Competition in e-commerce technology is increasingly becoming a straight fight between the US and China, with a handful of tech behemoths dominating the market and amassing huge troves of user data. As markets in Western countries become saturated, the e-commerce giants will be rushing to grab market share in the emerging digital economies, with India and Africa as the primary battlegrounds.

Listed below are the top e-commerce technology trends, as identified by GlobalData.

Internet super-monopolies

The e-commerce sector is divided between the giant internet ecosystems and the rest. Smaller e-commerce companies face a constant battle to stop their customers from drifting towards the larger internet ecosystems. Amazon, Alibaba, Google, Tencent, and Facebook have gained such a stranglehold on global online markets that they are now virtually impossible to dislodge. Mid-sized e-commerce players will remain largely confined to their domestic markets.

Mobile payments

E-commerce-related mobile payments underpin the many different ways in which people manage their finances and conduct purchases and payments. A wide range of companies are targeting different aspects of this technology. Mobile payments in e-commerce will remain an extremely fragmented space. Within most mobile payments sub-segments a few outright leaders will dominate, while the mega-players will challenge each other for pole position in as many segments as possible. Niche specialists will also find room to thrive.

Conversational e-commerce technology platforms

Conversational e-commerce technology has emerged as an important way for businesses to interact with consumers. It allows applications, websites, and devices to become the user interface, operated through voice commands and offering a range of functions, from support to sales. Automated customer support systems and automated home technologies hold great promise, although both are still in their infancy. The accuracy of virtual assistants, particularly when faced with multiple languages, regional dialects, and slang, is a major factor holding back this market’s growth.

Social media

Social networks have moved into e-commerce via embedded click-to-buy functionality. The development of chatbots, spurred initially by Facebook, can make it easier for customers to find, review, and buy goods within social media platforms. Instagram has rolled out an in-app checkout feature for certain brands. China’s WeChat is an all-purpose messaging network hosting all kinds of services and a direct line of contact to a variety of businesses. Chatbots will not replace apps anytime soon and most people buying online will continue to do so at dedicated e-commerce sites.

Subscription purchases

Subscription-based services are a booming e-commerce segment. Companies like Harry’s and Dollar Shave Club transformed into online powerhouses capable of competing with major global brands such as Gillette. Having disrupted the men’s shaving market, both Harry’s and Dollar Shave Club were acquired in big-money transactions. We expect the same fate to befall other leading subscription start-ups.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Submit

UK USA Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos Islands Colombia Comoros Congo Democratic Republic of the Congo Cook Islands Costa Rica Côte d"Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati North Korea South Korea Kuwait Kyrgyzstan Lao Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, The Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestinian Territory Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Pierre and Miquelon Saint Vincent and The Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and The South Sandwich Islands Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates US Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela Vietnam British Virgin Islands US Virgin Islands Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Kosovo

Industry * Academia & Education Aerospace, Defense & Security Agriculture Asset Management Automotive Banking & Payments Chemicals Construction Consumer Foodservice Government, trade bodies and NGOs Health & Fitness Hospitals & Healthcare HR, Staffing & Recruitment Insurance Investment Banking Legal Services Management Consulting Marketing & Advertising Media & Publishing Medical Devices Mining Oil & Gas Packaging Pharmaceuticals Power & Utilities Private Equity Real Estate Retail Sport Technology Telecom Transportation & Logistics Travel, Tourism & Hospitality Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Verdict.

Submit and download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Ambient commerce

Ambient commerce uses a combination of sensors and AI to help customers select and pay for their goods without the need for checkouts or cash registers. This is why Amazon and Alibaba have both invested billions in acquiring stakes in physical retailers. Cashierless stores have been criticised for discriminating against poorer members of society and those without bank accounts or smartphones. As a result, some US cities have banned them, forcing Amazon to accept cash payments in some of its Go stores.

Virtual reality (VR) and augmented reality (AR)

Developments in VR technology are allowing e-commerce sites to create unique visual shopping experiences for customers. AR is also being used by brands to help customers make purchasing decisions. Since relatively few households have access to the necessary technology, VR will remain a predominantly in-store experience, used mainly by luxury retailers. We expect AR to be highly disruptive to the e-commerce market.

Online-to-offline (O2O)

O2O commerce is a business strategy that draws potential customers from online channels to physical stores. Supermarkets, department stores, and other retailers are using O2O strategies to compete with the tech sector. The two largest e-commerce businesses, Amazon and Alibaba, have responded by moving into offline commerce themselves.

Blockchain

The e-commerce market is dominated by Amazon and Alibaba. Amazon’s blockchain focus is on business-to-business opportunities. Alibaba has filed several blockchain-related patents to fight food fraud, secure medical data, and track cross-border shipments. The first fully decentralised marketplaces using blockchain technology have come online. These aim to replace the infrastructure of e-commerce giants with a blockchain-based solution.

Cryptocurrencies

The evolution of cryptocurrencies in the e-commerce sector correlates directly with its acceptance. E-commerce titans such as Amazon and Alibaba currently do not directly accept digital currencies as a source of payment. Some nations have banned cryptocurrency exchanges, whilst others have already launched a national cryptocurrency. No cryptocurrency is widely accepted and transacted. The number of retailers that accept cryptocurrencies as payment for goods and services is increasing but remains relatively small. However, there is market potential for a new hybrid cryptocurrency.

This is an edited extract from the Tech, Media, & Telecom Trends 2020 – Thematic Research report produced by GlobalData Thematic Research.