Q&A: connected commerce - what comes next for ecommerce?

I think from a Stripe perspective, we’re just very excited about it because we’ve seen so much growth since 2020. The ecommerce space, as it’s generally defined, has grown 10% year on year. I think what that growth has done is drive enormous amounts of innovation for the benefit of the end consumer. 

Ecommerce experiences are becoming increasingly frictionless, and that’s driving significant innovation. We are particularly embedded in this from a payments perspective, but more broadly in the ecommerce space, as I’m sure Michaela would attest, there’s a wave of innovation driving better customer outcomes. We’re very excited to see that continue.

I think there’s huge opportunity in the ecommerce market. It’s definitely an exciting time to be a brand, whether you’re a small business or have been established for a while. One reason for this is the vast number of opportunities to interact with your consumers. Whether you’re engaging them through a direct-to-consumer channel, social media, social selling, marketplaces, or a distribution partner, there are many ways to reach segmented audiences. 

The challenge, however, is understanding your consumer segmentation. You need to be highly specific and targeted about who you engage with and when.

The second major opportunity for brands right now is the robust technology stack available. Whether it’s in payments with partners like Stripe, logistics, or marketing technology, these tools allow brands and entrepreneurs to focus on running their businesses day to day without worrying about whether they’re using the right payment stack or marketing technology. By building a best-in-class technology stack, businesses can focus on larger strategic decisions.

A significant trend we’re seeing post-COVID is that many ecommerce businesses are noticing consumers returning to in-person shopping. This makes providing a consistent and seamless omnichannel experience crucial, ensuring that in-person shopping complements the online experience. A key part of this is personalisation. Many businesses are now looking to partner with a single payments provider across both channels so that consumers can enjoy the same seamless experience online and in-store.

Omnichannel commerce is a fascinating opportunity. A recent study found that only 9% of retailers’ SKUs are available in-store from their inventory. This highlights the critical need for consumers to access goods online, as they may not find their preferred size or colour in-store.

One key trend in online shopping is reducing friction. With platforms like TikTok, Instagram, and Reels, consumer attention spans are shorter than ever. Mobile shopping is also a huge factor—whether people are in a queue at Starbucks or commuting on a train. Ensuring a smooth checkout experience is essential. With partners like Stripe and platforms like BigCommerce, businesses can create a frictionless checkout process, moving consumers through in under two minutes—a vital benchmark to secure conversions and prevent lost sales.

BigCommerce brings agility to a business. One of the biggest challenges brands face is being locked into outdated, monolithic platforms that make changes difficult and expensive. Traditional platforms often require significant time and investment to update.

BigCommerce, by contrast, takes a more composable commerce approach, allowing businesses to integrate best-in-class partners, test new solutions, and iterate quickly. This flexibility enables brands to optimise their tech stack, maximise revenue growth, and expand into new markets efficiently.

From a Stripe perspective, there are two key areas: security and reliability.

From a security standpoint, we deploy advanced encryption technologies, ensuring that consumers and partners of BigCommerce and Stripe can have confidence in the security of their financial data and transactions. Additionally, our machine learning-driven fraud prevention tools help businesses stay ahead of financial risks by detecting and preventing fraudulent activity.

One of my favourite joint customers of Stripe and BigCommerce is the online home and garden retailer Sarah Raven. They are well known for their dahlias and sweet peas. Initially, they moved to BigCommerce but retained their existing payment provider due to favourable rates. However, they struggled with high cart abandonment and lower-than-expected conversions.

After switching to Stripe, they saw fantastic results: a 40% decrease in cart abandonment and an 18% increase in overall revenue. They also added Apple Pay, despite initially believing it wasn’t necessary for their older demographic. It has since become a significant part of their online sales. This transformation has propelled them to new levels of growth.

Another great example is Rohan, the outerwear brand. They introduced Stripe payments through their partnership with BigCommerce and, within a year, moved 45% of their transactions online with minimal engineering changes.

In their second year of working with us, they saw a sixfold increase in revenue over the holiday period. Their ability to quickly adapt and capitalise on changing consumer behaviours has been truly impressive.

We’re seeing huge demand for Buy Now, Pay Later (BNPL) options in ecommerce, and we’ll continue adding new payment methods to meet this demand. Another key development is Stripe Capital, which provides financing options for small and medium-sized businesses. It has already launched in the UK and will roll out across Europe later this year, helping businesses access capital more easily.

We’re really excited about several developments. One is the launch of Stripe Tax, which simplifies tax compliance for businesses. We’re also continually adding new local payment methods to support merchants in different geographies, ensuring our joint customers can access the latest payment innovations.

It’s a fantastic opportunity to network with technology partners and other businesses undergoing digital transformation. Our customers consistently tell us that learning from peers who are further along in their journey is invaluable.

We’re thrilled to be hosting the Big Summit at Tottenham Stadium, which happens to be a joint customer of BigCommerce and Stripe. Even if you’re an Arsenal fan, hopefully, you can put rivalries aside for the day! The event will feature keynote speakers, industry experts, and over 1,000 BigCommerce partners and customers. Attendees will leave with valuable insights to enhance their business strategies.