[Kiliba x L'Agence123] The 5 key e-commerce trends for 2024

1. Artificial intelligence: the driving force behind modern e-commerce

Even individuals are getting in on the act, and as agencies and advertisers, Artificial Intelligence (AI) has profoundly transformed our daily lives, so much so that it has become essential for optimizing business operations and enhancing the customer experience. AI is no longer limited to simple product recommendations; it penetrates every aspect of the customer journey, from personalization to logistics, while constantly evolving thanks to machine learning and natural language processing (NLP) technologies.

Ultra-targeted personalization

Yes, we're the first to want to find the product we need quickly. No longer content with simple personalization based on past preferences, we expect modern e-tailers to provide experiences that anticipate our needs (and good after-sales service)... Platforms such as Kiliba or Dynamic Yield use algorithms that adapt in real time to the needs of the surfer, analyzing not only purchase histories, but also behavioral signals such as : 

• Time spent on certain pages
• Types of pages visited
• Add to basket
• Cart abandonment

The objective? To guide Internet users in their choices, reduce the risk of returns and accompany them through to purchase, while taking advantage of opportunities to increase the average basket with additional or complementary products.

Key fact: Salesforce research reveals that 80% of consumers are more likely to buy from a brand that offers personalized experiences, but 66% of them feel that brands are not yet fully meeting their expectations. So the odds are in your favor: get Kiliba!)

Next-generation chatbots and virtual assistants

Chatbots are evolving to offer smoother, almost human-like interactions. Thanks to advances in NLP, they are able to understand complex questions and learn from previous interactions to refine their answers. This is pure Machine Learning, and Internet users who are less sensitive to overly generic and traditional approaches are the happiest for it. A chatbot that responds almost like a human and effectively helps to understand and resolve visitors' queries is one of the most successful innovations in the field of chatbots.

Case in point: IKEA uses its chatbot not only to help customers find products, but also to track orders and resolve complaints.

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Optimized logistics and forecasting

AI is not limited to personalization or text generation; it also excels in data processing. For example, it enables giants like Amazon to effectively forecast logistics and inventory management needs. The use of predictive intelligence tools enables them to adjust their stock levels, thus optimizing logistics while reducing costs.

Practical tip: Tools such as https://www.erplain.com/ and https://www.verteego.com/ also enable small and medium-sized businesses to benefit from these advances in predictive inventory management, adjusting requirements according to anticipated demand.

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2. Augmented reality (AR): Revolutionizing online shopping

It's never easy to make up your mind in a store... Do you choose the right fabric color to match your curtains? Will that overpriced mascara match your skin tone? These become existential choices, and you don't want to throw money out the window... So aside from the very strong argument for the more homebound, augmented reality (AR) has the potential to completely transform the online shopping experience by offering consumers the ability to visualize products in their environment through their smartphone. In 2024, augmented reality is becoming a key tool not only for enhancing the customer experience, but also for reducing returns, a major and very costly issue for e-tailers.

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Reducing returns: A costly challenge

Returns are a real burden for e-tailers, generating considerable logistics costs and significant environmental impacts. Augmented reality (AR) is proving to be an effective solution for : 

• Offer customers a better visualization of products before purchase
• Mitigating return problems

According to a Shopify study, integrating AR can reduce return rates by up to 35%, enabling businesses to cut costs while minimizing their environmental footprint.

Pioneering example: Pierimport.fr have set up a 3D visualization system on their site, based on the Sketchfab tool. Even if AR visualization is limited when you don't have enough space to step back, 3D visualization remains highly relevant for top-of-the-range products, where the price may lead the visitor to go to the store, which could be an obstacle to purchase.

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New AR use cases

The possibilities offered by augmented reality go far beyond simple virtual product trials. In 2024, e-retailers are exploiting innovative use cases such as viewing furniture in virtual or real rooms, simulating electronic devices in operation, or trying on clothes in actual size. These advances are transforming the online shopping experience, making purchasing decisions more informed and immersive.

Case study: IKEA Kreativ, a creative AR solution reminiscent of The Sims game, allows users to place furniture in empty virtual rooms of different sizes, and even to scan a room and "install" this living furniture. This type of immersive visualization enables web users to test different interior layout combinations, and may prompt them to combine a sofa with a lamp that would match perfectly during the test with other decorations in their homes.

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3. Social commerce: when social networks become marketplaces

Although social commerce has been in vogue for over 5 years, it's still underutilized by SMEs. Instagram, TikTok and Pinterest are no longer simple sharing platforms; every post can now be turned into a sales opportunity. This model allows brands to build far more authentic and direct relationships with their audience, while regularly tagging products in images and videos, including in feed, reels, stories and product mentions in profile bio or feed text. In 2024, social commerce has become a must for brands that want to shorten the buying journey and, above all, boost consumer engagement, by being where they spend the most time.

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Explosive growth and global adoption

Sales generated by social commerce are expected to reach $6.2 trillion by 2030, according to a study by Accenture. While Asia, with innovations such as live shopping, is already leading the way, the West is beginning to catch up, thanks to increasingly effective platforms for direct sales. This development shows that social commerce is becoming a global playground, with each region adapting its strategies to take advantage of this booming trend.

A notable example: Instagram Shopping has transformed the way brands interact with their audience. Posts converted into shopping experiences have led to a nearly 25% increase in traffic to merchant sites such as Spearmint Love according to Shari Lott.

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TikTok Is Making Shopping a Live Sport

Live shopping: Towards a new standard?

Live shopping, which is enjoying immense success in China, is establishing itself as the new standard for captivating consumers in real time. This innovative format enables brands to showcase their products while interacting directly with their audience, offering a dynamic and immersive shopping experience. With this approach, brands can create deeper connections and engage their customers instantly and authentically.

Business tip: Consider live shopping sessions on platforms like TikTok or Instagram Live to capitalize on real-time engagement, boost sales and create a real connection between your customers and your customer relationship managers or sales advisors.

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4. Sustainability: a non-negotiable imperative

A must, not an option. Sustainability is no longer just a marketing argument, it has become a genuine consumer requirement. In 2024, it is imperative for companies to adopt eco-responsible practices throughout their value chain. Not only does this meet growing customer demand, but it also enables compliance with increasingly stringent environmental regulations. Today, sustainability is a duty rather than a choice. Opt for environmentally-friendly packaging and ensure rigorous traceability to meet this requirement.e

Eco-friendly packaging and zero-waste innovations

The impact of packaging on the environment has become a real source of concern for consumers. Companies such as Loop and Packhelp are well aware of this, and offer innovative solutions to reduce this waste, which is weighing ever more heavily on our collective conscience. Today, we're no longer content with simple packaging; we expect brands to take their ecological responsibilities seriously.

Example: Lush uses an AR application, Lush Lens, enabling consumers to obtain product information without the need for physical packaging. This type of innovation not only reduces waste, but also enhances brand transparency.

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Supply chain transparency and traceability

Consumers no longer just expect quality products, they now demand :

• Total brand transparency
• Information on the origin of raw materials
• Details of the product manufacturing process
• Employee working conditions (especially in the case of offshore outsourcing)

Today, a brand that doesn't play the transparency card runs the risk of losing the trust of its customers.

Case study: Patagonia and Everlane have built their reputations on "radical transparency". This strategy has not only built customer loyalty, but also generated significant increases in sales.

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5. Digital payments and enhanced security: trust at the heart of transactions

With the rise of digital payments, the security of online transactions is becoming a priority issue for e-tailers in 2024. Offering varied and flexible payment solutions, while ensuring maximum protection against fraud, is essential to building consumer confidence. After all, without security, there can be no successful transaction. Not to mention the fact that you'll be held liable for any damage caused by loopholes you fail to address, which could seriously damage your reputation. Be careful and never leave a loophole open, as the consequences could be far more serious than you imagine.

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Diversification of payment options

Digital wallets, such as Apple Pay, Google Pay, or even crypto-currencies, are on the rise. They are becoming essential tools for :

• Simplify payments
• Secure transactions

By 2025, it is estimated that more than 53% of global transactions will involve these digital solutions, proof that their adoption continues to grow at an impressive rate.

Enhanced security with biometric authentication

Biometrics are becoming increasingly important for securing transactions. Solutions such as Mastercard Identity Check Mobile, which use facial or fingerprint recognition, offer enhanced protection by considerably reducing the risk of fraud. By integrating these advanced technologies, companies can guarantee enhanced security while simplifying the user experience.

Conclusion

In 2024, e-commerce continues to reinvent itself through the integration of disruptive technologies, greater environmental awareness, and an ultra-personalized customer experience. To remain competitive, companies need to anticipate consumer expectations and adapt quickly to these new trends, while being aware of the challenges they present.

The future of e-commerce belongs not only to those who get up early, but to those who know how to combine innovation, ethics and customer experience. Are you up to the challenge?

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