By Lewis Sellers, Managing Director, Web & ecommerce Division at IDHL
More than 80% of the UK population currently makes ecommerce purchases and it is estimated that will increase to 86% by 2027, according to statistics revealed in December 2023. As 2024 draws to a close, I think it’s opportune to take a moment to reflect back on the year and predict what’s likely to be coming down the track.
What does it mean for the web and ecommerce professionals behind those brands? How can they make sure their platforms help brands to remain not only relevant but competitive against a backdrop of external pressures?
In a world where online shopping continues to dominate, the need to get ecommerce transactions absolutely on point – making sure each and every customer feels special – arguably gets more important.
At IDHL, we continue to work on long-term ecommerce strategies for a range of online retailers who need to keep abreast of changes afoot in their industries. Part of our role is making sure we help them to navigate these alongside achieving results that delight their customers and underpin business growth.
So what’s in store? Here are five trends I expect to see next year to solidify ecommerce becoming even more integrated, interactive, responsible and customer-centric.
Simplifying tech stack
Justifiably, brands have in recent years been looking at ways in which they can get more bang for their buck when looking at their on-premise and legacy ecommerce platforms. They want to be able to test the boundaries, rather than simply ‘keep the lights on’ with the platforms that they utilise.
I foresee that during 2025, this mindset will pave the way for brands simplifying tech stacks to one or two ecommerce vendors with the intention of enhancing customer experience and driving business growth. And I can see the practical benefits of doing so, not least enhancing security and data compliance.
My thinking is that there are likely to be two types of customers utilising this. Firstly, some will simplify the tech stack to a couple of vendors to reduce cost and simplify their setup, removing the need to manage infrastructure and multiple services to drive bottom line growth. A second group will move to a more composable solution, and by that I mean that instead of building everything from scratch they will work with multiple different specialist vendors to build the tech for them. This could be 10 different vendors, but they’re all innovating on a separate piece of technology, rather than the individual brand doing everything themselves.
But there’s more driving that decision, in my view, and at the forefront is innovation; shining a light on the importance of testing and implementing new tech and features which could put brands ahead of the competition. By allowing more room for an agile and responsive approach within web and eCommerce strategies, brands who have both the long-term vision alongside a more manageable tech stack will win out.
From the outset at IDHL, we look at client requirements of any two to five year eCommerce strategy to outline elements such as total cost of ownership of eCommerce platforms, ROI and building out of CAPEX investments. Going forward, no stone can be left unturned; while determining decisions such as open source vs on-premise remains central it has to fit into a manageable and strategic tech stack that achieves the right results for the business as a whole.
All ecommerce websites remain at higher risk of hackers, and any tiny door opening into any area of a website can cause real headaches for brands and their customers. So next year will be a continuation of doubling down on security, stress testing at every opportunity to minimise the issues that can be caused. Working with the right third parties will help to keep brands on track and this should always remain central to the tech stack.
Accessibility
As every year passes, online retail rightly becomes more regulated and 2025 will be no exception. As experts in our field, we need to be keeping these front of mind for the changes they will bring for eCommerce and the implications for brands.
The European Accessibility Act 2025, due to come in during June next year, is one notable piece of legislation that will bring about changes making digital platforms accessible to everyone. At IDHL, we started to work with clients on this some months ago in terms of the impact on this for their ecommerce and we will continue to do so well into the New Year. Brands need to introduce features which help with audio and visuals; ultimately giving customers a more socially inclusive offer which will give brands the chance to remain competitive. Alongside technological advice and support from eCommerce experts such as ourselves, brands would do well to think about the legalities for the introduction of this act and think about the toolkit of features that are central to it.
This new act applies to all sizes of companies, and the smaller brands may feel exposed if they don’t have access to the tech expertise for guidance; meanwhile bigger brands could battle with needing to update so much across their infrastructure. This piece of work is undoubtedly a chunk of development work internally or via a digital agency; whichever route is preferred to each brand, they need to keep in mind the advantages it will bring overall.
The rise of headless platforms
The rise of headless platforms is reshaping the ecommerce landscape by enabling greater flexibility, customisation and responsiveness. As brands seek to meet evolving consumer expectations and enhance digital experiences, headless architectures are likely to become more mainstream going forward with larger retailers.
By separating the front-end and back-end, we are already seeing more flexibility for brands; and, importantly, customisation to create unique brand experiences for clients. This approach allows for scalability and improved performance, arguably even more important attributes than ever going into 2025 if brands are to continue to compete with emerging brands as access to online ecommerce platforms grow.
The brands we work with can see the real connection between having a solid platform which offers the right APIs for customer needs. Doing so offers their businesses’ a multitude of opportunities to prosper. There are, of course, considerations such as cost and resourcing but put in place in the right way alongside a long-term vision, headless platforms are here to stay and those brands which are savvy will benefit the most.
Amplifying the synergy of omnichannel experiences
Gone are the days when User Experience (UX) and Customer Experience (CS) worked in isolation for ecommerce. We need to be thinking bigger across the industry, in the form of Total Experience (TX), to really raise the bar and navigate a world where every brand’s customers are bombarded with infinite choices.
In my view, there is an endless opportunity to utilise technology which makes every transaction much more accessible and intuitive to the whole operation. Making everything a frictionless process is what we’ve been working with clients on for a while now at IDHL, adding lifetime value and helping brands to retain customers by marrying up their digital and Bricks-and-Mortar presence. Thinking about how mobile and web platforms can help to bring online and offline to life in every facet of their process brings about so many opportunities for growth.
We’re already integrating Augmented Reality (AR), hyper-personalised Loyalty Schemes and Virtual Reality (VR) across websites to enhance shopping experiences. I think next year will see a further step up as the technology moves at pace, bringing so many new dimensions for shoppers and brands alike.
Sustainability
It’s no secret that many business owners and customers are prioritising environmental and social considerations. Next year, I suspect we will see more brands look at the credentials of the data centres they utilise, as many seek to become carbon neutral in the future, and reporting such commitments in their ESG reporting will become more of an expectation.
Customer behaviour has been driving many online retailers, large and small, to adopt operational practices which are much more environmentally friendly for some time now. This has seen many brands we work with emphasise their environmentally friendly packaging and product sourcing commitments – helping to drive brand reputation and loyalty. I see the alignment between these operational decisions and digital platforms becoming closer in future years; the two must go hand-in-hand.
And finally, thinking smart with social and governance with eCommerce strategies is also a big theme 2025 and beyond. At IDHL, we partnered with national charity Pennies this year, implementing a plugin for ecommerce clients to be able to generate funds for their chosen charities with ease upon checkout. It’s a really intuitive and clever piece of tech which is helping to make a difference with every checkout; and they’ve facilitated more than 235m million transactions since launching. I’d love to see more tech innovations like this to help ecommerce really drive change.
Overall, ecommerce remains an exciting industry full of potential and growth. By thinking ahead, brands will benefit from implementing the right strategies to penetrate new markets, helped along by improvements in logistics and payment options on the horizon which also hugely complement the thriving ecommerce model. My role at IDHL sees me look at the bigger picture for clients and hopefully this snapshot brings together the myriad of factors that industry professionals need to be thinking about as we enter another year of exciting change.
