During the past decade, digital commerce has evolved from basic online transactions to more immersive and personalized experiences. After surpassing $5.8 trillion in global retail e-commerce sales, Statista estimates the industry is poised to scale $8 trillion before 2027. This growth is supported by robust technological advancements. Innovations like AI-driven personalization, voice-activated shopping assistants, and AR/VR try-ons are rapidly becoming the expectation. As we approach 2025, these technologies, combined with sustainability and ethical practices, are fundamentally reshaping the shopping experience.
What does this mean for consumers and businesses? This blog explores the key trends shaping the future of how we shop and connect with brands, and how forward-thinking companies like Persistent are expertly harnessing these innovations to revolutionize the digital commerce landscape.
Making Shopping Personal: The Power of Hyper-Personalization
Hyper-personalization enables online stores to align offerings closely with customer preferences. Using AI and data analytics, brands can create tailored experiences. Think about how Netflix recommends shows based on your viewing history or how Amazon suggests products you might like based on past purchases.
However, customization comes with challenges. The “paradox of choice” suggests that too many options can overwhelm consumers, leading to decision fatigue and abandoned purchases. An influential study from the Journal of Personality and Social Psychology found that consumers were 10 times more likely to purchase when offered six choices instead of 24. This is where new and emerging AI tools are helping companies understand customer behavior, create meaningful connections, simplify decision-making, and deepen customer loyalty. Conversational AI in particular can effectively streamline the purchasing process and make experiences much more interactive.
‘Hey, Alexa, Let’s Shop!’: The Rise of Voice Commerce
Voice commerce provides convenience, such as reordering essentials with simple voice commands. Instead of stopping to type out an order, you say, “Hey, Alexa (or your device of choice), reorder olive oil,” and it’s on the way. Voice-activated shopping is becoming increasingly common thanks to devices like Amazon Echo and Google Home. Compared to traditional online shopping, voice commerce ranks higher in convenience (hands-free and multilingual), accessibility (inclusive of diverse shoppers), speed (speaking is faster than typing), and personalization (teachable AI).
Unsurprisingly, a recent study confirms that conversational commerce channels will facilitate more than $290 billion globally in spending by 2025. More brands are likely to optimize their content for voice search to reach customers wherever they need it. But convenience doesn’t stop with voice commands; it’s also about immersing yourself in the shopping experience before purchasing.
Experience Before You Buy: AR and VR Transforming Shopping
AR and VR technologies now allow customers to try on clothes or visualize furniture in their spaces. Companies like IKEA use AR to let customers visualize furniture in their space, while Sephora’s Virtual Artist app allows users to try makeup virtually. Another case in point is Stitch Fix, the San Francisco-based online personal styling service that uses recommendation algorithms and data science to take the guesswork out of finding the perfect outfit.
From just 1% of retailers using AR in 2020, AR/VR tech adoption is expected to surge significantly. According to a Statista study, by 2025, more than one-third of US shoppers will have used AR-powered technologies when buying products online. These technologies enhance interactivity and mitigate the uncertainties of online purchases. This seamless integration across various platforms underscores the importance of providing a unified shopping experience, leading us to the next trend.
Seamless Shopping Everywhere: The Omnichannel Experience
Omnichannel experiences allow customers to seamlessly transition between devices and in-store shopping. Brands like Starbucks excel at this by syncing their app with in-store purchases, offering rewards, and providing a consistent experience (and the company is planning app changes in response to customer feedback). Shifting from a secondary feature to a critical differentiator, a McKinsey study reveals that omnichannel customers shop 1.7 times more than those who use a single channel. After all, more than half of B2C customers engage with three to five channels each time they purchase or resolve a request.
Consumer expectations extend beyond convenience— they also seek alignment with their values, especially sustainability.
Shopping with Purpose: The Shift Toward Sustainable Commerce
Enterprises must now consider sustainability as an essential factor alongside purpose and profits. With the growing sensitivity around sustainability, consumers care about how their products are manufactured, including the green and ethical processes involved. Brands like Patagonia and TOMS have built their identities around sustainability and ethical practices. Nielsen reports that 66% of global consumers are willing to pay more for sustainable goods. Businesses can enhance their appeal by adopting eco-friendly practices and demonstrating transparency. Even with personalized and ethical shopping experiences, the final hurdle is ensuring the payment process is smooth and secure.
Payments Get Personal: Smarter and More Secure Options
Offering flexible and secure payment options is crucial for reducing friction at checkout. From mobile wallets like Apple Pay to cryptocurrencies and biometric verification, payments are increasingly centered around enhancing convenience and ensuring security. According to the recent Worldpay Global Payments Report, by 2027, digital wallets are projected to account for more than $25 trillion in global transaction value (or 49% of all sales online and at POS combined). Moreover, innovations like Amazon’s “Just Walk Out” technology, allowing customers to shop without traditional checkouts, are leading the way.
Embrace the Future of Digital Commerce
Digital commerce offers significant opportunities for innovation and growth. It’s about creating personalized, seamless, and ethical shopping experiences that meet customers where they are. Persistent supports businesses in navigating these trends through advanced digital commerce solutions. Whether it’s leveraging AI for personalization or integrating AR/VR technologies, we’re here to build the future of commerce together. Are you prepared to take the next step in this evolving landscape? Contact us today.
Author’s Profile
Padmanabhan Venkatesan
Senior Vice President & General Manager, Consumer Tech
