It’s Time to Invest in Commerce Enablement: The Near Future
- Sid Mookerji
- Mar 31
- 2 min read
As we’ve explored in parts one and two of this series, e-commerce is an industry in revolution. And experts predict that this state of revolution will lead to exponential growth in the near future. According to Morningstar, the U.S. e-commerce industry is expected to grow 7.8% annually through 2028, 3.9 times faster than eMarketer’s projected offline retail spending. (11) In the UK alone, the digital commerce market is expected to grow from 470 billion USD in 2025 to 1,852.3 billion by 2035. (12)
The industry’s rise is fueled directly by commerce enablement tech. It explains the dominance of Amazon and Walmart, the surging success of Temu and Shein, and even the recent performance of Urban Outfitters, which has beaten earnings estimates by leaning fully into social media marketing. AI-application startups have made measurable contributions to the priority areas driving retail sales and profits—namely, merchandising and supply chain logistics, marketing tech for the 2020s, and seamless, integrated shopping and payment.
Supply chain, inventory, and logistics management is one area where AI advancements have been game changing. Technology that integrates logistics with shipping partners ensures faster and lower cost delivery, a crucial factor among today’s consumers. Automated inventory management reduces inefficiencies and lowers costs. Commerce enablement technologies also enable e-commerce businesses to advertise across multiple sales channels and synchronize them automatically. And with automated campaigns and AI-driven targeted marketing, businesses can now scale their marketing efforts without an increase in labor or cost. Finally, integrated payment solutions now improve the ease of transactions and support varied payment methods (credit cards, e-wallets, buy now-pay later services). Advanced AI can detect and prevent fraud. All of this leads to higher customer safety and higher conversion rates.
“Commerce is changing faster than ever. With the growth of AI-powered solutions, brands and retailers that adopt these solutions will have an edge. These technology companies are solving age old problems in new and impactful ways. Companies that are focused on continuous improvement of the consumer experience, employing automated processes to manage risk and improve operational efficiency, reaching customers beyond geographic limitations, and making informed marketing and product development decisions through AI-powered insights,” according to Ross Kimbel, General Partner of Silicon Road Ventures. “Winning companies will continue to partner with commerce technology solutions, and smart investors in these technologies will see significant opportunity as well.”
Industry investment in commerce enablement technologies will remain robust for the foreseeable future, and therefore an opportunity for investors looking for a “third path,” distinct from the foundational side of AI as well as its massive application layer solutions. Kimbel concludes that, “While eCommerce, retail, and consumer packaged goods companies honestly can’t afford to pass over on these AI-powered capabilities, investors won’t want to miss out on their massive upside.”
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