The Top 15 E-Commerce Trends to Know for 2023
Global eCommerce is undergoing rapid change. Online businesses must keep pace with ever-changing eCommerce trends and consumer demands to remain relevant. In this article, we will discuss 15 eCommerce trends that you should be aware of in 2023. If you plan to launch an online shop this year, keep these trends in mind.The topics covered will range from the basics of eCommerce, like customer service, data security, and advanced technologies, including AI, AR and VR. You can read the sections below for a detailed breakdown of eCommerce trends.
1. Artificial Intelligence Personalization
AI simulates the human brain using big data and computer science. Business owners who are interested in eCommerce can use AI for this purpose. AI will adapt to the consumer's behavior and provide more valuable data.
Personalization is one of the most important areas businesses can use AI. It is all about customizing the user's experience according to what the business has discovered about them. According to a survey, 80% of customers are more likely to return buyers when a business offers a customized shopping experience.
By 2030, it is anticipated that the global market for customization software would expand at a CAGR of 23.67 percent. The market is expected to grow from $943.25 million, representing a huge jump. Starbucks is a leading eCommerce business that offers top-notch customization through AI and machine learning. Starbucks expects to customize 60% of its cold beverages by 2024. Customer behavior is used to provide hyper-personalized recommendations at the coffee shop and roastery.
Starbucks uses data from its mobile app to create unique and attractive offers for customers in real-time. The app considers the customer's preferences, previous purchases and activity before sending over 400 000 personalized messages.
The future of AI is looking promising for eCommerce. The global AI market will reach $400 billion by 2027 - up from $86.9 in 2023. A second study shows that leading companies and brands invest continuously in AI.
2. Hybrid commerce
The future of eCommerce will be phygital - a mix of physical and online retail. The eCommerce model integrates channels and platforms to create a seamless shopping experience. Click-and-Collect is a simple method to implement omnichannel sales. This service, also known as buy online pick up in store (BOPIS), allows customers to check out their online purchases and collect them at a pickup station or the retailer.
Click-and-Collect has grown steadily due to the convenience and speed of shopping online, as well as no shipping fees. By 2025, its value will surpass $154 Billion. Leading retailers such as Walmart, Target and IKEA offer this service. ROPO (Research Online, Purchase Offline) has gained in popularity. ROPO allows customers to ensure the compatibility of products, in addition to paying no shipping costs. 56% want to touch and feel products before purchasing.
eCommerce owners may also choose a Progressive Web App (PWA) to cater to online customers. PWAs are a great solution for business owners who can build either an eCommerce website or an app. They are similar to native applications and can be accessed on different browsers and devices. These apps are great for enhancing mobile shopping.
You should consider selling your products in online marketplaces even if you have an eCommerce site or app. Global online marketplace sales will reach $8.8 trillion by 2025 at a CAGR of 20%.
Use the marketplace's free shipping and returns policies to draw in customers. Remember to provide a consistent experience for your customers when balancing the online and offline channels. The omnichannel campaign pays off - companies that use a broader range of channels have a 494% greater order rate.
Read Also: Mobile App Development Predictions for the Nearest Future 2022
3. Virtual and Augmented Reality
By 2031, the AR/VR industry is projected to grow at a CAGR of 41.1% over ten years, reaching $856.2 Billion. AR combines the physical real world with computer-generated visuals, sounds, and other stimuli. Virtual reality (VR), on the other hand, is a simulation that places the user into a computer-generated world using a headset.
Many eCommerce brands have adopted AR and VR technology to provide a more immersive experience. The reactions of consumers are overwhelmingly positive. A survey found that 71% of respondents would be more likely to shop if businesses used AR. A study shows that businesses using AR/VR have 94% more conversions.
IKEA has been a pioneer in augmented reality. IKEA Place uses Apple's ARKit to allow customers to view 3D digitally reproduced product images at home. Mobile devices allow users to check if the furniture fits well in their home.
4. Customer Relationship Management
CRM includes strategies and tools to manage eCommerce business interactions with customers. It is important to have a great CRM strategy since 92% of consumers will abandon a company after just two or three bad interactions. Business owners can better understand the needs of their clients and how they behave. It helps to build loyal customers and strengthen customer relationships.
By 2028, the CRM market is projected to reach $128 billion. Over 91% of businesses with over ten employees also use CRM to manage customer conversations. Programs that reward loyalty and encourage customer retention are effective CRM strategies. Customers are 75% more likely to choose companies that offer incentives. The programs improve the retention rate by 5% and profit by 25% to 95%.
Customers can earn rewards through The North Face's XPLR Pass loyalty program by purchasing items, checking in at the store, or referring a buddy. Customers can redeem $10 for every 100 points on The North Face products. Members of the loyalty program can access special products, birthday presents, and even field testing. The CRM strategy will remain a leading one for increasing customer engagement. Investing in a CRM can help an eCommerce company grow.
5. Customers are our priority
Every business will never be able to function without customer support. Problems with products and services may turn off existing clients or potential customers. Ultimately, it is up to a business to provide quality support.
A positive customer experience is important to 81% of consumers. Sixty percent of customers believe that a quick response is important and agree with the 10-minute benchmark. Live chat is the most popular communication method because of consumer demand. Live chat is the preferred communication channel for 41% of customers because they can get immediate assistance with little effort.
Many businesses are now using customer service chatbots to streamline their customer journey, from the acquisition phase to the retention stage. The global chatbot industry is expected to reach $3.99 billion in 2030, with a CAGR of 25,7%. Chatbots are a great way to meet the growing demand for instant response, increasing by 64% annually.
Uniqlo IQ is a step ahead of the competition with its chatbot. Uniqlo IQ offers users more than just customer service. The system can choose the item that best matches a recent purchase and select an outfit based on the occasion. It's relatively simple to add chatbots on eCommerce websites. Tidio, IBM Watson Assistant and WP chatbot plugins are among the most popular AI-driven bots for WordPress users.
6. Social Commerce
Mobile shopping can be a great way to maximize sales through social media. According to a study, mobile devices account for 80% of all social media traffic. In addition, 79% of smartphone users made purchases using their devices. Social media commerce, already a multi-billion dollar industry, is expected to triple by 2025 and reach $1.2 trillion. Global social media users surpassed the 4 billion mark in 2023 and will reach nearly 6 billion by 2027.
Social media is a powerful tool for eCommerce, and 75% of consumers use it for product research. Facebook has around 2.9 million users worldwide, making it the most used platform. Businesses can easily reach their potential customers using eCommerce platforms such as TikTok Shop and Instagram Shopping. Facebook Shops also offer shoppable advertisements.
Social media marketing is a cost-effective solution that can work well for eCommerce sites. Business owners can use influencer marketing and Live Shopping to boost their sales. Influencer marketing can help drive traffic organically and bring in new customers at a lower cost. It generates $5.78 for every dollar invested.
60 % of marketers believe that influencer-generated content is more engaging and performs better than brand posts. 80% of customers have bought products because influencers recommended them. Influencer marketing is done well by Net-A-Porter - one of the largest online retailers.
Net-A-Porter features articles on fashion, lifestyle, and celebrities. Net-A-Porter offers Shop the Look buttons under the interviewees' photographs to encourage sales. Live shopping is also available on Facebook for business owners. Sellers can showcase products in real time by using live online shopping. Live videos showing your product's size, shape and materials in their natural state can help build customer trust.
Live online shopping, estimated to reach $55 Billion by 2026, is one of eCommerce's most promising trends. Livestream shopping could play a key role in reshaping eCommerce. If you want to join the live commerce trend, make sure it is right for your target audience. Live commerce is dominated by fashion, beauty and other products. Track the views and conversion rate to gauge your audience's interest in Live Commerce. Create a feeling of scarcity and exclusivity by offering discounts only available to livestream viewers.
7. Subscription Models
In the last few years, online shopping has become more convenient for consumers. Subscription models have become a leading trend in eCommerce as they offer a convenient solution for consumers to meet their recurring costs. The subscription market has grown exponentially, with a CAGR of 71%. It is expected to reach over $2 trillion in 2028.
Subscriptions are available for various products, including streaming services and monthly delivery kits. 70% of company executives concur that subscription-based business models are essential to the development and growth of eCommerce. This digital business model faces many challenges, including high churn. Offer special benefits such as reduced prices and free shipping to reduce the number of canceled subscriptions. To improve your customer's trust, keep in touch with them. For example, inform them of any delays.
8. Headless Trade
Headless commerce, a new-generation eCommerce platform, decouples a website's front and back end. Headless commerce delivers content using application programming interfaces. This architecture will allow eCommerce to be done on mobile and desktop devices. Internet of Things devices, such as smart fitness trackers and speakers with smart capabilities, can be used by consumers to browse and make purchases.
Headless commerce simplifies shopping, opens new sales opportunities, and increases flexibility. Headless commerce can streamline omnichannel sales by easily incorporating new eCommerce channels. After adopting a system without a head, 82.91% of business owners reported improvements in various performance metrics. Headless architecture has many advantages and is a technology that will be around for a long time.
As online shopping grows, more eCommerce companies will use the headless environment to streamline their business processes. A survey conducted, found that 57% of business leaders from all sizes and industries intend to use headless architecture within the next two years. In the research, 80% of companies that aren't using headless architecture plan to switch to it in that same period.
The market size for headless CMS is expected to grow at 22.1%, or $5.5 billion, in 2023. Consider moving to a CMS without a user interface. You can also choose a headless eCommerce system. You can use WordPress to create a CMS without a user interface if you use WordPress for your eCommerce.
9. Flexibility in Payment
Do not lose out on potential customers because you do not accept their preferred payment methods. Offer popular payment methods and alternatives to gain an edge in future eCommerce trends. Mobile payment is one of the most popular eCommerce trends in the world.
Digital or mobile wallets were responsible for about 49% of eCommerce global transactions in 2023 and are expected to be used by 53% of eCommerce worldwide transactions by 2025. Be aware that the popularity of payment methods varies from region to region. For example, South Korea prefers credit cards over all other options. In Thailand, however, the preferred payment method is bank transfer.
BNPL allows customers to pay in monthly installments and often without interest. By 2025, this payment option will represent $680 billion in transactions. BNPL can improve the customer experience because it is accessible to many. The lower payment at the beginning instills confidence among customers. The result is an increase in retail sales and a reduction of 35% in cart abandonment.
BNPL can be applied to various products, including food and more expensive items such as electronics. Add this solution to your checkout using a payment gateway that supports installments. PayPal Pay in 4 and Klarna are excellent BNPL providers.
10. Vocal and visual searches
With the development of AI, users can now benefit from visual and vocal searches. AI-powered search engines use natural language processing and machine learning to identify the search intent and provide the best results. Online shoppers can conduct visual searches. The market is expected to increase at a CAGR of 17.5% by 2028, with a value exceeding $32 million. Only 8% of brands provide visual search functionality. Research shows 62% of Gen Z and millennials want this feature.
Style Match is a visual search feature in the ASOS App. The ASOS app lets users upload an image of an item they wish to buy online. It then creates a list with products similar to what was uploaded. Businesses can take advantage of this trend and use high-quality photos. It will help your shop be more visible on sites with a visual search function, such as Google or Pinterest.
Voice search allows people to multitask and saves time. It also eliminates the need for them to type a query in a search box. Voice commands were used by 47% of online shoppers to complete their purchases, with 58% expressing satisfaction. Due to its ability to track shopping patterns, 61% use the technology to purchase previously saved orders. Voice shopping is most commonly used to purchase daily essentials, such as groceries (48%) Voice search is expected to increase at a rate of CAGR 23.7% from $11.21 Billion in 2023 to $49.79 Billion by 2029.
You should aim to be at the top of Google's search results for voice search optimization. Google will read out top-ranking content for users. A proper keyword strategy is also important. People use voice search to use complete sentences instead of short phrases. Google can be used to search for nearby stores selling masks. For instance, a person may ask, "OK, Google, what masks are available near me?"
11. Conversion Rate Optimization
Converting traffic to customers is an essential part of running an eCommerce site. Conversion rate optimization (CRO) encourages visitors to sign up for your email newsletter or buy products. CRO will be more customer-centric in the future. Marketers will increasingly focus on what drives and deters visitors to take action. This ensures the best possible user experience.
Hence, business owners need to strategize and optimize their eCommerce development and every touchpoint with customers, such as landing pages. Seven times as many leads are generated by websites with more than 30 landing pages than by sites with fewer than 10. Create a simple copy that minimizes unnecessary distractions to ensure better conversions.
A website usability test is a good way to evaluate the performance of a CRO. A/B testing is a popular example. You can use this method to compare the performance of two different versions of a mobile-friendly webpage. According to statistics, 60% of businesses already use A/B tests, and another 34% plan to do so. Future Market Insights study shows the CRO market growing with a CAGR of 11.6%. A second study shows that the average return on investment in CRO software is over 223%. Integrating one of these tools into your online store is a wise move.
12. Market Automation
Machine learning allows businesses to automate marketing tasks such as outreach and email follow-up. The technology does not rely on generic messaging. This technology gathers customer data and analyzes it to produce personalized messages at every stage of the buying journey. As a result, there is a rise in consumer engagement and conversion rates.
By 2027, marketing automation is expected to grow by 12.8%. This will amount to $9.5 billion. Marketing automation can save more than 6 hours per week due to its efficiency in streamlining processes.
For 40% of marketers, automation will be a key part of their campaigns to stay ahead of the new eCommerce trends. By automatically sending emails urging customers to complete the checkout, marketing automation algorithms can lower the rate at which shopping carts are abandoned. These emails can offer customers free shipping coupons to increase their chances of success.
There are many tools available that can help you integrate automation into your online store. Email automation tools such as Constant Contact and Mailchimp are ideal for email marketing users. Marketing automation plugins such as ActiveCampaign can be helpful for WordPress users.
13. Enjoy Free and Fast Delivery
Online shoppers expect to receive their purchases as quickly as possible. According to research, 62% of online customers expect their free shipping order to arrive in three business days. Another eCommerce trend that business owners must be aware of is free or low-cost shipping. According to the report, 72% of US internet shoppers are looking for products that offer low shipping costs.
Shipping satisfaction is declining every year. Online delivery satisfaction was rated eight or higher by 67% of respondents. The respondents dropped to 67% from 77% and 79%, respectively. To satisfy online customer expectations, owners of businesses should develop efficient shipping strategies.
Amazon is a shining example of exemplary fulfillment. By distributing inventory across the globe, it achieves an improved supply chain. Shipping costs and speed will influence eCommerce in the future. Free or discounted shipping can be a good incentive if you cannot offer advanced warehouses or fast delivery.
Read Also: Which Technology Is Best For Ecommerce Website Development?
14. Zero-Party Data
In a survey found that 86% of respondents cared about privacy and demanded transparency over how businesses used their data. A survey found that 47% of respondents had switched companies because they were unhappy with their data practices and policies.
Apple has responded to this concern with App Tracking transparency. This feature allows Internet users to opt out of tracking data for Facebook or affiliate marketing purposes. Google Chrome's support for third-party cookies will end in mid-2023. We recommend that to survive any future changes in data policies, you collect zero-party information - data collected from customers who have consented.
Many ways exist to collect data on zero-party parties. Quizzes, polls and registration are examples. Zero-party data helps businesses improve customer engagement by offering a more interactive experience. Avoid asking too many questions at once. You may overwhelm your customers, and they will stop sharing their valuable insights.
Also, it's important to keep up with the latest technical developments in web development. This is especially true when they affect your website's performance. For example, Google's recent algorithm update considers the page experience as one of web vitals.
15. Sustainable Online Shopping
Many consumers are increasingly concerned about sustainability, specifically, eCommerce's impact on the environment. The CO2 emissions of freight shipping could reach 25 million tons by the end of this decade. According to 52% of global consumers, this pandemic has made sustainability more important. A second survey shows that 80% of consumers consider sustainability when purchasing online products or brands.
Green commerce has become a popular trend in online shopping. How orders are delivered and packaged is a major area of concern. Shipping accounted annually for 3% of global greenhouse gas emissions. Customers are more likely to purchase products that have been packaged sustainably, with 65% of them doing so. 29% avoid using plastic packaging regularly. In addition, 64% of US and UK customers demand fashion brands to use less packaging.
The statistics above show that customers want to shop in a more environmentally friendly way than the majority of businesses offer. Smart businesses must adapt to the massive shift in consumer behavior to remain competitive in future eCommerce.
Thrive Market, an online membership grocery store, is a great example of a sustainable eCommerce business. The online grocery membership store Thrive Market offers customers ethically sourced products in carbon-neutral packaging. Its warehouses also produce zero waste. Eco-friendly packaging can be a great way to promote brand sustainability. Paper and cardboard can be recycled easily. Use biodegradable or plant-based plastics instead if you need to use plastic.
Conclusion
It is unnecessary to copy someone's strategy or implement new technology in eCommerce without adequate planning. It should instead be about staying updated with changing customer demands and expectations. You can provide your customers with a more enjoyable shopping experience while maintaining a successful business.
This article explores eCommerce trends that will help you prepare for the future. These are the key points:
- AI is a major factor in eCommerce growth. AI trends like personalized marketing, intelligent search and customer service, and automation are widely adopted in the day-to-day operations of many companies.
- For a boost in eCommerce sales, you can strategize around AR/VR marketing, rewards programs, subscription models, and social commerce.
- Brick-and-mortar shops, in conjunction with online shopping, can help create an omnichannel experience. PWAs and digital marketplaces can be used by business owners to enhance mobile shopping.
- Enhance the user's experience by providing multiple payment methods, offering fast and free shipping, collecting data from zero-party parties, and promoting more sustainable shopping online.
- Migrate to the headless platform and get ahead of your competition. This comes with many benefits, such as increased traffic and return on investment. Optimize landing pages, and run A/B testing to increase conversion rates.
Some trends are specific to certain business models. It's important to know the inner workings of your company to ensure that you make well-informed decisions.
