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Over the past two years, the entrepreneurial landscape has undergone significant changes, and those leading young businesses have had to confront uncertainties and work hard to overcome these challenges.
You might be feeling a bit lost at the beginning of 2024. If that’s the case, know that you are not alone, and there are numerous solutions available to help you grow your business.
As an entrepreneur, you are probably well aware that the most valuable tool at your disposal is information. Whether it’s how other businesses are ensuring their survival or how customers want to make their purchases during this time of change, staying informed is crucial.
That’s precisely why we have compiled all the data we obtained from online and physical retail players and consumers in our annual report, “The Future of Commerce Trend Report 2024.” It is from this valuable source of information that we have identified 10 key trends for small businesses that, in our opinion, should be closely monitored in the coming year.
A marketing trend: what is it?
A marketing trend refers to a noticeable and easily observable change in consumer behavior. It indicates the direction in which customer expectations and behaviors are evolving, as well as the new approaches that businesses are adopting to attract and engage their audience.
Marketing trends can impact one or more industries and can stem from a variety of sources.
Here are a few examples of recent market trends:
- Wellness, including well-being and self-care.
- The rise of remote work.
- The adoption of a nomadic lifestyle.
These trends affect multiple sectors and are influenced by current events, such as the COVID-19 pandemic, as well as technological advancements and contemporary pop culture.
How to conduct an analysis of market trends, despite their constant evolution? There are several techniques for analyzing market trends in the field of commerce in 2024.
Begin by monitoring specialized media and reviewing research reports and market studies from institutions such as McKinsey or BCG. This will help identify new technologies, changes in customer behaviors, regulatory shifts in various sectors, and emerging trends.
Additionally, analyze your own data and historical records gathered during marketing campaigns, including sales figures, performance metrics, and customer feedback. Utilize these analyses to assess both quantitative and qualitative data for detecting emerging trends and identifying evolving consumer needs.
Engage your teams and collaborate with experts to gain diverse perspectives on market developments. Be prepared to adapt your strategy promptly based on the trends you’ve identified!
1. Prioritize the Customer
Experience If you’ve read some of our articles before, you’re likely aware that we consistently emphasize the importance of making customer experience a top priority for merchants. It’s no secret that when a customer is satisfied with their experience, throughout their customer journey with a brand, they are more likely to trust the brand for future purchases.
Therefore, it comes as no surprise that the eCommerce Market Credibility study conducted by Forrester Consulting on behalf of Shopify reveals that 27% of companies worldwide have made customer experience their first or second priority for 2024.
Keep in mind that a pleasant customer experience is one that is reassuring and seamless from the initial discovery of your business to the after-sales service. Thus, you should consider the entire customer journey, including website navigation, product listings’ comprehensiveness, image quality, a clear FAQ section, responsive customer support, and more, and ensure that each stage is optimized as needed.
2. Emphasize Transparency and Sustainability
This point directly follows our previous one. With fierce competition, a brand can stand out by cultivating uniqueness and transparency.
Today, online shoppers have numerous options, but they are likely to choose a brand either because they trust it, have previous positive experiences, or due to word-of-mouth recommendations.
What a consumer primarily seeks in a company, however, is transparency. Pai Skincare is a perfect example of a company that has chosen to revamp its website to highlight its values, such as using organic, cruelty-free, and vegan ingredients, and to reconsider the development of its products and packaging to align more with its commitment to offering eco-friendly and sustainably designed products to customers.
Beyond its website, the brand has chosen to openly promote its values through its newsletter and social media:
“Customers are looking for brands that align with their values. They call out complacency and demand transparency. A purchase now represents a demonstration of shared values between the customer and the brand,” explains Sarah Brown, the founder of Pai Skincare.
These common values between brands and consumers largely revolve around social and environmental ethics and sustainability. Investing in sustainability is now both an obvious choice and a necessity. According to the 2021 Shopify eCommerce Market Credibility Study, 53% of companies worldwide have embraced this issue as one of their top priorities.
Consumers are also making their voices heard in this regard, with 42% of respondents in the same study (pertaining to Europe, the Middle East, and Africa) stating that they are more likely to buy from an ethical brand.
For Leon Hughes, a partner at Piper Private Equity, a company’s ethical commitment is not only a significant factor for consumers but also for employees:
“We are seeing more and more brands making sustainability a priority. They are encouraging every aspect, even in the supply chain. It’s not just about consumer appeal but also about employee attraction. Many employees want to work for more ethical companies,” he confirms.
Of course, the most complex and sensitive aspect of eco-responsibility pertains to the logistical part. In our 2024 report on the future of commerce, you will find numerous insights on how to make your supply chain more ethical.
3. Strengthen your market share by building a community
Once again, here’s a trend that can be related to our previous two points. Creating and nurturing a community helps increase customer loyalty, enhance brand recognition, boost revenue, and significantly reduce customer support costs.
It’s no coincidence that 40% of brands worldwide have chosen to invest time and money to offer their customers new ways to interact with them. Nowadays, building a community around a brand can be done in many ways: through social media and in-person events, of course, but not limited to those—chat rooms and blockchain are also promising avenues to consider.
4. Focus on online sales (and don’t overlook marketplaces)
It’s no secret that in 2020 and 2021, the digital transformation of physical businesses proved to be a lifeline for many young entrepreneurs (the example of Yoze gyms is particularly telling). Even though physical locations have now returned to almost normal activity, online sales remain the top priority to maintain (or explore) for the majority of businesses. As evidence, according to our data, 54% of companies have chosen to focus on e-commerce in 2024.
Don’t underestimate the power of marketplaces. In fact, according to the eCommerce Market Credibility study conducted by Forrester Consulting for Shopify, 38% of consumers purchase products on marketplaces at least once a month.
5. Invest in solutions that address the primary challenges in your supply chain
The COVID-19 pandemic was a glaring demonstration that supply chain disruptions can have a significant and long-term impact, even on small businesses. That’s why many merchants (43% worldwide, according to the Shopify eCommerce Market Credibility study) have reconsidered their manufacturing and shipping strategies.
Build customer trust by making shipping faster and more transparent Here’s another example of a best practice to adopt in order to create a more seamless customer experience.
Online consumers, especially when making purchases on marketplaces, have grown accustomed to receiving clear and transparent information about pricing and delivery times. They also expect this transparency from all online stores where they make their purchases.
More than just a way to safeguard against potential large-scale problems, like what we experienced as early as 2020, reevaluating and readjusting manufacturing and shipping strategies represents an opportunity to reduce costs and improve customer service!
“Supply chains may not be the sexiest part of retail, but they are arguably the most critical part that businesses need to invest in. How you move your products around the world is a question that brands need to be getting to grips with,” says Shaun Broughton, Managing Director, Asia-Pacific at Shopify.
6. Strengthen customer trust by making shipping faster and more transparent
Here’s another example of a best practice to adopt in order to create a more serene customer experience.
Online consumers have come to expect, particularly when making purchases on marketplaces, clear and transparent information regarding pricing and delivery times. This transparency is also what they anticipate from all online stores where they make their purchases.
Of course, providing delivery conditions similar to those of large marketplaces when you are a small business is a real challenge. Nevertheless, there are ways, even for a small operation, to offer customers an optimized quality of delivery.
According to our data, businesses have identified three areas in which they aim to make improvements in the near future:
- Reducing shipping costs through free and flat-rate shipping.
- Enhancing the flexibility of shipping and return policies.
- Adjusting shipping strategies to minimize the impact of international shipping delays.
7. Simplify international shipping for your customers
This is part of the magic of online sales: allowing consumers to purchase your products no matter where they are, even on the other side of the planet. However, for consumers, the experience of buying from a store located far from their borders can be stressful and lead to many questions: how much will shipping cost? Will I have to pay customs fees? How long will my order take to arrive? How do I handle returns?
It is your role to make this experience enjoyable and reassuring by finding logistical solutions. For example, Jason Wong, the founder and CEO of the American beauty brand Doe Lashes, decided to open a warehouse in China to facilitate shipping to countries in Southeast Asia as well as Australia. He did this to satisfy his customers and reduce his carbon footprint.
Of course, there are other, less expensive ways to facilitate international shipping, and Shopify can give you a real boost in this regard.
8. Embrace an Omnichannel Strategy
The COVID-19 pandemic has profoundly changed how consumers make their purchases, and these changes serve as markers for what the retail world should expect in 2024.
Today, DNVBs (Digital Native Vertical Brands) have become so powerful that they are considering experimenting with physical commerce to offer new experiences to their customers, further intensifying the existing competition in this niche.
Consumers, increasingly demanding, expect seamless and consistent shopping experiences in both physical and online spaces. Therefore, it’s time to consider omnichannel strategies and to be creative in providing your customers with unique and unforgettable experiences.
To achieve this, you’ll need to utilize solutions such as virtual shopping, live chat, or social commerce, and consider training your employees in these new technologies.
9. Embrace “Social Commerce,” Essential in the Current Context
E-commerce is evolving, and every company looking to compete in the increasingly crowded marketplace must be capable of adopting any emerging trend in online sales.
Trends to seriously consider for 2024 are undoubtedly “social commerce” and “live shopping.” The numbers speak for themselves: “social commerce” is set to grow in the market. In fact, more than a third of Facebook users plan to make a purchase directly on the platform in 2024, and the competition is already intensifying, with 49% of brands planning to increase their investments in “social commerce” in 2024. Moreover, “live shopping” is gaining ground, with a 61% increase in the installation of live-streaming shopping applications worldwide between January 1, 2021, and September 30, 2021, compared to the same period in 2020 (Shopify’s internal data).
10. Enhance Employee Working Experience
Consumers have become increasingly demanding when it comes to customer service, so it’s essential to ensure that your employees meet these expectations. For a better customer experience, you’ll need to create a better employee experience.
This is what the company UNTUCKit chose to do, and over the course of 10 years, the company expanded to 80 locations, in part due to its recruitment and employee experience approach:
“It’s no secret that it’s been challenging to hire and retain talent in retail. We adapted our approach to recruitment. Our experience has transformed into an omnidynamic approach. Our employees must be comfortable with our way of working. We also adjusted our bonuses to reflect associates’ omni performance, so the employee is rewarded for their sales, no matter the platform,” explained Christy Farr, UNTUCKit’s Senior Director of Stores.
To learn more about UNTUCKit’s story and how they approach employee experience, feel free to take a look at our report.
Merchants, set out to conquer 2024!
As an entrepreneur, you know better than anyone that to navigate your journey, you must be adaptable, willing to start over, and committed to continuous improvement. By keeping these 10 trends for small businesses in mind, you’ll be able to chart your course for 2024. Take the time to ask the right questions and explore our report “The Future of Commerce Trend 2024” to make this year one of accomplishment and success.
Shopify’s “The Future of Commerce Trend 2024” report is based on data from the Shopify platform, supporting millions of Shopify merchants in the United States, Canada, Asia-Pacific, Europe, and the Middle East.
