The digital commerce industry is thriving with the help of cutting-edge technologies. Forbes predicts that the e-commerce market will surpass $8.1 trillion by 2026 . While online commercial stores are easily accessible to consumers, technologies exist to enhance the digital shopping experience. Personalization is the key to unlocking the treasure trove of customer experience in e-commerce, and hyper-personalization takes it to the next level. McKinsey reports that 76% of consumers are motivated to purchase a product when brands offer personalized experiences . With advanced technologies such as ML (machine learning) and AI (artificial intelligence), businesses aim to build an emotional connection with their customers and deliver personalized experiences. Zalando, a European online fashion platform, is a trailblazer demonstrating the art of meshing science and fashion to deliver a unique customer experience. However, most fashion companies invest only 3-3.5% of their revenues in technology solutions, significantly lower than the recommended percentage . To resolve issues such as assembling outfits within a budget and feeling overwhelmed with choices, Zalando developed the Advanced Fashion Cloud (AFC), a cutting-edge digital outfit recommendation tool that serves up personalized fresh style recommendations in mere clicks. The prominent retail brand relies on customers’ past purchases to suggest completed outfits or spot-on recommendations using machine learning resulting in a whopping 40% larger basket size .
Environmental issues have arisen from excess packaging and delivery transportation, resulting from the convenience of shopping online. In a study, 73% of consumers globally express their willingness to change their consumption habits to reduce their environmental impact . Sustainability should be the priority for businesses that need to adopt a greener packaging approach and offer eco-friendly delivery options such as the use of electric vehicles. By clearly communicating the environmental benefits of opting for a sustainable delivery option, 43% of consumers are more likely to shop with a retailer that provides sustainable delivery options .
Digital payment methods have gained significant traction among consumers and are projected to surpass $361 billion by 2030 . In addition to e-Wallets and mobile banking apps, the buy now, pay later (BNPL) model allows online shoppers to defer payment for a purchase and pay it off in installments over time. This payment method provides consumers with greater flexibility and affordability, ultimately strengthening customer relationships and driving satisfaction.
Businesses can provide customers with greater flexibility and convenience with diversified payment options while leveraging data and technology to tailor offerings and messaging to individual preferences. Furthermore, sustainability practices such as eco-friendly packaging, and sustainable delivery options foster customer loyalty, resulting in increased sales and revenue. Embracing emerging technologies empowers businesses to cultivate an exceptional customer experience that keeps customers returning for more.