Why it matters: E-commerce adoption jumped ahead during the pandemic, but growth is plateauing as consumer habits level out. Even as consumers resume more in-person activities, competition for their attention has intensified, particularly online, where the average adult consumer spends more than 13 hours a day, per Activate Consulting. This challenge will only grow as the rise of shared virtual spaces further transforms how consumers spend their time.

To stay competitive, retailers will not only have to make online shopping more immersive, engaging, and relevant but also seek out and experiment with the rapidly changing technology that is digitizing more of consumers’ lives. They will also have to adapt their marketing, merchandising, and fulfillment strategies to the multitude of points of access available now and in the future.

Why now: Merchants have established the foundations of e-commerce, widely making it easy and fast for consumers to buy online. But as e-commerce makes up a greater share of retail sales, retailers and brands will need new ways to expand and enhance the online shopping experience. In the near term, more interactive online content, more personalized recommendations and messaging, and more points of access will lead to bigger baskets — driving continued sales growth and better profitability for sellers.

In the long term, retailers and brands that can build more nimble infrastructure will be prepared to pivot quickly as consumers demand ever-more immersive and seamless experiences.