Virtual try-before-you-buy will reduce return rates, circular commerce will see substantial growth, experience-driven concept stores and retail media networks will be major revenue drivers.
We have come a long way from the “customer is always right.” While the mantra still holds, it has been augmented over the years with consumer-driven changes. Now, ecommerce businesses must operate under the principle that not only is the customer in front of you right, but all the potential customers in your market are right. And they want things that you must provide if you hope to remain relevant in a digital economy.
This principle has driven eCommerce decision-making for many years and will continue to do so in 2025. While estimates vary, the European ecommerce market size is estimated at US$700billion in 2025, and is expected to reach US$1.03trillion by 2030. To share in that success, brands will double down on some old techniques and adopt some new tricks.
1. Hyper-Personalisation as Standard
The modern consumer now expects an individualisation of service and personalisation. Brands must understand their customer as a person, with a history and preferences.
In 2025, retailers must look to gain a holistic picture of a customer, which will require the gathering of reams of data while adhering to GDPR and other privacy regulations. With this information, they will be able to drive brand loyalty by recommending other purchases to customers, offering dynamic pricing, and much more; across both digital and in-store experiences.
2. Jumping on the Augmented Reality Train
Augmented reality (AR) presents an ideal way forward in offering try-before-you-buy retail experiences to online shoppers. Leading European retailers like IKEA have pioneered AR tools for visualising furniture in homes, while fashion brands in markets like France and Germany have introduced virtual try-ons.
To bring these simulations to eCommerce websites and mobile apps will take investment and patience but also open doors to a world of possibilities – home simulations, 3D product displays, and more. For the consumer, these options are more convenient and will make them more likely to browse and discover that must-have purchase. For the eCommerce subsector, virtual try-before-you-buy will likely result in long-term cost savings as it will dramatically reduce return rates; and it has the potential to boost revenues by increasing customer satisfaction and hence, repeat business.
3. Going Greener
“Sustainability” has become a central focus across Europe, with many governments and businesses committing to ambitious environmental goals. Digital businesses can no longer afford to ignore the public’s desire for greener operations. In 2025, eCommerce players will prioritise carbon-neutral shipping options, supply chain transparency, and sourcing sustainable materials.
The resale and rental of products (circular commerce) will also see substantial growth. More eCommerce brands will include “pre-loved” sections, trade-in options, and rental offerings as consumers embrace more sustainable shopping practices.
4. A Social Commerce Boom
As part of the “individualisation of service” revolution, one of the things consumers expect is the ability to pick how they engage with a brand – how they browse, how they query, how they buy, and how they get aftersales service. Because many choose social media as their entry point, resources like Instagram and TikTok are now indispensable sales channels. In 2025, brands will invest heavily in shoppable posts, influencer partnerships, and live-stream shopping events, to create an interactive and social shopping experience.
- More Brick and Mortar
Retail in 2025 and beyond will be hybrid. Yes, the online shopping segment continues to grab more share of overall retail revenue, but brands still recognise the power of physical spaces. In 2025 more eCommerce brands will open brick-and-mortar stores, particularly smaller, experience-driven concept stores optimised for personalised service, product testing, and interactive experiences rather than just transactions.
- AI Changes the Game
In 2025, AI will have a central role in eCommerce. A shopping experience backed by AI tools will include instant, sophisticated customer support, product recommendations, troubleshooting, enhanced logistics, faster fulfilment, optimised stock management, and greater supply-chain efficiency.
7. Retail Media Rises Up
Retail media networks will be a major revenue driver in 2025, as eCommerce brands capitalise on their first-party data to create valuable ad spaces. This is a move in two directions – one towards privacy compliance, the other towards opening up new engagement channels. Brands and sellers will increasingly use these networks to reach highly targeted audiences directly at the point of sale. We will see more personalised, in-platform ads that give brands high visibility and drive conversions, while adding an extra revenue stream.
Comply to Compete
The customer is, as always, right. Complying with their wishes in 2025 will lead to customer loyalty and set them up for sustained growth.
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