The document discusses future trends in ecommerce, including: (1) Hyperconnectivity through technologies like the Internet of Things will create new dynamics in ecommerce through connected devices. (2) Robotics and artificial intelligence will be major disruptions, with robots automating warehouse fulfillment and AI transforming online transactions. (3) Most shopping journeys will occur across multiple devices, requiring retailers to optimize websites and campaigns for multi-device users.

1. Future trends in Ecommerce
BY
SURESH BABU BN
9/10/2016
10/16/2016 SURESH BABU BN

2. Introduction
The world of E Commerce is undergoing an extraordinary wave of innovation. Technology, of
course, plays a major role, but it is not the only thing. New business models are appearing that
will have a profound influence across the e-commerce. At the same time, consumer behaviors
and expectations are evolving.
In this project, I am identifying and examining those trends that will shape the world.
For example, what technologies will have a transformative influence, and how will the e-
commerce value chain evolve, and what impact will this have on online and physical retail?
I have referred multiple websites, reports and books to compile this presentation.
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3. 10/16/2016 SURESH BABU BN

4. Key technologies-trends
Hyper connectivity (Machine 2 Machine) will create new dynamics in E commerce
Robotics and Artificial Intelligence will be the biggest disruption.
Most shopping journeys will be multi-device
Smartphone shopping will continue to gain ground
Wearables will become a platform for m-commerce
Augmented reality (AR) will be a strong driver
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5. Key technologies-trends
Hyper connectivity (Machine 2 Machine) will create new dynamics in E commerce
In the future , consumers will be living in a hyper connected,high-speed world where the Internet of Things (IoT)
will be part of the everyday life
Predictions are that there will be 660 million machine-
to-machine (M2M) connections, M2M connections will
make retail more efficient and effective. Connected
retail display cabinets and smart product tags will be
commonplace, enabling retailers to track demand and
report on stock levels in real time, which in turn will
improve supply chain effectiveness. M2M connections
will also enrich consumer engagement in retail, for
example, via connected indoor and outdoor digital
signage equipped with sensors.
While connected driverless cars with built-in GPS and
video screens supporting streamed content could
become an important marketing platform for brands
and retailers. Connected appliances in smart homes
could also become part of the retail equation, and
Amazon is already exploring the opportunities. A key
part of Amazon’s emerging smart home strategy is its
Dash Replenishment Service (DRS), a test-phase product
replacement service that will integrate with third-party
connected devices to monitor supplies and
automatically reorder them when they are getting low.
It also features an instant-buy Dash button that can be
retrofitted onto existing products or built into new ones,
allowing consumers to make their own purchases.
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6. Key technologies-trends
Robotics and Artificial Intelligence will be the biggest disruption.
Ecommerce companies are under pressure to reduce
fulfillment costs and send orders to customers more
quickly. Any merchant that ships in substantial volume
and wants to stay competitive will likely have to use
robots. Robots don’t require health insurance, lunch
breaks, or vacations. They can work 24/7 and don’t call
in sick. They don’t require training. This is particularly
useful during the holiday season when ecommerce
merchants typically hire additional warehouse workers.
Robots can reduce logistics costs substantially with
minimal human intervention.
Unlocking the next wave of e-commerce disruption is
the arrival of artificial intelligence (AI).
But consider the potential impact of such technology in
the multi-trillion-dollar global e-commerce industry, one
that has evolved into an integral feature of the average
consumer lifestyle and a common medium across
countless verticals.
The union of AI and e-commerce could not only
transform the millions of online transactions that occur
every day, but also in-store purchase behaviors
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7. Key technologies-trends
Most shopping journeys will be multi-device
Half of all Ecommerce transactions are already made using multiple devices. As that figure
crosses the 50% mark in future, retailers will need to redesign the online buying experience for
this new reality. Multiple device users are also 20% more likely to complete their purchase on
mobile than the average user
Retailers will need to redesign their online buying experience to reflect the fact that the majority
of users visit them via multiple devices. Campaigns must be activated on all devices and all
properties fully tagged to leverage mobile and desktop.
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8. Key technologies-trends
Smartphone shopping will continue to gain ground
Mobile is now the first screen for the majority of consumers, especially as larger smartphone
screens make mobile shopping more convenient.
Smartphones account for over 40% of Ecommerce transactions. Smartphone share is steadily
catching up with tablets.
As an increasing share of transactions happens on smartphones, retailers need to prioritize their
mobile app strategy and optimize their mobile buying experience. While on tablets people can
use websites that aren't mobile-optimized, on smartphones it’s crucial to have either a mobile-
optimized website or an app.
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9. Key technologies-trends
Wearables will become an important platform
There is a lot of excitement about wearable technology, and although the ecosystem is still
emerging, the number of wearable devices coming to market is increasing. It is expected that
wearable devices will reach 650 million users by 2020. Wearables of the future will have the
ability to capture a wide array of data related to a user’s contextual activity, health and
emotional state. But there are constraints in capabilities of wearables, the obvious ones being
tiny screens and as the technology matures, wearables will become smarter.
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10. Key technologies-trends
Augmented reality (AR) will be a strong driver
I think that going forward, augmented reality (AR) rather than virtual reality (VR) will have the
greatest impact on the retail experience and Ecommerce.
AR has the ability to blur the boundaries between the physical and digital worlds and with it the
boundaries between online and in-store shopping. AR will give online customers an in-store
experience, addressing the fit-and-feel issue that can prevent consumers from making online
purchases, particularly in apparel. For example, AR will allow consumers to virtually try on
clothes and jewelry. AR will also be widely used to enhance the in-store experience, particularly
for concept and showroom stores.
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11. Consumer of the future -trends
Marketing will shift from device-focused to people-focused
Instant delivery services will become common
Physical retail still exists but not as we know it
Biometrics Technology innovation to rise 50%
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12. Consumer of the future –trends
Marketing will shift from device-focused to people-focused
Only a handful of companies are able to effectively leverage customer data across devices and
platforms today.
In the future, marketers will prioritize their spend to enable them to understand how consumers
are moving across devices, platforms and publishers to consume information. Consequently, we
will start to see more evidence of true people-focused marketing.
Organizations need to restructure their marketing teams to fully understand consumer intent
and to look beyond.
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13. Consumer of the future –trends
Instant delivery services will become common
Order accomplishment will be a biggest focus for sellers in future, with many offering delivery
options. Both online and brick and click retailers will be trying this strategy through specialized
third parties, robots and drones etc.
Brands including Amazon are all spending in advanced ways to make delivery cheaper and more
convenient. Supermarkets are also experimenting with click and collect lockers at underground
stations.
Look to same-day delivery – or even faster and that is the future. Basically there is one thing
shaping the future of Ecommerce and retail: the desire for accessibility
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14. Consumer of the future –trends
Physical retail still be present but not as we know it
In the future retail store will evolve and do road-shows of new products or their brands with
event-driven pop-ups. Nespresso, which makes premium coffee capsules and machines, is a
master of the pop-up boutique model.
While pop-ups have often been confined in the past to vacated space and therefore less-
premium locations, in the future, I foresee pop-ups occupying more desirable locations to satisfy
manufacturer demands and get closer to the consumer.
I see the future of physical retail flourishing through the Connected Store model: small-format
spaces with little to no inventory in-house and a digital infrastructure that informs and
entertains shoppers.
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15. Every online business wants to reinforce their platform to provide a safe shopping experience to
the end consumer, that’s why I think in future there will be new strategies in Biometric
technology.
The ability to pay from the comfort of your home through credit cards or any other payment
gateways has made the eCommerce world more vulnerable to fraud and identity theft. Hackers
gather personal and financial information of consumers, breaking passwords, getting illegal
access to accounts and forging identities which discourage people from paying for goods and
services online.
To lower the risks associated with an online store, biometric technology has replaced
conventional identity verification. In my mind the future of Ecommerce depends a lot on safe
and secure form of biometric verification methodologies and it will rise by 50%.
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Consumer of the future –trends
Biometrics Technology innovation to rise 50%

16. Other speculations
Google VS amazon – who will be the biggest
Multi-Channel Shopping May Make or Break the Businesses globally.
Connecting with Customers Through Social Media is Not Enough
Online Loyalty Programs Continue to Grow
Human Online Shopping Concierges
360-Degree Customer Engagement
Skin is the new interface
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17. References
Forbes website
Accenture reports on future of e commerce
Cnbc websites
Business wire and business insider
Google websites
Delliote reports
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18. The end
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