E-commerce technology in 2019: 5 Bold Predictions
Fifteen years ago, the biggest concern for most e-commerce by major retailers was largely hypothetical. With the advent of a small online bookstore, the idea that online stores would one day lead the retail industry was daunting, but it was not the case at the time and seemed to be imminent. Even a decade ago, the current threat of promoting 60% of online retail shopping did not exist. Five years ago, the concept of personalization was just a promising experiment, with only a few people testing. Now, brick-and-mortar stores find themselves facing what the “retail catastrophe” brings, something they can’t see.
E-commerce technology is growing rapidly, so the forecast that will be held in 2018 seems to be futile. In an industry that has always been amazing, how do we know what will happen next? However, there are some bold ideas here, and I think you will see the results achieved this year:
1. E-commerce will return to a customer-centric experience
E-commerce has gone beyond fancy sites with tempting banners and buttons. As the industry grows, competition becomes more intense, so by optimizing the entire customer experience, the focus shifts to getting loyal consumers. As technology advances, the digital experience becomes smoother and new innovations are being created that are applicable to all aspects of the industry, from basic supply chain management to augmented reality applications. People around the world are working hard to get your attention, and they do it by making the user experience more exciting and enjoyable.
2. Artificial intelligence (AI) will begin to have a real impact
Artificial intelligence, better known as “AI,” is a new buzzword. In 2017, the words used have been abused and overused, leaving all the feelings about hype without follow-up. But there is still room for artificial intelligence in the field of e-commerce. The technology is capable; the problem is accessing the data needed to help machine learning. In order for AI to work, machines need to have access to enough data to develop algorithms, which is a challenge for e-commerce because many online stores, even more mature technicians, exist in many software programs and basement servers. . This makes the customer’s unified profile extremely challenging.
But while artificial intelligence will begin to work in this area, it won’t have much grandeur or environment. The type of artificial intelligence retail problem that needs to be addressed is not exciting. The practical application of problem solving will be found in 2018, which may not be news, but will benefit brands that seize opportunities to integrate technology.
3. The middle class in the retail industry will struggle
The model has begun and will continue to deteriorate in 2018; retailers and department stores are primarily catering to the efforts of middle-class consumers. People like to think that the world of online shopping is a fair place to compete. A small middle-class company can compete with Amazon and succeed… but they forget one thing, the small companies that have successfully competed with Amazon. Will not sell products for ordinary citizens. They sell very expensive luxury items.
On the other hand is a discount retailer. In places like Dollar Tree, there is no problem competing with big retailers like Amazon because their prices are unbeatable. This is infiltrating into the online market. A Los Angeles company called “Hollar” has succeeded in turning the experience of a dollar store into a real life, combining low prices with digital experiences. As a major contributor to e-commerce games, Hollar is likely to become a household name in 2018.
4. The acquisition will bring Amazon into the fashion world
Despite its success, Amazon has not really entered the fashion market. But expect to change. Jeff Bezos has done it before, he just did it by buying his competitors.
New York University professor and Amazon expert Scott Galloway predicts that Nordstrom will join Amazon in 2018 to fill a major gap in its fashion market. Genes has a more brave prediction; Amazon will acquire Target for $40 billion. As evidenced by their previous acquisition of Whole Foods, Amazon has a big movement model to enter new markets. But in this case, I expect Amazon to look for smaller stores that have high margins, wealthy customers and well-known physical brands. By looking for retailers with less than $1 billion in revenue, Amazon can avoid the annoyance of antitrust issues.
For these reasons, I predict that Amazon will acquire Patagonia. It meets the need to have a brand that is loved by socialite millennials while reducing financial security.
5. Signs and big brand calls will fade
As Amazon’s popularity increases, tags are no longer the first choice for most shoppers, and this is becoming more and more obvious. People really like the basic models that look very beautiful. These basic models are similar to the big-name merchandise, but there is no high price tag. When choosing a polo, the small Lacoste crocodile no longer needs an extra $60. It turns out that one of the e-commerce success stories is a store called “Brandless.” In 2018, the popularity of GM brands increased, putting pressure on many expensive brands to gain a better customer experience and win customer loyalty rather than standing alone on their logo.