The e-commerce market is currently growing rapidly, not only in Romania, but worldwide. According to Statista, the German market data statistics portal, it is estimated that the global e-commerce market will reach USD 4.2 trillion by 2025. The Romanian market is projected to reach USD XX billion over this time, which translates into annual growth of XX%. This fast development comes with a profound transformation thanks to the rapid innovation taking place in technology that powers e-commerce. At present, there are 5 dominant trends which will shape the future of online commerce.
1. Omnichannel shopping
Before making the decision to buy, most customers conduct online research for the brand or product that has attracted their attention, even if they intend to purchase it later in a traditional store. Today’s technologies provide simple and fast ways to inform about products and offers. The consumer is increasingly expecting a holistic shopping experience across channels, which requires merchants to know even more about the customer’s shopping preferences, journey across channels, and interactions.
A number of technologies can improve the omni-channel experience offered by merchants. For example, Google Analytics in its tool “Associated conversions” allows to track and view the customer’s journey across channels. Customer Data Platforms hold the promise of enriching the client data held by merchants. Lastly, payment services such as Buy Now Pay Later can provide rich data and ensure a cohesive experience across channels. For example, Mokka, from Revo Technologies, the leading Buy Now Pay Later provider in Central Europe and Romania offers merchants an omni-channel payment method that integrates online, physical stores, mobile, and pick-up points, allowing the customer to order online, pick up in store and pay later with only an SMS signature, while at the same time enriching the merchants’ customer view.
2. Artificial intelligence and augmented reality transform the online shopping experience
Advanced technologies bring significant changes in purchasing habits. Artificial intelligence and augmented reality are increasingly being used to improve the purchasing experience, with benefits for both customers and traders. E-commerce retailers understood that artificial intelligence and augmented reality personalize the buying experience and improve customer relationships. This means that companies are more and more interested in integrating these technology features to move to top positions in shoppers’ preferences.
3. New payments options
E-commerce technology innovations aim to provide customers with a shopping experience that is as rich and smooth as possible. And alternative payment methods are a key area of innovation for most merchants. Successful presentation and execution of payment methods can make the difference between a retailer’s success and failure. For retailers it is vital to offer quick and convenient alternative payment methods that minimize the percentage of those who drop their shopping basket.
Buy Now Pay Later, one of the newest alternative payment methods to emerge, is proving to be very popular with Gen Z and Millenials globally. With Buy Now Pay Later, the shopper can instantly receive the option to pay for his purchases over time without needing to fill in long application forms and plastic cards. Typically, the payment over time does not incur any interest or only a small fee so it is a very attractive alternative to credit cards. For the merchants, Buy Now Pay Later can deliver significant gains reducing dropped baskets, increasing the average check, and higher repeat purchases.
In Romania this payment method is just starting to develop but early evidence suggests there is strong consumer and merchant interest. Recent market research, carried out by iSense solutions, in collaboration with the Buy Now Pay Later service Mokka in Romania, shows that 55% of consumers are interested in using this service in the coming 12 months. Mokka, which is the leading Buy Now Pay Later provider in Romania, Poland, and elsewhere in CEE and boasts more than 10 million registered users delivers an omni-channel solution for merchants and an adaptive check-out, which allows shoppers to tailor the payment plan to their needs by choosing from several different monthly schedules.
“Our service works completely differently from a traditional credit card. First of all, we are integrated right into the store, where people are doing their shopping and where they make the decision about the payment method so there is no need for a separate effort to apply to a bank. We are focused on making sure our service hits the spot for the consumer and merchant every time. To do this we have very high approval rates and work with both small and large purchases. As we work with a particular shopper and see them making purchases across merchant parnters, the amount the customer can spend with Mokka grows”, comments the co-founder of Mokka, Irene Shvakman
4. Development of the visual trade
In a world with an overwhelming amount of information , traders need to find new ways to attract consumers’ attention. From this point of view, visual communication is becoming increasingly important. Emotional-impact photos, creative video and the use of augmented reality are the new ways of communicating to which customers are receptive. Research by Shopify indicates that using augmented reality to view a product increases the purchase decision by 65%.
5. Using new technologies to implement dynamic price strategies
The dynamic price strategy adjusted to reflect the buyers’ demand is not new, but the latest technologies take it to the top level and make it more accurate and affordable. Amazon has already implemented technologies to optimize its pricing strategies and its success has led other companies to follow suit.
In a fast-growing market which is rapidly evolving due to technological innovation, retailers will have to take market trends into account if they want to remain leading e-commerce players. And the use of alternative financial solutions “Buy Now, Pay Later” has many benefits for both online and offline retailers and customers who want modern, instant and convenient alternatives to purchase financing.