E-commerce, like many other industries, is evolving at an unprecedented pace, reshaping how we shop, interact with brands and experience retail more generally.
By 2025, technological advancements and shifting consumer behaviours are expected to completely redefine the industry, from cutting-edge innovations like AI and AR to the growing influence of social commerce and personalised shopping. Indeed, the future promises a seamless blend of convenience and customisation.
Of course, alongside exciting developments in delivery and omnichannel strategies, challenges such as cybersecurity risks, among other things, are sure to demand careful navigation.
Emerging Technologies Shaping the E-Commerce Landscape
Technology is constantly evolving and improving, with things like artificial intelligence (AI), virtual reality (VR), augmented reality (AR) and blockchain set to transform e-commerce in 2025.
AI will enable smarter product recommendations and predictive analytics, while VR and AR are expected to offer immersive shopping experiences like virtual try-ons and store tours. At the same time, blockchain will enhance transparency and security in supply chains, ensuring greater consumer trust.
Indeed, these innovations will not only streamline operations but also redefine how customers interact with online retailers.
E-Commerce and Personalisation
Personalisation will become a cornerstone of e-commerce by 2025, with advanced AI-driven algorithms allowing retailers to deliver hyper-customised shopping experiences, from tailored product recommendations to dynamic pricing strategies.
Shoppers will expect brands to understand their preferences and anticipate their needs in real time, way beyond what humans are able to do under ordinary circumstances.
Many believe that this trend will extend beyond recommendations, influencing packaging, delivery options and post-purchase support too, creating a seamless, individualised customer journey that boosts loyalty and drives long-term success for businesses.
The Rise of Social Commerce
Social media is already a massive part of our lives these days, and by 2025, these platforms are set to become even more powerful. Instagram, TikTok and Facebook are already integrating shopping features, allowing users to discover, browse and purchase directly from their feeds.
Influencer marketing will play a pivotal role in driving sales, because consumers increasingly rely on trusted voices for recommendations.
With live shopping events, shoppable videos and AI-curated ads, social commerce will blur the lines between entertainment and shopping, making it a dominant sales channel.
Bridging Online and Offline Shopping Experiences
Many experts believe that 2025 will see the integration of online and offline shopping experiences. Indeed, omnichannel strategies will ensure that customers enjoy a consistent and cohesive experience, whether shopping in-store or online.
Click-and-collect services, virtual store assistants and in-store QR codes will merge physical and digital shopping. Retailers are likely to leverage data from both realms to personalise interactions and streamline customer journeys, creating a hybrid approach that caters to the modern, tech-savvy consumer.
The Future of Delivery
Say goodbye to old-school, in-person delivery as innovations in delivery will drastically reshape logistics in 2025. Autonomous drones, self-driving vehicles, and robot couriers will become commonplace, enabling faster and more efficient shipping.
Same-day and even one-hour deliveries will become standard, powered by smart warehousing and localised distribution networks. Sustainable delivery practices, such as electric vehicles and reusable packaging, will address environmental concerns.
These advancements will ensure that convenience and eco-consciousness continue to be key drivers of customer satisfaction.
Challenges Introduced By Cybersecurity
As e-commerce grows, so too does the risk of cyber threats. By 2025, the industry will face challenges such as data breaches, phishing attacks, and sophisticated fraud schemes.
Retailers will need to prioritise robust cybersecurity measures, including AI-driven threat detection, end-to-end encryption and secure payment gateways.
Educating customers on safe online practices will also be essential. Ensuring trust and safety in the digital shopping environment will be critical for maintaining consumer confidence and loyalty.
Expert Predictions for E-Commerce in 2025
E-commerce, much like other industries, is set to undergo some big, dramatic changes in the coming year. We spoke to experts in the industry to gather their predictions for e-commerce in 2025.
Our Experts
- Rich Mason: Head of Enterprise EMEA at Shopify
- Emilie Benoit-Vernay: Director of Partnerships EMEA, at Shopify
- Jim Rudall: Head of EMEA at Intuit Mailchimp
- Mike Shaw: Director, International Ad Sales at Roku
Hila Harel: Director of International Growth at Fiverr - Andy Sagar: Managing Director UK at Auctionet
- Mark Thomson: Retail Industry Director EMEA at Zebra Technologies
- Gary Winter: VP of Global Strategic Initiatives at Parcel Pending by Quadient
- Brian Plackis-Cheng: CEO at SALESmanago
- Troy Cox: Chief Product Officer at BigCommerce
- Rob Shaw: GM EMEA at Fluent Commerce
- Mark Williams: Managing Director EMEA at WorkJam
- Luke Trayfoot: CCO at Brite Payments
Rich Mason, Head of Enterprise, EMEA at Shopify
“Consumer habits are changing, and they expect merchants to meet them wherever they are. It’s a significant headache for enterprise businesses, who are working hard to optimise their tech stacks to ensure consumers have the same experience in-store, online, via social media or any other platform.
Our Holiday Retail research found that two in five (44%) British consumers plan to evenly split their shopping online and offline. Add social commerce to the mix and it’s a complicated landscape for retailers. “But enterprise businesses are uniquely placed to deliver on these demands. With the base systems in place to connect with consumers over multiple platforms, they can connect the dots between channels with lower time and financial investments.
Historically, that was called omnichannel, but it’s simply not good enough anymore as emphasis grows on creating one view of the customer. 2025 will therefore mark a sea change in the implementation of unified commerce, which integrates all of the business’ technology, data and platforms into a single view of the customer.
That change is going to unlock opportunities to streamline operations, deliver personalised experiences and ultimately increase loyalty while reducing acquisition costs, enabling enterprises to exceed customer expectations in the coming years.”
Emilie Benoit-Vernay, Director of Partnerships EMEA at Shopify
“Social commerce is an increasingly powerful sales channel that merchants cannot ignore, especially those wanting to meaningfully engage with younger demographics. According to Shopify’s Holiday Retail research, 59% of 18-24s said they shop via Instagram, while 62% do so through TikTok. With shoppers spending their time and money across so many channels, retailers must follow. Unified commerce is no longer an optional strategy, it’s table-stakes.
A customer experience that aligns across every selling surface is crucial for the way people shop today. Offering a way of connecting the dots across platforms, back-office, in-store and more, unified commerce helps to create a single view of the customer no matter where they’re buying from. It will be critical to ensuring merchants succeed in connecting with and selling to shoppers next year.”
Jim Rudall, Head of EMEA at Intuit Mailchimp
“Retailers are navigating a new wave of operational cost challenges driven by the recent budget announcement. Economic change and instability often shift consumer behaviours and attitudes, so in 2025, it’s important brands to embrace agility and invest in marketing tools and strategies that allow them to adapt to changing customer trends. This will keep them on track with their north star commercial outcomes and aspirations.
The most transformational and impactful tool retailers can use is AI-driven personalisation. Our Brand Trust report highlights that nearly half (48%) of consumers already expect the right products and services to find them — a figure likely to rise as competition intensifies in the coming year. While 74% of businesses currently utilise AI, revenue leaders distinguish themselves by using it as a strategic assistant to drive business objectives.
Generative AI is set to revolutionise marketing, enabling hyper-personalised email and SMS campaigns at scale. Predictive analytics will allow businesses to anticipate different customer needs, crafting tailored, timely experiences that boost engagement and conversion rates.
Retailers that embrace and experiment with these advanced tools will lead the way in 2025. By prioritising agility and investing in technologies that foster adaptability, brands can position themselves to thrive and grow, even in a volatile economic landscape.”
Mike Shaw, Director, International Ad Sales at Roku
The democratisation of ads will open up the playing field to smaller brands
“Advertising on the TV is arguably still the most powerful platform to drive brand awareness and short term goals, but traditional linear models are still far too cost-prohibitive for most brands. However, as connected TV (CTV) advertising continues to gain momentum, particularly on streaming platforms that is changing.
This year there have already been signs of a shift-change in where brands are investing, but 2025 will likely be a moment when CTV becomes a cornerstone of media planning that will democratise TV advertising.
With a more engaged audience than online video, and better data and insights than linear TV, CTV combines the best of both worlds. And, as shoppable ads gain momentum – where the remote control becomes a mechanism to buy in that moment – we’re going to see smaller brands enter the world of TV advertising to boost their brand and reach target audiences more effectively. Streaming platforms will play an important role here, as they can become their own ad spaces too, such as via home screens and other peripheral ad units to engage consumers with relevant marketing content.”
Retail media will boom as shoppable ads hit the TV
“The IAB UK expects retail media spend to reach £1.3bn next year (excluding Amazon), over double the £588m from 2022. That exponential growth in such a short period is making it more and more compelling to retailers and their brand partners to seize opportunities. Part of that growth in 2025 will likely come from the increased availability of shoppable ads, which reduces the buying process to as little as one click for consumers.
Streaming platforms will play an important role in the next phase of retail media, as it becomes possible to reach consumers when they are already engaged in the screen they’re watching, and transform the remote in everyone’s hand into a shoppable unit. For retailers and their partner brands, the opportunity is vast and makes true one-click purchasing possible in a way e-commerce simply cannot match. ”
Ad targeting will become more refined through improved data analytics
“One of the biggest benefits of advertising via CTV and streaming services is the level of targeting they offer beyond that of traditional linear services – often with a better ROI and lower wastage for both awareness and performance-based campaigns than other platforms. As advertisers – in particular retailers
and their partners – start to integrate it further into their planning, more optimisation is to be expected, notably as they tap into their own first party data to ensure their campaigns are truly relevant to and effectively targeting their audiences. With retail media gaining further ad spend investment in 2025 according to IAB UK, we can expect to see a renewed focus on brands and retailers making better use of their data, alongside improved analytics across the industry, ensuring consumers are served with more engaging, personalised and relevant ads.”
Hila Harel, Director of International Growth at Fiverr
“Despite a cautious consumer outlook, the UK retail industry is embracing innovation and resilience as it heads into 2025. Our latest holiday shopping survey highlights a strong focus on AI, with 69% of retailers prioritising it this year and 31% integrating it across the customer journey – a significant move toward greater efficiency and personalised experiences.
Digital marketing continues to be a cornerstone of retail strategy, with social media advertising maintaining its position as a top investment for three consecutive years. This underscores its vital role in helping retailers connect with customers and drive engagement.
Looking ahead, retailers must harness technology and digital tools to adapt to evolving customer needs and increasing competition. Simultaneously, Labour’s Budget and rising financial pressures on consumers are expected to drive retailers toward more flexible workforce strategies. Our data highlights a growing reliance on freelancers, with 50% of UK businesses identifying them as pivotal to achieving business goals in 2025 and 45% planning to expand freelance hiring.
By balancing innovation with agility, UK retailers can navigate economic challenges while meeting evolving consumer expectations.”
Andy Sagar, Managing Director UK at Auctionet
“As the trend towards conscious consumerism accelerates, sustainable retail models will continue to thrive in 2025. The second-hand market is booming, with auctions re-emerging as a key trend. Platforms that blend eCommerce with traditional auction models are reshaping how consumers interact with pre-owned, valued goods.
As retailers adapt to the circular economy we can expect to see more integrating resale or auction models into their core businesses and entering partnerships with second-hand platforms. Doing so will allow them to capitalise on the upsurge in demand for more sustainable, mindful shopping experiences and combine both value and purpose.”
Mark Thomson, Retail Industry Director EMEA at Zebra Technologies
“Zebra’s recently published Global Shopper Study found that the shopper satisfaction globally has declined compared to last year, with European shopper satisfaction below the global average. Shoppers find it annoying that products at higher risk of theft are locked up in security cases and worry that retailers will raise prices to cover the cost of theft and crime at a time of renewed worries about inflation and the cost of living. Retailers are under pressure to protect shoppers and employees, ensure quality shopping experiences, and minimise theft and loss – it’s a lot to achieve in the busiest retail time of the year and as we look towards 2025.”
Gary Winter, VP of Global Strategic Initiatives at Parcel Pending by Quadient
“In 2025, rising package volumes from low-cost retailers such as Shein, Temu and TikTok shop, alongside increased activity on resale platforms like Vinted, will push carriers to adapt to shifting consumer needs in last-mile delivery. To meet the diverse demands of both buyers and sellers, carriers will increasingly turn to cost-effective alternatives to traditional home delivery.
As demand for affordable goods grows, out-of-home (OOH) delivery options like parcel lockers or pick-up points will become essential parts of the delivery ecosystem. These OOH options will offer buyers and sellers convenient alternatives to avoid porch pirates, missed deliveries, and inconvenient post office queues. With more consumers using parcel lockers to drop off items sold from resale sites, awareness of their convenience will increase. This shift will likely push carriers to expand locker networks, potentially leading to the appointment of dedicated roles such as ‘Out-of-Home Directors’ to oversee these efforts. These changes will enable carriers to stay agile in a rapidly evolving retail environment while keeping delivery costs in check.”
Brian Plackis-Cheng, CEO at SALESmanago
“In the next few years, e-commerce growth will hinge on the ability of businesses to streamline their technology stacks and adopt a more tailored, agile approach. As the martech landscape continues to expand — with thousands of tools competing for attention — brands that focus on simplifying their systems, eliminating underused features and effectively processing data for actionable insights will emerge as the leaders.
Forward-looking companies will prioritise customer-centric strategies, leveraging personalised experiences and operational efficiency to drive sustainable growth and move towards frictionless commerce anywhere. By embracing a lean, focused approach to marketing technologies, e-commerce brands will not only navigate the complexity but will also unlock new levels of competitive advantage, setting the stage for long-term success in an increasingly crowded market.”
Troy Cox, Chief Product Officer at BigCommerce
“2024 has been a revolutionary year for the retail sector with technology such as AI driving the way. In 2025 we will see retailers continuing to accelerate their adoption of technology, including AI, to further streamline operations, reduce costs and improve the buyer experience. AI will further power product recommendations to drive increased relevance and recommend alternatives when the desired product is out of stock. Brands (both B2C and B2B) will continue to bet on AI to drive efficiencies by reducing repetitive tasks, make better decisions using predictive analytics, and to assist with creative production such as image generation.
We will also see consumer expectations continue to rise – increasingly expecting to be able start their shopping journey on one channel and seamlessly continue it on another channel. This is causing brands to further invest in technologies that allow customers to transition seamlessly between channels. To support higher customer demands, retailers will use AI chatbots in natural language to support services including answering questions, recommending products, tracking deliveries, opening tickets, and cancelling orders. Embracing AI to deliver a more personalised shopping experience will elevate the customer’s overall experience.”
Rob Shaw, GM EMEA at Fluent Commerce
“Businesses will continue to focus on AI in 2025. In retail, AI is being used to deliver personalised and engaging customer experiences: helping retailers understand customer preferences and deliver the right content at the right time. However, while the AI buzz remains, many brands are still in the early stages – with small-scale pilots or proof of concept projects rather than large-scale revenue-generating solutions. The enthusiasm is there, but it’s clear that AI hasn’t fully scaled up to drive major revenue just yet.
The concern with AI is the potential impact on the workforce: on day-to-day work and changing business processes. AI will evolve jobs, driving us into a period of adaptation. However, while the workforce will adapt with it, it’s important that businesses don’t lean too heavily on automation. There is a certain creativity and human touch that’s crucial for quality and nuance, whether it’s in content creation or customer service, that can’t be easily replicated.
While AI’s potential is exciting, it’s clear that there’s a need for stronger governance. Whether that governance is applied industry-wide or internally within organisations, it’s important to define clear policies around what’s acceptable in terms of AI usage. This will help address concerns around its impact on departments and job roles.”
Mark Williams, Managing Director EMEA at WorkJam
“The UK government’s ‘new deal for working people’ is set to have a huge impact in 2025. The plans to reduce the use of zero-hour contracts, in particular, will require many businesses to reconsider their casual employment approach. Especially those that rely on flexible contracts to scale their workforce according to demand, such as the retail industry.
If retailers don’t prepare accordingly, they will bleed hours and money. Over the next 12 months, these organisations should leverage new technology to create a more rewarding experience for workers, whilst delivering the scheduling agility needed in the current economic climate. This way workers can be on fixed contracts but still have the flexibility to choose and swap their shifts and pick up additional work when it is available.
Retailers who utilise such offerings see huge engagement rates – as high as 90% with as many as 1,000 shift swaps and 1.5 million schedule views a month – proving that both frontline workers and employers alike can benefit from flexible scheduling. It allows employers to adapt shift patterns according to demand, puts employees in control of their shifts, frees up managers’ time, and has an empowering and engaging effect, increasing job satisfaction.
By aligning the organisation with the workforce, retailers create a more rewarding workplace that attracts, supports, and retains employees more effectively.”
Luke Trayfoot, CCO at Brite Payments
“The high transaction fees associated with card payments continue to be a pain point for merchants. In 2025, we’ll see a notable shift toward lower-cost, more efficient and secure account-to-account payment options enabled by open banking. These methods not only lower costs but also streamline back-office operations with features like automated reconciliation.
Additionally, they provide merchants with quicker access to their funds, significantly improving cash flow and enabling them to reinvest in their businesses more effectively. This shift will be particularly impactful for cross-border transactions, where FX capabilities and fast settlement will be supported by instant payments that are both efficient and affordable.”
