HOW DOES THE PROLIFERATION OF E-COMMERCE INFLUENCE CONSUMER EXPENDITURE PATTERNS, AND WHAT FACTORS CONTRIBUTE TO THE EFFECTIVENESS OF E-COMMERCE STRATEGIES IN STIMULATING CONSUMER SPENDING IN THE DIGITAL AGE

Abstract

The technological developments and the COVID-19 outbreak have made several shifts in consumers’ expenditures via the e-commerce business. Increased availability and utilization of mobile terminals (especially, smartphones), digital wallets, and focused offerings, including the usage of social networks and the Internet in shopping, lead to more frequent and less costly purchases as factors influencing the overall global e-commerce sales, which are expected to account for 25% of total retail sales by 2025. That being the case the following are some of the reasons that have contributed to this change; Technology Payment methods Recommendations social media Most beneficial has been for electronics, fashion, and grocery categories, where shopping has offered more variety and, on account of the availability of reviews and comparison of prices, more trust. A rise in social media marketing and endorsements by influencers leads to consumer participation Such activities also enhance value co-creation for consumer and organizational benefit The use of Artificial intelligence and data analysis provides businesses the ability to create personalized experiences. The use of different payment methods such as debit cards in the UK and credit cards in the USA is the reason why there is a need to offer multiple payment options. However, because of trust and security considerations, conventional shopping channels are preferred for offline selling. User experience, niche targeting, and cross-channel communication. The future of e-commerce's further evolution will be based on AI technologies that are based on customer experience and mobile in the first place since they are changing consumer behavior, making the retail change continuously.