MENU
Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Whatever product or service you sell, you must stay on top of consumers' shopping behaviors.
Many of today’s retail options are online only or have an online component. Entrepreneurs in both the e-commerce and brick-and-mortar spaces must understand how this shift affects consumer expectations and loyalty so they can target and serve customers effectively.
As online retail continues to grow in popularity and strength, entrepreneurs must stay aware of current online purchasing habits and trends and understand what these tendencies mean when pinpointing their target audience.
Editor’s note: Looking for an e-commerce website design service for your business? We can help you choose the one that’s right for you. Use the questionnaire below to receive information from a variety of vendors for free:
According to U.S. Census Bureau data, in the first quarter of 2024, e-commerce comprised 15.9 percent of total sales. This number is expected to grow, so it’s essential for online retailers to maximize consumer interests and tendencies to accommodate their needs and boost sales.
Here are nine vital online purchasing habits and trends online sellers must consider.
Consumers expect companies to know their preferences and understand their behavior — and they want sellers to keep that information in mind when communicating with them.
It’s crucial to send your subscribers relevant, personalized offers to boost sales — and not annoy them. In a recent report from Wunderkind, more than 83 percent of consumers surveyed said they are very or somewhat likely to buy after receiving brand communication highlighting the exact products they’ve recently browsed for. Additionally, more than 52 percent became frustrated when they received irrelevant communications, and 41 percent were less inclined to shop with brands that didn’t deliver personalized communications.
To boost personalization efforts, consider the following:
Amid stiff competition and high expectations, customers have more power than ever. Online retailers must do everything possible to earn and keep consumers’ business. Consider the following ways customers are in control:
Online retailers must earn an excellent reputation through customer satisfaction. To do this, take the following actions:
According to DataGrail’s 2024 Data Privacy Trends Report, businesses have seen a 246 percent increase in privacy requests from consumers since 2021, including requests to delete data, not sell their private information, and opt out of data collection measures. Additionally, 85 percent of consumers in a McKinsey study said knowing a company’s data policies is important before making a purchase. Nearly half (46 percent) said they often or always consider switching to another brand when data policies are unclear or aren’t divulged.
As much as the online environment provides opportunities to collect data and information on customers’ preferences, likes and dislikes — and to enable customization and personalized experiences — taking customers’ privacy concerns seriously is critical. Never sell customer email addresses, don’t spam them, and ensure you manage their data securely.
Online shoppers want a quick and easy checkout process. Here are a few ways to accomplish this.
Today’s online customers are more aware of the effects of their purchasing decisions on the earth’s resources. According to the Sustainable Consumer 2023 report, 30 percent of respondents say they’ve stopped buying certain products because of ethical or sustainability concerns. In fact, 61 percent of U.S. consumers say sustainability is essential when deciding to buy a new product, and a quarter of consumers say they’re willing to pay more for sustainable products and services.
Implementing low-waste business practices, non-polluting manufacturing, and biodegradable packaging shows customers you care about sustainability. Telling customers about your sustainable practices (green marketing) may help drive targeted audiences to your site and increase customer loyalty. For instance, consider letting customers know you use eco-friendly packaging and sustainable items in product manufacturing. In many instances, green business practices, such as solar power, can save you money.
Emarketer says 110 million Americans will engage in social commerce in 2024, which is an astounding 42 percent of all internet users and 50.3 percent of all social media users. According to Salesforce’s Connected Shopper report, many social media shoppers use top platforms (Instagram, Facebook and TikTok lead the way) to discover and research new products (50 percent), but a considerable number (59 percent) make direct purchases from their social media accounts.
Social media shopping is an online purchasing habit that’s here to stay. In fact, it will likely accelerate dramatically as social platforms assuage shoppers’ fears about data privacy.
Salesforce’s Connected Shoppers Report also revealed nearly a quarter of respondents used voice assistants for purchasing. The predominant voice assistant for shopping is the ubiquitous Echo device’s alter ego, Alexa. Because it’s an Amazon product, Alexa is tied to users’ Amazon accounts, complete with their purchase history and payment methods. More and more, Alexa plays ads and makes product selections, to which a user only needs to say “yes” to place an order.
Other voice assistants are behind in the direct purchasing function, but Apple’s Siri and the Google Assistant are also commonly used to research products for purchase.
Shoppers often use multiple methods to research purchases, including browsing in-store, visiting company websites, using social media and examining third-party marketplaces like Amazon. Brands must accommodate this online purchasing habit by establishing a presence on their customers’ favorite platforms and unifying their back ends so consumers can pick up where they left off on another platform. It’s crucial to provide consistent shipping, customer service, and shopping functionalities across all touchpoints.
Artificial intelligence is transforming industries, and online shopping is no exception. Some e-commerce companies use AI chatbots to answer shoppers’ questions and make recommendations. Still, AI’s primary use currently is behind the scenes, helping retailers write product descriptions, generate e-commerce pages, analyze data, discover buying trends and create highly personalized communications.
However, businesses must be mindful of wary consumers’ attitudes toward their AI usage. According to the 2024 KPMG Consumer Pulse Survey, many consumers aren’t aware companies are using AI to track their online activity. Of those who are aware, only 29 percent are OK with AI analyzing their personal data, while 47 percent say they’re actually uncomfortable with it. Consumers may embrace the AI trend in online shopping, but only if businesses ensure data security and transparency when using AI.
When setting up an online store, you need an e-commerce platform with easy setup, attractive and varied templates, inventory management, shopping carts, payment gateways, shipping functionality and marketing tools. Here are some of our top choices for e-commerce platforms and shopping cart software that can help you capitalize on consumer purchasing trends.