$6.3 trillion
Market size
trend report
2025 eCommerce Industry Trend Report
Current state (global)
Source: www.statista.com
2.71 billion
Online shoppers
Source: www.sellerscommerce.com
26.6 million
Online stores
Source: www.tidio.com
Market insights (global)
$6.3 trillion
Market size
Source: www.linkedin.com
2.71 billion
Online shoppers
Source: www.statista.com
26.6 million
Online stores
Source: www.verifone.com
Top challenges for eCommerce organizations
10%
of all eCommerce dollars are rejected during payment authorization.
85%
of mobile carts are left behind in the US, the highest cart abandonment rate of any device.
91%
of people say they see too many ads on social media.
3.1%
of global eCommerce is lost because of payment fraud.
PART 1
Ensuring data privacy and security
More than 50% of consumers have stopped purchasing from a brand after a breach in trust and few things erode trust in the eCommerce space like a data breach. The combination of rising threats of cyberattacks and increasingly stringent data privacy regulations such as GDPR and CCPA mean it is more crucial than ever for eCommerce businesses to invest in technology and processes that safeguard data and avoid the reputational damage that comes with a breach.
PART 2
Meeting customer’s high expectations
The modern consumer is more willing than ever to switch brands and nowhere is that more so than in the online marketplace. Shoppers expect faster delivery, more personalized experiences and seamless omnichannel integration but meeting those rising expectations can strain resources. From technology and logistics to customer service, eCommerce providers must not scrimp when it comes to delivering quality customer experience.
PART 3
Stepping up for sustainability
Going green is no longer a maybe but a must for eCommerce businesses that want longevity. Customers are demanding more eco-friendly and ethical practices and online businesses can respond by embracing sustainable packaging, carbon-neutral deliveries and transparent supply chains. The challenge is that balancing environmentally friendly goals with cost efficiency can be complex, especially for smaller operators.
PART 4
Managing supply chain and logistics complexities
While the supply chain crisis that unfolded during the COVID-19 pandemic may have eased, many online businesses continue to navigate logistical hurdles. Timely product delivery is one of the foundations of eCommerce success but ongoing geopolitical tensions and the rising incidence of natural disasters are a burden for a sector desperate to avoid delays and increased costs. The more brands diversify suppliers, adopt more localized production and invest in cutting-edge supply chain management systems, the better placed they will be.
PART 5
Reducing the threat of cart abandonment
Few things are more frustrating for eCommerce businesses than knowing how often shoppers fill their online carts only to log off without checking out. With average abandonment rates on the wrong side of 50%, it represents lost revenue opportunities in a retail environment where every dollar counts. Every effort must be made to simplify checkout processes, provide transparent pricing and employ strategies such as discounts and retargeting emails to recover lost sales.
Key eCommerce trends to watch for in 2025
1. Rise of AI-driven personalization
Personalization is high on the wish list of modern consumers and eCommerce has the good fortune of being able to utilize AI tools to deliver tailored experiences at scale. Studies have found that AI-driven personalization recommendations can boost conversion rates by up to 20%, with dynamic pricing and custom content helping increase satisfaction and engagement.
Global giants such as Amazon and eBay are leading the charge and creating an environment where the demand for associated technologies is booming - as witnessed by a 159% rise in ‘Personalization Software’ reviews on software marketplace site G2 during the past three years. AI-driven personalization is set to become a powerful revenue driver for eCommerce sites in 2025 as they look to create a shopping world that feels unique, seamless and attuned to an individual’s personal tastes.
Actionable strategies:
- Implement AI-powered recommendation engines to suggest products based on browsing history.
- Use dynamic pricing models to offer personalized discounts or deals.
- Leverage chatbots and virtual shopping assistants for real-time customer support.
- Analyze customer data to craft personalized marketing campaigns.
2. Social commerce to rake in billions
Social media was initially a way for people to connect with friends. Then the landscape shifted and we now live in a world where businesses are using such platforms to interact directly with consumers and present them with a more interactive shopping experience. Such is the power of social commerce and with retail earnings in the U.S. alone tipped to reach almost $80 billion next year, it is one of the hottest tickets in the market.
It’s all about convenience. Take the example of an Instagram user scrolling through an assortment of posts when a set of skin care products catches their eye. A simple tap of the ‘Shop Now’ button and the items are added to their shopping cart and they can immediately check out - all without leaving the app.
Better still, research shows that social commerce is not just about younger demographics. Nearly a quarter of U.S. social buyers are aged between 25 and 34 years old, while more than half are older than 35. If social commerce seems like a good idea now, one can only imagine how popular it will be in another 12 months.
Actionable strategies:
- Partner with influencers to create authentic product endorsements.
- Use platform-specific tools like Instagram Shops or TikTok Shopping.
- Develop visually engaging, short-form video content to showcase products.
- Optimize checkout processes for social media platforms to reduce.
3. Focus on sustainability
Gen Z and Millennials are the key drivers of the eCommerce revolution and they are equally passionate about sustainable shopping. Studies have found that 62% of Gen Z shoppers love sustainable brands, while an even higher 73% are willing to reach deeper into their pockets to pay for eco-friendly products. It is all about making retail choices that align with their personal, social and environmental values and 2025 is shaping as a critical year for eCommerce brands.
Look for new brands to emerge that focus solely on sustainability, while well-known names will increasingly jump on board by adding new environmentally friendly products to their normal range and, needless to say, market their embrace of sustainable practices.
This extends to sustainable packaging and delivery. There will be a huge focus on packaging materials that are more recyclable, biodegradable and compostable, with minimalist packaging designs another area that will reassure eCommerce shoppers they are doing their bit to reduce waste and their carbon footprint.
Actionable strategies:
- Adopt eco-friendly packaging and promote it in marketing efforts.
- Highlight sustainable practices, such as carbonneutral shipping or recyclable materials.
- Offer incentives for customers to recycle or participate in sustainable programs.
- Partner with organizations that certify sustainable practices to build trust.
4. Expansion of AR and VR experiences
Technology and eCommerce go hand-in-hand so it is no surprise that augmented reality (AR) and virtual reality (VR) are on the rise when it comes to influencing how customers’ buying decisions. By providing online shoppers with immersive experiences, forward-thinking brands are allowing them to ‘try before they buy’ by overlaying digital content with the real world. That includes viewing products in 3D, trying on clothes virtually and even seeing how furniture will look in their homes.
One app leading the way is IKEA’s Ikea Place, which enhances the online shopping experience by allowing users to choose an item of furniture and ‘place’ it in their lounge, bedroom or dining room by combining a 3D model of the object with a live video of their personal space. The demand for AR and VR technologies while shopping online is only set to grow, which is why one can expect to see an increase in investment from brands wanting to turn virtual experiences into real-world sales.
Actionable strategies:
- Integrate AR features like virtual try-ons for fashion, makeup, or furniture placement.
- Develop VR showrooms or immersive shopping experiences for premium customers.
- Train staff to manage and optimize AR/VR tools for smoother user experiences.
- Partner with technology providers to keep AR/VR features cutting-edge and scalable.
5. Seamless payment and security experiences
Demand for digital payment options:
Digital wallet and buy now pay later service usage continues to expand, with new payment options and market entrants emerging. Businesses strive to keep up with these innovations and offer a broad range of payment methods for faster checkouts.
From payments optimization to orchestration:
Merchants seek simpler ways to manage multiple payment providers and adapt to new technologies, leading to the adoption of payment orchestration layers that streamline setup and maintenance.
Stronger security and privacy measures:
With consumers gravitating towards platforms prioritizing data security and anticipating stricter regulations, retailers must invest in advanced security technologies and adopt transparent practices to build customer trust.
Actionable strategies:
- Implement payment orchestration platforms with pre-built connectors to popular payment gateways, digital wallets BNPL providers for simplified integration.
- Adopt payment tokenization and customer vaulting solutions to securely store payment credentials for frictionless checkout across devices.
- Leverage AI and machine learning for real-time fraud detection by analyzing behavioral biometrics and purchase patterns.
- Implement recognized security standards like PCI-DSS, 3DS 2.0 for enhanced payment data protection and SCA compliance.
- Provide transparent communication on data practices, enable privacy controls and adherence to data regulations like GDPR/CCPA.
The battle for talent – and how outsourcing can help
The pressure to keep pace with the digital revolution can be overwhelming for eCommerce businesses. Customers not only want but expect access to technologies such as AI, augmented reality and enhanced personalization, while the brands themselves appreciate the urgent need for advanced data analytics and cybersecurity protection. That is a heavy load to carry, let alone when one factors in that the sheer size of the eCommerce market has created a battle for tech talent that can be the difference between online success and failure.
Ask any eCommerce leader and they will tell you that the global shortage of tech professionals is one of the key challenges facing their sector. Be it data scientists, software developers or machine learning engineers, all are in heavy demand and the online ventures destined to thrive are those that are able to capture and retain the best established and emerging talents. Fortunately, there is a resourcing strategy that is helping ease the pressure and provide more eCommerce businesses with access to the people they need to enhance their technology offerings and deliver the modern customer what they want.
We’re talking about outsourcing and, in particular, the ability to access specialist talent in leading offshore destinations such as the Philippines. On the back of decades of investment in the sector, the country has nurtured a ready-to-work talent pool of experts in the likes of AI, data analytics, cybersecurity and AR/VR development for the benefit of onshore eCommerce brands desperate to overcome labor shortages.
Quality outsourcing providers in the Philippines also offer competitive rates for such talent, which means eCommerce businesses not only get to advance their digital ambitions at pace but also allocate additional budgets to other areas of their operations. Internal teams also relish the chance to spend more time on their own projects and core competencies.
Ultimately, the power of outsourcing lies in its ability to provide eCommerce leaders with access to specialist tech talent at a time when they have never been under greater pressure to advance digital initiatives.
How outsourcing could play a role in your eCommerce future
Not only was Total Tools able to achieve its online sales growth goal of 2,000% with offshore support, but also increased online conversion rates by 200% and website traffic by 300% across two years
Learn moreTop 20 outsourced job profiles in the retail sector
The Australian retail industry is undergoing a transformative shift, driven by evolving consumer demands, technological advancements and the need for operational efficiency. In this dynamic landscape, retailers are turning to strategic offshoring as a means to enhance their workforce, streamline processes and reduce costs. The Philippines has emerged as a prime destination, offering a skilled and cost-effective labour pool, cultural compatibility and a favourable business environment.
Here are some of the most popular roles outsourced in the retail sector:
Customer service and support
- Customer Service Representative: Handles customer enquiries, complaints and support.
- Technical Support Agent: Provides technical assistance and troubleshooting for products or services.
- Customer Experience Representative: Focuses on delivering exceptional customer experiences.
- Helpdesk Support Officer Level 1 & 2: Offers first and second-level technical support.
Marketing and digital content
- Content Creator or Content Builder: Develops and curates engaging content for various platforms.
- Digital Graphic Designer: Creates visually appealing designs for digital and marketing materials.
- Social Media Specialist: Manages social media presence, campaigns and community engagement.
- Search Engine Optimisation (SEO) Specialist: Optimises website content and strategies for better search engine rankings.
- Marketing Assistant: Supports marketing initiatives, campaigns and data analysis.
Finance and accounting
- Accounts Payable Specialist: Handles accounts payable processes and vendor payments.
- Accounts Receivable Officer: Manages accounts receivable, invoicing and collections.
Supply chain and logistics
- Supply Chain Coordinator: Coordinates and optimizes supply chain operations.
- Logistics Business Analyst: Analyses and improves logistics processes and operations.
Sales and business development
- Sales Support: Assists sales teams with lead generation, data entry and administrative tasks.
- Outbound Sales Representative: Conducts outbound sales calls and lead nurturing.
eCommerce and product management
- eCommerce Assistant: Supports eCommerce operations, product listings and order fulfillment.
- Product Administrator: Manages product data, catalogs and inventory information.
HR and administration
- Recruitment and Administrator Coordinator: Supports recruitment and administrative processes.
Quality assurance and data analysis
- Quality Analyst: Ensures quality standards and process improvements.
- Data Analyst: Analyses data to derive insights and support data-driven decision-making.
This diverse range of outsourced roles in the Philippines enables Australian retailers to access specialised talent, enhance operational efficiency and drive cost savings, positioning them for success in the competitive retail landscape.
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