If there’s one thing retailers would like more than anything, it’s a crystal ball. The ability to predict the future would guarantee success. But since we don’t have fortune-telling powers, we rely on data to help us plan for the year ahead. We’ve crunched the numbers, and here’s what we see coming for 2025 retail and ecommerce trends.
The state of retail in 2025
Retail is a booming market, projected to reach $28 trillion by 2028. While physical stores still account for most of consumer spending, ecommerce continues to grow steadily. For retailers looking to expand their reach, tapping into digital platforms and international markets is no longer optional—it’s a necessity.
When it comes to international ecommerce, worldwide sales are expected to grow by nearly 8% over last year.
But growth isn’t the only headline. Brands are navigating a world of rising costs, shifting consumer preferences, and political challenges. Resilience and adaptability will define the winners in the coming year.
Key ecommerce trends and predictions for 2025
Mobile commerce takes centre stage
More than half of online purchases happen on mobile devices and that number is only set to increase. Innovations like digital wallet integrations are powering the mobile shopping revolution by making it easier and more secure for shoppers to complete their purchases.
Prediction:
Retailers who optimise their mobile experiences and allow seamless payment options will capture significant revenue and customer loyalty. Features like Buy Online, Pick Up in Store (BOPIS) will further blur the lines between physical and digital sales and make shopping more convenient.
AI powers personalisation and efficiency
Artificial intelligence (AI) continues to play a critical role in retail. From generative AI creating tailored product recommendations to chatbots that handle real-time customer queries, technology helps improve both customer experience and operational efficiency.
Prediction:
By 2025, one in five US and European retailers will implement customer-facing generative AI tools to improve site search and category navigation. However, these tools are not a panacea for all the pain points that ail customers. Retailers must carefully deploy AI investment to ensure it drives accurate results.
Economic challenges and consumer behaviour shifts
Higher employee wages and inflation have increased operational costs over the last few years. All the while, retailers face changing purchasing behaviour as consumers’ preferences continue to change. Some shoppers will lean into value and affordability in 2025 while others will opt to spend discretionary income on experiences over owning physical goods.
Prediction:
Success will hinge on technology adoption to manage costs while retaining customers. Retailers should also invest in loyalty programs and lifecycle marketing to keep buyers engaged long-term.
Decline of cash and the rise of alternative payments
Cash usage is expected to drop 40% in 2025 as digital payment platforms become increasingly available and used—even in places where shoppers are largely unbanked. For example, in Brazil, a real-time payment method called Pix has eclipsed conventional payment methods in the span of only one year.
Prediction:
Retailers must adopt flexible, frictionless payment systems to stay competitive. What’s more, they need to offer locally preferred payment methods to achieve maximum checkout conversion rates.
Consumer-centric growth and sustainability
A Forrester report indicates that 78% of retailers believe building strong customer relationships is crucial to success by 2029. Meanwhile, sustainability is more than a buzzword—it’s a key expectation for modern shoppers. From supply chain to delivery, shoppers want brands to be transparent and responsible about their environmental impact.
Prediction:
Retailers will prioritise customer obsession, leveraging AI for personalised marketing and enhanced customer journeys. Businesses that truly embrace – and can demonstrate – environmental responsibility will have a competitive edge over those that simply greenwash.
How retailers can stay ahead in 2025
To remain competitive, retailers and ecommerce professionals must focus on three critical areas:
Scalable technology
Adopt systems that integrate with your current tech, like your ecommerce storefront. Tools for fraud detection, search optimisation, and automation will make workflows efficient and scalable. Solutions like ESW support retailers in launching international ecommerce operations without unnecessary complexity.
Consumer-focused strategies
Enhance localised, lifecycle marketing initiatives to boost customer acquisition and retention. Mobile-first designs and locally preferred payment options will be essential for meeting modern consumer expectations no matter where in the world they are shopping from.
Worldwide expertise and sustainability
Offer seamless solutions like omnichannel delivery, returns and localised checkouts. Partner with cross-border experts like ESW that can contribute to your brand’s environmental commitments.
Prepare for what’s next in retail
Retail in 2025 isn’t just about survival—it’s about thriving in a world where innovation leads to better customer experiences and resilient business models. By leveraging mobile commerce, AI, and scalable technologies, you can set yourself up for success.
The ecommerce trends we see today won’t just shape tomorrow—they’ll define the next decade. Whether you’re refining your ecommerce model or preparing to introduce cutting-edge AI, now’s the time to act.
If you’re ready to grow this year, contact us, and we’ll discuss how you can achieve your goals.
