November 21, 2018

When it comes to e-commerce, it seems like one day you are in and the next you are out. With online shopping now more accessible than ever, customers are steadily becoming harder to please, considering it a given that their rising expectations are met every time. Just having an online version of a physical store isn’t enough anymore, as consumers don’t just want to grab and go, they want their shopping to be an experience in and of itself: interactive, immersive, and enjoyable.

So it’s to be expected that trends in e-commerce will continue to shift, fueled by consumers’ desires and taste. Below is a list of trends that will change the way e-commerce operates in 2019:

E-commerce with Interactive Product Visualization

Most would agree that, when it comes to online shopping, illuminating visualization is the best way for merchants and marketers to present their products to consumers so that they can study every detail and make an informed purchase decision without regretting it afterwards.

In addition, one of the obstacles between consideration and purchase is consumers’ uncertainty about product authenticity, especially when it comes to the luxury segment. Since customers can’t physically touch the item they’re considering, their hesitation can only be overcome by presenting them with high quality images of products displayed in as many angles as possible.

Consequently, the seamless zoom feature has become very popular lately, as it allows customers to zoom in on certain details and to get a better feel for the product without actually touching it. Still, even after implementing zoom and making sure that photos are of high enough quality to withstand being magnified, and do not take too long to download (that can result in a drop-off rate of 39%), a retailer can still take it a step further.

To enhance the online shopping experience, merchants can also consider using demo videos to show products in action. According to a recent poll, 52% of consumers say that watching product videos makes them more confident in online purchase decisions.

3D imaging is another option, and often the best choice from a visual perspective. American Greetings, a creator and manufacturer of social expression products and the leader in e-greetings, looked at every visualization option and, in addition to high quality photos, now also presents the site visitors with 3D images. Considering that reenacting the in-store experience for greeting cards online is almost impossible with the current visualization tools available, for American Greetings, 3D product imaging has solved a major problem. Glitter, foil, embossing, and other attachments are quite common with greeting cards, and it can be difficult to appreciate these features with traditional 2D photography.

It’s only recently that current 3D technologies have advanced enough to be able to process product features that not so long ago were considered out of reach: black, shiny, and glossy objects such as silks, leathers and jewelry items, anything transparent, unusually shaped or textured, all that is now no obstacle.

Increased customer engagement is not the only benefit of 3D product imaging, as it also boosts metrics that are far more tangible, with conversion rate being a prime example.

With 3D product imaging, TSUM, one of the largest luxury goods department stores in Eastern Europe, managed to increase its conversion rate by almost 40% for products in the shoes and bags categories. TSUM is the first company to have digitized over 40,000 products in 3D. This case study proves that it is possible to digitize large numbers of stock keeping units (SKUs) in a reasonable timeframe with the right tools.

To sum up, with a combination of 3D view, seamless zoom feature and limitless configurations option, online shopping is bound to transform into a futuristic experience and exceed the highest of customer expectations in 2019.

Artificial Intelligence Solutions for E-commerce

As of now there’s little to no doubt that the future of e-commerce lies with artificial intelligence (AI). From personalised 3D avatars and virtual fashion advisors for increased interactivity to AI-gathered never-seen-before data for boosting sales – AI is at the helm of an e-commerce revolution.

In order to avoid confusion, let’s separate more hands-on use cases for AI in e-commerce (virtual style assistants and immersive try-it-on sessions) from those related to data (product management and marketing insight gathering).

Remember the character Cher from the movie “Clueless”? She had her computerized ultimate virtual wardrobe assistant armed with yellow checkered outfits…seeing the program instilled pangs of envy into the hearts of many teenage viewers of the film.

With the help of AI, though, such an experience is closer than ever. The Echo Look, Amazon’s pilot of a “fashion assistant,” was recently introduced in the U.S. to a limited audience. The program analyses the user’s outfit through a combination of algorithms and human stylist insight and passes on its’ fashion judgement. Net-a-Porter, an e-store offering designer fashion, is now experimenting with technology that scans user data for planned trips and events, and then offers ad hoc style options.

Virtual fashion assistants still have a long way to go but what was considered fiction just a few years ago is now becoming very real.

As business decision making becomes steadily more data-driven, demand for measurable metrics is higher than ever. Conversion rate, website traffic and customer engagement levels are important guides for marketers in all industries, yet some don’t even realize they have need of previously non-existent data that is now available.

AI analytics tools of 2019 will be able to track the way potential customers interact with product imagery embedded into retailers’ websites, be it 2D or 3D images, and present the most telling metrics on a heat map. Apart from dwell time the tool will highlight points of customer interest and the best angles for thumbnail product positioning.

With the insights gathered by AI, e-commerce merchants will be able to improve product visualization, choose winning color combinations, and put bestsellers at the forefront of their offerings. For instance, say that 70% of a product page visitors spent the lion’s share of dwell time examining the clasp on a certain jewelry item or zoomed in to see the stitching of a particular dress. To an aggressive marketing team, this type of data could prove invaluable.

Information like this is completely new to the market, and according to Smart Data Collective the way retailers track their inventory and consumer interest will soon be revolutionized with the help of AI. Keeping in mind ever-growing consumer expectations, “soon” is actually now.

Renaissance of Physical Stores

It is true that when it comes to the future of e-commerce the only direction that retailers want to go is forward, and brick-and-mortar stores seem to be a thing of the past.

Yet, for some consumers, nothing e-commerce has to offer can quite measure up to the physical in-store experience. In fact, leading global retailers like Amazon and Alibaba are now experimenting with the newly revived power of hands-on shopping.

In fact, Amazon recently opened a new retail store in New York offering a range of products that have a four stars in their customer reviews. The items selected are bestsellers and directly reflect what customers are buying.

“Amazon 4-Star” turns traditional shopping on its head by replicating the virtual within the physical instead of vice versa. Copying the structure of the Amazon website, the store has products organized by headings already known to online shoppers such as “Trending Around NYC,” “Frequently Bought Together,” and “Amazon Exclusives.”

Alibaba Group also seems to believe in the renaissance of physical stores as it recently debuted its first “FashionAI” concept boutique in Hong Kong.

The store displays a selection of Guess apparel with the help of “smart mirrors,” which display product information on a special screen while shoppers are examining the items. The smart mirror also points to where the garments in question can be found while also diplomatically admitting it doesn’t know who’s the fairest of them all. It’s definitely a very smart mirror.

Another way to bring the digital shopping experience inside physical stores is digital signage.

While digital kiosks aren’t unknown to brick-and-mortar retail, digital signage, in 2019, will be able to offer additional interactivity, increased engagement levels and seamless omnichannel experience as any product visualization available to websites will also be able to be used for digital installations.

Interactive kiosks feature a variety of products offered by the store and, depending on the Digital Signage software provider, introduce different ways of storytelling: some show branded films while others focus on 3D product imaging, both are interactive, yet as always, it’s up to the customers to decide which approach works better for them.

Besides improved product visualization, next year digital signage will allow for browsing goods which are not available in stores, getting a purchase code and ordering home delivery – just about any relevant scenario will be possible.

As both SMB and enterprise retail are largely going digital, brick-and-mortar stores might have been expected to take a backseat. However, the retail market rarely reacts the way it’s expected to, and the recent renaissance of in-store shopping confirms this.

The Bottom Line

Improved product visualization, AI for both in-depth analytics and boosting engagement levels, and revival of the physical store are the e-commerce trends to keep up with in 2019. These trends, when assembled together, form a solid foundation for a holistic business strategy meant to boost sales and pave the way for brand innovations and a futuristic yet satisfying customer experience.

Kosta Popov, CEO of Cappasity — the company providing an easy and scalable platform for creation, embedding and analysis of 3D and AR/VR content. Under Kosta’s lead, Cappasity successfully raised $4.9M and launched its platform and 3D digitizing software in 2017. Kosta is an expert in 3D technologies one of the top innovators of 2016 by Intel Software.