Each year, InternetRetailing starts to look ahead to the coming new year in a series of forecasts. Sharon Gee, SVP and GM of omnichannel at BigCommerce, predicts the next twelve months will redefine the future of commerce, particularly for direct-to-consumer (D2C) brands.
From AI to data analytics, both retailers and customers are going to see lots of positive change, making ecommerce businesses more efficient and personalised than ever.
AI domination
We have already seen generative AI being introduced into ecommerce by brands like Amazon with tools like Rufus, the in-app chat experience as well as tools that use AI to summarise customer reviews with key points previous buyers have made in order to save potential buyers the time of scrolling through hundreds of comments.
AI-powered search and recommendations will push conversion rates and average order value (AOV) higher, making hyper-relevant shopping the new standard. This technology won’t just enhance real-time personalisation—it will revolutionise it. And brands looking to deliver experiences that meet customer expectations will be looking to leverage tools that are able to offer this on their D2C sites as well.
Data harmonisation will be non-negotiable
A unified view of commerce in retail – the combination of physical and digital stores and numerous search and social channels – will continue to evolve and develop over the next year. This strategy will remain front and centre for retailers, and, as the space continues to evolve and deepen, product data will become increasingly important. Data will need to be harmonised across physical and digital shelves in order for businesses to offer effective buy online, pickup in-store or local delivery. Accurate, synchronised data will be the cornerstone of a seamless customer experience and growth strategy.
Data harmonisation creates a common format for the catalogue across channels, allowing for accurate measurement of products, across any channel they appear on (online or instore). This allows retailers to identify opportunities and risks to make data-backed decisions. (For example, decrease ad spend on products with a high return rate or increase ad spend on products with high margin and high inventory availability).
Staying on top of local inventory
Local inventory visibility will become the ultimate growth engine for many ecommerce businesses, especially as more retailers adopt instant commerce (buy online, get your product today) models. These models, also known as quick commerce, provide fast delivery of customer purchases within hours – sometimes even minutes – of them being placed. Instant commerce has gained traction in areas that are densely populated like city centres, where existing networks and logistics can support quick deliveries.
Merchants that invest in local inventory programmes (surfacing real-time catalogue, inventory and pricing data to key advertising channels) will outpace the competition and ultimately gain market share. This will help retailers prioritise real-time visibility to meet soaring demand for both speed and convenience in urban markets.
Mastering granular data
The winners in 2025 will be those who unlock and master the power of granular shopper insights because this is what profitability will ultimately hinge on. The amount of technology involved in most ecommerce transactions nowadays – and in all the steps taken before a customer actually pays for a product –means that retailers already have the data. Learning how to tap into it and make the most of it will be key to predict, plan and personalise the customer journey and overall experience.
AI-driven analytics will become essential for optimising inventory and pricing strategies, helping merchants focus on their most profitable channels. AI outcomes are only as good as the data they are fed, so it is essential that these models are fed the largest amount of high-quality, detailed and complete data.
AI-driven customer loyalty
Over the next 12 months, customers will move away from traditional loyalty programs, in favour of AI-driven ones. AI-powered loyalty strategies will set the top brands apart and become a key driver of customer retention. Retailers can deploy AI to, for example, create personalised campaigns and product recommendations or create virtual shopping assistants and chatbots that can support customers throughout the shopping process.
Attracting and retaining customer attention and loyalty is becoming increasingly difficult, as markets are getting more and more competitive. Introducing AI for certain tasks that improve the customer experience, from chatbots to targeted marketing and predictive analytics, will be a way for retailers to make themselves stand apart from the crowd and noise. Keeping customers happy and loyal is invaluable to boost retention and maximise lifetime value in increasingly competitive markets.
2025 is going to be a very thrilling year for retail all around. Data will play a key role in a lot of the innovation in the space, both in itself and as a means to power quality AI applications. I look forward to working with ecommerce retailers across industries and supporting them in their growth journey, one happy customer at a time.
Sharon Gee, SVP and GM of omnichannel at BigCommerce
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