Online shopping of tomorrow

In our series of blog articles on digital commerce, we made it clear that if all relevant information and data along the customer journey in retail - both online and offline - is bundled, optimized and processed, customers and retailers will benefit in equal measure. On this basis, the possibilities of digital transformation are almost limitless. What is the status quo in online retail and what solutions could make online shopping even more attractive in the future?

With this question in mind, we conducted a survey in which a total of 140 people took part. We not only asked about possible future prospects, but also about positive and negative experiences with online stores in order to bring more transparency to the often opaque world of e-commerce. From this, we have summarized approaches and innovations that could become relevant for retail in the future.

The result: non-perishable goods such as electronics (79.29% of respondents buy electronics online), clothing (70%) and everyday household items (62.14%) are typically purchased digitally. Only 25% of respondents stated that they buy food online.

It's no surprise that the user-friendliness of the entire shopping process is crucial for a positive customer experience. This starts with an intuitive website, continues with a straightforward ordering and payment process and speedy delivery, and ends with friendly customer service and easy returns options.

Negative experiences, on the other hand, occur when this user-friendliness leaves something to be desired. System or product errors are particularly serious. Imagine someone orders a product, but it comes in the wrong color or size, or the product description and ratings don't match the actual quality. Other frustrating scenarios are when a product is shown as available in the online store even though it is not, or when the product arrives damaged.

The personal AI shopping advisor

The e-commerce market is influenced by many trends and technologies and one of the most prominent developments is the influence of artificial intelligence (AI). Just as we use ChatGPT today for everyday questions, in the future there could be an AI as a personal online shopping advisor. Yes, an AI advisor instead of a human, but in a very different way to what you are currently imagining. What is often annoying about chatbots and automated service hotlines are the rigid process patterns that offer little or no individual response to customers and their concerns. But this ability to customize is not just reserved for us humans.

Imagine a customer entering your website and immediately being greeted by a friendly AI shopping advisor. This advisor is not like a traditional chatbot, but an intelligent companion that can adapt to your customer's individual needs.

Step-by-step experience:

1. First contact: The customer asks the AI about the best features for her new TV.
2. Comprehensive information: The AI advisor not only provides technical details, but also suggests additional features that may be of interest to the customer, based on current trends and personal preferences.
3. Customization: The customer states her specific requirements - such as size, energy efficiency or even environmental friendliness - and the AI filters the best options from all available online stores to find the cheapest prices.
4. Advanced search: The customer has the option of entering additional criteria that are important to her, and the AI adjusts the suggestions immediately.
    

Augmented reality (AR) for the perfect home

After the customer has received a selection of televisions, she wants to make sure that the new set fits perfectly in her living room.
 

Step-by-step experience:

1. AR visualization: By clicking on the AR function, the customer can virtually place her favourite TV in her room and see what it looks like.
2. Interactive tests: In the Metaverse, she can experience the TV in action - watch movies, test apps and see if the size and design really meet her expectations.
    

Smart fashion with body size scanner

A customer wants to buy new outfits, but often has difficulty finding the right size.
 

Step-by-step experience:

1. Digital fitting: The customer creates a digital twin of themselves using their cell phone camera.
2. Outfit suggestions: The AI suggests outfit combinations that perfectly match its style and gives size recommendations from various manufacturers.
3. Individualization: Customers can customize garments and design them according to their wishes - be it the color or the pattern.
    

The digital shopping center in the Metaverse

The customer wants to shop online with friends and discover new products.
 

Step-by-step experience:

1. Virtual shopping center: Together with friends, he creates a digital shopping center that contains their favorite stores.
2. Online shopping together: Customers can virtually stroll through the center with their friends, try out products and exchange opinions in real time.
    

Automated reorders for consumer goods

Another innovation could be an automatic ordering process for consumer goods that are delivered after consumption. For example, an AI-based food processor that not only provides new cooking ideas for the day, but also automatically places an order for food could be conceivable.
 

Digital Product Passport (DPP) for informed decisions

A customer has decided on a complex technical device and wants to access important information quickly.
 

Step-by-step experience:

1. QR code access: With a QR code on the product, the customer can immediately access installation instructions, maintenance tips and fault diagnostics.
2. Easy handling: This not only makes the purchase decision easier, but also supports it during use of the product.
    

One basic idea runs through all of these innovative approaches: personalization. However, there is still room for improvement in e-commerce when it comes to personalized product suggestions. Product suggestions should therefore be based even more closely on the customer's order history and offer the option of excluding products that were purchased for other people via their account, for example. In addition, after purchasing a TV, for example, alternative TV sets should no longer be suggested.

Sustainability plays a central role in shaping the e-commerce of the future. The focus here is particularly on the logistics sector in connection with parcel services. The aim of a retail company must be to reduce the returns rate in order to avoid double transportation routes. Some of the technologies described in the section "New innovations" could help here.

• If the product descriptions were realistically adapted and fake reviews removed, it could almost be guaranteed that the product that was selected online and virtually tested using KI customer advisor and augmented reality would definitely suit your prospective customers and that they would not return it.
• For returns that do occur, reusable packaging materials could be used, similar to the deposit system for water crates. Unnecessary double packaging should also be avoided unless it serves to protect the product.
• Logistics and supply chains also need to be rethought. In addition to the use of autonomous e-delivery vans and e-drones, great importance should be attached to parcel bundling in order to avoid double trips by different parcel services. To this end, the responsibility of parcel delivery services could be divided up by district, for example, so that they either deliver to the relevant district from a central warehouse or deliver directly from the branches in that district.
• It is not only logistics that needs to be made more sustainable, but also the digital infrastructure. Data centers play a central role here and should be operated more energy-efficiently.
• The digital product passport (DPP) can also make a contribution to sustainability. A DPP supports sustainable consumption by providing information on the origin and transportation routes as well as the reparability of a product. Users can access digital instructions for use and gain insights into sustainable aspects, which encourages a conscious decision and longer use of the product. Find out more about the Ecodesign Regulation and the digital product passport here.

A clear trend is emerging as a result of digitalization and online retail: the desolation of city centres due to the decline of bricks-and-mortar retail. Similar to the transformation of the logistics industry in terms of sustainability, the concept of bricks-and-mortar retail must also be completely rethought.

In addition to traditional approaches to linking bricks-and-mortar retail with online retail, such as Omnichannel services (e.g. Click and Collect), loyalty programs and real-time inventory updates, a promising concept could be the transformation of stationary retail into an experience and feel-good area. The retail space serves less as a sales platform and more as a place where people can spend quality time with friends and family and try out, test and experience products. Omnichannel services also allow products to be ordered on site and delivered directly to your home.

As long as the AI customer advisor does not yet exist, it would also be conceivable to provide virtual customer advice during online shopping in order to link online retail more closely with bricks-and-mortar retail. This also includes the option of using stores as warehouses by shipping products from regional stores to the end customer, which also has a positive side effect in terms of sustainability in online shopping.

It is clear that the online shopping experience of tomorrow is no longer tied to bricks-and-mortar retail and that creative ways must be found to reinvent bricks-and-mortar retail. Current technologies already enable an innovative, digital shopping experience today. So the question is not whether comparable innovations in digital commerce will come, but when they will be introduced to the market.