E-commerce is booming – in Germany too. But as it grows, so does the competition! To ensure you don’t lose out, it’s crucial to be aware of the latest trends. In this article, I present five trends that will shape online retail in 2025. Not only will you find out how the market is developing, but you’ll also get specific tips on how you can get started right away!
1. artificial intelligence & automation – personalisation, customer service & co.
Artificial intelligence is the undisputed game changer of our time! The main reason for this is “generative AI”, i.e. tools such as ChatGPT or Midjourney, which can create all kinds of content. But that’s not all AI can do. There are various other exciting applications, especially in e-commerce.
Clever personalisation
One important trend is the AI-supported personalisation of your shop. The younger generations in particular expect this: 45% of millennials and Gen Z want personalised product recommendations when shopping online. This is according to figures from Statista. Modern AI systems analyse customer behaviour in real time and automatically create tailored recommendations.
An interesting example comes from US retailer Saks Fifth Avenue: the company uses 250 different data points to personalise its communication with customers. This includes information such as previous orders and browsing behaviour in the online shop. From this, the system can make predictions about customers’ interests, as CMO Emily Essner explains.
US retailer Tapestry, on the other hand, uses AI tools to dynamically adapt the language on its website. This has enabled the company to increase conversion rates and reduce abandonment rates.
Simpler examples are product recommendations. WooCommerce extensions such as this one from Woo or this one from Webtoffee help with this.
Fast customer service
The use of AI is also promising in customer service. After all, modern chatbots can answer many queries on topics such as returns or order cancellations fully automatically or give advice on product selection. This means that your customers get quick help around the clock, while your team can focus on more complex cases.
Of course, it is important that the chatbot works reliably and provides correct answers. It should therefore ideally be set up by experts.
Dynamic marketing
AI also accelerates and improves your marketing. The market for AI-supported copywriting, for example, is set to grow to 6.5 billion dollars by 2030. Tools such as Anyword or Jasper create product descriptions, advertising copy and social media content for you.
AI is also getting involved in product photography. AI tools such as Midjourney or Ideogram can automatically generate images or adapt existing photos and change backgrounds or models, for example. Major brands such as Levi’s are testing this technology to make their product photos more diverse. One example of a provider of such services is the start-up Lalaland.ai from Amsterdam.
These tools do not replace professional product photos. But they will help you to make your visuals more interesting and varied.
How to get started with AI
The best way to integrate AI into your shop is to take a step-by-step approach. Start with an area where you can achieve success quickly, such as customer service or personalised product recommendations.
Keep in mind: AI is a tool, not a panacea. It should support your team, not replace it. Human control and customisation is still necessary, especially when creating text or generating images. Used correctly, AI will make your shop more efficient and customer-friendly.
2. augmented reality (AR) shopping
Augmented reality has been hyped for a long time and is now ready to truly revolutionise e-commerce. Almost 1.8 billion people now have AR-enabled devices – usually in the form of smartphones. This may not be as fancy as an Apple Vision Pro or Meta’s AR glasses prototype Orion. But it is already available today: 51% of smartphone users:inside have used AR while shopping this year.
At the same time, 61% of consumers say that they prefer shops with AR functions. Around 91% of Gen Z have a “strong interest” in AR shopping. More importantly, 40% of all consumers are willing to spend more money if they could experience and customise products with AR beforehand.
Bloomingdale’s provides a practical example: the retailer sent out AR-enabled catalogues in which customers could see the clothing in motion on virtual models. The campaign achieved an impressive conversion rate of 23%.
Walmart also uses AR and offers virtual try-ons for blusher, eye shadow, lipstick and bronzer in its app.
Other examples include Apple’s online shop and IKEA’s “Place” app.
AR can ultimately help you solve the biggest problem in online retail: customer uncertainty when making a purchase. Whether clothing, furniture or cosmetics: if your customers have a better understanding of what a product looks like in reality, the chance of a successful sale increases, while the risk of returns decreases.
How to get started with AR
The biggest challenge at the moment is to create or find suitable 3D models. Here it is worth enquiring directly with manufacturers to see if they provide the relevant files.
Once this has been achieved, there are suitable extensions for WooCommerce, for example. These include AR for WooCommerce, CartMagician Pro and WooCommerce Augmented Reality.
3. sustainability and eco-friendly shopping
Sustainability and ecological behaviour have long been more than just a trend – they are shaping the mainstream in a positive and forward-looking way. A whopping 74% of US consumers favour sustainable products and suppliers. According to a study by KcKinsey and NielsenIQ, 68% of consumers are also willing to spend more money on sustainably manufactured products.
Packaging is a particularly important aspect. An exemplary visualisation makes the urgency of this point clear: in the USA alone, a road between New York and Los Angeles could be paved with four months’ worth of cardboard packaging – and it would be a mile wide. Up to 31% of these materials are not recycled.
The good news: your customers honour sustainable packaging solutions. 82% are willing to pay more for it. At the same time, 63% are less likely to buy from brands that use environmentally harmful packaging.
How to get started with sustainability
The path to greater sustainability starts with small steps. Start with the packaging, because this is where you can quickly achieve visible success. Pay attention to this:
- Recyclable or compostable materials
- Minimisation of packaging waste
- Reusable solutions
- Climate-neutral shipping options
The right communication is also important: be transparent about your sustainability efforts, but don’t fall into greenwashing. Sooner or later, this will come to light and ruin your reputation – permanently.
4. social commerce & live shopping
In 2023, social commerce already generated a turnover of 571 billion dollars. This is set to rise to over 1 trillion dollars by 2028. Breathtaking figures.
This doesn’t just mean that your online shop gains new customers via social networks. Rather, it is about shopping directly on the social web without leaving the respective platform.
Facebook currently dominates social commerce with an expected 67.8 million buyers in 2024. Instagram follows with 45.3 million, while TikTok is expected to reach 35.8 million.
Live shopping is also an exciting trend. In China, the turnover from this was already 500 billion dollars in 2022. In the USA and elsewhere, it is still significantly smaller. Probably not for long: TikTok, for example, launched TikTok Shop for all US users in September 2023. Customers can now shop directly from live videos or via the “Shop” tab.
And last but not least, the topic of social media always includes influencer marketing. However, this is currently facing challenges: According to a survey, 90% of respondents no longer trust the recommendations of such users. It is therefore more important than ever to take a close look when selecting influencers. The closer the offer or product matches the person’s other content, the better.
How to get started with social commerce
Your entry into social commerce should be strategically planned. Start by focussing on one or two platforms on which your target group is particularly active. Forecasts show that TikTok alone could gain 15.8 million new social shopping users by the end of 2026.
Also pay attention to these points:
- Create authentic content instead of obvious advertising
- Use the integrated shopping features of platforms such as TikTok Shop or Instagram Shopping
- Experiment with live shopping events
- Focus on long-term partnerships with suitable influencers
5. omnichannel shopping
Your customers increasingly expect to be able to shop anywhere and at any time – whether sitting at their computer, on their smartphone or in a shop. They want to be able to switch seamlessly between the different channels without any loss of information or disruption to their shopping experience. Welcome to the world of omnichannel shopping, also known as “Retail Everywhere”.
Mobile commerce is an important driver here. By the end of 2023, 43% of all e-commerce sales were already being processed via mobile devices. By 2025, this area is expected to reach a turnover of 710 billion dollars in the USA alone. According to experts, this is far from the maximum, as it is expected to reach 856 billion by 2027.
Mobile also plays a key role in bricks-and-mortar retail: almost 75% of customers use their smartphone while shopping in-store – whether to compare prices, scan QR codes or read product reviews.
The change is also reflected in the preferred payment methods. Half of all e-commerce transactions worldwide are already carried out via digital wallets such as Apple Pay, Google Pay or Shopify Pay. The curve continues to point upwards.
Buy Now, Pay Later (BNPL) is also becoming increasingly important: 40% of online consumers already use this option. By the end of 2025, the BNPL sales volume in the USA could rise to almost 128 billion dollars. In 2020, it was still around 17 billion.
How to get started with omnichannel shopping
Start with a thorough analysis of your current channels and the needs of your customers. After all, omnichannel doesn’t mean being everywhere. It means being where your customers are and offering them an outstanding, consistent shopping experience.
If you use WooCommerce, the official extensions from TikTok, Facebook or Pinterest will help you to link your online store with the shopping functions of the platforms.
Then pay attention to the following points, among others:
- Standardised product information across all channels.
- Consistent prices online and offline.
- Flexible delivery and collection options.
- Cross-channel customer service.
- Synchronised customer data and purchase history.
Even more e-commerce tips
In our e-commerce category you will find many more exciting articles on the topic of e-commerce – from the perfect product detail page to the WooCommerce tutorial.
Conclusion
The German Retail Association has forecast e-commerce sales of 87.1 billion euros for 2024. This is an impressive sum and emphasises how important this channel has become. At the same time, however, it is clear that there has been no significant increase since 2021. The long phase of growth therefore seems to be over.
As an online retailer, you can no longer hope that the number of e-commerce users will increase and that you will have growing sales as a result. Instead, you are now fighting with everyone for the same big cake.
In addition to suitable offers, good service and a target group-orientated approach, it is therefore important to keep an eye on trends in e-commerce. If you recognise early on what your customers appreciate, you will secure a valuable advantage over your competitors.
Leave a Reply