Explore Emerging Commerce Trends
Learning Objectives
After completing this unit, you’ll be able to:
- Describe how customer expectations and market changes are driving new trends.
- Discuss why payment options have become a priority for customers and businesses.
- Explain why leaders are investing in new digital channels.
A Snapshot of the State of Commerce
The current commerce landscape is undergoing immense change marked by inflation, a labor shortage, and a sluggish supply chain (among other things) while customer expectations continue to rise. The result? Businesses are laser-focused on three key areas: channel expansion, payments, and post-purchase.
We surveyed 4,000 commerce professionals and analyzed buying data from 1 billion shoppers to see how they’re finding success in a shifting market. The new State of Commerce report illustrates emerging trends and leaders’ top priorities. Don’t have time to absorb the entire report? This module gives you the highlights in a quick on-the-go format. Let’s dive in!
New Channels Are Key to Success
Customers expect businesses to have a presence on the channels they regularly use. That’s why a whopping 69% of digital commerce leaders have invested in new channels within the past 2 years. More than half of all commerce professionals expect to expand into new channels by 2024. This trend also holds for B2B companies; for the first time, investment in social media channels has bypassed their investments in both website and third-party marketplaces.
Commerce decision makers know that shopping is no longer linear. Customers—both consumers and business buyers—shop in spurts throughout the day, when they feel motivated and inspired, and they bounce from channel to channel. To win mindshare and stay relevant, brands need to expand to wherever their consumers are. Increasingly, that means establishing a presence on channels like TikTok, Web3, and social media for B2Bs. However, commerce executives report that developing an approach toward these emerging platforms is a challenge they don’t feel prepared to address.
While implementing new channels may seem like a daunting task, it’s worth it. Improved customer satisfaction, customer base growth, reduced time to close deals, and revenue growth are just a few of the benefits that businesses expanding into new digital channels can expect.
Payment Options Expand
The current strain of inflation impacts customers, but the right payment options at checkout can help ease the burden. Installment payments like Buy Now, Pay Later (BNPL) allow customers to purchase desired goods and products even during a tight financial situation. Businesses have been quick to react: a majority (61%) of digital leaders say they’re already offering installment payments. Another 32% plan to add BNPL in the next 2 years.
Rising costs are nuisance enough without clunky, complicated payment processes adding insult to injury. Customers want streamlined checkout, and smooth payments are no longer just a nice-to-have option. In the name of convenience, 64% of companies offer at least one mobile wallet option. 88% of organizations already accept or plan to accept Apple Pay. These options allow customers to bypass the most time-consuming steps of the checkout process, often with just one click.
Cryptocurrency is also a new priority, with 46% of organizations reporting that they will accept the payment method within the next 2 years. As new payment options crop up and customers demand faster checkout experiences, one thing is certain: It’s no longer enough to simply accept credit cards.
Perfecting the Post-Purchase Journey
Streamlining payments is just the start. Commerce leaders are also prioritizing other key moments in the customer journey—most notably fulfillment and returns—to give shoppers more convenient experiences. By optimizing these operations, businesses get products to doorsteps faster, make returns easier, and give shoppers more control. These moments are critical to customer satisfaction, especially as supply chain issues and inflation threaten to dampen consumer optimism. Here’s what we found.
Buy online, pick up in-store (BOPIS) and curbside pickup are opportunities for businesses to improve their customer’s experience. These options turn brick-and-mortar stores into localized fulfillment centers for online orders, increasing conversion and getting products to customers faster. In the midst of a supply chain crisis, these flexible fulfillment options are a welcome solution. That’s why 85% of B2Cs report that they have either already or will implement BOPIS in the next 2 years. End-consumers aren’t the only ones who want flexible fulfillment. B2B buyers are also interested: 51% report using curbside pickup more than they did one year ago and 55% expect to use these options more within the next 3 years.
Return optimization is also a key focus for businesses. Simple, free returns are a big deal for consumers. In fact, it’s the second most reported benefit that increases a consumer’s likelihood to buy. Customers shouldn’t have to track down a service rep or visit a store to return an unwanted item. That’s why 42% of consumer sellers say their return policy now includes a self-service option. Forty-one percent of digital leaders plan to invest in returns optimization over the next 2 years.
Now that you’ve explored commerce leaders’ main challenges and priorities, take the next unit to see how to drive your business forward with speed, agility, and automation.