Modern commerce trends that will shape retail technology in 2024
The retail landscape is undergoing rapid transformation with the rise of modern commerce platforms and innovations that provide retailers unmatched flexibility and scalability. Keeping pace with the latest retail tech developments is crucial for merchants to thrive in our digital-first world and deliver top-notch shopping experiences. MOD COM think tank explores the key modern commerce trends poised to revolutionise retail technology in 2024.
Trend 1: Headless Commerce and Decoupled Architectures
Headless commerce separates the front-end ecommerce platform from the back-end infrastructure, allowing retailers to assemble customised technology stacks. Without being limited to monolithic suites, merchants can mix and match systems like CMS, inventory, payments, etc. This modular approach enables innovation, flexibility and optimised performance. In 2024, we’ll see more retailers embrace headless and decoupled systems that allow them to scale efficiently, test new channels quickly and provide unified shopping experiences.
Trend 2: Advanced Personalisation and Individualisation
Harnessing customer data and AI, modern commerce platforms are delivering hyper-personalised experiences and customised product offerings for each shopper. Retailers can provide tailored recommendations and pricing based on purchase history, browsing behaviour and more granular demographics. Connecting these individualized experiences across channels and touchpoints also fosters brand loyalty. In 2024, savvy retailers will use advanced personalization and individualization capabilities to boost conversions, average order value and lifetime customer value.
Trend 3: Frictionless Payment Solutions
Payment systems will continue evolving towards seamless, embedded and automatic options. From contactless credit cards to QR code payments to “Buy Now Pay Later” services, customers expect fast and convenient ways to complete transactions. Cryptocurrencies and blockchain-powered solutions will also gain more mainstream traction. Retailers embracing autonomous payment through technologies like computer vision could even enable checkout-free physical stores. By providing the most frictionless payment methods, merchants can unlock sales growth in 2024.
Trend 4: Sustainability as a Brand Differentiator
Today’s consumers expect responsible environmental practices from brands. Modern commerce technologies provide tools to increase supply chain transparency, optimize inventories, reduce waste and enable circular economies through resale markets. By 2024, highlighting sustainability initiatives will become pivotal for retailers to stand out. Leveraging solutions that track carbon footprints across operations will also be important for brand credibility. Retailers that ingrain environmental accountability into business operations using retail tech will earn customer trust and loyalty.
Building Retail's Digital Future
The pace of innovation in retail technology shows no signs of slowing down. As trends like headless commerce, hyper-personalisation, embedded payments, and sustainability solutions gain momentum in 2024, retailers must take action now to modernise platforms and harness these capabilities. Ripping out legacy systems in favor of flexible, API-driven technology stacks will enable greater speed and agility. Investing in customer data infrastructure and analytics will unlock personalised experiences that drive sales. Adopting modern payments will remove friction in the shopping process across touchpoints. And embedding environmental accountability will resonate with today’s eco-conscious consumers.
Retailers that use technology as a strategy enabler and vehicle for change will future-proof business in the age of modern commerce. They will gain flexibility to meet evolving customer expectations and outpace competition. Those that fail to embrace these trends, however, risk losing relevance and ceding ground to forward-thinking industry disruptors. The choice is clear for retail leaders - build the digital native, customer-centric, sustainable retail enterprises of tomorrow starting today. When the dust settles by end of 2024, merchants leading the modern commerce transformation will reap the rewards.