As the e-commerce landscape continues its rapid evolution, Sharon Gee, senior vice president of sales and partnerships at Feedonomics, a BigCommerce company, offers insights into the shifting trends and future predictions for direct-to-consumer marketing. With years of expertise in the industry, Gee addresses pivotal questions about current e-commerce dynamics, consumer expectations, the influential role of AI and the strategic investments retailers must embrace to thrive in the coming years.
WWD: How would you describe the current state of e-commerce?
Sharon Gee: E-commerce is now a fully integrated part of the retail landscape, growing beyond a transactional tool into a vital channel for customer engagement, revenue and business growth. According to the Federal Reserve, e-commerce now accounts for 16 percent of total retail sales, marking significant progress over the last two years. However, this shift doesn’t suggest the end of physical retail but the rise of a more “phygital” landscape — where digital and in-store experiences are interconnected.
Leading brands are blending online convenience, social discovery and validation with in-store experience to meet consumers where they are, offering flexibility and seamless transitions across channels.
WWD: What do consumers expect in an online shopping experience?
S.G.: Today’s consumer expectations are ever-increasing. We demand speed, accuracy and personalization. We expect seamless online-to-offline experiences, with real-time inventory visibility so we can choose between buying online or shopping and/or picking up in-store. Consumers now expect real-time data synchronization across all touch points, enabling them to view product availability and price accuracy, regardless of how they shop. The pressure is on retailers to deliver instant gratification through services like same-day delivery, which nearly 80 percent of consumers now expect from retailers [and are willing to pay for].
Additionally, the privacy-conscious consumer wants something in exchange for their data. They are drawn to personalized offers and targeted incentives such as discounts, BOGO [buy one, get one free] offers, early access and loyalty rewards. Shoppers also prioritize sustainability practices, transparency and trust, expecting accurate product descriptions, reliable delivery times and consistent pricing across channels. This means merchants have to have all their product data harmonized and available in real time and have a unified view of their customer across channels, if they want to deliver on these shopper expectations.
WWD: How is AI changing e-commerce? What are the benefits?
S.G.: AI is transforming e-commerce by enhancing operational efficiency and customer engagement. From catalog data enrichment and categorization to automated inventory management to personalized recommendations, AI allows retailers to optimize processes and reduce friction at every customer journey stage.
For example, AI-powered tools can predict demand, helping businesses position products more effectively across channels. Additionally, AI-driven loyalty programs leverage first-party data to deliver hyper-targeted offers that increase retention and lifetime value. Platforms like Feedonomics are essential for maintaining data consistency, using AI to categorize hundreds of millions of products quickly and accurately — eliminating errors and saving the time that manual efforts would require.
We are also able to join AI-generated content into outgoing feeds to power advanced A/B testing use cases, helping merchants get more out of what they are already spending across advertising and sales channels.
WWD: What are some of the key trends you see emerging in 2025?
S.G.: As we look ahead to 2025, several key trends will fundamentally reshape how retailers operate and engage with consumers. In an increasingly phygital world, where the lines between online and offline experiences are interconnected, retailers must adapt quickly to stay competitive. There are five critical trends that will define the future of retail:
Data harmonization: Retailers will focus on unifying product, pricing and inventory data across all channels to ensure smooth phygital experiences. Unified commerce reporting across channels [is key]. Brands will invest to be able to automate real-time insights and action, prioritizing spending on high-margin, high-volume products, and high LTV [long-term value] audiences. They will need the integrations and partners to do this at scale.
Real-time discoverability: Programs like Google Local Inventory Ads will thrive, making real-time data a key differentiator.
Local pickup and delivery programs: Instant commerce will gain even more momentum, with consumers demanding same-day delivery options and retailers adopting these services to boost revenue.
AI-driven profitability: AI will empower retailers to optimize [stock keeping unit] placements, reduce shipping costs and enhance profitability by focusing on high-margin channels.
Next-gen loyalty programs: Loyalty strategies will evolve, incorporating AI tools to create personalized offers, increasing customer engagement and long-term retention.
WWD: Where should retailers and brands make investments?
S.G.: Retailers need to prioritize data infrastructure to power efficient marketing and operations. AI tools combined with investments in real-time data synchronization will be essential to enrich catalog data and keep inventory and pricing accurate across platforms. Additionally, adopting AI-powered loyalty platforms will allow retailers to tap into first-party data and launch personalized campaigns that resonate with customers.
Finally, selecting pre-integrated platforms and technology partners ensures seamless data flows across ecosystems, supporting instant commerce and local inventory programs. Retailers that focus on these areas will not only meet evolving consumer demands but also position themselves as leaders in the phygital landscape.
