E-Commerce Trends in 2023

E-Commerce Trends in 2023

E-commerce sales continue to grow worldwide. Particularly in the last few years, with the widespread use of the internet and the convenience of digital shopping, e-commerce has gained significant momentum. The COVID-19 pandemic has also accelerated this trend, leading to more people preferring online shopping.

Some of the expected trends in the e-commerce industry for 2023 are as follows:

• The Rise of Mobile Commerce

Mobile commerce doesn’t just mean purchasing products using your phone. It encompasses any purchasing activity conducted through a mobile browser or app, including engaging with mobile ads, communicating with sales representatives, browsing brands on your smartphone, and more. As mobile shopping intersects with other popular e-commerce features such as live stream shopping, augmented reality shopping, and in-app purchases, its usage will further accelerate towards the end of 2023.

• Social Commerce Continues and Evolves

2022 witnessed a period where social commerce reigned. However, consumer demands are becoming more complex, and they are being more selective in their purchasing decisions, especially with the upcoming economic downturn.

According to Sprout’s Social Shopping Report, 98% of consumers expressed their intent to make at least one purchase through social media or influencer commerce in 2022, and this trend continues unabated. If you haven’t started selling on social media yet, chances are your competitors are already doing it or planning to do so.

As creative marketing matures, it naturally highlights the role of platforms in assisting creators and companies in selling to consumers. Instagram Shopping stands out as a natural step to provide customers with a unique browsing experience and the ability to make in-app purchases. They present tutorial videos demonstrating how to use their products along with photos. Users can also directly message the store if they have any questions.

• Personalized Shopping

B2C and B2B consumers are seeking personalized e-commerce experiences and are more inclined to remain loyal to retail brands that offer a personalized experience. According to the 2022 State of Personalization report, nearly half of consumers (49%) stated that they would likely become repeat customers after experiencing a personalized shopping experience with a retail seller.

Personalization involves providing a consistent retail experience across multiple channels (website, mobile, and social media) with product recommendations, offers, and discounts. It is also essential to offer various payment methods. If a customer’s preferred payment method is not available, they may easily abandon their purchase before completing it on the website.

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Brands that invest in personalization efforts reap significant benefits. According to BCG’s Personalization Maturity Index, retailers scaling advanced personalization capabilities generate, on average, four times more revenue than those with less advanced features.

• Artificial Intelligence Continues to Aid Brands in Gaining Deeper Insights into Customers

With the rise of personalized shopping experiences, artificial intelligence is rapidly growing. AI can gather data on customers’ shopping behavior, including how they shop, their product/service preferences, and the timing of their purchases. Brands can leverage this information to offer personalized shopping experiences.

• Zero-Party Data and Privacy

While some consumers desire personalized experiences, others are concerned about data and privacy rights. While more consumers are aware that e-commerce sites collect data, they may not always know how that data will be used or if its collection puts them at risk. There are mixed feelings about the benefits of big data and its impact on personalized shopping experiences.

Considering the plans of leading companies such as Google to end support for third-party cookies in 2023, brands are starting to embrace zero-party data. To avoid the issues associated with the use of third-party data, brands prefer to collect data directly from customers who provide their consent.

• Impact of Augmented Reality (AR) and Virtual Reality (VR) on Online Shopping

The slogan “Try before you buy” gains a whole new meaning with AR commerce, allowing customers to try products or preview experiences using 3D mapping. AR has been a game-changer, particularly in industries such as fashion, beauty, and home decor, as it brings products/services directly to customers. Brands can benefit from AR commerce without even requiring a physical store front.

• Rise of Voice Search

In 2023, marketers are leveraging new technologies like voice search to enhance their social media commerce strategies. Many consumers rely on smart speakers and voice assistants to complete daily tasks. Customers can explore a brand’s different collections, select product sizes and colors, and ask questions directly in-store.

As the number of adopters of these systems increases, there will be a tendency to use voice search for purchasing various products, from clothing to food. Research shows that 25% of participants plan to use voice search in 2023, representing a 3% increase compared to 2022.

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• Businesses Focusing on Optimizing Conversion

In today’s economic environment, businesses are focusing on optimizing conversion by targeting consumers who spend less and shop less frequently. According to Shopify’s Future of Ecommerce + Trends 2022 report, based on a survey of global Shopify Plus sellers, 35% of companies noted a decrease in average order value, 50% reported a decrease in site traffic, and conversion rates have declined.

While many brands focus on multichannel marketing, marketers should concentrate on optimizing conversion in social media and search engine ads. The days of using the same messages across traditional channels like billboards and mailers are gone. Today, companies need to use appropriate messages and content across different social channels to build a cohesive brand presence.

• Subscriptions Help Retain Loyal Customers

By adopting subscription models, brands aim to increase profitability and attract loyal customers due to factors such as economic instability and inflation. These advantages are so appealing to customers that, according to Shopify’s Future of Ecommerce + Trends 2022 report, 80% of customers expect to sign up for a subscription in the next five years. Lululemon stands out in introducing subscriptions and building a community. This sportswear retailer frequently engages with customers on social media and occasionally delights them with surprise subscriptions.