The Future of E-commerce with Magento Trends and Predictions for the Next Decade

The world has witnessed tremendous growth in mobiles in the last decade. Consequently, it has boosted the growth of ecommerce businesses. Therefore, at the close of 2023, the world has observed over $6 Trillion in revenue from international ecommerce, and according to Artios, it will reach up to $8.148 Trillion by the end of 2026. This has resulted in 2.64 billion digital buyers worldwide today.

Let's see some global ecommerce trends.

Global Ecommerce Trends.

According to Emarketer, the following global ecommerce trends have been observed for the next decade.

Penetration Rate:

In 2022, the ecommerce penetration rate was 10%, which may reach 25% in 2027.

M-Commerce:

M-commerce sales accounted for 43.3% of all ecommerce sales in 2023 and are expected to reach $534.18 billion in 2024.

Social Commerce:

Social commerce will grow at a 31.6% CAGR rate between 2023-30.

Cross-border Commerce:

Similarly, cross-border e-commerce is expected to grow by 108% between 2023-30.

Payment Methods:

Emerging new payment methods, such as Crypto, mobile wallets, debit cards, QR codes, etc., will remain trendy in the e-commerce market for the next decade.

As the global e-commerce landscape continues its unprecedented growth, it's crucial to explore the pivotal role of robust platforms like Magento 2, which is highly popular. Let's dive deep into why one should choose Magento 2 for e-commerce development.

Why Magento 2 Is for Your Ecommerce Development?

Out of present ecommerce development platforms, Adobe Commerce or Magento has captured 0.6% of the internet (1,71,885 websites) with more than $155 billion in ecommerce transactions annually. Indeed! It is a promising ecommerce development platform today. Do you know why it is? Of course, thanks to its tremendously brilliant features. Let's learn what they are.

Brilliant Features of Magento Ecommerce

Magento 2 Security Features:

Magento 2 platform boasts advanced security features, such as:

• Regular security updates with patches and fixes.
• Two-factor authentication.
• Security scan tools.
• Advanced encryption technology.
• Advanced access controls for frontend and backend users.
• IP whitelisting.
• XSS protection.
• Strong firewall.
• Session validation.
• Cookie validation.
• CSRF protection.

Magento 2 Performance Features:

Magento 2 has improved performance features, including:

#1 - Performance Optimization:

It includes full-page caching, database query optimization, code minification, and fast loading. Magento 2 supports speed optimization extensions from Google, Gtmetrix, etc.

#2 - Image & Video Optimization:

Image and video compression tools and multimedia UX enhancements. Magento 2 supports WebP extensions to minimize image file size without affecting performance.

#3 - Code Optimization:

Magento 2 offers customary code optimization along with each update to enhance website execution and smooth usage.

#4 - Production Mode Feature:

Magento 2 displays login errors in the file system instead of directly displaying them to the users during production mode. It saves from bad UX.

#5 -Caching Feature:

Magento 2 supports Varnish Cache as a caching solution to improve server performance and speed of the Magento website.

#6 Advanced Search Feature:

Magento 2 has an Elastic search feature that provides enhanced search functionality with accuracy, speed, and real-time indexing.

#7 -Magento 2 B2B Features:

Magento 2 enhances the B2B buying process by providing the following features:

• Quick order entry to streamline the ordering process.
• Requisition Lists to search desired products quickly.
• Shared Catalog to offer personalized pricing and products to B2B customers.
• Partial payment to offer payment convenience.
• Advanced inventory management to support stock tracking across warehouses and different channels.
• Customer segmentation to classify customers based on selected attributes and offer a highly personalized shopping experience.
• Quote management to offer personalized quotes to B2B buyers.
• Price negotiation for bulk orders.
• Multichannel order management to support multi channel buying and Omnichannel experience.

#8 - Magento 2 Self-service Features:

B2B ecommerce customers like self-service facilities and Magento 2 provide many out-of-box self-service tools, such as:

• An account dashboard is used to manage customers' own accounts and ordering process.
• B2B companies can set up company structures with teams of users.
• Buyer companies can set the level of permissions for buying operations, resources, and sales information.
• Companies can manage buying charges in their accounts and set up credit limits.
• The company can negotiate with its quote sellers to obtain acceptable prices for items.
• Businesses can track activities related to their quotes during the negotiation process in their accounts,
• Buyers can manage their orders using their order history and create orders, track shipments, print orders, create invoices, and manage refunds in their profiles.
• Magento 2 provides built-in analytics with the reporting suite to visualize data and their performance.

Trends and Predictions for Magento (Adobe Commerce) for the Next Decade

We know why ecommerce development companies lean more on Magento, which is known as Adobe Commerce, after its acquisition by Adobe Inc. At present, hardly any ecommerce development platform offers such brilliant ecommerce features. Now, let's learn about the trends and predictions for the future of Magento 2/Adobe Commerce in the next decade.

Trend-1: Headless Magento to Embrace Agility and Flexibility

It's true that when numbers tell the story, the convenience remains greater.

• Recently, Forbes has depicted a rise in funding of over $1.65 billion by the headless commerce platform in the 2020-21 financial year
• By the end of 2023, over 12% of ecommerce enterprises have implemented headless Magento.
• Headless Magento trends are gaining traction because more than 77% of e-commerce businesses believe that headless Magento allows them to make faster changes in the storefront.
• Therefore, almost 80% of ecommerce businesses are planning to adopt headless Magento within two years.
• Headless Commerce's expected CAGR (Compound Annual Growth Rate) is 20.5% up to 2027.

Let's learn some trends in headless commerce on the Magento 2 platform.

Decoupling in Headless Magento:

Onilab described that the separation of the frontend from the Magento backend (decoupling) allows Magento developers in Magento development services to craft exceptional UX.

Adoption of New Technologies:

Using modern frontend development technologies, such as React.js or Vue.js, and intensive customization of Magento backend headless Magento development can develop tailor-made solutions for unique business requirements and help adopt new trends.

Flexibility:

Headless Magento enables brands to select different ecommerce components from various platforms that can work best for them.

Scalability:

With decoupling, the Magento development company can scale the frontend as per requirements without affecting the backend.

Time-to-Market:

Adobe Commerce services developers can use decoupled Magento to offer faster development and achieve less time-to-market with quality deliverables.

Personalized Experience:

Separation allows easy integration of different functionalities to create unique and highly personalized Adobe Commerce Magento solutions into each touchpoint, such as native web application, voice interface of thea mobile app, etc.

Social Media Integration:

Adobe Commerce agency can seamlessly integrate different social media platforms to offer a social shopping experience using their AI-powered chatbot and secure payment facilities to capture social traffic.

Trend-2: AI & ML to Enhance Personalization and Automation for Magento Development Company

Adobe Sensei is a suite of AI and ML that offers AI and ML capabilities to the Adobe Commerce Magento platform.

Personalized Shopping Experience:

This trend is drawing exceptional shopping experiences for Adobe Commerce users. It analyzes shoppers' data to comprehend and anticipate customers' requirements. It offers personalized recommendations and solves customers' issues promptly without much human intervention.

AI and its subsets of technologies and voice recognition software can empower Adobe Commerce's Magento store to provide voice search facilities to shoppers while they are on the go.

Visual Search:

Image recognition tools with AI can give visual search opportunities to Magento shoppers to find products in the store using an image only

Inventory Management:

You can streamline ecommerce operations with AI and ML capabilities by managing inventory in real-time. You can automate inventory orders.

Price Optimization:

AI algorithms help create dynamic pricing by analyzing various factors without missing profit margins and beating competitiveness. It makes Magento storefront agile in fluctuating markets with real-time adjustments in prices.

Security:

ML-powered Magento can detect fraud by observing abnormal patterns in Magento and safeguarding data with security protocols.

Customer Segmentation:

AI helps in the formation of precise customer segments and aids in crafting tailored marketing campaigns that resonate with specific customer groups and their needs to drive more engagements.

Predictive Sales Analytics:

AI gives predictive sales analytics to learn about future trends and helps in the formation of sales strategies to meet the future demands of customers.

Smart Content Management:

AI provides content crafting and curating tools to deliver highly personalized content to each customer based on their browsing history and preferences.

Trend-3: PWA (Progressive Web App) - A Soothing Way to Bridge Native and Web Applications

Adobe Commerce has released the PWA Studio framework to create PWA for its Magento developer community. PWA offers the best of both worlds: native mobile app and website-related benefits, deducting their cons.

According to Medium , by 2027, the PWA market will reach $10.44 billion.

PWA is advantageous because:

• PWA increases mobile conversion by up to 52%
• It decreases the bounce rate up to 35%
• User engagement increases by 50%
• Average session duration increases up to 78%
• Web page loading speed rises to 68%
• Ad revenue increases up to 74%
• Returning visitors increase up to 62%

If we look at PWA for Magento on Neklo

• We find an average page load time of 0.46 seconds for Magento PWA,
• 50% of the increase in conversion rate,
• 42.86% decrease in bounce rate,
• 1 MB of storage space for Magento PWA.

Based on the statistics above, we can say Magento PWA is a growing trend in the ecommerce industry worldwide. Conclusively, we can say:

User Satisfaction:

Magento PWA provided immense user satisfaction to its users and Magento merchants with good ROI.

High Conversion Rate:

Magento PWA delivered a high conversion rate by fast loading and enhanced UX.

Easy Scaling:

Magento PWA proved an easy way to scale the Magento store without incurring various bottlenecks, such as performance glitches, data management issues, and multiple security aspects that must be managed in the native mobile app or a website alone.

Trend-4: Omnichannel Experience Trend for Seamless Integration across Multiple Channels

CapitalOneShopping has published some interesting statistics on Omnichannel experience in the ecommerce industry.

• 73% of shoppers prefer multiple channels to shop online.
• Robust omnichannel strategies ended with an 89% retention rate compared to 33% of weak omnichannel strategies.
• Omnichannel strategies have generated 80% of in-store visits by online shoppers.
• Modern ecommerce shoppers use, on average, six touchpoints when buying a product.
• Businesses found 30% higher ROI (Lifetime Return on Investment) with omnichannel shoppers compared to single-channel shoppers.
• A 251% increase in consumer engagement rate among retailers using more than three channels has been detected.
• 82% of shoppers prefer more options for their payments during ecommerce shopping.

Magento (Adobe Commerce) supports shopping through multiple channels, including in-store, mobiles, and social media, by giving channel-specific shopping experiences by integrations of various systems and frameworks, such as AEM (Adobe Experience Manager), Adobe Analytics, etc.

Let's learn Omnichannel experience trends for Magento (Adobe Commerce).

Omnichannel Integration:

Ecommerce shoppers like to use multiple channels for their shopping, and Magento supports seamless integration of different sales channels to provide consistent UX.

Mobile-friendly Magento:

Adobe Commerce's Magento platform provides mobile-friendly themes, templates, PWA Studio, and tools to take a mobile-first approach to Magento development.

Magento APIs:

Magento is an API-led platform with various APIs for integrating different third-party apps and services, such as Magento APIs for CMS, CRM, POS, Cloud services, etc.

Trend-5: AR & VR Trend for Enhanced Shopping Experience

• According to Statista, the AR market will be worth $50 billion by the end of 2024. For the next decade, it will grow at a CAGR of 11.8% and reach $106.2 billion by 2033.
• 61% of shoppers like ecommerce with AR experience.
• 200% more engagements were found in the AR product experience than in the non-AR product experience.
• $10,260 million in revenue is expected by AR/VR industries in the USA for 2024.
• 52.8% of the penetration rate is expected in 2024, and 55.9% of the penetration rate is expected in 2028.

The following are futuristic trends in AR/VR tech advancements in Magento.

A blend of AI and computer vision in AR technology for Magento:

AI and computer vision technologies can augment the AR/VR capabilities of Magento ecommerce. For instance, ML and neural networks enable precise environment and object tracking during AR/VR displays. They facilitate realistic interactions between virtual and real-world elements.

Similarly, computer vision techniques can map room surfaces, textures, and lighting conditions. Thus, it seamlessly blends virtual objects into the physical environment.

Connectivity & CPU Power:

Robust connectivity like 5/6G and Wi-Fi 6 is the foundation of advanced AR experience. It provides faster data exchanges/transfers, low latency, and Cloud Rendering-like functionalities. Chipmakers can develop more powerful CPUs and enhance AR/VR experiences further.

Advanced Display Technologies:

Transparent micro-LED panels and holographic optics can promise compact AR form factors and can increase prolonged AR usage, offering comfort. Thus, it can increase the acceptance and adoption of AR in Magento.

AR UI Design:

Gesture recognition, spatial tracking, and voice command technologies ensure seamless navigation and interaction in AR applications by providing advanced UI designs.

AR Cloud Infrastructure:

AR Cloud platforms enable the development, sharing, and storage of spatial data and facilitate seamless sync of virtual content across devices and environments.

Trend-6: Subscription & Recurring Revenue Model Trend for Embracing New Business Opportunities

In the next five years, we will see the growth of subscription revenue models in ecommerce and reach $2227.63 billion in 2028 with an annual CAGR growth rate of 61.1%.

Today, we are witnessing different types of subscription models in Magento ecommerce, such as digital content, service and other subscriptions, and different types of subscription box models.

Magento (Adobe Commerce) supports a subscription model with a yearly cost beginning at $20K for companies with less than $1 million in average gross sale revenues.

The subscription model in Magento supports product subscriptions and reorders them at set intervals. It saves time and money for customers and consistently increases revenue for stores.

Subscription Model Trend:

The subscription model supports product subscriptions with recurring payment plans such as daily, weekly, monthly, or yearly intervals.

Subscription Extension Trend:

The Magento ecosystem consists of subscription extensions supporting different payment gateways, such as PayPal, Authorize.net, and Stripe.

Subscription-based Pricing:

Magento supports subscription-based pricing with pricing details, which vary based on regions, business revenues, and additional services.

Subscription-now Extension:

This extension supports automatic payment collection, product subscription reports, and other features to ease subscription model workflow.

Trend-7: Blockchain and Decentralized Commerce Trend for Exploring New Frontiers

Blockchain technology can revolutionize ecommerce payments and set trends for exploring new frontiers to build trust through transparency.

• MRFR reported in GlobalNewsWire that Blockchain will likely hit $70 billion at a 42.40% CAGR by 2030.
• Future Market Insight Inc. provided data analysis and forecasted that the global crypto wallet market will soar by reaching $3675.4 million at a CAGR of 9.3% at the end of 2033.
• StatistaStatista depicted B2B cross-border transactions on Blockchain worldwide for 2021-25. There will be $745 billion in B2B cross-border transactions by 2025, and Europe's transactions may reach $466 billion using Blockchain by 2025.
• Buy Bitcoin Worldwidehas published payment data that shows that nearly 15,174 businesses worldwide accept payments in Bitcoin.

Blockchain Magento Ecommerce Trends

Smart Contracts:

A smart contract is an automated agreement written in code. It can cover order processing, payment settlements, product delivery, content licensing, etc. ecommerce aspects using Blockchain technologies.

Anti-counterfeiting Measures:

Trends toward creating transparent supply chains using Blockchain technologies are increasing. Blockchain helps Adobe Commerce Magento prevent counterfeiting by tracing a product's origin in the supply chain by giving a unique identifier to each item.

Cross-border Financial Transactions:

Due to different laws and regulations across countries, cross-border transactions remain complex and time-consuming if done in traditional ways. Blockchain simplifies the entire process, making it faster and more cost-effective with the desired security.

Decentralized Marketplaces:

Blockchain enables the creation of decentralized ecommerce marketplaces. It allows direct interactions between buyers and sellers, eliminating intermediaries and fees, plus increased autonomy.

Shipment Monitoring:

Blockchain provides real-time visibility in the supply chain by recording every product journey step. It cuts the likelihood of lost or delayed shipment.

Immutable Customer Reviews:

Blockchain enables ecommerce customers to create immutable customer reviews, which cannot be deleted or manipulated without the consent of the network. It prevents customer review-related fraud.

Incentives with Digital Assets:

You can create a unique reward system using Blockchain. It can prove a more incentivized and safe option for global shoppers.

Final Thoughts

As we look at the next decade, the future of ecommerce with Adobe Commerce Magento is promising, thanks to rising trends. The most notable trends are Headless Commerce, AI and ML technologies, Magento PWA, omnichannel experience, AR and VR integrations, subscription and recurring revenue models, and Blockchain technologies.

Magento development services or Adobe Commerce services are preferred as Magento platforms for the next-generation e-commerce development ecosystem, thanks to the brilliant features of Magento.

Suppose you are looking for a dependable Magento development company or Adobe Commerce Agency. In that case, Jeel Techsoft is an exceptional choice for getting Magento e-commerce development done on time and with the most competitive quotes. Our post-development services and support are known in the Magento development market.

Let's have a call to learn more about our services and offerings.