Five trends set to dominate eCommerce this year

The COVID-inspired boom was always going to be a hard act to follow for the eCommerce sector. As the world grappled with a pandemic in 2020 and society was introduced to concepts such as ‘social distancing’ and ‘community lockdowns’, consumers rushed to their computers, tablets and mobiles in an effort to keep consuming. Online sales soared overnight and businesses did their best to meet the unprecedented demand for digital interaction.

It was inevitable that eCommerce would soon enough return to more realistic growth levels but to the industry’s credit, it is continuing to take an increasingly large percentage of total retail sales worldwide. By the end of 2023, it is expected that one in every five retail sales will be made online¹, while 90% of people buy from brands they follow on social media². The eCommerce revolution rolls on, so much so that analysts are tipping eCommerce sales in the United State to account for 31% of retail sales by 2026³.

Given its reputation for innovation and invention, it is not surprising that eCommerce managers have an insatiable thirst for keeping up to date with the latest developments sweeping the industry. With that in mind, here are five trends set to impact the sector in the coming months.

1. Video shopping: one only has to scroll through their social media feed to see that video content is a must for modern-day marketers and that has resulted in video shopping becoming the latest eCommerce trend. By using video content to promote and sell their wares online, retailers can show off their products and services and give shoppers more information to help them make a purchasing decision. Better still, video shopping provides eCommerce businesses with valuable insights into customer behavior that they can then use to tailor offerings to meet customer needs. On the back of augmented reality and virtual reality technology, get ready for video shopping to become more advanced and feature-rich in 2023.
2. Personalization: this is not a new trend but the enduring desire of customers to seek custom eCommerce experiences means it needs to be on the list. The State of Personalization 2022 survey found that 49% of consumers will likely become repeat buyers after a personalized shopper experience⁴, hence the rush for eCommerce platforms to expand their capacity to engage on a personal level with shoppers. Be it product recommendations, curated brochures or delivering an omnichannel experience across multiple channels, look for more businesses to invest in technologies and processes that help them better understand the needs and wants of individual customers.
3. Payment options: get ready for a wave of new and emerging payment options to pop up in 2023 as traditional approaches make way for more digital solutions. With a huge uptake in mobile wallets such as Apple Pay, Google Pay and Samsung Pay, customers are demanding quicker and easier ways to complete transactions while shopping online. This extends to the use of cryptocurrencies such as Bitcoin, which have become increasingly popular with shoppers who want an alternate way of paying, while there is also a growing push for more subscription-based models that allow customers to make repeated purchases without needing to manually input their payment details each time.
4. Outsourcing: the eCommerce sector is a magnet for entrepreneurial types who dream of combining a great idea with the internet to make a fortune. Unfortunately, many of them find that it can quickly become a nightmare as proven by studies that have found 80% of eCommerce ventures fail within the early stages of their operations⁵. Such start-ups often stumble due to high labor costs forcing owners or managers to try to do it all on their own. Rather than make similar mistakes, 2023 will see an increasing number of eCommerce ventures turn to outsourcing providers that can recruit, onboard and train highly qualified staff across various areas at a fraction of the cost of in-house staff.
5. Data and privacy concerns: when a global giant such as Google says it is planning to end the support of third-party cookies by the end of the year[6], it is a certain sign that customers have not only spoken but eCommerce companies are listening. Amid the rush towards more personalized online experiences, many consumers are pushing back and raising concerns about the amount of personal data being collected, how it is being used and whether it is putting them at risk. This year will see an increase in the number of brands choosing to adopt zero-party data policies that see them collect data directly from consenting customers and avoid potential dramas that come from using third-party cookies. The key is transparency, with customers eager to receive personalized offers and engagement but only if the data to support it is collected, stored and used ethically.

Summary

Like any industry, eCommerce businesses thrive on the back of strategic decision-making and investment in the right people, tools and solutions. Being across emerging trends is critical to know the best way to move forward but with that done, the next challenge is implementing the changes and systems needed to reach your full potential.

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