Major e-commerce trends that can reshape the industry in 2024

India’s e-commerce industry is experiencing rapid growth, fueled by the country’s digitization and expanding internet user base. Advancements in technology, such as artificial intelligence and virtual reality, are expected to revolutionize the online shopping experience.

According to Google’s latest report, India’s internet economy is projected to reach a staggering $1 trillion by 2030, a sixfold increase from $175 billion in 2022. This remarkable growth is driven by the increasing penetration of e-commerce in Tier-2 and Tier-3 cities, which were previously underserved by traditional retail.

The trajectory of India’s e-commerce industry indicates its inevitable rise to become the world’s second-largest by 2034, with an anticipated annual gross merchandise value of $350 billion by 2030.

As per the report, e-commerce will achieve a remarkable compound annual growth rate (CAGR) of 27 percent, reaching $163 billion by 2026. This growth rate is nearly three times that of the overall retail market.

“The factors driving this rapid growth include increasing internet penetration, rising disposable incomes, and the convenience of online shopping. As more consumers from Tier-2 and Tier-3 cities embrace online shopping, the demand for e-commerce platforms and services is expected to continue growing. Five key trends are going to define the e-commerce industry in 2024,” e-commerce expert Sachin Verma, the founder of FEDUS, said.

Artificial intelligence (AI)
AI is expected to play a significant role in the future of e-commerce. Advancements in AI technology will enable businesses to personalize customer experiences, improve recommendation systems, and streamline operations through automation. AI-powered chatbots and virtual assistants will enhance customer service and provide real-time support.

Social Commerce:
Social commerce, which combines the power of social media with e-commerce platforms, is an emerging trend. The vast user base and engagement on social media platforms will drive sales and increase brand awareness.

“Platforms like Facebook, Instagram, and WhatsApp are becoming not just spaces for social interaction but also vibrant marketplaces where users can discover, share, and buy products seamlessly. The potential for direct interaction with customers, real-time feedback, and the ability to leverage influencers for marketing make social commerce a game-changer,” Sachin Verma said.

Sustainable shopping:
Sustainable shopping has become increasingly important in the e-commerce industry. Consumers are now more conscious of the environmental impact of their purchases and actively seek sustainable and eco-friendly products. E-commerce platforms can support this trend by offering a wide range of sustainable options, providing transparent information about product sourcing and manufacturing processes, and promoting responsible consumption practices.

“E-commerce will continue to drive competitive logistics, shortening delivery times and reducing carbon emissions through efficient transportation and packaging methods. These platforms will witness a surge in sales of Indian-made products, empowering small businesses and showcasing India’s rich cultural heritage to a global audience,” Sachin Verma said.

These e-commerce trends are expected to shape the industry in the coming years. Additionally, personalized shopping experiences and advanced data analytics will also play a crucial role in understanding consumer preferences and improving customer satisfaction.