Darwin’s theory of “Survival Of The Fittest” does not apply to dynamic business segments like E-Commerce. Only the smartest adapters can stay in the race. The top players in E-Commerce have modified their business plans according to the evolving needs this market requires. In their UK Online Shopping Statistics, Nasdaq states that around 95% of all transactions will be via E-Commerce platforms by 2024.
The UK geography is one of the major hotspots of global E-Commerce, with estimated revenue of $97 Billion in 2020. This makes the UK the fourth largest market in the world. Therefore, studying the E-Commerce trends in this region becomes of prime importance for market analysts across the globe.
We will briefly glance into four technology trends that are shaping up in the UK.
Gen-Z is taking over the bulk of online transactions, and this new generation of tech-savvy youth has a significant impact on E-Commerce going forward. They are those consumers who prefer cutting-edge technology aspects that get the job done in a sifter and efficient manner. This includes the ease and speed of how the payment is executed.
With the scale of Business To Business (B2B) E-Commerce gaining traction, digital payment alternatives can act as a game-changer. Well-executed payment methods lead to improved customer experience and more checkout conversions. The cart abandonment stats indicate that around 21% of shoppers leave the E-Commerce platform solely because the payment method was slow and tedious. The E-Commerce payment market alone is expected to hit the $200 Billion club in the UK by 2026.
Features like Unified E-Commerce, Contactless payments, Biometric verification are on the rise in the coming years.
The volume of interactions between the E-Commerce platform and consumer is ever-increasing. Adding a touch of personalization to this interaction is crucial for the customer to feel more engaged and heard. Over 59% of all online businesses are making use of Chatbot technology to solve customer queries in an as customized manner as possible, and E-commerce companies are no strangers to this at all. Studies indicate that over 77% of E-commerce firms leveraging Chatbots successfully generate leads.
Burberry, one of the UK’s most successful luxury fashion brands, is a perfect example of leveraging Chatbots effectively to improve their sales. They consistently adapt the Chatbot features like locating a store and booking an Uber to the selected store.
Gamification For Increased Engagement
The standards of interactive shopping are touching new heights these days due to the addition of the gamification element. The main intention behind this initiative is to make the overall shopping experience fun and worth returning to. Furthermore, the potential to gain customer loyalty to your brand due to the entertainment factor acts as the icing on the cake.
Molton Brown is one such player which gamified their TV and digital marketing campaign and successfully improved their user base. Gaming businesses that operate online like Casinos and Sports Betting are also snowballing in the UK since the pandemic. Football alone has over 48% market share in the sports betting category. Players enjoy sports betting online from trusted sites listed by gambling experts. The convenience of placing bets on mobile, along with the option of free bets, is a crowd-pulling factor in the UK sports betting market.
Make it convenient for your customers to avail themselves of a bundle of their preferred products and services within the umbrella of a single subscription. Categorize the subscription so that different customers can pick and choose a plan that suits their personal needs.
A perfect example is executed by Amazon by bundling the Prime video streaming services along with their E-Commerce subscription. It helps create a pool of loyal and long-term customer base who enjoy multiple value streams from a single subscription to your brand. It also ends up in increased cash flow as the customers feel left out if they choose to quit your services, then they end up losing multiple value-added benefits that you alone provide.
Studies show that the Subscription Box model is expected to grow at 72% as soon as 2022.
Conversational Commerce and Mobile Commerce are the two fastest-growing trends in the E-Commerce domain in the UK. However, adoption of such also depends on how well they suit your brand and the target audience. Solid market research and the ability to dynamically adapt in a short span can help you stay ahead of your competitors in these testing times!