A new year brings new trends, adapt early to stand out
The State of E-commerce 2022
E-commerce has grown to become a giant pillar in the global economy. The current global e-commerce industry is measured as 5.7 trillion dollars in 2022 and is only expected to grow. The biggest nudge was the pandemic which permanently changed how people purchase and their perspective toward e-commerce shopping. The pandemic is somewhat over, but the shift in purchasing behavior stuck with us, for better or worse, mainly due to its conveniences. According to research completed by eMarketer and Statista, this figure will reach 6.51 trillion in 2033. There is no sign of slowing down for the foreseeable future.
Things to Look Out for in 2023
The e-commerce industry is constantly evolving, and there are always new trends and developments to keep an eye on. Here are some things to look out for in the e-commerce industry in 2023:
- Increased focus on customer experience
- The continued growth of mobile commerce
- The rise of voice search
- The increasing use of artificial intelligence (AI) and AI-based upsell
- Greater emphasis on sustainability
- Social and Livestream shopping
- AR window shopping
- Personalization that respects the privacy
- Omnichannel shopping
- More ways to pay
Increased focus on customer experience:
Consumers are becoming increasingly accustomed to high levels of convenience and
personalization when shopping online. In order to meet these expectations, businesses will
need to focus on providing a seamless and enjoyable shopping experience. Providing a
good customer experience is crucial for e-commerce businesses, as it can lead to increased
customer loyalty and repeat purchases. And trust us, it’s worth the effort — according to
a survey by Epsilon, a whopping 77% of consumers said they’re more likely to make a repeat
purchase from a company with excellent customer service. Talk about some serious loyalty!
There are many ways that businesses can increase their focus on customer experience.
Here are a few suggestions:
- Make it easy for customers to find what they are looking for: This can involve things like having a clear and intuitive website design, providing detailed product descriptions, and making it easy for customers to navigate through the site.
- Offer excellent customer service: This can include things like responding quickly to customer inquiries and complaints, providing helpful and knowledgeable support, and being willing to go the extra mile to solve customer problems.
- Personalize the shopping experience: This can involve things like providing personalized product recommendations, offering personalized communication and marketing efforts, and allowing customers to customize their orders.
- Make the checkout process seamless: This can involve things like offering multiple payment options, providing clear and detailed checkout instructions, and offering fast and reliable shipping options.
- Seek customer feedback and act on it: Asking for and listening to customer feedback can help businesses understand what they are doing well and where they can improve. By acting on this feedback, businesses can continually improve the customer experience.
The continued growth of mobile commerce
Mobile commerce (or m-commerce) is growing rapidly, with more and more people using their smartphones to shop online. In fact, according to Statista, global e-commerce sales are expected to reach $4.8 trillion by 2023. Shopping on a mobile device is often more convenient for customers, as it allows them to shop from anywhere, at any time. This means that businesses that offer a good mobile shopping experience are likely to be more successful in attracting and retaining customers. As mobile technologies continue to improve, it is likely that the mobile shopping experience will become even more seamless and enjoyable for customers.
To adapt to the continued growth of mobile commerce in 2023, businesses can take the following steps:
- Optimize their website for mobile: This can involve things like making sure that the website is responsive, which means that it adjusts to fit the screen size of the device being used, and ensuring that the website loads quickly on mobile devices.
- Offer a mobile app: A mobile app can provide a more seamless shopping experience for customers, as it allows them to shop and access their account information directly from their device.
- Make it easy for customers to make purchases on mobile: This can involve things like offering multiple payment options, including mobile payments and making the checkout process as simple and straightforward as possible.
- Utilize mobile marketing: Businesses can use mobile marketing techniques, such as SMS marketing and push notifications, to reach and engage with customers on their mobile devices.
By taking these steps, businesses can better adapt to the continued growth of mobile commerce in 2023 and provide a good shopping experience for mobile customers.
The rise of voice search
Voice search is becoming increasingly popular, with many people using voice assistants like Amazon’s Alexa,
Google Home, Siri, Google Assistant, and many more to search for products and information. In fact, according
to a survey by PwC,
52% of consumers say they use voice search at least once a week. The increasing popularity of smart home
devices, such as smart speakers and
smart thermostats, means that more people are using voice assistants to control their homes and access information.
Many people find it more convenient to use voice assistants to search for products and information, as it allows
them to do so hands-free.
As a result, businesses that optimize for voice search will be more easily found by consumers using these devices.
When using voice search, people tend to use natural language rather than specific keywords.
This means that businesses need to optimize their product titles and descriptions, as well as their website content,
for long-tail keywords and natural language in order to be found by voice search.
To adapt and be ready for the rise of voice search, businesses can take the following steps:
- Optimize for long-tail keywords and natural language: When optimizing content for voice search, it is important to use long-tail keywords and phrases that are commonly used in natural language. This can help improve the chances of being found by voice search.
- Use structured data: Structured data, such as schema markup, can help improve the chances of being found by voice search by providing additional context about a business or website.
- Use a clear and concise writing style: When optimizing content for voice search, it is important to use clear and concise language that is easy for voice assistants to understand.
- Optimize for featured snippets: Featured snippets are short summaries of information that are often displayed at the top of search results and can be read out by voice assistants. Optimizing for featured snippets can increase the chances of being found by voice search.
- Use local SEO: Voice search is often used to find local businesses, so it is important to optimize for local SEO in order to be found by voice search.
The increasing use of artificial intelligence (AI) and AI-based upsell
AI is being used in a variety of ways in the e-commerce industry, from chatbots to personalized product
recommendations.
According to a survey by Econsultancy, 72% of businesses that use AI in their operations report an increase in
customer satisfaction.
The increasing use of artificial intelligence (AI) and AI-based upsell techniques will be important in the
e-commerce industry for a few reasons.
AI can be used to personalize the shopping experience for customers, by providing personalized product
recommendations and targeted marketing campaigns.
This can make the shopping experience more enjoyable for customers and increase the chances of making a sale.
AI-based upsell techniques, such as suggesting related or complementary products to customers during the checkout
process, can help businesses increase their revenue.
By making it easy for customers to discover and purchase additional products, businesses can increase their sales.
Amazon is the king of AI. 35% of Amazon’s revenue comes from upselling or cross-selling. That’s pretty
impressive.
To adapt to the increasing use of artificial intelligence (AI) and AI-based upsell techniques in the e-commerce
industry, businesses can take the following steps:
- Implement chatbots: Chatbots can provide efficient and personalized customer service, helping to resolve customer inquiries and issues quickly. This can improve the customer experience and reduce the workload of customer-facing employees.
- Use automated email campaigns: AI-powered automated email campaigns can help businesses nurture leads and build customer relationships by sending personalized and targeted emails.
- Implement AI-based upsell techniques: AI-based upsell techniques, such as suggesting related or complementary products to customers during the checkout process, can help businesses increase their revenue.
- Use AI to analyze customer data: By using AI to analyze customer data, businesses can identify patterns and trends that can help them better understand their customers and improve their operations.
Overall, by implementing these AI technologies and techniques, businesses can better adapt to the increasing use of AI in the e-commerce industry and improve their operations and customer experience.
Greater emphasis on sustainability
Consumers are becoming more aware of the environmental impact of their purchases,
and this is leading to an increased focus on sustainability in the e-commerce industry.
According to a survey by Accenture, 66% of consumers say they are willing to pay more for
products that are sustainable or environmentally friendly.
There are a few reasons why a greater emphasis on sustainability will be important in the e-commerce industry:
As more businesses prioritize sustainability, it is likely that consumers will have more options
to choose from when it comes to sustainable products. Governments around the world are increasingly implementing
regulations to encourage businesses to be more sustainable. Businesses that do not meet these regulations could face
fines or other penalties.
By prioritizing sustainability, businesses can improve their reputation and build a positive image with consumers.
This can be especially important in the e-commerce industry, where consumers often rely on online reviews and
ratings to make purchasing decisions.
There are a few steps that businesses can take to adapt to the greater emphasis on sustainability in the e-commerce
industry:
- Offer sustainable products: This can involve sourcing products that are made from sustainable materials, such as recycled or organic materials, or that are produced using environmentally-friendly methods.
- Implement sustainable practices: This can involve things like reducing waste, using eco-friendly packaging, and using sustainable transportation methods.
- Communicate sustainability efforts: It is important for businesses to communicate their sustainability efforts to customers. This can involve things like providing information about the sustainability of products on the website and sharing sustainability-related updates on social media and taking recommendations from customers directly.
- Consider the entire product lifecycle: When thinking about sustainability, it is important to consider the entire product lifecycle, from sourcing and production to disposal. Businesses can look for ways to minimize the environmental impact of their products at every stage.
Social and Livestream shopping
The use of social media platforms is increasing, and it is likely that more and more people will use these platforms
to
discover and purchase products. This means that businesses that have a strong presence on social media will have an
advantage
in reaching and engaging with customers. A study by LiveStream found that 80% of people would rather watch
a live video
from a brand than read a blog, and 82% of people prefer live video from a brand to social media posts.
This shows the power of live streaming as a way to engage with customers and build a connection with a brand.
Live streaming technologies, such as YouTube Live, Instagram Live, Facebook Live, and many more allow
businesses to
engage with customers in real-time and provide a more interactive shopping experience. As the use of live streaming
increases,
it is likely that more businesses will adopt this technology as a way to reach and engage with customers.
To adapt to the increasing importance of social and livestream shopping in the e-commerce industry, businesses can
take the following steps:
- Establish a presence on social media: This can involve creating profiles on popular social media platforms, such as Facebook and Instagram, and regularly posting updates and engaging with followers.
- Use social media to promote products: Businesses can use social media to promote products and make it easier for customers to discover and purchase products. This can involve things like using sponsored posts or creating shoppable posts that allow customers to purchase products directly from the platform.
- Utilize live streaming technologies: Businesses can use live streaming technologies to engage with customers in real-time and provide a more interactive shopping experience. This can involve things like hosting live Q&A sessions or showcasing products during a live stream.
AR window shopping
There are a few reasons why Augmented Reality (AR) window shopping will be important
in the e-commerce industry. First and foremost, it can greatly improve the customer experience
by allowing them to virtually try on products and see how they would look in their own space.
This can make the shopping experience more enjoyable and increase the chances of making a sale.
In addition to improving the customer experience, AR window shopping also offers increased convenience.
Customers can shop from the comfort of their own home. Just imagine, no more fighting for a parking spot at the
mall!
Another benefit of AR window shopping is that it can enhance the visual appeal of products
by allowing customers to see them in a more realistic and interactive way.
This can help businesses stand out and attract customers.
Overall, AR window shopping will be an important development in the e-commerce industry.
So why not give it a try and see how it can enhance your shopping experience?
To adapt to the increasing importance of augmented reality (AR) window shopping in the e-commerce industry,
businesses can take the following steps:
- Invest in AR technology: In order to offer AR window shopping, businesses will need to invest in AR technology. This can involve things like creating AR experiences using AR development tools or integrating AR technology into their e-commerce platform.
- Offer AR try-on features: By offering AR try-on features, businesses can allow customers to virtually try on products and see how they would look in their own space. This can be especially useful for products like clothing, shoes, and accessories.
- Use AR to enhance product visuals: Businesses can use AR to create more interactive and visually appealing product listings and displays, which can help attract and engage customers.
- Promote AR features: It is important for businesses to promote their AR features to customers in order to raise awareness and drive adoption. This can involve things like promoting AR experiences on social media or including information about AR features in marketing materials.
Personalization that respects the privacy
Personalization that respects privacy is important in the e-commerce industry for a few reasons.
Firstly, more and more consumers are becoming concerned about their privacy and the potential for
their data to be mishandled or misused. Businesses that prioritize privacy and respect customers’ data
will be more likely to gain their trust and loyalty.
In addition to consumer concerns, there are also legal requirements to consider.
Governments around the world are implementing privacy regulations that require businesses to
be transparent about how they collect and use customer data.
Businesses that fail to comply with these regulations could face fines and other penalties.
By respecting customers’ privacy, businesses can protect their reputations and avoid
negative publicity that could result from a privacy breach or mishandling of customer data.
So why not do your customers (and yourself) a favor and prioritize privacy when it comes to personalization?
To adapt to the increasing importance of personalization that respects privacy in the e-commerce industry,
businesses can take the following steps:
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- Implement a privacy policy: It is important for businesses to have a clear and comprehensive privacy policy that explains how they collect, use, and protect customer data.
- Obtain consent: In order to collect and use customer data for personalization, businesses should obtain consent from customers. This can involve things like providing a clear opt-in form or obtaining explicit consent when collecting sensitive data.
- Use privacy-preserving technologies: There are a number of privacy-preserving technologies that can help businesses collect and use customer data in a way that respects privacy. Additionally, using first-party cookies, such as those provided by Enhencer, can help businesses collect customer data in a privacy-preserving way as these cookies do not share user data with third parties.
- Be transparent: It is important for businesses to be transparent about their data collection and use practices. This can involve things like providing clear and easy-to-understand information about how customer data is collected and used, and responding promptly to customer inquiries about privacy.
Omnichannel shopping
Omnichannel shopping is going to be important in the e-commerce industry for a few reasons.
Firstly, it can greatly improve the customer experience by allowing them to seamlessly shop across
different channels, such as online, in-store, and through social media. No more bouncing between
websites and apps, or driving to the store just to find out they’re out of stock — omnichannel shopping
makes it easy to find and purchase products.
In addition to improving the customer experience, omnichannel shopping also offers increased convenience.
Customers can shop in the way that is most convenient for them, whether that be online, in-store,
or through a mobile app. And let’s be real, who doesn’t love a little convenience in their life?
Another benefit of omnichannel shopping is that it increases the visibility of products,
making it more likely that customers will discover and purchase them. And who wouldn’t want more visibility for
their products?
Finally, omnichannel shopping provides enhanced customer insights.
By tracking customer behavior across multiple channels, businesses can gain a more complete understanding of their
customers
and use this information to improve the shopping experience and increase sales.
To adapt to the increasing importance of omnichannel shopping in the e-commerce industry, businesses can take the
following steps:
- Offer multiple channels for customers to shop: Businesses can offer multiple channels for customers to shop, such as online, in-store, and through social media.
- Make it easy for customers to switch between channels: Businesses can make it easy for customers to switch between channels by offering a consistent brand experience and providing a seamless transition between channels. This can involve things like offering the same products and prices across all channels and allowing customers to start their shopping journey on one channel and complete it on another.
- Use customer data to improve the omnichannel experience: By tracking customer behavior across multiple channels, businesses can gain a more complete understanding of their customers and use this information to improve the omnichannel experience. This can involve things like offering personalized recommendations or providing personalized content based on a customer’s interests.
More ways to pay
Firstly, it can greatly improve the customer experience by making it easier for them to complete their purchases.
No more struggling to find the right payment method or having to create an account to complete a purchase — offering
more ways to pay allows customers to choose the payment method that is most convenient for them.
In addition to improving the customer experience, offering more ways to pay also increases the convenience of
shopping.
Customers can choose the payment method that is most convenient for them, whether that be a credit card, debit card,
or mobile payment.
Another benefit of offering more ways to pay is that it makes products more accessible to a wider range of
customers,
including those who may not have access to traditional payment methods.
Finally, offering more ways to pay enhances the security of the payment system and reduces the risk of fraud.
So why not consider offering more ways to pay and see how it can benefit your business (and your customers)?
To adapt to the increasing importance of offering more ways to pay in the e-commerce industry, businesses can take
the following steps:
- Offer a variety of payment options: This can involve things like accepting credit cards, debit cards, and mobile payment, as well as offering alternative payment methods, such as buy now and pay later.
- Use payment gateways: Payment gateways can help businesses securely process and accept payments from customers. By using payment gateways, businesses can offer more ways to pay without having to handle sensitive payment information themselves.
Conclusions
We wanted to share some predictions and recommendations for e-commerce in 2023.
Keep in mind that these are just our predictions and things can always change with time.
But even if you can’t adapt to all the trends we mentioned, just a few will still be beneficial
for your business. The key is to stand out in the crowded e-commerce market and create a strong brand image.
We hope this year brings you lots of success and recognition in the industry. Good luck!
