Since the onset of COVID-19, there has been an increased reliance on eCommerce. It is predicted that online sales are going to reach $6.51 trillion in 2023. With eCommerce gaining traction and changing year after year, let’s dig into what trends are waiting for us in 2023.
Artificial Intelligence (AI) includes software algorithms that can mimic human intelligence which in turn saves businesses from managing low-ROI repetitive tasks, and improves efficiency for many businesses. eCommerce giants like Amazon, have been actively using artificial intelligence to provide product recommendations for customers, among other automated tasks to support their customers and business at scale.
Similarly, other shopping platforms online are integrating AI chatbot features on their mobile applications so customers can receive the support they need while they shop. Chatbots provide quick solutions to queries and grievances. As a matter of fact, 57% of customers are interested in chatbots because of their instantaneous nature, and the ability to receive 24/7 support. With such widespread popularity, we are definitely going to see AI venture into other aspects of eCommerce as well.
Remember the time when videos of delivering goods using drones became viral? Who would have thought that this future of delivery would come so soon? Drone deliveries are not only convenient for the audience but are a cheaper alternative for companies. Many companies have already started using drone deliveries, and these numbers are going to rise in the next few years.
Augmented and Virtual Reality:
Shopping online is very convenient, however, it can often lack the personal touch of a brick-and-mortar store. But thanks to Augmented Reality (AR) and Virtual Reality (VR), people can now view their favorite products in real-time and even check how the product would look on them! Websites like Sephora, Ikea, Target, and Nike use AR and VR on their websites. Augmented reality and virtual reality provide a more personalized shopping experience and can help curb the shopping errors that occur during virtual shopping.
Everyone loves a product that is made just for them! A study shows that 36% of shoppers want product customization. Hence multiple eCommerce websites like Zazzle and TheNorthFace are tapping into customizable products. The touch of personalization is a driving force for purchase consideration. In fact, 53% of online shoppers believe that platforms that a personalized shopping experience provides a valuable service. Hence we will see more and more brands joining the customized products bandwagon in 2023.
Every eCommerce application and website has a front-end and a back-end. Front-end focuses on the visuals of a website or application whereas back-end is the part that is server-based, something which the customers cannot see. Headless eCommerce gives an opportunity for the developers to build a separate front-end and back-end. The advantage of having a headless eCommerce is that it gives brands the freedom to build their platform the way they want while making the experience of their customers more enriching and fulfilling. A few of the top headless eCommerce include Shopify, MagentoCommerce, and The.com.
Rise in M-Commerce
M-commerce implies the shopping that is done through the medium of smartphones and tablets. People spend significant time surfing the web, social media, or shopping from mobile phones. On average adults spend 417 minutes online in 2022.
Slowly the line between eCommerce platforms and social media is getting blurred since many social networking platforms like Instagram and Facebook now offer shopping options for their users. Two-thirds of shoppers do shopping on social media. By 2024, M-Commerce is going to account for 44% of eCommerce. Businesses should consider advertising on social media (if they haven’t already) since that’s where their customers are.
Green Consumerism: Sustainability Will be Important
Consumers of the present generation are becoming more eco-conscious. They demand products that are sustainable and want the companies and brands to make their products in a way that does not harm the environment. A study shows that 75% of Millennials are eco-conscious, and they are even willing to pay more for sustainable products. With the rise in numbers of these eco-warriors, brands have to cater to this customer base by making changes in the way they produce, promote and deliver their products.
Usage of sustainable packaging is one of the ways in which brands can be eco-conscious. In fact, brands like Calvin Klein, Boxed Water, and ASOS have already started using sustainable packaging to cater to their customers. This eCommerce trend is one of the trends we all are looking forward to.
“Hey, Alexa!”, “Okay, Google!”, “Siri, what’s the time?” Time and again our homes have been echoed with these statements. Our devices have become the e-assistants that can bring us coffee minus the need to travel! Almost 62% of voice-enabled speaker owners have purchased items via voice commerce. So marketers should expect to hear more of “Hey Alexa, Google, and Siri! In the next few years.” Businesses need to prepare for voice shopping and optimize their ads for voice search queries such as: “Hey, Alexa find me stores that carry white v-necks sick small for women.”
How many times has it happened that you saw a product on a website, then again saw it on the brand’s social media page? Brands have a variety of channels like their website, Instagram, Facebook, Pinterest pages, and Youtube platforms that they can use for reaching their customers on a large scale. Omnichannel means, utilizing all the channels available, for reaching their customers in a variety of ways. They reach their customers where they are by delivering messages that are most relevant for each of those channels. For example, Instagram would be a great platform for sharing a product video, whereas Google search might be more relevant for users just searching for solutions related to their product/service. It is a great way to retain customers, acquire new customers, and increase the overall efficacy of audience targeting.
Buy Now Pay Later (BNPL) Will Boost
For all those people out there who browse eCommerce sites, load their shopping carts, check the total amount due and drop the idea of purchasing, brands have come up with an interesting option for all of you! The Buy Now Pay Later (BNPL) option is a great way for brands to reduce their abandoned cart rates and offers customers great flexibility in terms of payment. This option is particularly popular with millennials and Gen Z. The BNPL will see a rise, with its market size expected to reach approximately $70.9 billion in 2023.
Shoppable Video Advertisements
To make purchasing products a seamless experience for consumers, many marketers are diving into shoppable video advertisements. These advertisements allow the users to directly purchase content from the video ads shown. This interactive form of advertisement eliminates the need for a search, and within a few clicks, your viewers can purchase the product without leaving the video, therefore increasing click-through rates and ROI of your branded videos. Brands will use this eCommerce trend in the upcoming years and revolutionize the way people view and purchase content. Some of the platforms that provide shoppable video advertisements are Amazon Live, Bambuser, and Buywith.
Partner with Pyxl
With so many changes in the industry, there are countless eCommerce trends to consider. Contact Pyxl for help discovering which trends are best to implement for your eCommerce business and how.
Updated: Jan 17, 2023