1. 1 0 E C O M M E R C E T R E N D S . C O M Pr e s e n t e d b y
T r e n d s f o r
2O17
2. INTRODUCTION
These days, 51% of Americans prefer to shop online rather than in
stores—afigurethatjumpsto67%forMillennialsand56%forGenXers.
According to some experts, online sales will increase from $335 billion
in 2015 to $523 billion in 2020, a rise of 9.32% per year, although the
current annual growth rate is actually 14%.
Asthesefiguressuggest,retailersneedtofullyembracedigitalcommerce
in order to thrive; stores without an online presence are destined to
disappear.Today’sconsumerownsseveraldevices—smartphone,tablet,
computer—andexpectsanonlineshoppingexperiencethat’squick,easy,
and, above all, user friendly.
As one of North America’s top eCommerce agencies with numerous
clientssuchasSTOKES,DAVIDsTEA,LaVieenRose,Birks&Mayors,
SAIL, Souris Mini, Structube and FUJIFILM, to name just a few,
AbsolunethasafrontrowseatwhenitcomestoeCommerceinnovations.
We’veidentified10eCommercetrendstowatchforin2017—important
developmentsthatcompaniesneedtotakeintoconsiderationtoensure
their online and in-store sales growth.
10 ECOMMERCE TRENDS FOR 2017 2
3. TABLE OF CONTENTS
01. THE END OF BLACK FRIDAY AND CYBER MONDAY
02. REAL-TIME CUSTOMIZATION
03. DATA-AS-A-SERVICE AND ECOMMERCE
04. HELLO, ARTIFICIAL INTELLIGENCE
05. BYE-BYE WALLET
06. THE SNAPCHAT-IZATION OF SHOPPING
07. PREDICTIVE ANALYSIS
08. THE UBER-IZATION OF SHIPPING
09. UNIFIED COMMERCE
10. DISINTERMEDIATION
4
7
9
11
13
15
18
21
24
27
10 ECOMMERCE TRENDS FOR 2017 3
4. 01THE END OF BLACK FRIDAY AND CYBER MONDAY
HELLO, CYBER
NOVEMBER
EventhoughconsumerswillspendmorethanUS$400billiononretailpurchases
in November (compared to $363 billion in November 2012), Black Friday and
Cyber Monday will no longer signal the start of the holiday shopping season;
instead, they’ll now be part of an entire shopping season that will kick off in early
November, hence the name “Cyber November.”
According to Google, 40% of Canadian consumers start their holiday shopping
beforeHalloweenand88%ofretailersintheUnitedStatesstartadvertisingsales
in the first week of November.
Retailers would benefit from spreading their promotions out over an entire
month, making adjustments along the way, instead of betting it all on just one
weekend. Logistics would be easier to manage, not to mention that they’d avoid
the headaches related to the hordes of shoppers that can grind some stores –
online or physical - to a halt during Black Friday weekend.
THE END OF BLACK FRIDAY AND CYBER MONDAY 4
5. Canadian housewares retailer Stokes prepares its
holiday season well in advance and Cyber November
plays a big role in its 2016 strategy: a pre-shopping
contest launched in late October invited users to
create a wishlist which they could win. This enabled
the retailer to get a better idea of customer interest
and intent, which it can then reactivate throughout
Cyber November with theme-driven offers that are
increasinglyattractive.Theuserwillenjoyanevolving
experience that will culminate on Cyber Monday.
01C A S E S T U D Y # 1
THE END OF BLACK FRIDAY AND CYBER MONDAY 5
6. With 35.7% of Black Friday sales in 2015, Amazon is still the online retail
benchmark.In2016,themarketleaderofficiallylaunchedits«BlackFriday»sales
siteonNovember1stasa“countdowntoBlackFriday”angleisused,followedby
the online retailer’s “Cyber Monday Deals Week”. Amazon is expected to run
increasingly attractive promotions that are available only for a limited time or in
limited quantities, or to a specific group (special offers for Prime members, for
example), and refresh its eCommerce offering on a daily basis while creating a
sense of urgency for the entire period, rather than just two days. By extending
the sale period and taking advantage of the wide range of products sold through
its platform, Amazon is able to respond quickly to trends and adjust its offer,
inventory, and promotions.
01C A S E S T U D Y # 2
THE END OF BLACK FRIDAY AND CYBER MONDAY 6
7. 02REAL-TIME CUSTOMIZATION
A DYNAMIC
SHOPPING EXPERIENCE
THAT ADAPTS TO THE
SHOPPER IN REAL-TIME
Just as search results differ from one person to the next, 2017 will see the
emergence of an online shopping experience that is unique to each consumer.
Eachshopperwillhaveaccesstouniquecontent:productrecommendationsand
add-onschosenbasedontheirpreferences,geographiclocation,markettrends,
demographic group, past purchases, and brand interactions—all completely
automatically. Even better, their next visit will be entirely different because it
will be based on the previous one and on the merchant’s current promotions.
Whilethiscouldseemalittleintrusive,theoppositeisactuallytrue:nomoreweird
recommendationsthatseemtocomeoutofleftfield.WithplatformslikeMonetate,
Magento 2, or Sitecore, they’ll be replaced with relevant recommendations and
search results that are based on the customer’s recent online activity and brand
interactions—like walking into a store where the salespeople know your name
and what you like.
REAL-TIME CUSTOMIZATION 7
8. 02L’OréalParishasdesignedfivediagnostictools:skincare,cosmetics(face
and eyes), haircare, and hair color. These beauty diagnostics, typically
operatedonamobiledevice,allowconsumersto“tryon”differentshades
of make-up, “scan” their hair color, etc. Not only can consumers use
thesetoolstoplaywithdifferentlooksinrealtime,butthedatacollected
duringeachsessionallowsforanunprecedentedlevelofpersonalization
of communications and interactions, not to mention ultra-customized
discount coupons, which can have a major influence on purchasing
decisions.
REAL-TIME CUSTOMIZATION 8
C A S E S T U D Y # 1
9. 03DATA-AS-A-SERVICE + ECOMMERCE
ENDLESS AISLES AND
THE PERFECT FIT
If92%ofInternetusersregularlyreadproductreviewsandcommentsfromother
buyers,it’sbecauseuncertaintyisahugeobstacletoonlinepurchasing.Themore
information there is available about a product (pictures, reviews, descriptions,
specifications, etc.), the less reluctant people will be to buy it online. However,
constantlyrefreshingtheinformationoneachindividualproductonawebsiteisa
near-impossibletaskforanymerchantwhodoesn’thaveamazon-esqueresources.
In2017,manyretailerswillstartworkingwithdataaggregatorsthatcompiledata
onmillionsofproducts:pictures,descriptions,pricecomparisons,specifications,
UPC codes, reviews, and comments. There are even aggregators that contain
data on millions of pieces of clothing that can be used to suggest the perfect
size! A merchant will be able to link its site to these databases to automatically
update product information. Say goodbye to uncertainty and to poor product
descriptions!
DATA-AS-A-SERVICE + ECOMMERCE 9
10. C A S E S T U D Y # 2
Etilizeisaproductinformationaggregatorspecializedinhomeelectronics
that and provides structured and standardized data on nearly 2 million
products. A retailer can synchronize its website with Etilize’s database
to almost instantly broaden its service offering and to ensure the validity
of the information on each product including product images, owner
manuals, specs, dimensions; even the manufacturer’s links to compatible
accessories. Product information is available in 20 languages adapted for
C A S E S T U D Y # 1
Intheclothingandfootwearindustry,severalbrandsandretailersareusing
theTrueFitdataaggregator,whichcurrentlyworkswithover400clothing
andshoebrandstoprovideshopperswiththeperfect-sizedgarmentbased
on their current wardrobe and measurements.
DATA-AS-A-SERVICE + ECOMMERCE 10
11. 04HELLO, ARTIFICIAL INTELLIGENCE
CONSUMERS WILL
INTERACT WITH ARTIFICIAL
INTELLIGENCE… AND
THEY’LL LOVE IT!
In2017,manyconsumerswillhavetheirfirstinteractionwithachatbot,afullyautomatedchat
agent that will answer their questions and act as the first point of contact with the brand. A
chatbot increases the number of platforms on which a brand can transact by offering guided,
interactive browsing at all times.
Chatbots will soon become as commonplace as automated phone systems, only much more
interactive and interesting. At the same time, store sales staff will become more important
than ever, as they’ll be increasingly involved in the online experience.
What are the potential impacts of a chatbot on eCommerce?
Live chat users spend an average of 5%-30% more.
The buyer conversion rate is 5 to 10 times higher following a chat session.
HELLO, ARTIFICIAL INTELLIGENCE 11
12. FastfoodchainTacoBellunveileditsTacoBot
on the popular messaging platform Slack,
which allows customers to order food by
messaging TacoBot, which asks all the right
questions.
The fun and interactive CELEB STYLE
chatbot analyzes celebrity looks and tells
consumers where they can purchase each
wardrobe item.
H&M, Sephora, and Victoria’s Secret have all recently
introduced chatbots on the Kik platform.
L'OréalCanadahasbeendiligentlypreparingforautomated
interactions for over a year, including studying potential
questions and answers in multiple digital contexts. Leaving
nothing to chance, the beauty giant is monitoring the
evolutionofmessagingplatformsandtheirpotentialforboth
commercial and customer service applications, especially
when combining chatbots with artificial intelligence.
Burger King and Pizza Hut customers can
order food directly through Facebook
Messenger and Twitter by messaging the
restaurant chains’ bots.
Platforms to watch: With 300 million
downloads, the Kik chat app is used by close
to40%ofU.S.teens,whopreferthisformof
communication.Othermajorplayersinclude
FacebookMessenger(1billionusers!),Slack,
WhatsApp, ChatFuel, and many others.
HELLO, ARTIFICIAL INTELLIGENCE 12
13. 05BYE-BYE WALLET
THE BEGINNING OF
THE END FOR THE
WALLET AND CASH
Consumersthesedayscanalreadymakemanypurchasesandtransactionswithout
ever taking out their wallets. The upgrades to consumers’ mobile devices and
merchants’ point-of-sale systems will spell the end of the traditional wallet for
many people in 2017, especially since “mobile” payments will be possible using
morethanjustasmartphone—watches,rings,andotherdevicesand“wearables”
willnowbeconnectedandcapableofmakingpayments.Merchantswouldbewise
to set themselves up to accept these new payment methods as soon as possible.
BYE-BYE WALLET 13
14. C A S E S T U D Y # 1
In 2016, through a partnership with BMO,
MasterCardannouncedthelaunchof“selfie
pay,” a service that confirms a user’s identity
using biometrics, in particular, using a self-
portrait commonly called a “selfie.” While
the service is currently used to verify online
purchases, its potential uses for cashless
transactions are plain to see.
C A S E S T U D Y # 2
Kit and Ace stores, sellers of minimalist and
technicalapparel,donotacceptcashpayments
and have no actual cash registers. Each one of
their54locations,including23intheU.S.and
10inCanada,isequippedtoacceptmobileand
credit card payments, but no actual money.
C A S E S T U D Y # 3
During the Rio Olympic Games, VISA gave
its sponsored athletes a payment ring that
allowed them to make purchases at some
4,500 points of sale at the Olympic venues
by tapping the NFC-enabled ring on the
payment terminals.
BYE-BYE WALLET 14
15. 06THE SNAPCHAT-IZATION OF SHOPPING
REAL-TIME COMMERCE
IN A HYPER-LOCALIZED
ERA
Gen Y and Z consumers are hooked on the instant communication and unique
experiencesmadepossiblebymobiletechnologies,RFID,NFC,andgeolocation.
In parallel, analytics will shift from the Web to the street; from the computer to
the individual.
Merchantscannowrelyonsensors—stationarytechnologythatcandetectnearby
devicesanditems—toenhancetheirofferandcreatereal-time“happenings”for
which the experience, content, or promotion is available only to the people who
are there at the time. Retailers are no longer selling only products and services,
they are providing experiences and interactions, a fact that major brands will
exploit in increasingly innovative ways.
THE SNAPCHAT-IZATION OF SHOPPING 15
16. Canadian outdoor retailer SAIL decided to test Facebook’s new local
features by designing a Drive-to-Store campaign which was entirely
initiated on digital platforms. Finally able to measure the in-store
impactofadigitalcampaign,SAILrananA/Btestandbytheendofthe
campaign, noted that nearly 58% of the customers in the store with a
Facebook account had seen and/or interacted with the campaign, a big
first step towards the hyper-localization of interactions between the
brand and its customers.
THE SNAPCHAT-IZATION OF SHOPPING 16
C A S E S T U D Y # 1
06
17. 06TheWalgreensappallowsuserstorenewtheirprescriptionsby"scanning"
the bottle or box, but more than that, the app changes when customers
are NEAR a store and then again when they’re IN the store, offering
exclusive features in each situation, leveraging the “context aware”
features made possible by mobile. The largest pharmacy chain in the
United States is pulling out all the stops and taking full advantage of
mobile technology to make life easier and better for its customers.
THE SNAPCHAT-IZATION OF SHOPPING 17
C A S E S T U D Y # 2
18. 07PREDICTIVE ANALYSIS
ACCURATELY
PREDICTING THE
CUSTOMER’S NEXT
PURCHASE
Predictive analysis is a technology that’s quickly gaining popularity with
merchants.Byexploitingthemassiveamountofdata(BigData)collectedthrough
interactions and customer profiles or personas, merchants can use predictive
analysistobetterunderstandconsumers’purchasinghabits,preferences,and,yes,
eventheirnextpurchases,basedonthebehaviorofothercustomerswithsimilar
profiles. This technology, available on certain eCommerce platforms (AgilOne,
Emcien,WindsorCircle,RichRelevance,etc.),promisestobeverylucrativefor
retailers, but even more so in the B2B sector, where orders are larger and sales
cycles are often more laborious.
PREDICTIVE ANALYSIS 18
19. 07AgilOne helped DAVIDsTEA realize that a new customer who didn’t
return within 30 days was lost. By segmenting their customers by
purchasetypeandcreatingasamplingforeachgroup,thecompanywas
abletooptimizeitsemailcommunicationsinordertoconfirmpurchasing
trends in advance, in some cases doubling their regular conversions by
offering the right customer (1) the right product (2) in the right way
(3) and at the right time (4). They are able to predict their consumers’
behaviorandadjusttheirofferseasonally.Theanalyticalapproachledto
anincreaseinthenumberofnewcustomerswhomakeasecondpurchase
within 30 days.
PREDICTIVE ANALYSIS 19
C A S E S T U D Y # 1
20. Launched in 2015, the SAQ - Quebec’s liquor store’s Inspire card is a
loyalty program that not only gives the government corporation better
insight into its customers’ purchasing habits, but also more information
about their tastes and preferences; qualitative AND quantitative.
Armed with that wealth of information, the SAQ can then determine
the probability of a customer purchasing certain products in certain
situations, and can ultimately create unique, personalized promotions
foreachcustomer.Inotherwords,theInspirecardcannotonlypredicta
customer’snextwinepurchasebutcouldalso,withenoughinformation,
recommend the perfect bottle of wine.
PREDICTIVE ANALYSIS 20
C A S E S T U D Y # 2
07
21. 08THE UBER-IZATION OF SHIPPING
SMALLER STORES,
LOCAL DROP-OFF
POINTS AND SAME-
DAY DELIVERY
Whilethe“bigbox”modelcontinuestoloseground,eCommerce,andespecially
online retail orders, continues to grow, bringing with it both challenges and
opportunities related to logistics and delivery. In 2017, many consumers will
receive their first same-day delivery, whether at home, at work, or at a drop-off
point of their choosing.
Manystoreswillnowoperateoutofsmallerspaces,whichwillserveasshowrooms,
fittingrooms,ordrop-offpoints.Customerswillbeabletoordertheproductthey
want after having seen it and touched it.
THE UBER-IZATION OF SHIPPING 21
22. I N S I G H T # 1
Amazon offers free same-day delivery
with any purchase over $35 to its “Prime”
membersin27citiesacrosstheUnitedStates.
InCanada,same-daydeliveryisnowavailable
in Toronto and Vancouver.
I N S I G H T # 2
In addition to working on same-day delivery
agreements with Uber and Lyft, Walmart is
even exploring the idea of having a customer
who makes an in-store purchase drop off
another customer’s order on his way home.
I N S I G H T # 3
Walmart is also investing in smaller stores in
ordertoexpanditsreach.Itwouldmakesense
forthesestorestobecomedeliverypointsfor
onlinepurchaseswherecustomerscouldalso
pickupeverydayessentialslikepapertowels,
dish soap, perishable foods, etc.
THE UBER-IZATION OF SHIPPING 22
23. I N S I G H T # 5
IKEA opened six drop-off points in Canada in
order to serve new markets. Customers make
their purchases online and then pick up their
order at one of the drop-off points.
I N S I G H T # 4
Czech online retailer Zoot delivers items
purchasedonlinetoaphysicallocationwithin
a few hours. Consumers can try on clothes
and keep only the pieces they like.
I N S I G H T # 6
Macy’s,aleadingomni-channelretailer,plans
togiveAmazonarunforitsmoney.The“ship
fromstore”optionwilltransformanyMacy’s
store into an order processing center, giving
them 775 locations to ship from, compared
to Amazon’s 66.
THE UBER-IZATION OF SHIPPING 23THE UBER-IZATION OF SHIPPING 23
24. 09UNIFIED COMMERCE
MERGING COMMERCE
WITH ECOMMERCE
Unified commerce is the next logical step in the omni-channel strategy (see last
year’s eCommerce trends): the centralization of IT infrastructures. Instead of
adding a digital storefront to the in-store infrastructure, merchants will instead
integrate their stores (physical or digital) into a centralized infrastructure. With
platforms such as Magento’s Commerce Order Management (MCOM), which
centralizesallsystemsandgivesaccesstotheminrealtime,retailerscannowoffer
consumersanunprecedentedamountoffreedom.Thetimingofthisdevelopment
couldn’tbebetter,withconsumersnowexpectingtobeabletosearchfor,interact
with, purchase, receive or pick up, and return products wherever and whenever
they want. They’ll spend their money with merchants who will let them make
purchases whenever it’s convenient for them, and not the other way around.
“Theconsumerdoesn’tseeadifferencebetweenanonlinestore,a
physicalstore,andinteractingwithacompanyonFacebook;he’s
dealing with a whole brand and not just its parts.”
Charles Desjardins
ABSOLUNET ASSOCIATE
UNIFIED ECOMMERCE 24
26. Frankfurt Airport, which sees 61 million passengers every year,
introducedatechnologicalinfrastructurethatunifiesallofitsmerchants
intoacentralizedshoppingexperience.Thisallowsthecustomertopre-
order from any duty-free store or combination of stores and/or airport
restaurant while still in the air, on site, in a taxi on the way to the airport
- even the day before travelling. More impressive still is that the new
infrastructure is compatible with the many technological platforms and
ERP systems that were already place.
UNIFIED COMMERCE 26
C A S E S T U D Y # 2
09
27. 10DISINTERMEDIATION
BUYERS WANT TO
DEAL DIRECTLY
WITH BRANDS
Millennialswanttodealdirectlywithbrands,soit’sonlynaturalthattherelationship
between end users and brands is becoming less circuitous. These same brands
and manufacturers will pull out all the stops to make the sale with the end user
(Direct-to-consumerorD2C),tothedetrimentoftheirtraditionaldistribution
channels, the distributors and merchants.
Conversely,distributorsandmerchantswillattempttocementtheirrelationship
with the customer by becoming indispensable and by offering added value:
warranties, complementary services and, of course, independence from brands.
Thistrend,calleddisintermediation,willtakeholdinbothB2CandB2Bcommerce,
whereautomatedprocessesandCRMsystemsarebeingusedmorethaneverto
maintain relationships and to simplify the ordering process.
DISINTERMEDIATION 27
28. C A S E S T U D Y # 2
AliExpress, the B2C "marketplace" of Chinese giant Alibaba, allows
manufacturers to deal directly with end buyers all over the world thanks
to a standardized eCommerce and logistics platform.
C A S E S T U D Y # 1
Canada Goose, the iconic Arctic luxury brand, opened two stores in fall
2016 inordertocontrolthecustomerexperienceandbrandinteractions
from beginning to end.
DISINTERMEDIATION 28
