eCommerce companies must adjust as consumer expectations change and new strategies and technologies appear. Change and innovation are two retail elements that any company may anticipate in 2023. Based on global sales, Alibaba Group is the biggest online retailer. For 2022, it was predicted that the platform’s online sales would be around 780 billion dollars. By 2027, Amazon is expected to surpass Alibaba as the largest online retailer, with e-commerce sales of slightly over 1.2 trillion US dollars. Retail, both offline and online, is developing faster than ever. Innovation in technology is driving this movement. Diverse consumer expectations are another factor.
Businesses must be aware of trends affecting their performance to stay strong contenders. Adopting that shift will enable merchants to prosper this year and in the future. But as business owners, you know that keeping up with trends can be challenging. For this reason, we’ve compiled the newest eCommerce trends for 2023 and provided them in an understandable blog post. Get trendy by reading on!
In eCommerce, what is a trend?
Consumers’ frequent online shopping habits are known as eCommerce trends since they are always changing. While simple capabilities like 360-degree product viewing might have been trendy in the early days of eCommerce, today, consumers demand much more from the brands they favor. Studies reveal that some shoppers now use up to five devices to access the internet, and they demand much more assistance to read your content on each of these platforms if you want to give consistent engagement. Every year brings new expectations and trends, influencing the content and goods brands must produce to stay competitive and meet consumer demand.
Trends in eCommerce in 2023
DTC as a business model
Even though the direct-to-consumer (DTC) business model is not brand-new, the epidemic has increased interest in it. Many manufacturers discovered that selling directly to customers was more efficient and profitable than using third-party platforms.
For instance, Nike decided to cut ties with Amazon in 2019. They are currently conducting direct sales through their e-commerce website. Nike’s direct sales share climbed to 30% due to this action.
By cutting expenses, companies can sell their products at reduced prices or use the money saved to expand other areas of their operations. Direct communication between businesses and customers is possible with this concept. Any issues or inquiries from customers can be addressed immediately by a company, opening doors for upselling and cross-selling.
Voice-activated shopping experiences
Voice search has evolved into a standard component of practically every smart device in the ten years since Google first introduced it. The main control point for smart home systems is now a speaker. Users use voice assistants like Siri and Alexa to play music, check the weather, and shop online. Through the development of voice-enabled purchasing experiences, online retailers are capitalizing on this trend. This improves accessibility for consumers with limited mobility and makes it simple for clients to find the goods and services they need without scrolling through numerous pages. It’s a simple, hands-free method of shopping that makes getting your goods easier than ever.
The Future belongs to VR
Over the past few years, virtual reality has improved accessibility and customer acceptance as a tool rather than just a passing trend. Consumers would be more inclined to purchase from companies using virtual reality. Furniture companies that let buyers view their products inside their homes are one example of how VR is being used to pave the way for this eCommerce future. Additionally, some fashion companies allow customers to try on items like glasses using a phone camera, and other cosmetic companies enable customers to do the same with different hair dye tones.
According to reports, using 3D technology to provide clients with a virtual “hands-on” experience can increase conversions by up to 40%. Basically it helps customers to visualize how the end product will look like. Since this concept is in the trend, technologies like React have a library called React VR which helps in the development of VR based ecommerce experience, startups are now hiring Reactjs developers to save the cost of outsourcing a full project.
Eco-friendly implementations
People and businesses want to move seriously toward sustainability as the earth struggles with serious issues related to global warming. Enterprises that want to be more sustainable first take the following actions:
Evaluation of present operations – At this point, environmental specialists might offer assistance. Examine your current procedures before implementing any modifications to your company. Make sure you are tackling the ethical issues in the appropriate sequence. Packaging, energy use, and material sourcing are common sustainability problems.
Take it slow. – Effective progress demands meticulous planning. For instance, you might have to cancel your current vendor agreements to move to zero-waste packaging. You should test out new and unconventional materials. System upgrades can also be necessary to switch from petroleum-based to renewable energy sources. Simply put, think before you leap.
Earn environmental certifications. – This helps let clients know about your sustainability initiatives, but each certification has particular criteria you must fulfill. Some of the most prestigious environmental credentials are listed below:
- ISO 14001
- Energy Star
- Leaping Bunny
- Fitwel
- Be flexible and responsible.
Communication of your company’s genuineness in its sustainability endeavors depends on transparency. Utilize the feedback from consumers and other industry players to improve your processes and outcomes as a result of their reactions to these improvements.
Online platforms need to keep up
Customers access the internet via various devices; therefore, your website and apps must adapt. Functionality is essential to increasing conversions and lowering bounce rates. 2023 might be the ideal time to assess where your internet channels are lacking or seem out-of-date and bring them up to par.
Using outdated software is one area where companies may fall into this pitfall. The SaaS model has long since become the norm for both large and small enterprises. It enables you to take advantage of features like in-the-cloud operations that stop updates from falling behind or data from being lost.
Subscriptions continue to soar
Over 2023, the rise of subscription services is expected to continue. Subscription firms are growing five times faster than the S&P 500. This is true for a variety of goods and services, such as:
- Streaming of media – The term “Netflix Model,” also used to characterize streaming services for movies and TV shows has expanded to include other specialized markets like online fitness courses. This paradigm contains audiobooks, podcasts, and music under the audio heading.
- Subscription boxes – During the lockdown, subscription boxes became popular as they capitalized on the ‘FOMO’ (fear of missing out) mentality that motivates millennial spending. They are a versatile model that can be used for anything, from headbands to fresh food.
- Latest technology and software – This includes topics like cloud-based file storage, photo editing tools, and company POS systems. In general, you’ll be able to get most of the software you need in 2023 and later through a subscription plan rather than a one-time payment and local installation as in the past.
- Add-on memberships – A subscription can be something other than a company’s main product or service to increase conversions. Consider subscriptions for Amazon Prime, where companies may add convenience to the goods and services they already provide, or for printer cartridges, which are automatically ordered so that customers never run out of ink.
Addressing concerns about data privacy
Personalization may be a potent tool for catering your customer experience to specific people, making it easier to persuade them to make a purchase and increasing their pleasure and loyalty. But acquiring client data is necessary for creating individualized experiences. This brings up the topic of data privacy, which has grown to be a serious concern for many customers.
Artificial Intelligence in eCommerce
You could win over customers by being open and honest about your company’s data policies. Inform your audience about the data you gather and allow them to opt out. This gives them control over their data and displays how much your business values its customers’ privacy.
Artificial intelligence is proven effective in data mining and machine learning in e-commerce. Several benefits of AI in e-commerce platforms are listed below:
- Targeted marketing and advertising: By gathering client information, AI can assist in creating content and suggestions that are specifically catered to certain customers. Based on a user’s online browsing and search history, it can also forecast shopping behavior, assisting in the optimization of marketing campaigns and the personalization of consumer experiences.
- Chatbots and virtual assistants: Shoppers can ask staff members questions at a store. Customers in online stores either conduct their research or leave. Virtual assistants and AI chatbots can help close this service gap. Customers can get support from them around the clock; the more you utilize them, the more knowledgeable they get.
- Inventory Management: Automation and inventory management are necessary because there is a shortage of storage space, unreliable supply chains, and unpredictable consumer behavior. AI can support inventory management by foreseeing patterns, identifying potential supply chain problems, automating packing or ordering processes, and more. All of this can serve to streamline inventory management and contribute to preventing lost revenues as a result of inventory issues.
User-generated content
One of the most popular strategies to leverage user-generated content is to use influencer marketing. Your brand visibility can increase in an authentic way—that is, through the eyes of a real customer—by associating with social media users with substantial followings. The influencer’s power is acknowledged globally; for instance, in Brazil alone, about 90% of the population follows at least one influencer online. Advertising technologies make it simple to see every campaign’s overall impact, enabling advertisers to work with these personalities and the crucial connection they have to their targeted consumer base to establish credibility and trust and reach a sizable audience in a single post.
Flexibility of payments
Customers now anticipate more flexible payment options thanks to the introduction of new payment methods like Klarna. The concept of “buy now, pay later” has long been popular, and consumers have embraced services that use it for even modest, regular transactions.
The problem of cart abandonment, which affects all e-commerce sites, is also fought through flexible payments. Customers visit websites, add products to their baskets, and appear ready to purchase before changing their minds.
Ecommerce statistics highlight some factors for this that are directly related to payment challenges, including:
- The full cart price
- Extra charges like shipping
- Insufficient payment alternatives
- Poor policy on returns
Flexible payments, which enable clients to divide their entire purchase into manageable installments, can directly assist in resolving the first problem. This also works to counter the second since any extra charges may be seen as less important if they are included in a smaller installment. Additionally, it conveys the sense of credibility that comes from businesses that respect their clients and provide for their needs through multiple payment options.
Summing up
Even though creating an online store is relatively simple (especially given the wide range of eCommerce systems available), expanding your business from that point requires more work. To succeed in your eCommerce business, you must modify your ideas consistently as consumer behavior evolves and think strategically.
There is no guarantee that what worked yesterday will have the same results tomorrow. The expansion of technology has given eCommerce enterprises access to new tools. Even though staying current with eCommerce trends can be challenging, doing so will help your company stand out in a crowded market.
Author bio
Suvarna Parikh is a technical content writer at ultroNeous Technologies – a leading web and mobile application development company that crafts user-centric digital products for brands of every size. She is passionate about writing on tech and marketing and balances informative content with an engaging read. Aside from her writing, she is a bookworm interested in various fiction genres and loves sharing her perspectives on key technological and marketing aspects.