Many entrepreneurs have opted to launch their eCommerce businesses using the dropshipping method due to its simplicity. Statista predicts that the global value of dropshipping will reach $476.1 billion by 2026, reflecting a 32% compound annual growth rate (CAGR) from 2020.
As the popularity of dropshipping surged during the COVID-19 pandemic in 2022, many have questioned whether dropshipping and eCommerce remain profitable in 2024.
Benefits of Dropshipping and eCommerce in 2024
Dropshipping offers numerous advantages, including a low overhead budget, minimal risk, no need for product storage, and ease of startup. These factors contribute significantly to the growth of the dropshipping business. In fact, dropshipping can generate more than 200% profit compared to traditional business models. Here are the top four advantages of starting your dropshipping business in 2024:
1. Minimal Operation
Dropshipping is ideal for startups because it allows entrepreneurs to avoid unnecessary expenses on stocking physical products and renting a physical store. Business owners can simply start with a laptop, working from home.
2. Product Diversity
Traditional business owners face challenges in varying and expanding their product lines before testing customer interest and demand. They need to manage inventory and deal with unsold products, which add extra costs and risks. In contrast, dropshippers can easily add any products to their stores using dropshipping solutions like Cheersdrop without incurring these costs.
3. Scalability
Traditional retailers planning to scale up their business need more storage space and additional staff. In dropshipping, scaling is almost effortless. Beyond saving on storage and recruitment costs, you can efficiently expand your business with online resources and technology tools. Dropshipping solution apps or suppliers handle most of the extra work involved in processing additional orders.
4. Flexible Location
You can manage your dropshipping business from anywhere in the world with just a laptop. For instance, some sellers operate from Moscow while selling to customers in the United States. Many business owners have adapted to eCommerce due to the increased popularity of working and shopping from home during the COVID-19 pandemic.
To ensure consistent growth, it’s essential to stay updated on current dropshipping and eCommerce trends to stand out in the competitive market.
10 Biggest Dropshipping and eCommerce Trends to Watch for in 2024
Trend #1: Shorter Page Loading Time
In today’s fast-paced world, speed is crucial. Online shoppers choose eCommerce for its convenience and time-saving benefits, meaning they have little patience for slow websites. Page loading time significantly impacts sales, search engine performance, user experience, and potential revenue losses. Ensuring your website loads quickly is essential for retaining customers and maximizing profitability.
Data indicates that improving your website speed by just 0.1 seconds can boost retail conversion rates by 8.4% and increase the average order value by 9.2%. Google research shows that as page load time increases from 1 second to 10 seconds, the bounce rate escalates dramatically:
At 3 seconds, the bounce rate increases by 32%.
At 5 seconds, the bounce rate increases by 90%.
At 6 seconds, the bounce rate increases by 106%.
At 10 seconds, the bounce rate increases by 123%.
Users are more likely to spend more time on your website if it loads quickly. On average, they will visit 3.3 pages when the loading time is 8 seconds, compared to 8 to 9 pages when the loading time is only 2 seconds.
Trend #2: Increase Video Content
Approximately 86% of businesses currently use video as a marketing tool, and this trend is expected to rise to 91% in 2024. Customer feedback shows that about 89% of people say watching a video has convinced them to buy a product or service.
Trend #3: New Changes in YouTube
Many eCommerce experts predict that YouTube will be the leading video creation platform in 2024. Significant changes include a new monetization method for YouTube Shorts, allowing creators to earn money after reaching 10,000 views in the last 90 days. This development is likely to attract creators from other platforms like TikTok, shifting their focus and audience to YouTube. As shown in the graph below, 90% of companies are already using YouTube as their primary video marketing channel.
Trend #4: Rise of AI and Chatbots
Since the launch of ChatGPT in November 2022, AI and chatbots have become hot topics and are expected to be significant trends in 2024. Here are some benefits of using ChatGPT for business owners:
Generate and optimize product listings
Promote and market your eCommerce store
Create pages for your website
Brainstorm niche ideas for your eCommerce store
Analyze key performance metrics
Offer guidance on handling customer inquiries
Chatbots are particularly useful for eCommerce sellers as they reduce customer wait times outside office hours. Here are some chatbot apps you can use for your Shopify store:
Reamaze – Live Chat Helpdesk CRM
Tidio – Live Chat & Chatbots
Chatra – Live Chat, Facebook, Email, Visitor List + Cart Saver
HelpCenter – FAQ Chat Helpdesk
Gobot – AI Chatbot + Quiz
Trend #5: Acceleration of Mobile Shopping
In today’s society, the term “mcommerce” has emerged due to consumers’ increased use of mobile devices for shopping, in addition to traditional online shopping through computers, known as eCommerce. Insider Intelligence predicts that mcommerce sales will reach 40% of eCommerce sales, totaling $534 billion in 2024. Here are some notable facts highlighting people’s attachment to their phones:
1 in 5 people would rather go without shoes for a week than take a break from their phone.
People report withdrawal symptoms, including increased blood pressure and heart rate, when separated from their mobile devices.
Trend #6: VR and Social Discovery
The adoption of VR technology could be the next big breakthrough, with many companies already developing innovative tools that allow consumers to virtually try on products before purchasing. VR will particularly benefit jewelry and furniture stores, enhancing conversion rates by offering immersive experiences.
Trend #7: Livestream Shopping
Livestream or live video shopping is a significant wave in the eCommerce landscape. China has pioneered live video shopping globally. Forbes reported that influencer Viya attracted over 43 million viewers during Taobao’s Singles Day 2019 sales event. This trend has surged further due to the COVID-19 pandemic, with live-stream shopping projected to reach $423 billion by 2022.
For improved user experiences and higher engagement rates, consider integrating live video shopping to cultivate stronger relationships with your customers. Live streaming allows businesses to receive immediate feedback from their audience in real-time, fostering interactive and dynamic shopping experiences.
Trend #8: Embracing Sustainable Growth
Although plastic packaging is convenient and cost-effective, brands can no longer afford to ignore the environmental impact. Environmental sustainability will be a critical consideration in 2024, especially with a younger market more aware of environmental issues.
Prioritizing sustainability should extend from packaging to your entire supply chain. While it may incur additional costs, being environmentally friendly can also serve as a selling point, appealing to conscious consumers.
Trend #9: Deepening Personalization
Personalization is set to deepen in 2024, with brands and eCommerce platforms investing in tools to understand customers on a deeper level. The goal is to tailor products to individual preferences, increasing the likelihood of converting potential customers. Personalization fosters greater customer interaction, an understanding of longer shipping times, and less competition compared to generic products, creating long-term value for businesses.
Trend #10: Evolution of Google Analytics
Google Analytics plays a crucial role in gathering data about your eCommerce store, providing insights and detailed statistics. It offers valuable information about your customers, their interests, and their engagement with your business. Google recently announced the discontinuation of Universal Analytics (UA), replacing it entirely with Google Analytics 4 (GA4) effective July 1, 2024. This shift represents a significant change for marketing teams, as the measurement data model now revolves around parameters and events. To adapt, you can begin migrating your data from UA to GA4 now and refer to this article from MarTech for detailed instructions.
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