The future of ecommerce is evolving as ecommerce has expanded significantly over the last couple of years, and will continue to do so throughout 2022. That’s not to say that in-person retail sales will dramatically decline, although many consumers are now gravitating towards ecommerce to meet specific needs such as ease, accessibility and convenience. According to the Australian Bureau of Statistics, Australian retail turnover declined by 4.4 per cent in December in 2021, whilst Australia Post found that in January 2022, the year-on-year growth of online sales increased by 16.6 per cent. 

What does the future of ecommerce hold?

So if you’ve got an online business or you’re thinking of starting one, you’ll want to know what the future of ecommerce might look like.

The future of ecommerce looks like… prioritising your consumers’ values 

Many consumers are making the shift to adopting a more sustainable lifestyle, and these needs are translating through to their ecommerce habits. Many consumers are wary of which businesses align with their values, which can include building a positive reputation and trust. Now more than ever, consumers are wanting to shop from brands that put time and effort into building a positive relationship with their consumers, as well as businesses that have a strong positive reputation revealed through reviews, case studies and word-of-mouth marketing, all of which are steadily growing.

If you’re thinking about improving your reputation for your ecommerce business, you could think about increasing engagement with your consumers and building a relationship with them! 

The future of ecommerce must address… the conscious consumer

Consumers have been becoming more conscious of businesses that focus on sustainability. This may be looking into whether a business is considered environmentally friendly, shown through the packaging a business chooses to use, such as more recyclable packaging and less plastic. Many consumers are wanting to be aware of whether businesses are Australian made and owned, vegan and slavery/cruelty free as these attributes play a part in which businesses some consumers choose to engage with. 

According to recent data by the Australian Institute of Company Directors (AICD), 90 per cent of Australians and New Zealanders prefer to purchase and support companies that are producing environmentally friendly and sustainable products and services, with 33 per cent of consumers planning on buying more sustainable products in 2022. 

If you’re thinking about growing your ecommerce business, and your business is ecocentric and focuses on sustainability, you could try promoting this on your platforms so that your consumers that are interested in this are aware of these aspects of your business. 

Accessibility of payment methods

The recent introduction of Buy Now, Pay Later payment methods, such as PayPal, AfterPay, Klarna, Latitude and ZipPay have had massive uptake with Australian consumers. According to The Australian Institute of Company Directors (AICD), BNPL purchases have grown by 233 per cent in Australia over the last three years. No doubt this is set to continue. 

The growth of BNPL payment methods are set to increase with recent data suggesting that medium to long term growth of BNPL in Australia remains strong as a compound annual growth rate of 24 per cent is expected between 2022-2028. This may be due to the influx of the younger generation engaging with these payment methods for product accessibility, as currently 54 per cent of young Australians are put off by credit cards and the high interest rates they carry, which has led to 80 per cent of current BNPL platform users planning to continue to engage with these platforms long-term. 

If you are wanting to achieve your ecommerce business goals in 2022, think about what your consumers may look for in a company, such as the implementation of possible BNPL payment method options to cater for your consumers needs.

Increasing social commerce

Ecommerce purchases that are made directly through social media are set to continue to grow throughout 2022. Consumers are making more purchases directly through marketing and advertisements on social media platforms such as Facebook, Instagram and TikTok.

By the end of 2024, Australia’s ecommerce revenue is expected to reach USD32 billion, which the International Trade Administration has calculated to be a 15.5 per cent year-on-year increase. The use and implementation of social ecommerce may help to ensure the e-commerce continues to grow at a steady rate. 

Many consumers rely on word-of-mouth marketing from their families and friends and follow their advice on which companies to shop with, while some consumers put their trust in social media influencers and people in the media who recommend and endorse products and services from particular companies. If you’re wanting to achieve your ecommerce business goals, think about what your consumers may want in a company and how to reach your intended target audience through social commerce. 

If you’re wanting to have a chat about your ecommerce business and future goals – get in touch through the form below and include an email and phone number and we’ll be in touch. 

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