As competition in eCommerce increases almost daily, new developments continually emerge too. From AI to shoppable content, from augmented reality to social commerce, new trends keep fueling this competitive surge. As we leave the first half of 2024 behind, rapid technological advancements, shifting consumer expectations, and an increased emphasis on sustainability are defining numerous trends that have significant effects over the industry.
So, what awaits us in 2025? Offering insightful predictions about the changes we can anticipate and how businesses can adapt to these new challenges and opportunities, I’ve gathered opinions from 15 industry experts. Let’s shed some light on the near future and take a closer look at the topics dominating the eCommerce & retail agenda!
The Shift from Cookies to First-Party and Zero-Party Data
Since data privacy is becoming increasingly important, the transition from third-party cookies to first-party and zero-party data is crucial. This shift allows brands to gain more control over their customer interactions and data collection methods. First-party data, collected directly from customer interactions on owned channels, ensures more reliable and accurate insights. Zero-party data, voluntarily shared by customers, offers a rich personalized information without compromising privacy. This trend is redefining how businesses approach customer engagement and data strategies, making them more transparent and customer-centric.
- Greg Zakowicz, Sr. Ecommerce Expert, Omnisend: A bigger focus on dependable first-party marketing channels. Over the past several years brands have been investing heavily in third-party marketing channels, like social media, but it’s become clear that the success on those channels can change at a moment’s notice. Between the TikTok ban upheaval and Facebook’s automated ads glitches, companies are realizing channels like email and SMS marketing, where they have explicit marketing permissions from the customer, continue to generate high ROI.
- Dilayda Soylu, Product Marketing Manager, Storyly: Building interactive experiences on apps and websites isn't just about establishing a connection with your users anymore; it's about enriching their journey and experience while gathering zero-party data. This invaluable data is willingly shared by users as they engage with your platform, without any frustration regarding user experience, allowing you to learn directly from them without disrupting their journey. Plus, it's cost-effective and efficient, saving both time and resources for all marketers.
Technological Advancements
Technological advancements are at the forefront of the eCommerce and retail industry, changing how businesses operate and how people shop. These emerging technologies are enhancing the shopping experience and also driving operational efficiency and innovation. In the next few years, we will see significant changes in various tech-driven aspects of eCommerce, from AI and machine learning to augmented reality and virtual reality. Let's explore how these technologies are shaping the future of the industry.
AI and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing the eCommerce landscape. These technologies enable retailers to offer highly personalized shopping experiences, predicting customer preferences and behaviors with remarkable accuracy. Virtual assistants provide instant customer support, enhancing the overall shopping experience. Moreover, predictive analytics powered by AI can forecast demand, optimize inventory management, and streamline operations, driving efficiency and reducing costs. As AI continues to evolve, its applications in eCommerce will also expand.
- Jen Seran, Director of Business Operations at Stallion Express: AI-driven personalization will take shopping experiences to the next level. Retailers can use sophisticated algorithms to anticipate customer preferences and personalize recommendations. We have seen a 25% boost in customer satisfaction when incorporating AI-powered personalization into our services.
- Mark McShane, the Founder of Cupid PR: In 2024 and 2025, we can expect several transformative shifts in the eCommerce and retail landscape. The integration of AI and machine learning will become even more pronounced, driving personalized shopping experiences and predictive analytics that enhance customer satisfaction and operational efficiency.
- David Janovic, Founder and CEO of RJ Living: We are already seeing a big shift in many industries with the adoption and easy access to AI technology. I think that with this, we will see changes in the use of AI to help enhance the shopping experience online, with streamline customer support through advanced chatbots and virtual assistants and maybe a refinement of the personalized shopping experience. We might even find that AI-powered predictive analytics will help retailers to anticipate consumer demand more accurately, reducing waste and increasing efficiency.
Augmented Reality and Virtual Reality
Augmented Reality (AR) and Virtual Reality (VR) are transforming online shopping into an immersive experience. AR allows customers to visualize products in their real environment, reducing the uncertainty of online purchases and minimizing return rates. And VR offers virtual store tours and interactive shopping experiences, making online shopping as engaging as in-store visits. These technologies help enhance customer experience and boost confidence in online shopping.
- Derek Bruce, Operations Director, First Aid at Work Course: AR will revolutionize the way we shop online. Think about trying on clothes virtually or placing furniture in your home or office environment to preview its size and display. Or visualizing 3D models of products, getting a feel for the product without having it in your hands. Shopping in such virtual ways will reduce customers' hesitancy to make a purchase online, increase their confidence in online shopping, and drastically reduce a lot of product returns. Studies indicate that 63% of consumers are interested in using AR for online shopping. Looking ahead, as AR matures and usage of AR experiences increase, we will see an explosion of AR shopping experiences for all industries.
- Nick Drewe, Founder & CEO of Wethrift: Consumer behavior is shifting towards an experience-driven approach. The rise of experiential eCommerce, where virtual reality (VR) and augmented reality (AR) will make online shopping more immersive and personalized, is on the cards.
- Tiago Pita, Brand and eCommerce Director at Whole Food Earth: The next big shifts in eCommerce and retail will center around augmented reality (AR), personalized shopping, and sustainability. AR will enhance online product visualization, personalized experiences will cater to individual preferences, and sustainability will drive demand for eco-friendly products. These shifts emphasize innovation, customer-centricity, and environmental responsibility in the retail industry.
Engaged Commerce
The era of passive online shopping is fading. Engaged commerce focuses on creating interactive and engaging shopping experiences that go beyond mere transactions. By leveraging interactive content, gamification, and personalized recommendations, brands can now foster deeper connections with their customers. This approach enhances customer satisfaction, but it also drives loyalty and repeat purchases.
- Irem Isik, Head of Marketing Storyly: The eCommerce industry must shift from a purely conversion-focused approach to one that emphasizes shopper engagement. Engaged commerce is a new trend that we will start to see more and more popping up. Brands that can successfully foster this shift will stand out in the competitive landscape. By prioritizing shopper engagement, these brands can create more meaningful connections with their customers at every digital touchpoint, which will lead to increased loyalty and long-term success. Those who can create strategies accordingly and adapt and excel in this area will ultimately accomplish more than their competitors.
Consumer Behavior and Experience
Understanding consumer behavior and enhancing the customer experience are key drivers of success in the eCommerce and retail industries. As consumer expectations continue to change, businesses must find new strategies to meet these demands. Currently, the focus is on creating seamless, personalized, and engaging shopping experiences across all touchpoints. So, let’s see some of the critical trends shaping consumer behavior and experience.
Omnichannel Shopping
Today's consumers expect seamless integration between online and offline shopping experiences. Omnichannel shopping allows customers to browse and purchase across multiple channels, from websites and mobile apps to physical stores. Therefore, we can say, retailers who can successfully integrate their online and offline operations will create a cohesive and satisfying shopping experience, which will enhance customer loyalty and drive sales growth.
- Jen Seran, Director of Business Operations at Stallion Express: Integrating online and in-store experiences will be key. Customers want to be able to order online and pick it up in the store or vice versa. Companies that can offer a seamless omnichannel shopping experience will be successful. We at Stallion Express have improved our logistics to keep up with this trend so that we can deliver on time and efficiently across all channels.
Direct-to-Consumer (D2C or DTC) Models
Direct-to-Consumer (DTC) models are reshaping the retail landscape by allowing brands to connect directly with their customers. This approach eliminates intermediaries, reducing costs and enabling better control over brand messaging and customer experience. DTC brands can offer exclusive products, personalized services, and faster product launches, meeting the evolving demands of modern consumers.
- Michael Nemeroff, CEO of Rush Order Tees: In 2024 and 2025, I expect that the ecommerce landscape will continue to evolve with the proliferation of direct-to-consumer (DTC) brands. These brands will increasingly bypass traditional retail channels to connect directly with consumers, offering personalized experiences and exclusive products. This trend will be driven by advancements in technology that make it easier for brands to reach their target audiences through social media, email marketing, and their own websites.
- Robert Khachatryan, the CEO and founder of Freight Right Global Logistics: A D2C strategy allows manufacturers to bypass traditional distribution partners, saving approximately 15% on wholesaler costs and up to 40% on retailer costs. D2C brands are set for future success through ongoing innovation, personalization, quicker product launches, and a commitment to sustainability, all powered by technology and consumer insights.
- Alex Nisenzon, CEO of Charm: Reduced barriers to entry and low launch costs have driven an increase in DTC brands, resulting in an increasingly competitive ecommerce landscape. In order to capitalize on ever-changing consumer trends, traditional retailers and marketplaces are faced with the challenge of making effective merchandising decisions and discovering emerging brands before their competitors. As a result, we’ve seen the need for in-depth DTC data.
Subscription Services / Loyalty Programmes
Subscription services and loyalty programs are gaining popularity as they offer personalized experiences. These models foster long-term relationships with customers and ensure recurring revenue and brand loyalty. Subscription boxes cater to specific interests and needs, from fashion and beauty to gourmet food and fitness. As consumers seek stress-free and personalized shopping experiences, these models will continue to develop and drive growth in the retail sector.
- Robert Khachatryan, the CEO and founder of Freight Right Global Logistics: Increasing popularity, particularly in fashion and beauty sectors, with expected significant revenue growth. The subscription box market is projected to grow by 20% annually from 2021 to 2026. Beauty and grooming boxes account for approximately 35% of all subscription services.
- Colt Agar, Organic Marketing Lead at Red Stag Fulfillment: In the retail sector, there is a noticeable shift towards subscription-based models. Consumers appreciate the convenience and personalized service these models offer. Subscription boxes, for instance, cater to a variety of interests and needs, from fashion and beauty to gourmet food and fitness. This trend allows retailers to build stronger relationships with customers, ensuring recurring revenue and fostering brand loyalty. As more consumers look for curated, hassle-free shopping experiences, we can expect the subscription model to gain even more traction.
Sustainability and Ethical Practices
As environmental awareness grows, sustainability and ethical practices have become central to the eCommerce and retail industries. Consumers are increasingly prioritizing eco-friendly products and transparent supply chains. So, what should brands do? Here are some key trends in sustainability and ethical practices that are shaping the future of retail.
Eco-friendly Products and Packaging
Sustainability is becoming a critical focus for both consumers and retailers. Eco-friendly products and packaging not only appeal to environmentally conscious shoppers but also align with regulatory requirements and industry standards. Brands that prioritize sustainability in their sourcing, production, and packaging processes will gain a competitive edge. By adopting sustainable practices, retailers can reduce their environmental footprint, enhance their brand reputation, and meet the growing demand for ethical products.
- Marc Bishop, Director of Wytlabs: Sustainability will also become a critical focus area, driving innovations in product sourcing, packaging, and logistics. Consumers are increasingly aware of environmental impacts and are demanding more eco-friendly products and practices from retailers. We predict that by 2024/2025, leading e-commerce businesses will have made significant advances in developing closed-loop systems that reduce waste and utilize sustainable materials throughout the supply chain. Additionally, technologies enabling more efficient packaging and shipping methods will be standard, not only to appeal to environmentally conscious consumers but also to comply with regulatory pressures which are bound to increase in scope and scale.
Sustainable Supply Chains
Transparency and sustainability in supply chains are increasingly important to consumers. Ethical sourcing, fair labor practices, and environmentally friendly logistics are key components of a sustainable supply chain. Brands that can demonstrate their commitment to sustainability will build trust and loyalty among their customers. As regulatory pressures and consumer expectations continue to rise, retailers must adopt sustainable supply chain practices to remain competitive and relevant in the market.
- Mark McShane, Founder of Cupid PR: Sustainability will take center stage, with brands increasingly adopting eco-friendly practices and transparent supply chains to meet growing consumer demand for ethical shopping options.
Market Dynamics
The eCommerce and retail markets are constantly evolving which makes it essential for businesses to seek innovative solutions for long-term success. So, let’s see some of the key market dynamics that are shaping the future of the industry right now.
Social Commerce
Social commerce, the new trend in eCommerce, is set to have an impact on how consumers shop online. Platforms like YouTube, Facebook, and TikTok are integrating shopping features, which allow users to make purchases directly from their social feeds. This trend leverages the influence of social media to drive impulsive and informed purchasing decisions. Retailers need to adopt data-driven strategies to engage with consumers in real-time.
- Marc Bishop, Director of Wytlabs: One trend that is set to impact eCom-Retail is the rise of social commerce, which will continue to blend social media experiences with shopping. Platforms like Instagram and Facebook have already made strides in this area, but by 2024/2025, we expect to see even more sophisticated integration, such as live shopping events and direct purchases from user-generated content. This shift acknowledges that today's consumers value convenience and the opinion of their peers, making social platforms an ideal venue for impulsive and informed purchasing decisions. E-commerce businesses will need to leverage these platforms more strategically, using data-driven insights to engage with consumers in real-time and tap into their immediate purchasing impulses.
- Kate Geldart, Online Marketing Specialist at Custom Neon: Social commerce—which combines social media interactions with actual shopping—is expected to keep growing. With the ability to make immediate purchases through social media apps, platforms like Instagram and TikTok will continue to develop into physical retail locations. Impulsive purchases will shift as a result, and sales among tech-savvy consumers will rise.
- Ranu Coleman, Head of Marketing at PatPat: As mobile usage continues to dominate, optimizing the mobile shopping experience is crucial. The convergence of social media and eCommerce will continue to grow, with platforms integrating shopping features directly into social feeds.
Experiential Retail
Experiential retail is transforming physical stores into immersive and interactive spaces. By combining shopping with entertainment and social experiences, retailers can create memorable in-person shopping experiences that can't be replicated online. This trend responds to the growing consumer desire for engaging and enjoyable retail environments. As the lines between online and offline shopping blur, experiential retail will play an important role in attracting and retaining customers.
- Michael Nemeroff, CEO of Rush Order Tees: I also expect that retail environments will also see significant changes, with an enhanced focus on experiential retail. Physical stores will transform into immersive spaces where consumers can interact with products in unique ways, combining shopping with entertainment and social experiences. This shift will be a response to the growing consumer desire for memorable and engaging in-person shopping experiences that cannot be replicated online.
Flexible Platform Development
Traditional end-to-end solutions often lack the agility needed to support rapid growth and differentiation. By adopting more flexible platform solutions, retailers can enhance their customer experience, streamline operations, and respond quickly to market changes. This approach will be essential for brands looking to stand out and succeed in the dynamic eCommerce world.
- Alex Sheplyakov, CTO at WiserBrand: In 2024–2025, an important trend in the eCom-Retail industry will be the transition from universal integrated solutions to more individual and flexible platform development. This step is critical because traditional end-to-end solutions cannot provide the rapid growth that brands need to differentiate in a saturated market. Especially in retail, where products are often available on multiple platforms, the key to attracting customer interest lies not only in the product itself, but also in the uniqueness and effectiveness of the platform through which it is sold.
Conclusion
To wrap up, the eCommerce and retail world is about to change in big ways. As our experts have highlighted, advanced technologies like AI, AR, and VR will make shopping more personal and fun by creating immersive shopping experiences that bridge the gap between online and offline retail. Additionally, the focus will shift towards creating rich content experiences and engaged commerce, emphasizing the importance of shoppable content and zero-party data to cater to personalized consumer needs and preferences. Storyly, with its innovative interactive and shoppable content solutions, is at the forefront of these trends, enabling brands to drive deeper engagement and better understand their audiences.
Sustainability will also be a major focus, with brands needing to adopt eco-friendly practices to satisfy customers. More importantly, social commerce, direct-to-consumer (DTC) models, and combining online and offline shopping will become more significant. Businesses will need to stay flexible and use data and new tech for long term success and to compete. As we move forward, it is clear that the eCommerce and retail industries will continue to evolve, which will eventually offer more opportunities and challenges. So, stay tuned for more insights and updates on retail innovations!