from the current $6 trillion to $8 trillion in 2026. 

Let’s dive deep into the latest E-commerce trends to see where they go.

Trend #1 AI is essentially transforming the way people shop and sell online

Artificial intelligence has been a buzzword for the last couple of years, and now it has become a game-changer for E-commerce in 2024. Virtual assistants, chatbots, personalized product recommendations, customer segmentation, demand forecasting, voice search, advanced visual search – it seems like AI is everywhere.

From April to June 2024, investments in AI startups alone reached $24 billion, which is almost twice as much as in the previous quarter. Businesses invest in AI and big data to personalize customer support, simplify order processing, control in-stock goods availability, and more. AI is the driving force of most popular platforms, including Amazon, Adobe Commerce, BigCommerce, Shopify, and others.

To be more specific, BigCommerce incorporated BigAI, a suite of AI-powered tools that include but are not limited to the following solutions:

• BigAI Copywriter leverages generative AI for generating SEO-optimized product descriptions.
• BigAI Predictive Analytics, based on BigCommerce’s native integration of Google BigQuery, is used to forecast customer lifetime value and optimize ads.
• Native Google Retail AI integration showcases relevant product recommendations personalized in real-time.

Shopify has added GenAI to provide several new features, such as:

• The Shopify Magic tools instantly generate product images for free directly within your Shopify Admin. This allows users without special design skills to create professional-looking images with a few clicks or keywords.
• AI-enabled Sidekick assistant helps merchants increase productivity, improve workflows, make smarter decisions, and spend less time on operations.
• AI-driven storefront semantic search feature goes beyond keywords to understanding a shopper’s intent.

Adobe Commerce is also improving its Live Search AI-powered feature that re-ranks search results on each category page for every shopper. In the latest updates, the ranking algorithms were fine-tuned, and customization options were extended to ensure seamless, personalized merchandising.

Trend #2 Personalization and customer-centric strategies are in high demand

Personalization matters a lot to both store owners and their customers. Online visitors want targeted advertising to be less annoying. They also want a personal touch throughout their customer journey, from product research to post-purchase support. 

In turn, merchants want to know their audience better so that they can take a personalized approach and increase engagement, conversions, and ROI.

E-commerce addresses personalization issues through a variety of advanced strategies and technologies. Businesses apply deep customer segmentation, introduce chatbots and virtual assistants for tailored service, and personalize content dynamically. Most of those features are assisted by AI and machine learning.

For example, Adobe Commerce adds more features to its Adobe Real-Time CDP and Adobe Journey Optimizer to enable merchants to tailor better-personalized customer journeys. Among those, the platform users should now have the option to trigger welcome email campaigns based on real-time customer registrations.

Also, BigCommerce’s subsidiary Feedonomics launched event-driven real-time synchronization for enhanced customer experience. The feature helps validate data to prevent gaps and errors. It prevents listing disapprovals, overselling, and account suspension by timely inventory and price updating. It allows brands to sell online, with an option to pick up in-store or organize same-day delivery, synchronizing online and in-store purchases.

Trend #3 Importance of data privacy and transparency

The growing public awareness about data privacy leads to tougher regulations coming into practice. Gartner predicts that by the end of 2024, 75% of the population will be covered by privacy laws. If companies fail to comply with applicable regulations, they may end up in court. 

This concern makes enterprises look for tools to ensure data safety, security, and lawful data processing. From this year's latest updates, Google has delayed the deprecation of third-party cookies in its Chrome browser for the third time. Meanwhile, the digital ads landscape is evolving, with companies emphasizing first-party data and contextual advertising.

Just like the rest of the global web, E-commerce companies continue to implement clear policies, consent rules, and subscription forms to inform customers how their data are handled.

Trend #4 Retailers strive to ensure omnichannel experiences for more sales

Omnichannel presence has become essential for success in 2024. According to the latest stats, about 73% of retail customers are omnichannel shoppers. While many shoppers still prefer shopping offline, most of them combine in-store purchases with online research.

The selling power of the omnichannel strategy is unquestionable. Retailers with three or more channels enjoy an engagement rate of 19%, compared to 5.4% of single-channel retailers.

To this end, stores strive to establish an omnichannel presence, combining online with other marketing channels. 

In this connection, click-and-collect services are worth mentioning – curbside pick-up, and buy-online pick-up in-store (BOPIS) sales are trending. For instance, BOPIS is already part of the services of large brands such as Walmart, Ikea, and Lululemon.

Trend #5 Buy Now Pay Later (BNPL) is here to stay

Economic turbulence makes consumers more intentional about their purchases. They seek value for money and prefer retailers with easy return policies and budget-friendly options.

With this concern in mind, E-commerce stores are more inclined to adopt transparent refund and return policies. They also integrate multiple payment and shipping options to prevent customers from abandoning carts because the purchase looks inconvenient.

A remarkable trend is how alternative payment methods stay in high demand. For example, BNPL, particularly popular with millennials and Gen Z, surged during the pandemic and was predicted to dwindle after the lockdown. However, it remains mainstream and provides a decent rival to traditional credit cards.

Flexible payment and delivery options are highly customer-centric, contributing to better conversion rates. In the meantime, merchants need help with the dilemma: on the one hand, they want to maintain customer loyalty, but on the other hand, the company’s profits suffer because of soaring expenditures on delivery and other related costs.

Trend #6 Social media sells

With increasing competition, online retailers are looking for new ways to reach their customers, and social media is becoming a surefire selling destination. This is especially true for the younger generation, with 83% of Gen Z starting their shopping journey on social networks.

Social media powers influencer marketing, giving people a sense of authenticity and trust. Surveys show that 49% of social commerce shoppers had an influencer’s recommendation impact their purchase decisions.

Social commerce and livestream shopping— especially strong in China—allow users to buy online on Instagram, Facebook, or TikTok without leaving the platform, which makes tech giants push for more shopping features.

Among such moves, in 2024, the TikTok Shopify integration (launched in 2020 in some markets and 2023 in the US) rolled out to the UK. The integration allows Shopify merchants to connect their online store to TikTok and sync product catalogs, create ads and content, and manage orders and inventory. Now, the social medium is transforming into a marketplace of its own.

Trend #7 The mobile-first approach is a must-have

Mobile commerce is steadily rising: by the end of 2024, it is expected to account for 40.4% of all E-commerce sales. Responsiveness and fast loading speed are game-changing features, allowing store owners to have powerful stores at reduced cost and shorter time to market.

For example, a relatively new solution for Adobe Commerce (ex. Magento) is Hyvä Theme. This solution has been on the rise lately, collecting accolades from the open-source Magento communities for its robustness, performance, mobile-friendliness, and easier customization, surpassing the default Luma theme.

Businesses also use various techniques, such as push notifications, to encourage customers to visit stores from mobile devices more frequently. Additionally, shopping platforms add fingerprint and facial recognition for quicker log-in and payment from mobile devices.

Trend #8 Sustainability gets a fresh focus

According to recent surveys, 46% of consumers actively seek more sustainable products to reduce their environmental impact​. Meanwhile, economic challenges make it more difficult for households to go green because eco-friendly products are usually more costly.

On the bright side, sustainable approaches can be cost-efficient. For example, experts notice that smart supply chains, with demand forecasting and preventive maintenance, help decrease product waste.

Consumers increasingly prioritize sustainability in their purchasing decisions, which pushes retailers to adopt more eco-friendly practices. In the latest experiments, Tesco leveraged AI to reduce energy costs by 10% across eight of its distribution centers.

Trend #9 The DTC model is gaining momentum

The DTC (direct-to-consumer) model is becoming popular with digital-native brands that wish to cut expenses on physical locations and third-party vendors. In the US, DTC was the third biggest channel in 2023, and it is expected to grow. 

Selling directly through one’s own website gives the brand full control over the customer experience, from marketing to sales. Customers love DTC for lower prices, whereas brands use this opportunity to establish better rapport with their customers and increase their lifetime value.

Despite that, we’ve seen a growing demand for marketplace development. This testifies to the fact that E-commerce evolves across various dimensions, with new players and solutions quickly taking the lead.