Happy new year 2016, I wish you all have wonderful time celebrating new year with your friends and family. Although we are looking forward for what happen next, can we just spend some moment to review some trends and highlights of the pass year? Let get started!
Mobile trend going strong:
As an online store owner or an online consumer, you probably have heard about this trend over and over this year. Mobile commerce is growing at a staggering rate with mobile standing for 29% of e-commerce transaction in the US and 34% globally; these numbers are expected to reach 33% and 40% by the end of this year. Mobile commerce will share even a larger portion of e commerce as people become more and more relied on their smartphone devices; and more than 50% of smart phone users state that they are going to use their phone for daily purchases. In fact, the sum of m-commerce consumption is forecasted to reach $90 billion mark by the end of 2017. Moreover, visitors via mobile are more likely to make purchases than those using computers. Therefore, mobile commerce is definitely worthy to watch for as an entrepreneur because a mobile friendly site will definitely nurture your business.
Google new algorithm:
This is an additional evidence for how strong mobile device has grown this year; Google released a more mobile oriented algorithm in 21st April of 2015. This updated algorithm takes into account mobile friendly element of a site within the search engine rankings. It affects mobile searches in all languages and has a direct impact on search results because more mobile friendly a website is the higher ranking place it receives. Hence, it gives online merchants more reason to rewind their sites as no one want to be left behind in later pages of Google “guidebook” when we all know now much customers rely on it.
New payment methods:
As a consequence of mobile commerce, new payment methods which are more mobile appropriate were born such as Google wallet, Android Pay or Apple Pay. These methods grant users easier access to their account and make payment via smartphone. Besides, e-money is on a rise as people are seeking for faster and simple transaction to replace traditional banking services. In addition, the application of biometrics in payment, such as voice recognition and finger vain, is slowly adopted in Western Europe markets, which create an alternative for password identification.
Subscription services booming:
This year remarks the growth of subscription services. I know most of you will think about newspapers and magazine. However, for those who are based in the US, you know that subscription goes beyond the stereotype of newspaper, the product categories are variable from snack, beauty and healthy products, foods, drink to even pet snack. Literally, entrepreneurs turn any product to “subscript-able”. This trend started in the US and now make it way to penetrate other parts of the world as well. This new business model has been received a lot of attention from e customers and investors. For instance, Ipsy, which is a beauty subscription service founded my Michelle Phan – an Youtube diva- , reached 1.5 million subscribers and raised $100 million investment this year. This model opens new business opportunity and will continue to increase in 2016.
Alibaba sale record:
Online sales of Alibaba in Singles Days wowed the world when it set a new online sale record of more than $14.3 billion, which is far more than online consumption on Black Friday and Cyber Monday in total. Jack Ma, the founder of Alibaba, even stated his ambition of exporting this day to the West. However, I don’t see it happen anytime soon because 11th November is Veterans Day and Remembrance Day. It’s unlikely that people will turn this highly respectful occasion into madness consumption day.
Ebay sells Magento:
Toward the end of this year, e-commerce community all looked at the event that Ebay sold Magento to a group of equity investors with the deal of 925 million US dollars. We were aware that Magento wasn’t the favorite child of Ebay and under this empire Magento didn’t perform very well during those years. Therefore, the ownership change was foreseeable and this change, in fact, brings hope to Magento community of a better strategy. Up till now, we have yet to know for sure how well the new owner will operate this firm but the launch of Magento 2 later seems very optimistic.
The launch of Magento 2 in November 17:
It’s maybe one of the most expected and celebrated event of e-commerce society as Magento 2 finally arrived to the stage on 17th November after long awaited journey. Magento is powering about 240,000 sites and the birth of Magento 2 definitely has a huge impact on both users and developer. The later version promises better performance with many advanced features. Moreover, with the upcoming of the rewind Magento marketplace, customers can expect better support and more qualified extensions.
After taking a glance at trends and events of 2015, hopefully you can draw new ideas and ventures for 2016. Wish you a happy and fruitful new year.