McKinsey & Company released a new research on the future of e-commerce: “Power forward: Five make-or-break truths about next-gen e-commerce”. Their findings reveal how leading companies are leveraging technology to reshape the online retail landscape. But what exactly is next-gen e-commerce? It's the integration of cutting-edge technologies like AI, machine learning, and advanced analytics into every aspect of online retail, from customer service to marketing and supply chain management.
For Shopify owners, McKinsey's research reveals critical truths about the future of e-commerce—truths that could make or break your business in this rapidly evolving digital landscape. Understanding and acting on these insights isn’t just about keeping up; it’s about ensuring you’re set up to scale, compete, and thrive in an increasingly AI-driven marketplace.
These are the five must-know truths that every Shopify owner needs to grasp in order to succeed in the next generation of e-commerce:
McKinsey's research shows that 20% of leading companies have made generative AI their number one priority, compared to less than 5% of laggards. Nearly 30% of e-commerce leaders are incorporating generative AI as a central part of their strategies. The message is clear: if you don’t embrace and invest in AI, you risk falling behind.
For Shopify owners, the shift toward AI is straightforward. No-code, AI-powered tools are now readily accessible, making it easy for businesses to adopt AI solutions that reduce headcount, automate repetitive tasks, and streamline operations.
One of the most immediate and tangible returns on AI investment is automating customer support. Let’s face it, customer support is one of the most time-consuming yet time-sensitive aspects of running a Shopify store. In fact, 20-50% of customer support tickets can be resolved by AI agents, allowing you to free up valuable time while ensuring consistent, round-the-clock service.
McKinsey's research shows that 40% of leading e-commerce businesses generate over 10% of their annual revenue from key shopping events like Black Friday, Cyber Monday, and the holiday season. However, many companies miss out by either not participating or failing to optimise their strategy during these critical times.
For Shopify owners, these digital events are not just sales boosters, they're vital revenue drivers. These high-traffic periods offer crucial opportunities to attract new customers, engage existing ones, and boost conversion rates. However, managing the increased customer demand, offering competitive deals, and delivering a seamless shopping experience can be challenging without the right strategy in place.
This is where AI can give you the competitive edge. AI allows you to efficiently handle the surge in customer traffic and personalise the shopping experience in real time, ensuring that your business stands out during these key events.
McKinsey's research reveals that leading businesses are investing heavily in multiple touchpoints to reach customers, whether through online marketplaces (60% of leaders vs. 54% of laggards), direct-to-consumer (DTC) websites (56% vs. 48%), or social commerce (63% vs. 50%). These channels are driving significant profitability, with 30% of leaders reporting that their digital channels are far more profitable than offline ones.
What does this mean for Shopify owners? You need a strong omni-channel strategy to stay competitive. This means connecting all your customer touchpoints,whether they shop through your website, social media, or marketplaces into a seamless, consistent experience.
And as if marketing wasn’t hard enough already, now you need to reach customers across all these channels. This is where AI becomes your ultimate secret weapon. It allows you to efficiently handle customer interactions through human-like automatic responses, deliver personalised experiences, and optimise your marketing across all channels,turning complexity into opportunity and boosting your profits.
McKinsey’s research highlights a critical truth: you can’t know your customers if you don’t know AI. The top e-commerce businesses are eight times more likely to understand customer interactions across multiple channels. For Shopify owners, understanding your customers is more than just tracking purchases, it’s about capturing every insight, from browsing habits to post-purchase feedback.
As customer interactions become more complex and dispersed across channels, the ability to analyse unstructured data like reviews, chat conversations, and social media comments is becoming essential. About 90% of customer data is unstructured, and AI is uniquely capable of turning this overwhelming data into actionable insights.
Moreover, with third-party cookies being phased out by 2025, businesses will lose a key method of tracking customer behaviour. This shift means it's more important than ever to rely on AI tools to gather and analyse first-party data the direct interactions your customers have with your Shopify store. Cutting edge companies are already using AI to better understand their customers’ preferences and evolving expectations, helping them stay competitive in a cookieless future.
McKinsey’s research highlights a key truth: to succeed in e-commerce, you need to centralise your operations while still empowering your teams to act flexibly. Businesses that have adopted this model,centralising their e-commerce activities while ensuring teams have the tools to be responsive, are seven times more likely to provide seamless customer experiences across both online and offline channels.
By using Shopify, you’ve already done the first part: bringing together and streamlining key e-commerce functions and processes such as inventory management, order fulfilment, customer service, and data management into a single, coordinated system. This centralisation is crucial for keeping your operations running smoothly as your business grows.
But to truly scale and enhance your customer experience, the next step is to supercharge your team with AI. AI-powered tools allow you to automate routine tasks, make data-driven decisions, and personalise customer interactions across all channels. This gives your team the flexibility to focus on strategic growth while ensuring your business remains efficient and responsive.
By now, the importance of AI in shaping the future of e-commerce is clear. But as a Shopify owner, you might be wondering: "How do I actually start implementing these strategies without overhauling my entire operation?"
The good news is that you don't need to make sweeping changes overnight. By starting with a versatile AI tool designed for Shopify, you can begin addressing multiple aspects of next-gen e-commerce simultaneously. This is where KorticalChat comes in, offering a solution tailored for Shopify stores:
The e-commerce landscape is evolving rapidly, and staying competitive requires embracing next-gen technologies. While industry giants are investing millions, as a Shopify owner, you can start small but think big. By integrating AI-driven solutions like KorticalChat, you're not just keeping pace, you're positioning your store for future growth.
Remember, in e-commerce, early adopters often become market leaders. The insights from McKinsey's research are clear: AI adoption, omnichannel strategies, and data-driven decision making are no longer optional; they're essential for thriving in the digital marketplace.
Ready to step into the future of e-commerce? We understand you're juggling numerous tasks and might not have the time to think about implementing another tool. That's why we've made it incredibly easy and free to get started. Begin by integrating KorticalChat into your Shopify store and experience firsthand how AI can transform your business. The best part? We'll set it up for you! Our team will build your AI chatbot, ensuring it's tailored to your store and ready to go from day one. Oh, and it’s free so get in touch with us now!