While digital commerce remains a powerful force, this is the moment for retailers to take strategic steps to future-proof their businesses. With the rapid growth of e-commerce, consumers are no longer solely focused on purchasing products. Instead, they’re looking for smooth, personalized experiences that align with their unique needs and preferences. From interactive product displays and virtual try-ons to AI-driven recommendations, implementing these digital trends is no longer optional. In this blog, we’ll take you through 10 digital commerce trends that are reshaping the retail landscape.
What is Digital Commerce?
Digital commerce refers to the buying and selling goods and services via online platforms and other digital channels, such as mobile internet, e-commerce platforms, etc. However, it’s much more than just clicking the “Add to Cart” button. Digital commerce encompasses the entire shopping journey, from discovering new products and researching options to interacting with brands, completing purchases, and engaging with customers even after the sale. It’s an experience designed to meet the needs of today’s customers at every stage of their buying journey.
Digital Commerce Trends:
As we look to the future, 10 key trends are poised to reshape the digital retail landscape. Leading the way are AI-driven solutions (80%), composable commerce (62.5%), and social commerce (50%), which are expected to be the driving e-commerce in the coming year. Following these, we’ll explore flexible payment options, including the increasing adoption of Buy Now, Pay Later (BNPL) services. Other trends, such as subscription models and loyalty programs, continue to grow. At the same time, the importance of sustainability and data privacy is rising, driven by increased customer awareness of security concerns, climate issues, and stricter regulations.
1. AI-powered Personalization
AI is transforming e-commerce into a more innovative, more personal experience. As customers increasingly expect hyper-personalized shopping experiences, businesses are implementing AI-powered chatbots for instant customer support and AI-driven visual search to tailor product recommendations based on customer behavior, preferences, and interaction history.
Zalando, Europe’s leading online fashion and lifestyle platform, has strategically integrated artificial intelligence (AI) to enhance customer experiences and streamline operations. A great example is the Zalando Assistant, an AI-powered tool developed in collaboration with OpenAI and launched in 2023. Their assistant utilizes advanced language models, including GPT-4o mini, to provide personalized fashion advice and product recommendations through natural language. Initially introduced in Germany, Austria, the UK, and Ireland, the assistant expanded to all 25 Zalando markets by October 2024. It offers support in local languages and achieves a 23% increase in product clicks and over 40% rise in wishlist additions.
2. AI-powered Data
In digital commerce, data is key to understanding customer behavior, preferences, and emerging trends. By using these insights, your business can refine digital strategies and personalize interactions.
Beyond the previously discussed assistant, Zalando employs AI for trend forecasting and inventory management. It analyzes data from social media, fashion blogs, and sales patterns to predict fashion trends, customer demand, and optimize stock levels. That strategy allows Zalando to stay ahead of consumer demand and reduce overstock or understock issues (two major pain points in e-commerce).
By analyzing data on products being searched for, liked, or added to shopping carts, Trend Spotter from Zalando highlights items that are gaining popularity, reflecting customers’ desires rather than just purchase behaviors. In 2025, Zalando published its data-led Trend Forecast Report, highlighting five core emerging trends: Victorian Decorum, Power Dressing, Playful Proportions, Sheer Confidence, and Modern Heritage. For each of those trends, Zalando provides detailed descriptions of the cultural and social forces. Customers can then explore a curated catalog based on these insights. This offers customers a unique and insightful shopping experience.
3. Composable Commerce
Composable commerce is rapidly becoming a trend in digital commerce, reshaping how businesses approach their e-commerce strategies. This flexible, modular approach allows companies to create a customized digital shopping experience by selecting and integrating the best technologies for each business need. It is like building your online store with LEGO bricks. Instead of using a single system for everything, you choose individual pieces, such as inventory management, payment processing, content management tools, or product information management (PIM), that best fit your business needs. This approach reduces development time, allowing companies to respond quickly to emerging opportunities and stay ahead of competitors. Gartner reports that organizations adopting a composable approach can outpace their competitors by 80%.
Icecat Commerce’s software solutions can serve as a building block in your composable commerce strategy. Whether you choose to use Icecat’s solutions as stand-alone services or integrate them into a larger e-commerce ecosystem, the flexibility allows easy compatibility with other best-in-class tools. With Icecat Commerce, you can optimize everything from product data management to inventory control, pricing, and beyond, ensuring consistency and accuracy across all channels.
4. Social Commerce: TikTok Shop is the New Shopfront
TikTok Shop has emerged as a strong competitor to platforms like Amazon and Temu, especially within the social shopping domain. It combines the appeal of ultra-affordable products similar to those seen on Temu with an in-app shopping experience that mirrors the social shopping elements found on platforms like Instagram and Facebook. Experts call this experience shoppertainment, where shopping feels more like fun, rather than a transaction.
What sets TikTok apart is its algorithm, which doesn’t just show users advertisements based on their shopping habits. Instead, it considers their content consumption and engagement with the app’s videos, likes, comments, and interactions. This means that TikTok isn’t just showing you products, but anticipating your needs based on your interests, keeping you hooked, and encouraging impulse buys. This strategy has proven highly effective, particularly among younger consumers. 55% of Gen Z admit to making impulse purchases directly through TikTok.
5. Flexible Payment Options
Did you know that 41% of shoppers abandon their carts simply because their preferred payment option isn’t available? That’s why offering a variety of payment methods can be a game-changer for your business. In fact, 80% of customers say that having their favorite payment method available makes a big difference in their shopping experience. Whether it’s credit cards, digital wallets like Google Pay or Apple Pay, or convenient one-click checkout options, customers can pay how they want. Consumers now expect flexibility, security, and speed, and any friction in the payment process can result in lost sales.
6. Buy Now, Pay Later (BNPL)
While Buy Now, Pay Later (BNPL) is not a new concept, its growing popularity has made it a relevant trend in digital commerce today. The model allows shoppers to split payments into smaller, often interest-free installments. This makes it easier to afford bigger-ticket items or shop more frequently without immediate financial strain.
The Buy Now Pay Later model is especially appealing to Millennials and Gen Z, who juggle increased rent costs, groceries, education, and transportation while still being early in their careers or paying off student debt. According to GWI, Gen Z’s use of Buy Now Pay Later services jumped 10% from Q4 2022 to Q4 2024. This shows that younger consumers seek flexible ways to manage their budgets and maintain their lifestyles despite rising economic pressures.
7. Authentic and Sustainable Credentials
The shift towards sustainability and ethical practices has transformed the e-commerce landscape. As a result, there has been a surge in the popularity of sustainable fashion, organic foods, and other environmentally friendly goods.
As the demand for sustainable products grows, so does the prevalence of greenwashing, where brands falsely claim eco-friendly practices. Consumers, especially Gen Z, are becoming adept at identifying such tactics. They lead towards brands that substantiate their sustainability claims with verifiable actions and certifications. One way brands combat this issue and gain consumer trust is by adopting Digital Product Passports (DPP).
A Digital Product Passport is a digital certificate that provides detailed information about a product’s origin, materials, production processes, and environmental impact. This transparency helps customers make informed decisions and ensures businesses are accountable for their sustainability claims. However, the movement toward DPPs is not only demanded by consumers, but also by upcoming regulations, particularly in the European Union. This means that more brands will soon be required to adopt these systems.
8. Data Privacy Shapes Consumer Trust
Data protection has become a critical concern for e-commerce businesses aiming to maintain consumer trust and comply with evolving regulations. 75% of consumers stated they would not purchase from organizations they don’t trust with their personal data. 81% of consumers believe that the way a company handles their data reflects how much they’re valued as customers. Furthermore, the European Union’s General Data Protection Regulation (GDPR) continues to set high standards for data protection. Non-compliance can result in significant fines and damage to reputation.
Brands like Amazon and Shopify use advanced encryption techniques and secure payment gateways to protect sensitive customer information during transactions:
➜ Amazon Pay offers customers a safe way to make purchases on external sites without directly sharing financial information.
➜ Shopify employs advanced encryption methods, including AES (Advanced Encryption Standard), to protect sensitive data stored within its servers.
9. Subscription Models Continue to Grow
The subscription model keeps customers coming back. By offering a recurring service or product, businesses create a steady stream of revenue while building strong, ongoing relationships with their customers. Studies have shown that businesses operating on subscription models often experience higher retention rates than traditional retail. It helps retain customers who may otherwise cut back on spending.
Amazon has successfully implemented the subscription model, mainly through Amazon Prime. It has become one of its most powerful tools for driving customer loyalty and generating recurring revenue. With over 200 million subscribers worldwide, Amazon Prime offers a variety of benefits, including free two-day shipping, access to streaming services like Prime Video and Amazon Music, exclusive discounts, and more.
10. Post-purchase Engagement
Once a purchase is made, the customer journey doesn’t end. This is an opportunity to deepen the connection with your customer and enhance their overall experience. By maintaining engagement after the transaction, businesses can offer personalized recommendations and gather valuable feedback to improve future offerings.
Starbucks has developed a post-purchase engagement strategy that not only retains customers but also transforms them into brand advocates. Central to this strategy is the Starbucks Rewards program, a tiered loyalty system where customers earn “Stars” for every purchase. These Stars can be redeemed for free food and beverages, special discounts, and exclusive offers, incentivizing repeat business and fostering a sense of value among customers.
Final Thoughts
When done right, digital commerce transforms the online shopping experience into something dynamic and personalized, offering solutions that genuinely address the needs of today’s consumers. As technology evolves, the digital commerce landscape must evolve with it, keeping pace with changing consumer expectations. To remain competitive and relevant, it’s essential for businesses to not just analyze past trends but actively engage with current ones and anticipate what’s coming next.
With Icecat PIM, you can streamline your product content management, ensuring your digital storefront delivers accurate, engaging, and up-to-date information, helping you stay ahead in the fast-paced e-commerce world. Start using the free Icecat PIM today:
Kat is a Digital Marketer with a passion for blending creativity with data-driven insights to craft engaging content.
