By the end of 2018, the value of eCommerce sales in the UK, not deriving from financial services, hit £688 billion, an 18% increase from 2017. These figures highlight the opportunity that lies in the online shopping arena in the UK, the third largest eCommerce market behind China and the US. It also means that the stakes are high for businesses; not keeping up with the competition can easily push you out of the game. In this article, we dive into the key trends for eCommerce in 2020 that merchants should be keeping an eye on.
Google Smart Shopping
Every time you search for a specific product on Google, you can see Google’s comparison of different webshops at the top of the page. Google Shopping is powered by AdWords, where you place the advertising campaigns, and Google Merchant Centre, where your product feed lives. Essentially, you create your product feed, set up the campaign and Google will optimise the ad delivery as it determines when your product listing will show up to the user. Considering that Google optimises the campaign delivery for you and shows your products to consumers with strong user intent, Google Smart Shopping is worth investing in. Additionally, you only pay when a user, who is very likely to convert, clicks on your ad.
Artificial intelligence
AI is a buzzword these days, but it shouldn’t be overlooked as a fad. Artificial intelligence technology learns an individual’s behavioural patterns, therefore, helping you to proactively give your customers what they want, when they want it. A great example of AI in eCommerce is email marketing. A merchant can send automated, personalised emails with varying subject lines, time of send-out and content tailored to the user, through the power of AI. The trend for 2020 is predictive analytics and merchants who adopt AI technologies will stay ahead of the curve.
Voice commerce
According to Deloitte, UK consumers are set to have bought 164 million smart speakers in 2019. Voice commerce is the action of purchasing via a smart speaker, hence device adoption among consumers being key. With nearly 20% of users making a purchase using a voice assistant, voice commerce is still in its infancy. Categories such as groceries, electronics and homeware, typically low-value purchases, are popular in voice commerce. This is an opportunity for eCommerce owners as early adoption often allows merchants to stay at the forefront when the trend becomes a norm. Read more in our Voice commerce article.
Buy now, pay later
Flexible payment methods help consumers purchase high-value goods that they may normally be hesitant about. Offering a buy now, pay later option could entice consumers who view big purchases as a potential risk. Klarna’s Slice it is a payment method that allows shoppers to pay in up to four, no-interest instalments, providing consumers with the flexibility to choose how and when they want to pay. Both credit and debit cards can be used, and the merchant is paid in full upfront once the order is processed. Paying later is a trend that eCommerce businesses should keep an eye on during 2020. Klarna suggests that 44% of users would have abandoned their purchase if four instalments were not an option. With emerchantpay, you can easily integrate Klarna, alongside other Alternative Payment Methods, as a payment option and offer your customers the choice to pay later.
Subscription-based business model
Product subscription services typically send their products to subscribers every month. Research from Finder revealed that Brits spend more than £2 billion every year on subscription services, while more than 1 in 4 British consumers are subscribed to at least one subscription box service. As consumers and especially millennials drive this demand, more eCommerce businesses will jump on the subscription train. If you’re yet to be convinced, the latest stats from Royal Mail show that the subscription-based business market will be worth over £22 billion by 2022. And how will you get paid? Working with a trusted PCI level 1-compliant payment service provider, like emerchantpay, can help you process seamless recurring payments and scale your business by offering global and local payment methods.
Reach out to our payment experts and find out how emerchantpay can help you deliver frictionless payment experiences at checkout.