Digital transformation is occurring around the world at a rapid pace. Legacy industries and companies are being forced to evolve or risk losing their competitive advantages. Consulting firm Accenture estimates digital transformation will help unlock over $100 trillion for business and society, with just 13 major industries taking part in the change.
One of the most important segments of this change is how we transact and the rapid growth of e-commerce globally. By 2021, it is estimated that $4.5 trillion in online sales will be processed annually with e-commerce penetration rates increasing 15% from 2020 to 2025.
The catalysts of this growth are simple to understand. More people have smartphones, access to stable internet, credit cards, and education than ever before. The current generation of teenagers is classified as digital natives, which means technology was and will be a crucial element of their daily lives, education, and work.
Looking more into social-economic and societal factors, the current pandemic will likely increase the demand for e-commerce as people continue to keep social distance and enjoy the convenience of receiving products directly in their homes. One continuing trend is that mobile tends to dominate e-commerce sessions and shopping. It is estimated that by 2021, 73% of e-commerce sales will take place on a mobile device.
This correlated with data that also shows social media being used to power digital transactions through one-click tags and hyperlinks. Platforms like Shopify help businesses connect their online stores with their social media pages, creating an easy link between the discovery and purchasing process.
What Is Next for Commerce 3.0?
There is a clear indication that voice commerce will grow as services such as Amazon Alexa are helping process transactions with a convenient voice command. Smart speakers, Siri, and other IoT services are becoming more common in households. In the US, 43 million Americans already own smart speakers, with a significant portion of those owning multiple.
Another significant trend is the increased use of digital assets and wallets. Digital assets were first introduced in e-gaming and have since become popularized with cryptocurrencies. They are fully digital and when integrated with blockchain technology and are considered un-hackable and safe for digital transactions.
Companies like Tycoon69 International are building out the infrastructure to power commerce 3.0 using blockchain technology. This infrastructure includes integrating a seamless rewards system that gives people the chance to receive promotions, earn cash back, and transact physical goods, such as physical gift cards, digitally in a modern and transparent setting.
Most digital asset ecosystems, Tycoon69 International included, are driven by their community and offer services that are community-requested. This allows companies to stay up to date with the latest commerce trends and developments as their offerings are tied to customer satisfaction. One could say this is the future of commerce.
A final trend to keep an eye on is artificial intelligence (AI) which is expected to reach $7.3 billion per annum in 2022. AI will likely be used for automation as well as collect more insightful data on customers. Automation can include marketing offers and how companies interact with their customers. This coupled with augmented reality will help transform the shopping experience as it becomes a mix between digital and physical experiences.