The e-commerce market is expected to grow significantly in the next few years, driven by diverse product segments and widespread adoption among small businesses, despite ongoing challenges like inflation and supply chain issues.
The market is projected to approach $6 trillion by 2027, up from roughly $4 trillion in 2024, according to the International Trade Administration. While major marketplace retailers continue to dominate, e-commerce has also become widespread among small businesses. By the end of 2023, an estimated 80% of small businesses had basic ecommerce capabilities, according to Digital Commerce 360.
However, small businesses face challenges such as inflation, supply chain issues, and competition with major retailers. These challenges are shaping several e-commerce trends for 2025 and beyond.
Video content
Video content is increasingly popular on e-commerce sites, driven by social media trends. Videos that explain product use, offer tips, and demonstrate completed projects are favored by shoppers. Additionally, videos highlighting product features, social media reviews, and “live shopping events” provide an interactive experience.
Livestreaming can create a sense of FOMO (fear of missing out), enhancing brand loyalty and engagement. Short-form videos on social media also drive engagement and quickly showcase new or popular products.
Personalized products
E-commerce platforms offering product customization — say, your tools — engage buyers and foster loyalty. A McKinsey Insights survey found that 80% of loyal customers prefer brands offering tailored choices and personalized experiences. Custom options, from colour selection to performance variations, create a highly personalized shopping experience.
Beyond the initial purchase, customized reports and shipping notifications are becoming standard, allowing customers to track deliveries and manage shipments.
Micro purchasing moments
Micro-purchasing trends, such as impulse buys and convenience purchases, are not limited to brick-and-mortar stores. These purchases are often made from mobile devices for quick solutions or information. E-commerce sites that simplify the purchasing process and provide easy-to-digest information are attracting customers and increasing revenue.
Flexible payment options
The range of payment options for online purchases has expanded beyond credit cards. Contemporary e-commerce sites now accept credit or debit cards, online checks, digital wallets, mobile payment services, cryptocurrency and installment payments via third-party providers.
The third-party payment market is expected to nearly double from $62.5 billion in 2024 to 2029, according to Mordor Intelligence.
Simplified shipping options
Advancements in technology are enhancing both the browsing and shipping aspects of e-commerce. Platforms are available to streamline shipping operations with advanced e-commerce technology. These platforms offer discounted carrier rates, numerous integrations, data insights, branded tracking and return capabilities. They help early e-commerce brands operate like larger companies by configuring new workflows and meeting business growth demands.
“As e-commerce becomes a mainstay, shippers must take a technology-first approach, utilizing platforms that can grow along with the business and partnering with providers who offer deep expertise in the segment,” said Shemin Nurmohamed, president of Sending Technology Solutions at Pitney Bowes. By using technology, “e-commerce shippers can save money, enhance operational efficiencies and delight customers, supporting the business’ bottom line.”
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