Ecommerce technology is emerging as a top priority for both B2B and B2C companies as the year draws to a close, according to a recent McKinsey & Co. survey of 500 companies across the U.S., Europe, and other regions. The survey highlights artificial intelligence (AI) as the leading technology on ecommerce radar.
20% of companies identified as “leaders” by McKinsey have made generative AI (gen AI) their number one priority in ecommerce—a stark contrast to less than 5% of “laggards,” another McKinsey classification. Leaders are also prepared to invest heavily in this area. Approximately 30% of B2B and B2C companies plan to allocate over 10% of their ecommerce budgets to gen AI within the next 12 months. Notably, more than 10% of these companies intend to dedicate over 25% of their ecommerce budgets to gen AI. By comparison, fewer than 10% of laggards are planning similar investments, according to McKinsey.
B2B companies are leading the charge into generative AI, committing a larger portion of their ecommerce budgets (11% to 25%) compared to their B2C counterparts. This focus aligns with a broader increase in B2B ecommerce budgets, as noted in McKinsey’s latest B2B Pulse Survey.
“Recognition of the generative AI opportunity underscores a more foundational prioritization of technology. In fact, leaders are twice as likely as laggards to make tech a top priority,” McKinsey states.
Key Survey Findings:
- Marketplaces, Direct-to-Customer, and Social Commerce:
- The gap between leaders and laggards is most pronounced in areas such as online marketplaces (60% of leaders versus 54% of laggards), direct-to-customer sites (56% versus 48%), and social commerce (63% versus 50%).
- Among B2C leaders, 70% are increasing spending on social selling, compared to just 56% of laggards. For B2B companies, the respective figures are 55% for leaders and 47% for laggards.
- Shopping and Purchasing Events:
- Over 40% of leaders derive more than 10% of their annual ecommerce revenues from shopping events like Black Friday. In contrast, 25% of laggards do not participate in such events.
- Among B2B companies, close to 30% of leaders report similar revenue contributions from shopping events.
- Black Friday and the year-end holiday season are the most critical shopping events, followed by companies’ own shopping day promotions. Many companies plan to increase spending on these events over the next 12 months.
- Almost half of all large consumer brands allocate over 10% of their ecommerce budgets to shopping day events. Similarly, 42% of small consumer companies and 30% of B2B companies make comparable investments.
As the focus on e-commerce technology intensifies, the adoption of generative AI and the expansion of capabilities in social commerce, direct-to-customer platforms, and marketplace development stand out as strategic priorities for market leaders, according to McKinsey.
Favorite