According to Prestashop.com, in just over a decade, online retail has gone from a somewhat marginal status to an unstoppable force. With new consumption trends, an increasingly social-oriented business, and the development of innovative payment solutions, 2019 was a year full of new online shopping opportunities.
We’re sharing Prestashop’s 9 essential online retail trends, to help you improve your business in 2020.
Mobile devices are essential for 2020
With the daily and widespread use of Smartphones and tablets, buyers’ consumption habits have evolved significantly in recent years. M-commerce, or mobile commerce, is a growing market: in 2018, 21% of online transactions were completed on mobile phones, representing a turnover of 16.8 billion Euros (Fevad study – 2018). Mobile phones account for 60% of online retail traffic and 45% of purchases.
Another advantage of mobile online shopping is that it is not just limited to B2C, but also offers benefits for B2B. 40% of B2B revenue comes from mobile traffic. A real development opportunity for online retailers, the forecasts for the coming years are very optimistic, with a 2021 forecast of 54% of total online sales being made on mobile phones.
The security of your shop
Attacks, intrusions, data theft; e-commerce sites can be extremely vulnerable: more than 50% of European cyberattacks target online shops. This makes online retail the 3rd sector most affected by these kinds of threats.
The reasons for these attacks are:
- 70% of online retailers do not correctly protect their passwords,
- 97% of web applications are exposed to vulnerabilities
- 51% of sites are vulnerable to SQL injections worldwide
This is why security has become a major concern for all online retailers, and it’s essential to protect your online store.
The payment industry has made somewhat of a revolution in recent years, which benefits consumers, who now have several payment options. The payment methods used by buyers vary around the world. Bank cards are the preferred method of payment for buyers and are used in 53% of transactions. Electronic payment types, such as Paypal account for 43% and debit cards 38%.
Today, consumers no longer shy away from crossing borders and are more inclined to make a purchase from a foreign online retailer. 23% of European online sales are cross-border transactions. 57% of VSEs/SMEs sell abroad.
In the United States, cross-border trade is expected to increase by 12%, which represents an opportunity for sustainable growth and strong development potential that should not be neglected.
A new way to buy: Social Selling
Nowadays, going beyond the social and community aspect, social networks have become a real means of selling your products.
In addition to being an ideal showcase, storytelling platform, or advertising space, social networks allow Social Sellers to offer a catalog of products directly available for purchase. Facebook has made the most of this, and now offers Facebook Pay, WhatsApp Pay, and Instagram “Checkout” (a payment method directly integrated into Instagram Shopping).
Seize the opportunity to sell your products using social networks:
- Set up a shop on Facebook
- Label your Instagram products
- Use the “swipe up” in your stories
- Turn your Instagram page into a shop
- Present your products on social networks with a direct link to their product descriptions
Learn more about User Acquisition and tracking your Social Media Activity.
UXO is the new SEO
User Experience Optimization, or UXO, is a performance and lead acquisition strategy that goes far beyond SEO. It combines SEO and UX Design to enhance the user experience from search to conversion. The aim is to provide a good shopping experience: 88% of consumers who have experienced performance problems on a website do not return to it. One of the major advantages of UXO is it’s customization options. For example, you can customize pop-up windows according to the user’s path (viewed products, order history, etc…).
Abandoned shopping baskets
According to a study by Forrester, the average shopping cart basket abandonment rate is 75%. This represents an estimated loss of income of $18 billion each year.
Some of the reasons for these abandonments are:
- the proposed payment options;
- expensive shipping costs;
- incorrectly indicated delivery times;
- the obligation to create an account;
Concerns about data security and a lengthy ordering process.
However, 29% of online retail revenue comes from abandoned shopping basket reminder e-mails.
Highly personalized services as a key part of your strategy
These days, personalized services are a major factor in purchasing: 56% of consumers are more willing to buy from an online retailer who offers a personalized shopping experience. Artificial intelligence also plays a role in the personalization strategy. It can allow online retail sites to increase their profits by up to 15%. There are different ways to personalize the user’s experience, depending on the customer’s buying path, the seasons, and location.
Speed and UX: the keys to successful navigation
The speed of a website is one of the major criteria for Google ranking. It is therefore imperative to improve your site and make it as fast as possible. If a page takes more than 3 seconds to display, 57% (53% of mobile visits) of visitors are likely to leave the site. 80% of them will never come back to the shop. For every additional second the page takes to load, the conversion rate drops by 7%. According to Google’s recommendations, an online store should be properly displayed in 1.5 seconds.