E-commerce Trends in 2024 for Businesses

The global e-commerce landscape is continually evolving, driven by technological advancements and changing consumer behaviors. In 2024, this sector is expected to become even more dynamic, with innovations and trends such as AI personalisation in e-commerce, mobile and social commerce, as well as sustainability taking centre stage. 

Specifically in Sri Lanka, the transaction value in the digital commerce market is projected to reach US$4.61bn in 2024. That means for Sri Lankan businesses, staying ahead of these trends is crucial to competing effectively in both local and international markets. 

Sri Lanka's digital economy is on a robust growth trajectory, with a significant increase in online shoppers and digital transactions, and with that a sharp rise in online shopping trends. Understanding and implementing these e-commerce trends can help e-commerce businesses in Sri Lanka enhance customer experiences, streamline operations, and expand their market reach. Here, we delve into the top five e-commerce trends in Sri Lanka for 2024. 

Trend 1: Increased adoption of AI and machine learning 

AI and machine learning are revolutionising the e-commerce industry by providing deeper insights into customer behaviour and preferences. These technologies enable businesses to offer personalised experiences, automated customer service experiences, and can even help optimise inventory management.

AI and machine learning applications in Sri Lanka

• Chatbots: Leveraging AI-powered chatbots can significantly improve customer service by providing instant responses to queries and handling common issues efficiently.
  
• Personalised Shopping Experiences: AI programmes can analyse customer data to offer tailored product recommendations to each person's wants or needs, enhancing the shopping experience and boosting sales.
  
• Inventory Management: Machine learning algorithms can predict demand patterns, helping businesses maintain optimal inventory levels and reduce stock outs or overstock situations.

Trend 2: Mobile commerce dominance 

With the proliferation of smartphones, mobile commerce (or ‘m-commerce’) is becoming increasingly important. In 2024, mobile-friendly websites and apps are essential for capturing the growing number of mobile shoppers.

The proliferation of mobile payment solutions in Sri Lanka

Mobile payment solutions are gaining traction in Sri Lanka, providing a convenient and secure way for customers to transact online. Businesses need to ensure their e-commerce platforms support various mobile payment options to cater to this trend.

• Mobile-Friendly Websites: Ensuring your website is optimised for mobile devices can enhance user experience and increase conversion rates.
  
• Mobile Apps: Developing dedicated e-commerce mobile apps can provide a seamless shopping experience, with features like push notifications for promotions and personalized offers.

Trend 3: The expansion of social commerce

Social commerce involves e-commerce integration directly into social media platforms, allowing users to discover and purchase products within the apps they use daily.

Successful social commerce initiatives by Sri Lankan brands

Several Sri Lankan brands have already begun leveraging social commerce to reach their target audiences more effectively.

Case study: Daraz

In 2023, Daraz, a leading online marketplace, released ‘MyBiz’ - a social commerce mobile app that empowers small and medium-sized businesses by providing them with tools to effectively sell and manage their products online. The app offers features such as inventory management, order processing, and performance analytics, all accessible from a mobile device.

A key feature of MyBiz is its seamless integration with social media platforms, which allows businesses to reach a wider audience and engage with customers directly through social channels. This integration simplifies the e-commerce process, making it easier for businesses to thrive in the digital marketplace by leveraging the power of social networks as part of their e-commerce strategy.

MyBiz has benefitted Daraz by broadening its ecosystem with more small and medium-sized businesses, thereby boosting product variety and consumer satisfaction. This expansion drives increased revenue through commissions and fees, while the social media integration enhances site traffic and sales potential by tapping into the vast user bases of platforms like Facebook, Instagram, and others.

Trend 4: Focus on sustainability and ethical consumerism 

Consumers are increasingly prioritising sustainability and ethical production practices in their purchasing decisions. This trend presents both a challenge and an opportunity for Sri Lankan businesses.

How Sri Lankan businesses can promote sustainability 

• Showcase Sustainability Efforts: Transparently communicate your sustainable practices and certifications, and highlight eco-friendly products and ethical sourcing in your marketing campaigns.
  
• Sustainable Packaging: Invest in biodegradable or recyclable packaging materials to appeal to environmentally conscious consumers.

Tend 5: Cross border e-commerce growth 

The global marketplace offers immense opportunities for Sri Lankan businesses to expand their reach beyond local markets. However, cross-border e-commerce also comes with its own set of challenges.

Opportunities and challenges with cross-border e-commerce

• Opportunities: Access to a broader customer base, increased revenue potential, and diversification of market risks.
  
• Challenges: Navigating international shipping logistics, understanding different regulatory environments, and managing currency exchange risks.

Tools and platforms to facilitate cross-border transactions

• E-commerce Platforms: Utilise platforms like Shopify, WooCommerce, and Magento that offer built-in tools for managing cross-border transactions.
  
• Payment Gateways: Ensure you have payment gateways that support multiple currencies and international transactions.

Embrace the future of e-commerce

As the e-commerce landscape evolves, the e-commerce market in Sri Lanka must adapt to stay competitive too. By adopting trends like AI-driven e-commerce for personalised shopping experiences, focusing on mobile and social commerce platforms, prioritising sustainability, and exploring cross-border growth, Sri Lankan businesses can unlock new opportunities and achieve long-term success. Stay ahead by keeping an eye on these trends and implementing the right e-commerce strategies to navigate the dynamic market of today.

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