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Future Trends of E-Commerce

Discuss Future Trends of EC


This paper deals with the future trends of e-commerce. The research project is focused on how the e-commerce market place will look like next year and after five years. The transformed position of the e-commerce after a decade is also discussed here. The improvement that has been made by the advanced technology on the future e-commerce transactions is the focusing point of this research paper.

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E commerce will provide improvement in the communications, processes and decision making. The application of e commerce in organisation will facilitate the transferring of data in more accurate and speedy ways accessible to all of the individuals in the organisation. In place of mere communication process, e commerce facilitates the discussion between the members in the organisation in a more strengthened ways. In e-commerce based communication along with voice based data transfer, audio visual features are also applicable and thus it improved the communication process. It avoids the problems in traditional communication process such as data over load, as well as time lagging and supports better organisational environment. Thus e commerce based communication process improves the organisational efficiency.

Discuss Future Trends of EC


E-commerce market is one of the growing markets due to the increased users of internet. E-commerce is the purchase or sale of products or services through internet. It is alternatively known as Online Shopping. The payment is through electronic means. B2B (Business to Business) and B2C (Business to Consumer) are common types of E-commerce.

E-commerce after one year

After one year it is expected that there will emerge new business models and revenue streams in the e-commerce business sector. The cost and time required for the e-commerce transactions should be reduced and it will improve the operational performance of the business in the sector. Reliability and high speedy access will support the customers as well as the business firms to get better servicing. Due to the rapid change of technologies, the cost will be reduced and thus the attractive pricing policies can be adopted by the firms for their online marketing. According to Moors Law, “the performance of micro-processors (computing power) doubles every 18 months resulting in cheaper, faster and convergent technologies.” (Current and future trends 2001). Thus business firms will be supported with provision of better shopping options and competitive pricing. It will help to carry out the business in more cost-effective manner and with speedy expansion of the market. The business processes shall be streamlined by using the innovative and advanced techniques. The customer base and demand shall be increased further with the added advantages of the e-commerce sector. The value chain of the business should be strengthened with increased profit margins.

After 1 year it is expected that the mobile internet marketing will be a prominent method of online marketing. Innovative mobile phone products supported with high speed digital mobile services will gain more customer base. It is expected to get elevated growth rate in the sector with advanced speedy service and lower consumption cost. The new trend in the e-commerce sector is related to technological advancement. E commerce will provide improvement in the communications, processes and decision making. It will enter in all aspects of the organisation. It will have an incredible opportunity in the purchasing and supply functions. In the field of communication it will grow to be an invaluable tool. By better supporting of e-commerce, the supply chain system in the business will become more advanced and greatly facilitated. (Carter 1999, p.33).

E-commerce in the next five years

Various trends have taken out in e-commerce over the past few years. There are a variety of opinions about the future of e-commerce. Some argue that the e-commerce will be heading in the coming years although online sales are growing. Giga Information Group analyst Andrew Bartels in his interview with Economic Times points out that the current trends are the continuation of the past trends and are significant for e-commerce. The five trends identified by him are multichannel retailing, more satisfied customers, consumers do their own thing, death of the mid size e-tailer, and more profits. (Regan 2002).

A recently published report says that e-commerce sales are expected to grow to about $30billion in the next five years. U.S. E-commerce Forecast 2008 to 2012 Report by Forrester Research Inc points out the following figures of online retail sales from 2008 to 2012.

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Year sales               (in billion)

2008                          $ 204

2009                       $ 235.4

2010                        $ 267.8

2011                          $ 301

2012                        $ 334.7

Study by Retail analysts Verdict Research shows that consumer spending on online marketing has increased three times in 2006 and it is expected to triple in the next five years. There will be a rise of 8.9% in retail sales by 2011 in UK.

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E-commerce after a decade

E-commerce will have to face new changes in the coming decade. As per a survey, there will be 3-D virtual shopping malls instead of e-commerce and there will be personalized advertising through the flexible online environment. That means e-commerce will be changed to v-commerce. “This move to virtual shopping will also place increased demand on the technology used to support online services such as web hosting, and so the robustness and reliability of these providers will be critical to its success.” (E commerce to 2020).

The supporting field of e-commerce will also change. Marketing and advertising will be changed for more customization. Other technology related fields like web hosting also will change. Another significant change will also take place in retail sector. (E commerce to 2020). Personalization in the web page will be another significant change in the e-commerce environment. It is need of the hour since the customer loyalty towards a website is relatively lower when comparing with the traditional shops. Beyond the personalization in the web page, a customer will be able to select a particular product as per his need that means he can select the name; product specification etc. can be changed from one customer to another. Online advertising, micro-commerce, co-marketing and cross selling deals will be getting more popularity. Industry expert predict that a customer can buy a product even from banner advertising without going for the company site. Thus the industry will be going to face several types of changes in the near future. (Smith 2009).


The E-commerce market increases day by day. Even though there are arguments against it, most of the studies show that e-commerce has a major influence on people and the internet users have increased. E-commerce has become important among the consumers and suppliers due to its advantages like: access to the global market, speedy transactions, reduced costs etc.


Ayny 2008, E commerce future in figures, Ecommerce Journal, Web.

Carter, Phillip, L 1999, The future of purchasing and supply: electronic commerce in the new millennium, Journal of Supply Chain Management, p.33, Web.

Current and future trends 2001, Electronic Commerce for Developing Countries, Web.

E commerce to 2020, Internet Retail, Web.

Regan, Keith 2002, Five E commerce trend to watch, Commerce Times: E Business means Business, Web.

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Smith, Jaison 2009, E commerce in the future, Macrommwise, Web.

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