The eCommerce industry recently made an all-time high sales of $1.14 trillion, projected to grow by 39% by 2027. Considering the convenience of customers in online shopping, 23% of retail sales are also expected to be online by 2027.
The rapidly growing eCommerce world demanded more for personalization in 2024. Artificial intelligence, user-generated content, direct-to-customer, and conversational commerce were the key eCommerce trends in 2024. But what next?
What innovations does 2025 hold in store for the industry? Where are the customer expectations from brands leading to? Let's explore the top 20 most expected eCommerce industry trends you should brace yourself for in 2025.
1. Smart Shoppers Meet Smarter AI Agents
According to Statista, around 69% of retail businesses use AI agents to boost their revenue growth. Marketers' adoption of AI agents makes shopping and marketing more personalized and targeted.
Gone are the days of robotic AI chatbots communicating with mere pre-recorded conversations. AI agents will dominate the eCommerce industry in 2025 giving customers the feel of a personalized salesman available to shop with them 24/7, making their experiences a better and more manageable.
Jay Patel, SVP & GM, Webex Customer Experience Solutions, Cisco says:
While 2023 and 2024 [was for] realizing the initial benefits of AI in customer experience, 2025 will be the year where we really start to see the profound impact it will have. In 2025, AI will be woven into the fabric of everyday customer service operations — including AI agents that have natural voice capabilities and the ability to act on customer requests…..
While shooting the customers with intelligent recommendations, these AI agents are available 24/7, ready to help the customers at any time with any service request. They are changing the face of eCommerce by streamlining operations and increasing customer engagement. About 32% of Gen Z customers are comfortable shopping with an AI agent.
2. See, Touch, and Shop Virtually - Rise of AR and VR Technologies
Customers think twice before completing a conversion because they're unable to see, touch, and feel the product before buying it. With augmented reality (AR) and virtual reality (VR) technologies, customers can enjoy a virtual product try-on. Over 40% of customers are ready to pay more for this experience. Nevertheless, about 79% of them are inclined to interact with a product in AR before buying it.
Moreover, businesses can recreate the in-store shopping experience with a VR store wherein users can walk into the store, interact with virtual salesmen, and try their favorite products virtually. Snap and Ipsos published a Global Report which says that 65% of customers agree that AR technologies make shopping easier.
The adoption of AR/VR in the industry is expected to hit a market value of $7.95 billion in 2025. Besides bridging online and offline shopping, AR also helps create a seamless connection between various marketing channels, making it more convenient for shoppers to shop with hyper-personalized offers.
3. AI-Powered Shopping Will Craft Unmatched Shopping Journeys and Experience
In 2025, AI-powered shopping is expected to hit $8.65 billion globally and expand to $22.60 billion by 2032. AI is improving how customers shop - it's making online shopping less transactional and more of a journey fostering loyal customer relationships.
With AI agents and shopping assistants, customers get real-time advice and suggestions. It goes beyond to provide hyper-personalized suggestions, offers, and discounts based on the customer behavior on the platform. Thus, the customers’ shopping journey in 2025 is not set to be the traditional linear one; it will be more curated and tailored, making it unique for every next one.
4. AI Automates eCommerce marketing
The AI marketing industry is expected to hit $107.5 billion by 2028. From segmenting customers based on their preferences to preparing tailored and targeted content to drive them into the conversion funnel, AI makes marketing sound so easy.
Writing product descriptions, preparing website content, enhancing product pages & discovery is a matter of a few clicks with AI writing tools. Launching a full-fledged marketing campaign and analyzing its performance doesn't require much effort with the AI analytics tool in the picture. AI also makes omnichannel marketing more efficient by integrating online and offline marketing channels.
A recent survey claims that around 61.4% of marketers have already integrated it into their marketing strategies, of which 44.4% are using it just for content production. Thus, AI is in the eCommerce industry, not just as a shopping assistant or customer service bot; it will also help businesses automate their marketing and management efforts.
5. Growing Rise of Live Commerce
The concept of live commerce emerged in 2016 in Alibaba’s Taobao live launch session. It allows customers to shop right during the live product launch in real-time while allowing them to interact with a host.
Since then, it has been the next wave the eCommerce industry is yet to adopt in complete form. In China, live streaming generated over $150 billion in revenue in 2022. Nevertheless, it's expected to make up for over 20 percent of sales in the upcoming years.
This unique combination of eCommerce and live streaming has been used as a great tactic to boost engagement, awareness, and impulse purchases. Popular on platforms like TikTok Live Shopping and FaceBook Live Shopping, it's a trend the US and UK audiences are looking forward to joining in full-fledged. However, a 2024 survey also says that 45% of US customers have participated and shopped from live shopping events in the previous years.
6. Global Inflation Pressures Concerns Customers & Businesses
2024 saw the effects of inflation with the rise of financial burden in the manufacturing process of eCommerce goods. This also affected business sales and the spending behavior and habits of customers. The budget-picky customers didn't make many purchases, which affected sales and profits.
Within the past six months, about 79% of American retailers have faced the diverse effects of inflation. This concern is not just on the part of eCommerce businesses but also for consumers.
According to Retail Economics and Metapack, around 57% of customers are concerned about inflation and rising prices, of which 72% are looking ahead to change their shopping and buying behavior and patterns.
In the already competitive world of eCommerce, this poses a significant challenge. Businesses are constantly hunting for solutions to encourage shoppers to buy and mitigate the rippling effects of inflation.
For example, some businesses are implementing proactive omnichannel marketing channels, which allow the customer exposure to a maximum number of touchpoints, thus encouraging them to purchase. Others are looking for adaptable solutions to help them maintain their sales and position in the cutthroat competition.
7. A Stable Supply Chain Will Change Global Ecommerce in 2025
After years of turbulence caused by geopolitical conflicts, natural disasters, and pandemic aftershocks, businesses are now prioritizing resilience. Strategies like diversifying supplier bases, regionalizing operations, and investing in friend-shoring create more secure and agile supply networks.
E-commerce giants are leveraging advanced technologies like AI and blockchain to detect disruptions early and enhance transparency across the supply chain. Meanwhile, governments and global organizations are collaborating to address bottlenecks and strengthen critical trade corridors.
These efforts will translate into reliable product availability, faster delivery times, and reduced costs for businesses and consumers. This means a seamless experience for shoppers while businesses enjoy improved operational efficiency and customer trust. As the supply chain stabilizes, e-commerce in 2025 will be defined by consistency, reliability, and growth.
8. Eco-Conscious Ecommerce and Sustainable Ecommerce Gain Popularity
Along with a fair price, consumers are now concerned about the product's eco-friendliness. McKinsey’s 2020 survey revealed that 6 in 10 US consumers are willing to spend more on products with environmentally friendly packaging.
Customers often associate eco-friendly products free from harmful chemicals and toxins. It gives them psychological relief that it's also safe for them and their family.
Though government regulations bind brands to ban single-use plastics or encourage carbon-neutral goals, consumers also derive moral satisfaction from associating with brands that support sustainability.
A collaborative study (from 2018-22) conducted by McKinsey and NielsenIQ revealed that products with Environmental, Social, and Governance (ESG) claims contributed 56% to overall market growth, exceeding projections by 18%. Additionally, products with no ESG-related claim received 8% less cumulative growth than ESG-related products.
9. Customers Are Inclining Towards Second Hand Ecommerce
In 2022, the resale eCommerce market produced sales worth $77 billion, expected to surpass $100 billion by 2026. Customers are more towards secondhand ecommerce, considering sustainability practices and the rise of inflation.
Books rank in the list of popular resale segments, followed by fashion and apparel, which has grown to a $12-billion-dollar sector in the US in the previous years. An online survey also says that 27% of participants shopped for resale books online, and 25% of them shipped for used clothes.
New circular business models are coming up based on recycling and reusing, such as refurbishment and rentals. According to Andy Ruben, the founder and CEO of Trove, resale will be a part of every brand's distribution channel by 2032. She says:
We’ve all seen the glossy campaigns and tabs on our favorite e-commerce sites... From Second Show on Showroomprivé to 2nd Life on Boulanger, second-hand, pre-owned, pre-loved and even recommerce items have been completely repurposed, rebranded, repackaged, and are having a moment on traditional e-retail channels! Gone are the days when purchasing pre-owned goods came with a stigma.
10. Rise of Subscription-Based Commerce
Subscription-based models, known for their steady cash flow and predictable revenue streams, are becoming more widely accepted among ecommerce businesses. In 10 years, the subscription economy has grown 4.35 times its original size and is projected to surpass the $1.5 trillion mark by 2025.
Customers can conveniently pay a definite amount reliably for a specific period without any hassle. Meanwhile, businesses benefit by locking in customers during that period, which helps reduce their churn rate.
The model is primarily dominated by the global digital subscription (e.g., cloud services, premium apps, or online tools), which accounts for nearly half of all the revenue in the subscription economy. Streaming platforms, ecommerce, and the SaaS industry cover another 38% of the share.
According to The Business, the subscription eCommerce market will jump from $539.16 billion in 2025 to $3485.51 billion by 2029. This forecast of the exponential rise in market size includes various disciplines of subscription models, such as specialized subscription boxes, rental services, TBYB (Try Before You Buy) models, and flexible subscription models, among others.
11. Enhanced Logistics and Fast or Same-Day Delivery
Many eCommerce giants have developed their logistics chain strong enough to offer same-day delivery facilities to their customers. With the same-day delivery option, customers receive their purchase within a few hours on the same day after ordering.
The trend confined earlier to only grocery items is now applied to general products. Categories like pharmaceutical, fashion, and electronics are gaining exponentially, considering speed as a crucial factor in purchase behavior. Brands took the help of customer purchase habits to categorize most ordered products to make them available in multiple locations before placing them to speed up the process.
Customers' buying decisions are also affected by the expected delivery date. The convenience of same-day delivery is a factor for 49% of shoppers to opt for online stores.
A study found that 41% of customers are willing to pay higher fees for the benefit of same-day delivery. This highlights that customer experience has a direct impact on the performance of the business. By providing same-day delivery, businesses can achieve a 20X boost online business conversion rates.
12. Managing the Surge in Online Returns
Year-over-year eCommerce returns climbed 15% during the 2023 peak shopping season. Seeing the rise of return rates, eCommerce platforms work on improving return policies to maintain customer trust and satisfaction. Additionally, 49% of retailers make online shopping easier by including free return shipping in their services.
Though product quality (damaged or broken items) is one of the significant factors behind this high return rate, long and flexible return policy also surprisingly contributed to this rate. Meanwhile, 30% of returns stem from customers changing their minds and deciding they no longer want the product.
eCommerce saw an average return rate of 17.6% for all purchases made in 2023. However, these numbers are double in the clothing industry with an average return rate of 25% to 40%, which is highest among other industries.
Businesses increasingly adopt automation and technology to provide a smoother return experience. Features such as auto-approval of return requests, automatic marking of items as received, and instant refund generation are becoming standard practices. These innovations significantly reduce the time to resolve a return request and profoundly improve customer satisfaction.
13. Customers Expect Multiple Convenient Payment Options
Checkout is the final and most crucial part of closing the deal and conversion. A safe and quick checkout wins the customer's trust and attention. Even the slightest mishaps on the checkout page will cost you a valuable customer.
According to a survey, over 65% of Gen Zers will abandon their purchase if they don't find their preferred payment option. For the millennials, the percentage rises to 80%. Considering the data from 2022, which says that 49% of global eCommerce transactions happened through digital wallets, they offer diverse payment options. Offer multiple payment methods ranging from one-click checkout options like Bolt to wallets like Apple Wallet and credit cards.
You can also offer Buy Now Pay Later (BNPL) options from partners such as Klarna, Affirm, Apple Pay Later, etc. BNPL spending options are expected to hit $95 billion by the end of 2024.
Furthermore, companies such as PayPal and Shopify have also started accepting crypto payments, considering that these are faster to process and have lower processing fees. In 2025, the global crypto payments are expected to hit $11.43 billion.
14. Influencer-Driven Marketing
Influencer marketing’s global market value hit $21.1 billion in 2023, reflecting a threefold expansion since 2019. Brands find it easy to target a particular number of audiences in specific industries.
Instagram influence with a minimum follower base of 1k-10k followers (nano-influencer) was also hired to gain a reach of 2.19%, which is the highest among all the other levels of influencers. Nano-influencers charge less and give better conversational rates, but brands hire micro, mega, or celebrity influencers with 50k or more followers to gain more reach.
Influencers are reliable faces for their followers; it's a smart step to reach targeted audiences and seed trust in their minds about the product. Nearly 7 in 10 consumers prefer advice from influencers over what brands say.
Along with brand awareness, it also impacts consumers' buying habits. As per the 2024 Influencer Marketing Report, influencer content leads 49% of individuals to buy products monthly.
15. The Rise of "Phygital" Stores
The convenience of physical stores with the personalization of online shopping is now a reality in the form of phygital stores.
Online shoppers have reached 2.77 billion, nearly one-third of the world's population. They have embraced the ease and personalization online shopping offers.
Phygital stores enhance customers’ shopping experience, allowing them to order using the same online portal but receive their purchases from physical stores after physically trying and checking the products.
Phygital stores also offer customers access to their in-store interactive technology to explore and try various products. Digital screens, kiosks, and AI-powered mirrors will collectively enhance the customer's buying experience.
Recently, many industries have gained sustainable growth from online business (travel, entertainment, and banking), while many show a sharp downfall (education and healthcare). Phygital stores fill this gap and help to provide a comprehensive effort with dual experience to the customer.
Over the next few years, the global phygital market will expand at an annual growth rate of 16.1%, ultimately reaching a valuation of USD 950.18 billion by 2027. Seeing this, brands like IKEA and McDonald's have already shifted to phygital concepts with interactive kiosks in the store for self-service purposes.
16. The Growth of Social Commerce
Along with the rise in social media users and influencers, social commerce is also catching up with a similar trend. In 2023, the social commerce sector took a giant leap, generating nearly 571 billion U.S. dollars. According to the forecast, the trend will soon surpass the trillion-dollar benchmark by 2028 or earlier.
Unlike traditional eCommerce, where the audience is redirected to the shopping portal, social commerce reaches itself where the audience is already present in mass. Platforms like TikTok and Instagram keep engaging with the audience and driving more audience into the platform with time. The trend is to follow quite the same path, as Mark Zuckerberg said:
If I had to guess, social commerce is next to blow up.
Social media sites develop features that support social commerce and allow brands to take the most out of it. Brands and influencers can make shoppable posts by tagging products, allowing users to view details and make purchases with a few clicks.
For instance, social media giant Meta has introduced Meta Pay, eliminating the need for external apps for payments and in-app shopping. Similarly, WhatsApp (a meta product) can place an order, assess the catalog, and make payments from WhatsApp business users.
17. Gamification in Shopping
Retail is considered one of the most common users of gamification in business. Implementing game design principles in non-gaming contexts like shipping is one of the new tactics marketers are adopting.
The gamification industry is forecast to grow at 25.85% CAGR from 2025 to 2030, starting at USD 19.42 billion and reaching USD 61.30 billion by the end of the period.
Similarly to a gaming experience, customers earn rewards badges and participate in challenges to maintain the leadership board. Customers like to share the rewards they have achieved on social media or with friends and family, expanding brand reach even further.
eCommerce websites use gamification tactics to make users perform tasks they consider dull or essential to the brand. For example, coupons after completing a profile, earning rewards after completing a survey, etc.
The American sports and athleticwear brand Nike has its Nike Run Club, which provides new challenges to running and earning product rewards or discounts. Similarly, Amazon Prime games and Starbucks Rewards are prime examples of brands' adoption gamifications.
18. Building Visibility with SEO Basics
Despite the advanced marketing strategies and technologies dominating the digital landscape, brands and businesses will return to their roots. They’ll fine-tune their basics: faster website load times to reduce bounce rates, compelling product descriptions that rank and convert, and SEO-friendly URLs designed for users and search engines.
Structured data and schema markup will enhance visibility on search engine results pages (SERPs). Additionally, brands will invest in local SEO to dominate regional searches and build customer loyalty.
By prioritizing SEO fundamentals, e-commerce companies will ensure their brands are visible and positioned as leaders in search, driving sustainable growth in 2025.
19. Prioritizing Mobile-First Experiences
Statistics show that over six of every ten website visits come from mobile devices. This data will spike up shortly, drawing the world's attention.
Specifically, the U.S. mobile commerce industry in 2024 relied heavily on smartphones, which generated $418.9 billion in sales. The key motivation behind these insights is the ease of accessibility and seamless smartphone navigation.
As reliance on mobile devices grows exponentially, e-commerce businesses have significantly changed their approach. Along with fast site navigation and smoother mobile experiences, a sharp rise in availability can be seen, shifting from mobile websites to mobile apps.
Orders placed through mobile apps have a higher average value of $102 compared to $92 from mobile websites.
Integration of payment applications with smartphones made online transactions faster and more reliable. This gives customers a more effortless shopping experience than a desktop or tablet.
20. Cybersecurity: Securing the Digital Marketplace
E-commerce sites are improving their security standards to match the growing number of online transactions. To improve the shopping experience, eCommerce platforms store and handle sensitive customer information(names, addresses, payment details, etc.), protected from high-level cyber attacks, threats, and data breaches.
The global eCommerce industry saw retail sales climb to 6.3 trillion U.S. dollars in 2024, highlighting the growing confidence of customers in online transactions. To ensure users feel safe and protected, eCommerce platforms have implemented strict security measures and comply with data protection laws such as GDPR, CCPA, and PCI DSS.
For secure payment gateways, a space for new innovative solutions can bloom. Advanced biometric authentication methods, Cybersecurity-as-a-Service (CaaS) rise, and an accelerated push for Blockchain technology adoption are emerging as transformative trends.
Wrapping Up
While these were the top 20 eCommerce trends for 2025, one thing is to be kept in mind: 2025 is about creating memorable customer journeys with the proper technology. Despite economic challenges and circumstances that may unfold, the eCommerce customer base is expected to continue their spending habits.
All you need to do is brace yourself with the right technology set to stay ahead of the competition and leave a long-lasting impression in the customer's minds. Nevertheless, security, personalization, and transparency will be the key goals of all trends.
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With their eCommerce industry expertise, their solutions are tailored for your business, product portfolio, and customers. Available round the clock, their AI agents are just like virtual salesmen, capable of processing all sorts of requests, from recommending products to reordering requests. With App0’s AI agents, your customers have a guided pathway from landing on your website to completing the purchase. What more are you looking for to make your customer journey seamless and facilitated? Check out App0 today!
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