17/1/2024
January 17, 2024
2024's e-commerce landscape is shaped by AI advancements, hyper-personalization, diverse online payments, sustainability focus, and the growth of discount shopping, offering both challenges and opportunities for growth.
The e-commerce sector is set to face numerous changes in 2024, encompassing evolving shopping behaviors, the rise of artificial intelligence, and the growth of discount and refurbished markets. As a key player in global economic growth and connectivity, e-commerce, with its projected growth of 15 to 20% in 2024, offers businesses a significant virtual storefront, reaching a wider audience than ever before. However, this digital presence brings critical challenges that every e-commerce participant must address to thrive in this dynamic landscape.
According to Markets and Markets research, AI's global commerce share is expected to hit $24.1 billion by 2028. AI has emerged as a major e-commerce trend for 2024, with the rise of ChatGPT highlighting the 'race to AI' among companies. AI is being used to improve customer experience, with many businesses already incorporating AI services like Chatbots to streamline consumer interactions.
Hyper-personalization in e-commerce marks a significant shift in how companies engage with customers. Moving beyond generic personalization, it adopts a more specific, individualized approach to meet each user's needs, with personalized product recommendations and exclusive offers. The aim is to enhance the customer experience, boost loyalty, and increase conversion rates. This trend towards hyper-personalization is expected to grow even more in 2024.
The economic situation in Europe has made payment a key aspect of the customer experience. Brands have adapted their strategies, diversifying payment solutions to simplify user processes and enhance conversion. The use of installment payments has risen, with 45% of French consumers using this method for purchases over €1,000. Credit cards remain popular, but PayPal and bank transfers are gaining traction.
Sustainability in e-commerce has become a necessity, with consumers increasingly focused on ecological and responsible practices. A recent McKinsey study in the U.S. found that 78% of consumers prioritize sustainable living. This preference is evident in their shopping habits, with many willing to pay more for sustainable packaging. Thus, sustainability emerges as a key challenge for e-commerce players in 2024, encompassing environmental practices like recyclable packaging and social responsibility.
In 2023, discount shopping in e-commerce saw significant growth. This strategy has changed online shopping behaviors, gaining popularity due to inflation and its ability to attract new customers and boost sales. Major discount players like Temu and Lidl entered the French e-commerce market, employing aggressive marketing strategies. However, this trend towards lower prices is expected to continue in 2024, challenging e-retailers to balance price reduction with quality.
Despite challenges related to Covid, crises, and inflation, France's e-commerce sector continues to grow. French consumers increasingly favor online shopping, presenting both challenges and growth opportunities for businesses in 2024.
