The e-commerce landscape is rapidly evolving, with businesses and consumers alike adopting online shopping at an unprecedented rate. In 2024, the digital marketplace continues to grow exponentially, and businesses need more than just an off-the-shelf e-commerce platform to stay competitive. A custom-built e-commerce solution is becoming essential to meet evolving customer demands, improve conversion rates, and ensure future scalability.
This blog will explore key e-commerce trends and statistics for 2024, including why building a custom e-commerce platform is the best investment for businesses aiming to scale and succeed in this competitive market.
1. India’s E-Commerce Market to Reach INR 4,416.68 Billion in 2024
India’s e-commerce sector is booming, with an expected market size of INR 4,416.68 billion in 2024. This market is anticipated to grow at a compound annual growth rate (CAGR) of 11.45%, reaching INR 7,591.94 billion by 2029.
This explosive growth signals a massive opportunity for businesses operating in or entering the Indian e-commerce market. However, to capture this market effectively, businesses need platforms that can scale quickly, integrate with local payment gateways, handle large traffic volumes, and meet diverse consumer expectations. Off-the-shelf solutions often fall short in these areas, which is why a custom e-commerce platform offers a significant competitive edge.
2. User Growth: 501.6 Million E-Commerce Users by 2029
India’s e-commerce user base is expected to grow to 501.6 million by 2029, demonstrating the rapidly expanding digital consumer market. To serve such a vast and diverse audience, businesses need flexible e-commerce platforms that can offer personalized experiences, language localization, and regional customization.
With a custom platform, businesses can:
- Offer personalized user experiences to different customer segments.
- Optimize the platform for mobile-first users in emerging markets.
- Integrate local payment methods and logistics services, improving checkout conversion.
Off-the-shelf platforms often lack the flexibility needed to adapt to the specific needs of such a diverse user base.
3. 95% of Purchases Will Be Made Online by 2040
It is estimated that by 2040, 95% of all purchases will be made online. This figure highlights the undeniable shift towards e-commerce dominance. As more transactions take place online, the competition will become even fiercer. Businesses need to differentiate themselves not just through products, but through superior online experiences.
Custom e-commerce platforms offer the agility and flexibility required to:
- Stay ahead of industry trends and technological advancements.
- Integrate emerging technologies like AI-powered recommendations, AR-based shopping experiences, and voice commerce.
- Deliver exceptional performance even under heavy traffic during peak sales seasons.
Relying on pre-built platforms means businesses may struggle to incorporate these advanced features, leading to missed opportunities.
4. Only 1.94% of E-Commerce Website Visits Convert Into Purchases
Despite the growth of e-commerce, conversion rates remain a challenge for many businesses. On average, only 1.94% of e-commerce website visits result in purchases, highlighting the need for platforms that enhance user experience and reduce friction in the buying process.
A custom-built e-commerce platform can be tailored to address specific conversion barriers such as:
- Faster load times and performance optimization, which directly impact conversions.
- Custom checkout flows that reduce cart abandonment by simplifying the payment process.
- Personalized product recommendations based on user behavior, which can increase conversion rates.
Off-the-shelf platforms often offer generic checkout processes and limited personalization, which are significant contributors to poor conversion rates.
5. Rise of Mobile Commerce (M-Commerce)
In 2024, mobile commerce continues to dominate, with 72.9% of all e-commerce transactions expected to be made via mobile devices. Mobile optimization is critical, yet many off-the-shelf platforms struggle to provide an ideal experience on smaller screens.
A custom e-commerce platform can offer:
- Mobile-first designs with a seamless user experience tailored for mobile shoppers.
- Optimized progressive web apps (PWAs) or native mobile apps for faster, more reliable shopping experiences.
- One-click payment integrations, making the checkout process smoother on mobile devices.
Mobile users have little patience for poorly designed experiences, and a custom platform ensures that your business is ready to capture this growing audience.
6. Global E-Commerce Sales Expected to Surpass $6 Trillion by 2024
Global e-commerce sales are projected to reach over $6 trillion by 2024, with much of this growth driven by emerging markets and increasing internet penetration. As businesses aim to expand their e-commerce operations globally, the need for flexible and scalable platforms becomes critical.
Custom e-commerce solutions provide:
- Multi-currency and multilingual support, allowing businesses to cater to global customers.
- The ability to easily integrate regional payment gateways and shipping providers.
- A platform that can handle global scale without performance degradation.
Pre-built platforms may offer basic global commerce functionality, but they often require expensive add-ons or third-party tools to achieve the same level of customization.
7. Increasing Demand for Personalization
In 2024, personalization remains one of the most effective strategies to engage customers and drive sales. A Segment study found that 71% of consumers feel frustrated when shopping experiences are impersonal. Custom-built e-commerce platforms allow businesses to deliver highly personalized experiences based on user behavior, preferences, and purchasing history.
With a custom platform, you can:
- Implement AI-driven product recommendations that adapt to customer preferences in real-time.
- Provide tailored marketing offers and personalized discounts based on user data.
- Use dynamic pricing models to optimize revenue.
Off-the-shelf platforms often lack advanced personalization features, which can hurt customer engagement and retention.
8. Higher Expectations for Fast Delivery
As customer expectations continue to rise, fast delivery is becoming a key differentiator for e-commerce businesses. According to Statista, 41% of consumers are willing to pay extra for same-day delivery. A custom platform can integrate seamlessly with various logistics and fulfillment services to ensure that businesses meet these demands.
Benefits of a custom platform include:
- Real-time inventory tracking integrated with your supply chain.
- Advanced shipping options like same-day delivery or click-and-collect services.
- Custom workflows that streamline the order fulfillment process.
Off-the-shelf platforms may not offer the flexibility required to integrate with specific fulfillment solutions, limiting the ability to provide fast shipping options.
9. Omnichannel Shopping is the New Norm
Customers today expect a seamless shopping experience across multiple channels, whether it’s online, mobile, or in-store. According to a study by Harvard Business Review, 73% of consumers use multiple channels during their shopping journey.
A custom e-commerce platform allows businesses to:
- Create a unified shopping experience that connects mobile, web, and in-store interactions.
- Integrate with point-of-sale (POS) systems, enabling smooth transitions between online and offline shopping.
- Use centralized customer data to offer consistent promotions and personalized experiences across all channels.
This kind of seamless omnichannel experience is difficult to achieve with off-the-shelf platforms, which often lack deep integration capabilities.
10. Avoiding Vendor Lock-In and High Fees
One of the key limitations of off-the-shelf platforms is the vendor lock-in and ongoing transaction fees. SaaS e-commerce platforms like Shopify or BigCommerce often charge a percentage of sales as fees, which can quickly add up as your business grows.
With a custom e-commerce platform, you:
- Retain full ownership and control over your platform.
- Avoid recurring transaction fees that eat into your margins.
- Have the freedom to customize and scale without depending on a third-party provider.
In the long term, a custom platform offers better cost control and flexibility, which is crucial for scaling your e-commerce business.
Conclusion: Why Building a Custom E-Commerce Platform in 2024 is a Smart Investment
As the e-commerce landscape continues to evolve, businesses that invest in custom e-commerce platforms will have a significant advantage. The ability to tailor the platform to specific business needs, optimize for mobile and global markets, and deliver personalized, fast, and secure experiences will be key differentiators in 2024 and beyond.
By adopting a custom solution, businesses can ensure:
- Scalability to meet the demands of a rapidly growing market.
- Flexibility to integrate emerging technologies like AI, AR, and voice commerce.
- Superior user experiences that improve conversions and drive customer loyalty.
In contrast, off-the-shelf solutions may provide a quick start, but they often fall short in meeting the unique needs of businesses looking to grow and differentiate themselves in a competitive market.
Ready to Future-Proof Your Business with a Custom E-Commerce Platform?
Contact us today to discuss how we can help you build a scalable, secure, and personalized e-commerce platform tailored to your business’s specific needs.
Comments