E-commerce: Five new trends local players can leverage to spur industry

E-commerce, a method of buying and selling goods and services online, is constantly evolving to keep pace with the day-to-day changing demands of consumers. However, the fast pace of the digital world can be overwhelming as there are always new strategies, new tools, and new platforms to explore. Businesses that can hop on e-commerce trends at the right time can stay ahead of the competition. ALSO READ: E-commerce fraudsters take advantage of holiday season In Rwanda, e-commerce is relatively new, but the sector is increasingly growing, thanks in large part to local tech start-ups and international players that have entered the local market in the past few years. ALSO READ: Inside Rwanda's fast growing e-commerce industry At the onset, the use of e-commerce for “Business to Client” remains limited for the most part to the airline, hospitality, banking, food delivery, and courier services sectors. According to Patricie Nostalgie, an e-ecommerce expert in Kigali, the industry’s growth is a unique opportunity to open access to local and international markets for Rwanda’s small and medium-sized enterprises. He argued that e-commerce can also help strengthen the private sector’s contribution to national growth. Nostalgie said: “Our industry has been evolving and there are several indicators, but it is now time to push to the next level, where customer’s needs are met with little or even no convenience. “It is no longer a young and nascent industry, e-commerce has come a long way and the sector looks prospective if all players can adopt to new trends such as AI, and voice searches.” China and the United Arab Emirates are currently the main e-commerce commercial partners and online ordering goes through Alibaba and AliExpress. In April 2021, Dubai Ports (DP) World launched a new e-commerce platform, Dubuy.com, to serve as a digital trade corridor in the country. ALSO READ: Five measures to boost e-commerce in Rwanda Willine Ikirezi, an industry enthusiast, believes that local players have the technological progress of Rwanda as an advantage to leverage on. In Rwanda, she said, e-commerce has been known primarily for its ability to serve as a new distribution channel with lower barriers of access to markets that can empower entrepreneurs and enterprises. “Industry players adopting advanced trends such as the use of chatbots, the use of augmented reality (AR), can play an important role in growing trade and industry, boosting productive capacity and facilitating integration into global value and supply chains,” Ikirezi said. It is more important than ever to keep a finger on the pulse of the industry at all times. So, what e-commerce trends are most likely to be on the rise in 2024, and potentially, beyond? Increased prevalence of voice search Voice assistants on mobile phones, home smart hubs, and even television remote control have come a long way. Voice search which uses the power of speech recognition to search the web is growing in popularity, and this directly influences search results and shopping outcomes. Experts argue that e-commerce sellers must remain cognizant of changes in search so they can optimize for future sales. At the minimum, according to NetSuite, an American cloud-based enterprise software company, e-commerce sites must be optimized for mobile voice search by prioritizing the kind of information people ask for, such as website and physical address, contact number, and business hours. AI-assisted upselling and cross-selling Artificial intelligence (AI) and machine learning do a good job of predicting shopping habits based on browsing and shopping history. While no human brain could customize a website for every unique visitor, AI is up for the task. Much as very few retailers have the volume of data needed for true AI, some customer relationship management (CRM) and enterprise resource planning (ERP) systems include machine learning features to assist in cross-selling and upselling, both of which research shows increased revenues, profits, average order value, customer lifetime value, among others. Additional payment options While several businesses accept payment only through mobile money, check, credit, or debit card, experts argue that it is time to consider new options. Mobile wallets, in particular, have become increasingly popular — for example, Apple Pay, Google Pay, PayPal and Venmo. In an August 2023 survey by Forbes, nearly two-thirds of respondents said they use this type of payment method at least as often as they do traditional payment methods, and 53 percent said they use it more. In advanced economies, additional options include wire transfers and cryptocurrency. In addition, many online retailers now use tools that allow customers to purchase with a payment plan without tacking on any extra fees. Then, when customers are ready to make their purchase official, the checkout process is quick and efficient. Some countries have also adopted contactless payments, allowing customers to make purchases without physically passing a card to a cashier or swiping it through a machine. This technology, also referred to as “tap to pay,” enables users to simply tap their phone or card at an enabled terminal to authorize payment. Augmented reality to visualize purchases According to the Forbes survey, customers don’t want to guess what a new couch would look like in their living rooms. However, with augmented reality (AR), they won’t have to. Adding this technology means they can use a phone or laptop to see a live video of the room with the new addition. The same goes for artwork, flooring, and many clothing items. Industry players must actively add AR where appropriate to encourage customers to virtually “try on” a product. Highly optimized websites to maximize conversions Modern website technology allows for deploying two versions of a web page to see which performs better. In 2024, industry players have been discouraged from underestimating the effect of a change in font, color, layout, size, and loading speed on their company's sales. Successful A or B testing can bring a 50 percent increase in the average revenue per unique visitor for e-commerce sites, according to website optimization company VWO.

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E-commerce: Five new trends local players can leverage to spur industry