E-commerce Trends

Introduction
• As the world becomes more connected and digital, e-commerce
continues to grow at an unprecedented rate.
• In 2020 alone, global e-commerce sales topped $4.2 trillion, with
projections indicating that this number will only continue to rise.
• With the ever-changing landscape of e-commerce, it's vital to stay
ahead of the curve and understand the latest trends shaping the
industry.
Key trends to watch in 2023: According to
Forbes
• AI-Generated Noise: AI-produced articles and pictures are going
mainstream fast. As a result, AI-generated content marketing will
explode while its effectiveness decreases. To keep results going in the
right direction, figure out “that’s me” messaging that resonates with your
ideal customer on a spiritual level. Dial into that niche even more.
• Pricing Pressure: In the open eCommerce world customers can price
check. Thus, the pressure toward commoditization is even greater,
especially when selling on platforms like Amazon. And pricing changes
faster. This create methods to differentiate your products. When done
well you can achieve value pricing which outperforms marketing pricing.
Cont.
• 80/20 Customer Segmentation: To avoid commoditization, what are
your customer segments? What is unique about the top 20%? Figure
out how to keep and grow these customers as you align new
customer acquisition. You will find more joy and financial freedom
doing your best work for customers who love it.
• Social Commerce: Social media platforms such as Facebook,
Instagram, and Pinterest are quickly becoming major players in e-
commerce. The integration of shopping features within these
platforms, such as Instagram's Checkout and Facebook's Marketplace,
allows users to purchase products without ever leaving the platform.
This seamless integration is expected to drive social commerce
growth in 2023 and beyond.
Cont.
• Personalization: Consumers are increasingly looking for personalized
shopping experiences, and e-commerce retailers are responding by
using data analytics and AI to provide customized product
recommendations, targeted advertising, and personalized email
marketing.
• This trend is expected to continue to grow in 2023, with retailers
using a combination of customer data and predictive analytics to
create tailored shopping experiences.
Cont.
• Augmented Reality (AR) and Virtual Reality (VR): AR and VR
technology are transforming the way consumers shop online. By
allowing customers to virtually try on clothing or visualize furniture in
their homes, retailers can provide a more immersive and interactive
shopping experience.
• This trend is expected to grow in 2023 as more retailers adopt AR and
VR technology to enhance their online shopping experiences.
Cont.
• Subscription Services: Subscription-based e-commerce services have
been on the rise for several years, and this trend is expected to
continue in 2023. Consumers are increasingly turning to subscription
services for convenience, value, and personalized product
recommendations.
• Retailers are responding by offering everything from personalized
clothing subscriptions to meal kit deliveries and beauty product
subscriptions.
Cont.
• Sustainable and Ethical Shopping: Consumers are becoming more
conscious of the impact their purchasing decisions have on the
environment and society. As a result, sustainable and ethical shopping
practices are becoming increasingly important for e-commerce
retailers.
• In 2023, we can expect to see more retailers focusing on sustainable
and ethical sourcing, packaging, manufacturing, and initiatives to
reduce their carbon footprint.
Cont.
• More ways to pay. Customers have individual needs when it comes to payment
methods, but they might cancel a potential sale if they can't pay how they want
on an ecommerce website.
• Offering a wide variety of ways to pay is a good way to increase conversion
rates on mobile devices. Plus, if customers can save their payment information
on your site, they'll be able to checkout even faster the next time they make a
purchase.
• Think about how easy it would be to buy a product on any website if, at
checkout, you could simply give them an ID unique to you.
• This unique ID would be for a centralized wallet service that would securely store all your
payment info, shipping and billing addresses, preferences, etc. Companies like Apple and
PayPal have taken shots at this in the past, but I think it could become more normalized.”
Cont.
• Large language models Chatbots improve shopping experiences.
• Chatbots interact with online shoppers much like an in-store sales
associate would do. Today's shopper wants to be able to find and buy
a product in just a few clicks, and if they can't, they get frustrated.
This is where a chatbot can step in and save the sale.
• With the emergence of large language models such as GPT and Bard
A.I E-commerce sites will integrate them into their system to enable
text-based communication with customers.