As 2016 comes to an end, so does another stellar year for the world of eCommerce.
But with consumer trends and technology evolving so quickly, what does the future hold? We’ve looked at the numbers, asked the experts and analyzed all the trends to bring you our 7 eCommerce predictions for 2017.
1. Mcommerce will continue to outperform desktop
Mobile devices are used more than traditional computers for web browsing accounting for 51.3 percent versus the desktop’s 48.7 percent. 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 prioritizing 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 Interactive’s revolutionary solution VePanel, 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 optimized and served in a different form – and this is what VePanel achieves.”
4. Ecommerce competition will increase
The US is well-known for its strong start-up culture. 27 million Americans, about 14 percent, are starting or running new businesses. 51 percent of the working population believes that great opportunities exist for starting a new business. This number has risen above half from previous years, and will continue to grow in 2017. 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.
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 Interactive’s Display Analytics Director, Sam Baker, explains,
[You can read more on this in our 17 Programmatic Predictions for 2017 blog.]
“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.”
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. By 2017, Worldpay forecasts 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 Interactive’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.
A version of this post originally appeared on our UK site written by Ellie Hubble.