Today, we’re thrilled to sit down with Zainab Hussain, a seasoned e-commerce strategist with a deep background in customer engagement and operations management. With her finger on the pulse of digital retail trends, Zainab offers invaluable insights into the shifting landscape of online shopping. In this interview, we’ll explore the surge in app-based e-commerce, the dominance of major marketplaces, the role of AI in driving traffic, and the strategies behind the success of niche retailers. Let’s dive into how these trends are reshaping the industry and what businesses can do to stay ahead.
How has the rise in app-based e-commerce, as highlighted by recent reports, changed the way consumers interact with online shopping?
The shift to app-based e-commerce is a game-changer. Recent data shows a 13% increase in app sessions, which signals that consumers are prioritizing convenience and speed. Apps offer a more personalized and seamless experience—think push notifications for deals or saved carts that make checkout a breeze. Unlike traditional websites, apps keep users within a curated ecosystem, which builds loyalty and encourages repeat purchases. It’s about meeting shoppers where they are, on their phones, and making every interaction effortless.
What do you think is causing the slight decline in traffic to traditional e-commerce websites?
The 1% drop in website traffic reflects a broader behavioral shift. People are spending more time on mobile devices, and apps are often faster and more intuitive than browsing a site on a phone. Websites can feel clunky or less tailored compared to an app’s streamlined interface. Plus, larger marketplaces are dominating search results and ad spaces, pulling traffic away from standalone sites. Smaller retailers without a strong mobile presence are especially vulnerable to this trend.
How are giant marketplaces impacting smaller online stores in today’s competitive landscape?
Large marketplaces like Amazon and Temu are creating a tough environment for smaller stores. They have massive resources to invest in logistics, pricing, and marketing, which standalone retailers often can’t match. These giants also benefit from huge user bases and trust—shoppers know they’ll get fast shipping and easy returns. Smaller stores struggle with visibility and higher customer acquisition costs, often getting drowned out in a sea of options on these platforms or losing direct traffic altogether.
What’s behind the impressive traffic growth for certain marketplaces despite external challenges like tariffs?
Take Temu, for example—their traffic surged by 56.9% year over year, despite U.S. tariff issues. A big driver is their aggressive pricing strategy and gamified shopping experience, which hooks users with deals and rewards. They’ve also invested heavily in marketing to build brand awareness fast. Tariffs might raise costs, but their focus on low prices and viral social campaigns keeps drawing in bargain-hunters. It shows how powerful consumer psychology can be, even when facing economic hurdles.
Why is getting consumers to download and engage with a shopping app so crucial for businesses right now?
Apps are a direct line to your customer. Once downloaded, they become a constant presence on someone’s phone, unlike a website that requires active searching. A well-designed app can push tailored offers, remind users of abandoned carts, and create a sense of exclusivity. It’s about turning shopping into a habit—when your app icon is right there on their home screen, you’re top of mind. Engagement isn’t just about downloads; it’s about creating reasons for users to open the app daily.
What elements make a shopping app experience stand out and keep users coming back?
It starts with intuitive design—navigation should be a no-brainer, with quick load times and minimal clicks to purchase. Personalization is huge; showing product recommendations based on past behavior makes users feel understood. Gamification, like earning points or unlocking discounts, adds a fun layer. And don’t forget customer support—live chat or easy returns within the app build trust. The goal is to make the app not just a tool, but an enjoyable part of their routine.
With AI chatbots driving traffic to e-commerce sites, how are they influencing shopper behavior?
AI chatbots are emerging as a surprising traffic source. They’re guiding users straight to products after answering specific queries, which means these shoppers arrive with high intent. The conversion rate for AI-referred visits is reportedly around 11.4%, way above organic search at 5.3%. That’s because the research phase is often done before they click through—they’ve already narrowed down their needs via the chatbot. It’s like having a personal shopping assistant point them right to the checkout.
How can brands position themselves to benefit from AI-driven discovery and capture these high-intent visitors?
Brands need to optimize for AI visibility by ensuring their product data is structured and detailed—think clear descriptions, keywords, and rich media that chatbots can pull from. Being active on platforms where AI tools scrape information helps too. It’s also about understanding the questions shoppers ask AI, then tailoring content to match those queries. The key is to make sure your brand pops up as the answer when someone’s ready to buy, capitalizing on that prepped mindset.
What strategies are fueling the success of niche retailers who are seeing significant growth in both web and app traffic?
Niche retailers like Quince and Farm Rio are killing it by carving out distinct identities. Quince, with a 130.9% jump in web visits, likely focuses on unique value propositions—maybe affordable luxury or sustainability—that resonate with a specific audience. Farm Rio’s app users grew by over 300%, showing how a strong mobile presence can amplify niche appeal with vibrant branding and exclusive app perks. These brands succeed by not trying to be everything to everyone; they target passionate, loyal customer segments.
What can smaller retailers learn from the dominance of major players in terms of user engagement and retention?
Smaller retailers can take a page from the big players by focusing on what drives their scale: customer experience and data. Amazon, for instance, excels at personalization and frictionless shopping—small businesses can mimic this by using affordable tools to analyze customer behavior and tailor offers. Building trust through reliable delivery and returns is another lesson. Even on a tight budget, prioritizing a standout user journey, whether on an app or site, can help retain customers against the giants.
What is your forecast for the future of app-based e-commerce and its role in the broader retail landscape?
I see app-based e-commerce continuing to dominate as mobile usage grows and younger generations lean even harder into smartphone-first shopping. Apps will likely become more integrated with emerging tech like augmented reality for virtual try-ons or AI for hyper-personalized experiences. Retailers who don’t adapt to this mobile-centric world risk falling behind, while those who invest in sticky, innovative app experiences will capture the lion’s share of engagement. It’s not just a trend—it’s the future of how we shop.
