The world of eCommerce is growing exponentially.
But with consumer trends and technology evolving so quickly, what does the future hold? We’ve looked at the numbers, asked the experts and analysed all the trends to bring you our 7 eCommerce predictions for 2017.
1. Mcommerce will continue to outperform desktop
Latest Ve Global data shows that mobile has now replaced desktop in the UK as the preferred method to shop online, accounting for 58.7% of purchases. And according to research by think tank Gartner, mobile commerce will boost eCommerce-driven mobile revenue by at least 50% in 2017. For these reasons, we expect to see a continued shift in eCommerce businesses prioritising their mobile offering, with some even exclusively focusing on engaging users via smartphone and tablet over desktop.
2. Trump could be a good thing for UK retailers
Dubbed by many as “America’s Brexit”, the victory of President-elect Donald Trump over Hillary Clinton has indisputably shocked the world. But whether you’re a fan of Obama’s successor or a staunch critic, we predict that a Trump presidency could have a positive effect on the UK retail industry once the storm blows over. Retail Gazette’s Ben Stevens supports this view too, drawing attention to the weaker dollar,
“The immediate aftermath of Trump’s election is sure to be chaos, [however] […] a fall in the dollar could actually help UK retailers, as a weaker dollar compared to low yielding currencies could help the sterling find solid ground, alleviating concerns of exponential inflation.”
3. The pop-up will die
Pop-ups are one of the least liked forms of advertising. Getting in the way of site content and disrupting the user’s onsite experience; pop-up ads are no longer an effective tool to engage audiences. With new and improved ways to approach onsite engagement, however, such as Ve's revolutionary solution Digital Assistant, we predict that 2017 will be the year that the pop-up finally gets put to rest. As Ve’s Creative Director, Adam Hindhaugh, explains further,
“Pop-up ads are not necessarily unpopular because of the information they provide. They are unpopular because of the way that they serve this information. The same information therefore needs to be optimised and served in a different form – and this is what VePanel achieves.”
4. Ecommerce competition will increase
The UK is well-known for its strong start-up culture. 608,110 new businesses were started in 2015 alone, building from 526,447 in 2013. And with many of these start-ups being tech-related, with innovative approaches to the online user experience, we predict that fierce competition within the eCommerce landscape will only increase. As Smart Insights’ Robert Allen asserts,
“2017 will be the year eCommerce competition gets racked up by another notch. New start-ups are entering the market and big established bricks and mortar brands are increasingly pushing to achieve significant chunks of the eCommerce market as consumers increasingly move online.”
5. Better attribution models will make life easier
Debates and concerns surrounding attribution have long plagued the world of eCommerce, with last touch attribution rightly seen as unfair and outdated. With new technology and algorithms in place, however, we think that 2017 will be the year that the last touch attribution model finally dies out.
As Ve’s Display Analytics Director, Sam Baker, explains,
“The days of last touch attribution are numbered. As an advertiser it is vitally important to understand the full user journey, from first contact to purchase, and to award each channel their proportionate attribution based on their overall impact on the campaign. Sophisticated algorithmic attribution models are being brought in currently and will be widespread in the coming year.”
[You can read more on this in our 17 Programmatic Predictions for 2017 blog.]
6. The payments landscape will evolve
We expect to see a higher market share go to alternative payment methods in 2017, as retailers gain more confidence in branching out to new platforms, such as biometric security payment methods. For every minute in the UK in 2015, over 72,000 payments were made by consumers and businesses – totaling more than 38 billion payments during the year. And by 2017, Worldpay forecast that alternative payments will account for 59% of all transaction methods for these payments. Williams Commerce also predict this development, suggesting questionable security of card payments as the trend catalyst,
“With increasingly more consumers feeling nervous about the security of card payments, retailers will continue to adopt alternative payment methods and platforms such as Amazon Pay, PayPal, Google Wallet, Apple Pay and reloadable pre-pay cards will continue to gain market share.”
7. Ecommerce delivery will get better and faster
With online shopping growing apace and users expecting only the best digital experience, we predict that 2017 will be the year that businesses’ delivery services step up. More and more brands will offer next day delivery as standard and for the companies that can afford it, we expect to see more same day delivery too. As Ve’s Head of Digital Tom Clark asserts,
“For the brands that tap into the instant gratification that modern users expect, such as one-day delivery or tracked updates, 2017 will be a great year. For those that don’t, the future looks decidedly bleak, as customers are prepared to pay the premium for peace of mind and speed of purchase.”
What do you think 2017 holds for eCommerce? Let us know in the comments.