From Pinterest and TikTok to the Royal Mail and Mintel, the internet is awash with 2024 trends reports at this time of year. At Rich Insight, we’ve combined the latest intel with our marketplace foresight to make five key predictions that could shape online marketplaces over the year ahead.
1) Mobile conversion overtakes PCs
It’s been coming. Today, nine out of ten consumers make purchases with their mobile devices and 75% of buyers prefer using their smartphone compared to just 15% for PCs. But despite mobile’s growing e-commerce dominance, desktop conversion (3-4%) is nearly double the rate of smartphones (2%).
Given smartphones are on our person all day, it’s unsurprising that mobiles lead PCs on website traffic (60:40), but many consumers browse via mobile and then make a purchase on their desktop, laptop or tablet when they get home because the UX of e-commerce sites (including most marketplaces) is ‘mobile-friendly’ not ‘mobile-first’. With web designers now optimising sites for mobile purchases - by adding elements such as fingerprint checkout, one-click payment and small screen interfaces - mobile conversion is likely to overtake PCs by the end of the year.
2) Marketplace search changes
In Q4 of 2023, news spread of Amazon’s plans to launch an AI-based search engine in 2024 (codenamed Project Nile). Although exact changes have yet to be announced, the new search function is expected to include a ‘conversational’ AI chatbot that can deliver tailored shopping experiences to users and help them find products more easily.
But that’s not all. Voice search through the likes of Amazon Alexa and Google Home will become more mainstream this year. In the US, 40% of internet users use a voice assistant on a monthly basis and retailers have made it easier to order products simply by asking for them. Online marketplaces are expected to jump on the bandwagon, enabling customers to search for products verbally and receive spoken responses to questions.
What’s more, image search will pop up on more marketplaces, allowing consumers to take a photo of their neighbour’s garden table or friend’s winter jacket and find a similar one online. The likes of Poshmark (for clothes) and eBay (for anything) have already rolled out image search, which is likely to drive more people to buying online than in-store.
3) The rise of ‘human premium’
While AI is set to radically change marketplace search functions, there will also be an ‘AI backlash’ in some areas. According to Mintel’s 2024 trends, ‘being human’ will stand out in a world of algorithms with customers more likely to value an authentic human interaction than a robotic recommendation. In fact, 47% of UK consumers’ AI concerns revolve around the knock-on effect on human interaction.
This ‘human premium’ is likely to bring new meaning to products’ value (i.e. not just about costs, but the full customer experience) and impact how consumers like to buy. For example, live shopping - a social media trend that combines human interaction with a live shopping experience - is expected to increase in popularity.
4) A new age of innovative sustainability
Sustainability is no longer a nice-to-have nor a differentiator. With every brand keen to espouse their green credentials, consumers are increasingly wary of ‘green-washing’ with 60% of US buyers doubting brands’ sustainability claims and 52% of Germans thinking brands lie about their eco-impact.
To convince a suspicious consumer base and achieve cut-through, brands are likely to push the sustainability boundaries this year - making a loose pledge to reduce their carbon footprint is not enough. From initiatives that recycle unwanted goods or repair worn clothing to fixed eco-donations per sale and commitments to plant-based packaging, the sustainability arms race will heat up in 2024 - which is a good thing for the planet and brand sales. According to Royal Mail, 76% of buyers support fully recyclable packaging, 41% will pay more for sustainable deliveries, and 73% think fashion brands should recycle unwanted clothes.
5) Further merging of social media and e-commerce
Social media is one the main drivers of e-commerce sales with almost half (46%) of online shoppers making a purchase after seeing an item on social media (rising to 70% for Gen Z). Last year, the lines between social media and e-commerce started to blur with the likes of TikTok Shop enabling customers to buy directly without leaving the social media app and facilitating product deliveries via Fulfilled By TikTok (FBT).
In 2024, it’s likely that other major league social media sites (Facebook, Instagram etc) will follow suit, with social commerce expected to reach $2.9 trillion by 2026. But ‘social commerce’ is also happening the other way around with marketplaces adding a social media element. Amazon invested in Amazon Inspire last year with user experiences reminiscent of social media platforms, while social media and marketplace collaborations could help fuel meaningful business for both parties (Forbes makes a solid case for a Walmart and TikTok partnership in 2024).
Stay in the know
Trends are data-led expectations. Predictions are educated guesses. Some may happen, some may not, but at Rich Insight we’ll be following all the latest marketplace goings on, so you only have to follow us to stay in the know. Sign up to our weekly newsletter and check out our blogs on all things marketplaces.
Blog Comments