Top E-commerce Trends in 2024

As we’ve mentioned in some of our previous articles, e-commerce software development is by far our most abundant category. It’s a vertical within which we consider ourselves domain experts, not just because we have a solid portfolio of successful development projects, but because we support e-commerce companies from a business strategy perspective. Our team has successfully scaled multiple e-commerce businesses from $0 to over a million dollars annual revenue so we know a thing or two about the space.

But e-commerce is a multifaceted vertical which boasts a wide range of interesting sub-categories. Given that we’re a bit nerdy when it comes to collecting data, we have a good handle on the areas driving most engagement in the category. In this article, we share insights into the top three most popular e-commerce trends we’ve been seeing in 2024.

Data Analysis: the foundation of e-commerce success (41%)

Accounting for a staggering 41% of our customer engagements in 2024, data analysis sits comfortably at the top of our e-commerce leaderboard. But should we be so surprised at that? Probably not as having access to high quality, pertinent data is the lifeblood of any successful e-commerce business.

At Rendr, we value analytics so highly that we truly believe that the founder’s approach to data analytics will either make or break a start-up. If you’re wondering what sort of development projects might be making their way onto company roadmaps, here’s a bit of insider information on some of the most common data analytics related topics.

Understanding Consumer Behaviour

In all e-commerce channels, every single consumer action generates valuable data. The importance of data spans over a wide area, from the most popular products, the time of day a customer is most likely to make a purchase, to what type of marketing campaigns lead to higher conversions.

And it’s more than just understanding past behaviour, it’s about developing models to anticipate consumer needs, forecast demand and stay ahead of the latest trends. By leveraging AI and machine learning businesses can anticipate customer needs and even generate personalised offers that resonate and drive consumer loyalty.

Driving Operational Efficiency

Although consumer data is arguably the top priority, perpetually optimising operational efficiency is also critical in developing a profitable and sustainable business model. This can mean anything from inventory management processes to the efficiency of supply chain and logistics models.

Data is obviously critical to all of this and business owners should leverage quality software to do the hard lifting for them. For example, any WMS system worth its salt should be able to provide real-time data on product run rates and deliver robust forecasting to determine when inventory levels need to be replenished.

Personalisation

We live in an age where consumers expect tailored experiences and in response, contemporary e-commerce companies recognize the importance of personalisation. Data is the key to this as by collecting and analysing customer data - such as browsing history, past purchases and data on demographics - personalised shopping experiences can be created to meet individual preferences.

As the master of data-driven personalisation, Amazon is a case in point. Amazon’s product recommendation engine, powered by complex data algorithms, suggests products uniquely relevant to each customer based on previous behaviour. E-commerce companies the world over are following suit as personalisation drives higher conversions and increases customer stickiness.

The Importance of Real-Time Data

The ability to collect and analyse data in real-time is a game changer in e-commerce. And it makes perfect sense too as consumer behaviour can change rapidly and e-commerce businesses need to respond quickly. Real-time analytics enables business owners to move fast when required by making changes to website content, marketing strategy and operational processes.

For example, during flash sale events such as Black Friday, real-time data on fast selling products might trigger dynamic pricing or fulfilment terms.

Dynamic Pricing: Staying Competitive in Real-Time (22%)

In the UK, the Oasis and Ticketmaster fiasco hit the headlines and exposed the country to the wonderful world of dynamic pricing for all the wrong reasons. But even before the Oasis ticket sales mess reared its ugly head, at Rendr we are engaged regularly on dynamic pricing to the tune of 21% of our e-commerce enquiries.

The thing with dynamic pricing is, it’s not just a lever to increase prices where demand is high, it offers e-commerce businesses a model to stay agile and responsive to market conditions. It’s not just about increasing or decreasing prices, it’s about using data intelligently to determine the best price of a product at any given time, based on data points such as demand, competitor pricing and even browsing data.

By using dynamic pricing, businesses can optimise profitability by raising prices when demand surges, or lowering prices to clear inventory, especially if products draw closer to expiry.

Geotargeting: Personalization Through Localization (18%)

In 2024, 18% of our customers engaged with us on Geotargetting, making it clear that businesses are becoming increasingly aware of the importance of delivering personalized, location-based experiences.

As the e-commerce space grows and thus becomes more competitive, the ability of a business to tailor website copy, marketing messages and promotions based on geographic location is becoming an increasingly powerful tool for improving consumer experiences and conversions.

Geotargeting allows e-commerce businesses to adapt content, language and their product offerings to customers depending on their specific region. This type of personalisation enables business owners to align their proposition to the tailored experience that their consumers expect.

Factoring in Geotargetting offers businesses a way to stand out against the competition and to build deeper connections with their customer base.

Conclusion: Data as a Competitive Advantage?

In 2024, we honestly believe that considering data analytics as providing a competitive advantage is incorrect. Data analytics should be considered as no longer optional for e-commerce business owners, and not having things properly in place would create a serious competitive disadvantage. At Rendr, given that we have experience running our own e-commerce businesses, we fully appreciate how transformative data analysis is. It truly is make or break.