Digital commerce is the process of buying and selling goods and services through digital platforms like the internet, mobile networks, and other business systems. It’s more than just making a purchase—it offers customers a self-service, interactive experience that feels smooth and personal.
But it’s not just about the transaction. Digital commerce also includes the people, tools, and systems working behind the scenes. That means everything from writing product descriptions and creating marketing content to tracking customer behavior, analyzing data, setting prices, and improving satisfaction—basically, managing every touchpoint during the customer journey.
In the early days, digital commerce mostly meant simple storefronts and shopping carts. Now, it’s evolved into a full-blown digital experience. From attracting new customers to keeping loyal ones, today’s digital commerce covers the whole cycle—and in many cases, marketing teams are the ones running the show.
Some Real-World Digital Commerce Stats That Might Surprise You
Here’s a quick look at where things are headed in the world of digital commerce:
- Believe it or not, nearly 80% of businesses are already using AI to improve their digital selling game. And it's not just a buzzword — they’re seeing big gains. Some are reporting over 25% improvements in things like revenue, customer happiness, and even cutting down costs.
- About 15% of the larger e-commerce players out there are working on building their own marketplaces — kind of like their own mini-Amazons.
- With better tech like aPaaS platforms, these companies can build features quicker and scale faster. The ones who move smart and early could end up leading the pack.
- In the U.S., the B2B e-commerce market was projected to pass $1.8 trillion by 2023 — that’s huge and shows how much is shifting online.
- Around 89% of B2B buyers now research online before they ever talk to a sales rep or place an order. That means a company’s digital presence really matters.
- And get this — by 2040, it’s expected that close to 95% of all purchases will happen online. That's pretty much everything we buy, happening through a screen.
Classification of Digital Commerce
Digital commerce is mainly divided into two types:
1. Active Digital Commerce
This type refers to businesses that regularly sell their products or services online and accept digital payments. Everything from browsing to checkout is handled over the internet.
2. Passive Digital Commerce
In this case, businesses promote or advertise their products or services online, but payments happen offline—through cash, bank transfer, or in-person transactions.
Importance of Digital Commerce
As digital technology continues to influence both B2B and B2C sectors, there’s been a noticeable shift in customer behavior. People now explore products and services, make purchases, and stay loyal to brands in very different ways than before. Studies show that around 56% of B2B buyers and 40% of consumers are willing to pay more for a better experience—and most won’t return to a brand after a bad one.
For a long time, marketing and sales were treated as separate efforts. But now, digital has merged these into a single, ongoing process—from first discovery to repeat purchases. Today, businesses can actually track how marketing spend leads to real income—and in some cases, they’re even required to prove it.
In today’s world, digital commerce is not just more convenient than traditional sales methods—it’s become essential. According to research, 65% of shoppers do online research before stepping into a physical store. This shows why digital commerce matters—for saving time, staying competitive, and meeting modern customer expectations.
Let’s take a closer look at what makes digital commerce so important today:
a. Better Customer Experience
Shopping habits have changed. People no longer just research online before going to stores—they actually prefer buying directly online. In fact, global online retail sales were only 7.4% back in 2015, but they were expected to reach 22% by 2023.
Here’s how digital commerce helps improve customer experience:
- People can shop comfortably from home.
- No pushy sales staff to deal with.
- Returns and exchanges are much easier.
- Browsing, searching, and ordering is simple and fast.
- 24/7 live chat support is often available.
b. Easier Business Expansion
Physical stores are limited by geography and setup costs. They need physical space, local staff, and a lot of investment. But with digital commerce, businesses can expand without worrying about location or large upfront costs. This makes it easier for service-based and product-based businesses to grow.
c. Easy Access to Customer Data
When someone visits your online store or makes a purchase, you instantly gather useful information about them. Digital commerce makes it easy to collect and store customer data, helping businesses understand buying behavior, track purchases, and tailor marketing efforts to customer preferences.
d. Stay Competitive
If you’re not planning your customer’s journey, there’s a good chance your competitors already are. Understanding the moments that build brand loyalty is key. When you focus on what keeps your customers coming back—and talking positively about your brand—you stay ahead of the competition.
e. Affordable Marketing and Advertising
Digital commerce offers a range of budget-friendly marketing options. Visual content like high-quality images, infographics, and videos help attract buyers. You can also use email marketing, blog posts, sponsored ads, and targeted discounts or coupons.
According to the 2018 Gartner CEO Survey, 62% of business leaders were already working on digital transformation initiatives. That includes making digital commerce a core part of their growth plans.
f. Better Targeting & Personalization
The more you know about your customers, the better you can serve them. Digital commerce makes it easier to track things like:
- Who your customers are (age, gender, location)
- What they like
- How often they buy
This helps you personalize your offers, send targeted promotions, and even recover lost sales through abandoned cart reminders—without annoying your customers.
g. Faster Buying Process
People want things fast. With digital commerce, they can:
- Search for a product
- Read reviews
- Compare options
- Add to cart
- Buy in minutes
The whole process is quick and smooth—no long lines, no travel, and no waiting.
h. Save on Rent and Staff Costs
Online businesses save money by avoiding large office spaces or storefronts. Many digital businesses work with small teams or remote workers, cutting costs on rent, utilities, and maintenance. Automating parts of the process also reduces the need for large staff teams.
i. Meet Customers Where They Are
When people search online for a product and find exactly what they want at the right price, they’re likely to buy it then and there. With digital commerce, you can meet these customers right where they are—online—and make their shopping process easier.
j. Reach a Wider Audience
A local store can only serve a limited number of customers, even with home delivery. But digital commerce removes those limits. You can reach new customers across cities, countries, and even continents. It’s an affordable way to grow your customer base and explore new markets and demographics.
Challenges of Digital Commerce
Even though digital commerce opens up many doors and advantages, it doesn't come without its fair share of challenges. The online world moves fast, and both technology and customer expectations keep evolving. Businesses need to adapt constantly—and that’s not always easy. Sometimes, it gets tricky to manage all the digital touchpoints from the first customer interaction to the point where things start getting complicated.
a. Meeting Customer Expectations in Experience
Customer expectations are always shifting. So, if you want to stay ahead, you’ve got to be smart about how you track customer behavior. The more you learn about what your customers like or dislike, the easier it becomes to shape better, more personal experiences.
That’s where technology really helps. With the right data, you can tweak every part of their journey—from how they search for products to how they choose delivery options. It’s all about making their experience feel smooth and personalized.
b. Getting Enough Traffic to Your Store
Gone are the days when one traffic source was enough. Today’s successful digital businesses rely on multiple channels—SEO, paid ads, social media, emails, influencer shout-outs, even retargeting.
You need a mix: maybe an Instagram giveaway here, some Google-friendly product photos there, and good partnerships that send visitors your way. A smart software stack can tie all of this together and keep your store buzzing with activity.
c. Keeping Up With New Tech
With so many tech trends popping up every year, staying current is a challenge on its own. Devices get better, customer expectations grow, and brands need to keep up with things like AI, video shopping, and personalized search.
Shoppers aren’t just browsing one site—they’re comparing across platforms. So, to keep up, you’ve got to watch the trends, test new tech, and use what works to make the shopping journey smoother.
d. Converting Leads & Keeping Customers Around
Many businesses use automation tools to turn leads into paying customers—but if you don’t keep them engaged afterward, all that effort could go to waste.
The real win comes from turning one-time buyers into loyal fans. Host live webinars, send feedback surveys, or automate follow-up emails. These tools help you stay in touch and keep your audience coming back.
e. Growing With the Right Tech Stack
Ever feel like your current tech tools are holding you back? That’s more common than you think. If you're looking to expand, make sure your systems can scale with you.
Think about your shopping cart, email tools, inventory software—are they built for growth? A solid IT plan that includes flexible, data-driven tools can help avoid roadblocks as your brand grows.
f. Making the Experience More Personal
If there’s one thing customers appreciate, it’s personalization. They want to feel like your business understands them—and the good news is, digital commerce gives you plenty of chances to make that happen.
From personalized emails and ads to smart product suggestions and tailored landing pages, you can build a journey that actually feels relevant to each person. Do your research, track their preferences, and let them know you’re paying attention.
g. API-Based Commerce (aka Headless Commerce)
Traditional systems can feel rigid. If your platform doesn’t let you move fast or create unique experiences, it’s time to consider an API-based (or headless) setup.
With this approach, all the systems—content, products, payments, customer data—talk to each other through APIs. That way, you’re free to design whatever frontend experience you want, without being held back by backend limitations.
h. AI is Changing the Game
AI is becoming a big part of eCommerce. It helps businesses understand what their customers want and when they want it—then delivers exactly that.
By learning from customer data, AI can show the right products, create personalized content, and even make smart decisions for your store. Experts say AI in eCommerce could hit $7.3 billion annually, so it’s clearly something worth tapping into.
i. Augmented Reality: Shopping Beyond Screens
AR takes the online shopping experience to a whole new level. It adds virtual elements—like seeing how a chair looks in your room or how a pair of glasses fits your face—without having to leave your house.
It also helps cut down on inventory and returns since people have a better idea of what they’re buying. Plus, it creates a more emotional connection, which can often lead to higher conversions.
j. Subscription Commerce: Predictable Revenue
Subscription models are growing fast. For businesses, it means steady cash flow, easier budgeting, and lower admin costs. For customers, it means convenience—they know what they’re getting, when it’s coming, and how much it’ll cost.
Automotive subscription services, for example, are expected to grow 71% year over year. It’s a model that works across industries, especially where ongoing services or consumables are involved.
k. Smarter Customer Analytics
Knowing your customer is everything. Analytics lets you understand who’s visiting, what they’re doing, and what’s working (or not).
It helps you make smart decisions and boost your marketing results. With tools to monitor performance and adjust campaigns in real time, businesses can reach the right audience, at the right time, with the right message.
l. Enterprise Marketplace
More companies are turning to the enterprise marketplace model. It allows brands to offer a variety of products from different vendors, all under one roof.
This approach not only expands offerings but also creates new revenue streams and ecosystems. By 2023, it’s predicted that 15% of mid-to-high-value digital commerce companies will have built their own marketplaces.
m. Progressive Web Apps (PWAs)
PWAs are a fresh take on mobile apps—except they work right in the browser. They combine the feel of a native app with the ease of access of a website.
For companies, PWAs are cheaper to build and maintain. And for users, they offer smooth, fast, and reliable shopping experiences. That’s why more businesses are ditching native apps and choosing PWAs instead.
