Adaptation to emerging technologies, omnichannel integration, mobile commerce & social media, are part of the future of e-commerce in Latin America and the U.S. Join us in this brief analysis that any owner of or linked to an online business should know.

En Latinoamérica y en el corto plazo Brasil y Argentina parecen liderarán los mercados minoristas en línea de más rápido crecimiento.- Photo by Motoviurii.- Freepik.es.

The growth of e-commerce has been marked by the levels of access to online services of users and the digitization of companies, making the growth in the market slow but steady.

Something that changed with the arrival of the Covid-19 pandemic where online sales became a primary sales channel for both users and companies.

In fact, a study by Statista shows how the percentage of e-commerce sales went from 13.8% in 2019 to 17.8% in 2020. And it is even expected that in the future retail e-commerce will reach 23% of global retail sales.

This accelerated market growth that occurred at that stage of history became for users a change of habit and culture. At the same time, it meant for traditional organizations an opening towards new sales channels that offer important advantages such as a 24/7 display of their products. These changes will mark the growth of retail e-commerce in the future.

The following is an analysis of the trends that will shape the future of retail eCommerce, mainly in LATAM and the US.

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Current state of LATAM retail e-commerce

In Latin America the adoption of online service has been slower compared to other countries, due to distrust in channels, limited access to internet services, payment platforms, among other factors.

However, as in global markets, these barriers were lowered with the arrival of the pandemic in 2020, where the boom in e-commerce in LATAM was such that according to a study by Statista, it was reflected in a 230% increase in revenue in the first week of the pandemic alone compared to previous weeks.

This change in consumer habits in LATAM has driven the development of companies and the birth of new retail companies within e-commerce. It has even driven the automation of other areas such as logistics and shipping, impacting the growth of other markets.

Retail e-commerce leadership in the U.S.

The United States represents one of the most competitive retail e-commerce markets globally. Marketplaces such as Amazon and eBay represent a large sector of the retail e-commerce market, providing sales spaces for both large and small companies.

In addition, U.S. retail e-commerce has been characterized by innovation, adaptation and diversification of its services. This is based on the stability and accessibility of services and technologies, coupled with the willingness of users to change.

Trends that will shape the future of retail e-commerce

Retail e-commerce is a channel that will continue to develop and grow globally. Companies large or small should consider this sales channel as an integral part of their growth strategy. Even according to a publication made by NIQ the combination of the physical and online market (Omnichannel) represents for 49% of its respondents the normal shopping habit.

Therefore, companies should continue to expand into e-commerce without abandoning physical sales, providing users with the same quality of service in both channels. To achieve this, it is important to continue the processes of automation and digitization, as well as the adoption of new trends in technology and consumer habits.

Among these trends that are projected for the future, the following stand out.

Adapting to new technologies

Technology will continue to be a driver of new consumer habits and changes in the way services can be offered, which is why new technologies that will open up unparalleled opportunities and drive the growth of e-commerce should be highlighted:

  • Artificial intelligence (AI) and machine learning (ML) both technologies will facilitate the personalization of services, the quality of chatbot and virtual assistants; streamlining the buying process and the detection of opportunities.
  • Voice search, the inclusion of voice search technologies within eCommerce will provide users with greater accessibility and ease of search.
  • Augmented and virtual reality, another of the great advantages of technology allows users to visualize the products inside the spaces or even how they would look in case of clothing. Having a more realistic view of the product.
  • Subscription services, having services that allow the user to access packages or improvements, in addition to allowing greater customization of the service.
  • Blockchain, adding security and trust to e-commerce platforms.

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Consumer behavior

Consumers, regardless of generation, are increasingly familiar with technology, and have adapted to the benefits it offers, as well as to the accessibility of online information and services.

This, as well as socio-economic factors, affects the purchasing behavior of users and therefore the dynamics of retail e-commerce. Based on this, the following trends are highlighted,

Balance between offline and online

After the pandemic need that led companies to accelerated digitization, and users to adapt to the use of online services. The consumer trend is determined by the hybrid between online and offline. This omnichannel integration must offer a consistent experience in both channels, enabling the same services seamlessly.

Mobile commerce

The trend is for the majority of purchases to be made via mobile devices. Even according to a publication by InsiderIntelligence it is expected that by 2024 sales made through mobile devices will reach 40.4% of total e-commerce.

Both smartphones and tablets will be the main gateway for consumers, which makes it imminent that the development of these portals will mainly consider the adaptation to these devices in a natural way.

Use of social networks

Sales through social networks, can be the most direct path for consumers. The integration of purchasing functions in Instagram, Facebook, among others, without the need to leave the platform quickly becomes an important part of e-commerce facilitating access to products, within their daily habits.

Speed of delivery (Q-commerce)

Users increasingly demand speed of delivery, seeking immediate access to their products and services. Driving innovation in logistics areas and alliances between both sectors of the economy.

Sustainability

Consumers are increasingly sensitive to the issue of climate change and the effects it has been generating on the planet. The trend has been towards services that guarantee the sustainability of the planet with their packaging, materials and shipping methods.

The Future of Retail E-Commerce – Conclusion

The LATAM and U.S. retail e-commerce markets are evolving at different speeds, but will be equally affected by technological advances and innovations and changing consumer needs in terms of quality and level of service.

The future of e-commerce is driven by user consumption habits and entrenched by adaptation to new technologies. Where it stands out:

  • The importance of service personalization
  • Quality of service
  • Adaptability to different technologies and devices
  • And the improvement of delivery services.

All this ensuring consistency and fluidity between physical and online channels.

At NULogic we are specialists in the implementation of eCommerce platform solutions and we are aware of the speed at which eCommerce is evolving. That is why we focus on providing agile and easy-to-integrate eCommerce solutions that allow companies to meet their customers’ demands.