The world of e-commerce is dynamic and continually evolving.
Businesses face a constant need to adapt to new technologies, changing consumer behaviours and increasing competitive and economic pressures.
A recent report by Linnworks, The State of Commerce Ops 2025, provides valuable insights into the key trends shaping the future of e-commerce.
It offers guidance for businesses looking to thrive throughout 2025 and beyond.
Key trends shaping e-commerce
The report highlights several key trends that are set to define the e-commerce landscape in the coming years.
The influence of AI
Artificial intelligence (AI) is no longer a futuristic, alien concept but a present-day reality in e-commerce.
AI is being used to personalise shopping experiences, automate customer service, optimise pricing, and improve supply chain efficiency.
Businesses that invest in and embrace AI stand to gain a significant competitive edge through streamlining their operation.
Logistics and inventory complexity
As e-commerce businesses grow and expand, managing logistics and inventory becomes increasingly complex. Challenges include ensuring efficient warehousing, optimising fulfilment processes, and maintaining visibility across multiple sales channels.
Effective logistics and inventory management play a crucial role in maintaining high levels of customer satisfaction and profitability.
Businesses using Linnworks to deliver goods in their own vehicles can benefit from Stream’s Linnworks integration.
Automation is crucial for success
Automation is essential for businesses looking to scale their e-commerce operations. Automating key processes such as order fulfilment, inventory management, and customer communication can improve efficiency, reduce costs, and enhance the customer experience.
Close to half of all retailers are targeting 2025 for implementing automation to boost efficiency.
According to Linnwork’s report:
“Ecommerce automation and real-time data tools are essential for removing operational inefficiencies that stifle growth. By automating key processes and tracking inventory management in real-time, you can reduce manual errors and speed up operations”.
Automation has also become increasingly important in the logistics industry. In response, we’ve introduced automation across the Stream platform, including:
- One-click route optimisation
- Autoplan feature to generate a suggested set of delivery routes based on a list of unplanned orders
- Delivery route plans for mixed fleets
- Creating delivery and collection jobs taking into account that certain orders must be completed within a certain time window
- Assign collections and deliveries to a route based on matching postcodes on that route or which is the ‘best’ existing route for that order
- Automatically allocating orders to routes based on fixed routes.
The critical need for inventory visibility
In today’s omnichannel environment, having a clear and real-time view of inventory is more important than ever.
Businesses need to track stock levels across all sales channels to avoid stockouts, optimise fulfilment, and make informed decisions.
Inventory visibility is a major challenge for growing e-commerce businesses.
Despite 36% of retailers claiming clear visibility, significant discrepancies exist, particularly between leadership roles and operational staff, revealing a disconnect.
Marketplace expansion as a growth strategy
Selling on multiple online marketplaces, such as Amazon, Ebay, and Etsy, is a key strategy for e-commerce businesses. Using multiple marketplaces helps those businesses reach a wider audience and increase sales.
As Linnworks suggests:
“Selling on major platforms like Amazon and eBay offers unique opportunities to reach a wider audience and increase sales volume without the need for significant investment in internal digital infrastructure”.
However, this also requires businesses to manage and maintain their operations effectively across different platforms.
As order volumes increase through selling on multiple marketplaces, logistics flexibility, particularly when using multiple shipping carriers, becomes crucial.
Larger businesses, especially those making between £31 million and £39 million, often use five or more carriers. Smaller businesses tend to use fewer.
Technology investment as a priority
To stay competitive and meet the demands of the modern e-commerce landscape, businesses must prioritise investments in technology.
This includes implementing robust e-commerce platforms.
They’re also investing in data analytics tools, and adopting new technologies such as AI and automation.
In our experience, those businesses with their own fleet, are also looking to add a Transport Management System into the mix.
The drive for international expansion
Many e-commerce businesses are looking to expand into international markets to fuel growth. However, this expansion presents challenges such as navigating cross-border shipping, customs regulations, and international payment processing fees.
Strategies for e-commerce success
To navigate these trends and achieve success in the competitive e-commerce landscape, businesses should consider the following strategies:
Embrace technology
Invest in the right technologies to automate processes, improve efficiency, and enhance the customer experience. This includes exploring AI solutions, implementing logistics tools, and utilising data analytics tools.
Businesses that invest in technology, AI, and automation, especially ERP systems, are better at growing and meeting customer needs.
By 2025, 45% of retailers plan to invest in automation to bolster profits.
Research shows that larger businesses often use ERPs, with 92% of those earning £59-77M relying on them. However, smaller retailers can also gain from automation tools. These tools include inventory management, demand forecasting, and AI customer service.
The crucial step is to assess your current technologies and their effectiveness and identify where automation will provide the greatest return.
Optimise logistics and supply chain
Logistics flexibility, achieved through strategies like using multiple shipping carriers, is essential for efficient growth, especially for larger businesses.
Research shows that 34% of businesses with over £39M in revenue use three or more carriers. In contrast, only 22% of smaller businesses do the same.
Key strategies include: rate shopping, multiple fulfilment centres, carrier-agnostic solutions, and automated shipping rules.
Streamline your logistics and retail operations. Use a Transport Management System to optimise your fulfilment processes, lower shipping costs, and improve delivery times.
Prioritise inventory management
Implement systems and processes to maintain accurate inventory visibility across all sales channels. This will help prevent stockouts, optimise fulfilment, and improve cash flow.
Linnworks’ advice is:
“Failing to adopt advanced inventory management solutions leaves you vulnerable to errors, stockouts, and missed opportunities. Investing in integrated inventory and order management software ensures optimum visibility and enhanced customer satisfaction. “
Adopt an omnichannel approach
Meet customers where they are by selling across multiple online marketplaces and channels. Ensure a seamless customer experience across all touchpoints.
Focus on the customer experience
Provide exceptional customer service and personalised experiences to build customer loyalty and drive repeat business.
Be data-driven
Utilise data analytics to gain insights into customer behaviour, optimise marketing campaigns, and make informed business decisions.
Stay agile and adaptable
The e-commerce landscape is constantly changing, so businesses must be agile and adaptable to new trends and technologies.
Conclusion
The future of e-commerce presents both challenges and opportunities. By understanding the key trends shaping the industry and implementing effective strategies, businesses can position themselves for success in this dynamic and competitive market.
Connect your operation with Linnworks & Stream
To support your growing business, efficient operations and integrated systems are essential.
Linnworks, combined with Stream, provides a powerful solution to the e-commerce challenges outlined in this report. These challenges include optimising fulfilment, and addressing delivery and collection complexities.
Linnworks offers core functionalities such as centralised inventory, real-time stock management, automated workflows, marketplace integration, and robust analytics, laying strong operational foundations.
Our Linnworks integration with Stream adds advanced route planning and route optimisation, real-time delivery tracking, electronic Proof of Delivery (ePOD), and comprehensive logistics monitoring to these foundations, creating a fully connected e-commerce delivery ecosystem and a streamlined supply chain.
