5 Key E-Commerce Trends for 2025

In today's fast-evolving digital landscape, e-commerce is quickly transforming the ways consumers shop and how businesses operate worldwide. DHL’s E-Commerce Trends Report predicts that in the UK alone, e-commerce will grow by an impressive 10% annually. Driven by rising demand for convenience, personalised experiences, and eco-friendly practices, Racounter forecasts that global cross-border e-commerce sales will increase 26% by 2030.

While surging consumer demand means new opportunities for growth, small businesses navigating the competitive international e-commerce market must stay on top of emerging trends to achieve success.

In this blog, we’ll explore the five essential e-commerce trends that will help your business thrive in the global marketplace this year.

All you need to know about cross-border ecommerce

1. AI-Powered Personalisation and Automation

AI is revolutionising the e-commerce landscape by enhancing personalisation and automating operations. Through AI-driven product recommendations, personalised marketing strategies, and automated customer support systems like chatbots and virtual assistants, businesses can now offer tailored shopping experiences at scale.

This trend is especially relevant in the UK, where a 15% increase in automated warehouse solutions is helping businesses streamline logistics and meet growing consumer demands for convenience and speed.

When using AI-powered personalisation and automation, Forbes notes that small businesses can see up to a 50% increase in conversion rates and a 30% rise in average order value. Simultaneously, AI-driven inventory management solutions can reduce stock outs by 50% and cut down excess inventory by 30% to help businesses better manage their resources.

2. Augmented Reality (AR) and Virtual Reality (VR)

AR and VR technologies are transforming online shopping by allowing customers to engage with products in new and immersive ways. From virtual clothing try-ons to visualising furniture in your home, AR and VR bridge the gap between physical and digital shopping. The Euro Ecommerce Report 2023 notes that this technology is becoming increasingly vital to long-term e-commerce strategies, particularly in sectors like fashion and electronics, where visualisation and user experience are key.

The VR Software market in the UK is projected to reach US$167.3 million by 2024 and a recent Google Consumer AR Survey shows that consumer interest in AR is high. 66% of shoppers expressed a desire for AR assistance and 57% more likely to buy from brands offering AR experiences. The survey also found that 71% of e-commerce buyers would shop more frequently if AR technology were made more available, underscoring its growing influence on consumer behaviour and sales.

The UK government is supporting innovation in this sector. For example, the government-supported Digital Catapult has opened its third accelerator program targeted at early-stage AR and VR start-ups.

3. Social Commerce and Live Shopping

With features like shoppable posts and live shopping events, social media platforms are evolving into powerful e-commerce hubs. This blend of social interaction and e-commerce is creating new opportunities for businesses to engage with customers in real time.

Deloitte suggests social commerce and live shopping are fundamentally reshaping e-commerce in several ways:

• Product Discovery: Social media is a major discovery tool, with 64% of digital buyers finding brands through these platforms. Algorithms and targeted ads help match products with users' interests and browsing habits.
• Influencer Impact: Influencers are pivotal in social commerce, with 67% of social media users considering brands endorsed by their favourite influencers. Additionally, 41% of global shoppers prefer buying directly from influencers.
• Live Shopping: Live shopping is gaining traction, with 40% of global shoppers seeking live streaming for an immersive shopping experience. This format allows for real-time product showcases, Q&A sessions, and timely promotions.

4. Sustainability and Eco-Friendly Practices

Sustainability is no longer just a buzzword — it's becoming a key factor in consumer decision-making. Today, 60% of UK shoppers favour eco-friendly delivery options, reflecting a significant shift in purchasing behaviour. Businesses are increasingly expected to adopt green practices, such as using sustainable packaging, offering eco-friendly products, and creating transparent, ethical supply chains.

This trend is supported in the Euro Ecommerce Report, which emphasises that sustainability initiatives, including electric vehicle (EV) fleets and sustainable logistics solutions are becoming critical to e-commerce success across Europe. A Dealavo report found that 73% of consumers are willing to pay more for sustainable packaging and 43% of consumers are willing to pay more for environmentally friendly delivery options.

5. Enhanced Cross-Border Payment Options

Convenience is king in e-commerce, and offering multiple payment and delivery options is becoming a necessity. The rise of digital wallets, mobile payments, and buy-now-pay-later services has made online transactions more flexible and accessible than ever. Fast, reliable, and multi-currency payment options are now the standard and seamless payment systems are driving cross-border e-commerce. These advancements are expected to record a 20% increase in cross-border sales annually.

In 2023, UK small and medium-sized businesses (SMBs) lost a staggering £2.8 billion due to hidden fees on international payments. This issue stems from a loophole known as the "corporate opt-out," which exempts financial providers from applying transparency rules to SMBs. According to the Wise research, more than a quarter (26%) of SMBs are deterred from expanding internationally due to the high cost of international banking. The hidden fees not only affect the bottom line but also limit growth opportunities.

At Wise, we've built a business account that lets you pay, get paid and manage multiple currencies with low fee transfers and fast and transparent payments. If you're an e-commerce business withdrawing in different currencies from Amazon, Etsy or other e-Commerce platforms, get paid to your Wise Business account without additional fees.

How to get paid in multiple currencies

Do business internationally with the Wise Business account:

• No monthly subscription international business account
• Multi-currency support: hold 40+ currencies, send payments to 160+ countries, and get mutiple local account details for currencies like GBP or EUR.
• Low cost currency exchange: mid-market exchange rate with transparent fees
• Batch payments: pay up to 1,000 recipients at a time in multiple currencies with one spreadsheet
• Multi-user access: manage user permissions and choose from any of the 5 roles to manage what your team members can view, access, and manage
• Business debit expense cards for you and your team: up to three digital cards per team member, and set spending limits according to your business needs
• Accounting integration: connect with Xero, QuickBooks, FreeAgent and more.