With an Indian market size of over $55 billion and a user base of over 348 million, e-commerce has been on a rising trajectory ever since its inception in the 1990s. But this is just about India, if we look at a wider horizon, we can see that e-commerce has a global market size of over $14.3 trillion.
The retail industry had its own pros and cons, but with the rise of e-commerce, things have changed. If retail was a wheeled cart, e-commerce has added an engine to it, giving it the boost it needed to grow.
Where retail was just about meeting consumer demands, e-commerce has revolutionised things to make online shopping easier and follow trends to meet the consumers’ demands.
E-commerce itself has come a long way and has improved in several aspects. But this cycle of improvements and evolutions is only going to increase in the coming years. And 2023 will be no different in that regard. So, quit sleeping on the potential the e-commerce industry holds and take advantage of the e-commerce trends our experts have filtered out for 2023.
1. More Consumers Adopting Online Shopping
Sales of online goods have been steadily increasing, and for good reasons. One of the most common online hobbies is shopping. According to eMarketer, global e-commerce sales will reach $6.3 trillion in 2023, up 12.2% from the previous year. Not only that. By 2026, online sales are predicted to expand further and reach $8.1 trillion, or around 55.8% more than the total e-commerce sales in 2021.
You might feel nervous with all the competition this industry holds along with its potential. But keep the growth of the market in mind while worrying about the competition. Yes, there will be more competition, but there will be a market for everyone as consumers start adopting online shopping more.
Despite being one of the most common internet activities, shopping online is used differently depending on the locality. A growing number of people are using online purchasing due to the popularity of e-commerce sites. E-commerce has contributed a lot to the shoppers’ experience. Undoubtedly, the level of comfort offered to online shoppers is one of the most significant ones.
Along with an improved website experience, there is a rise in the amount of trust that online shoppers have while making purchases. Online purchases are now more common than they ever were, which is a change from earlier times. Additionally, websites have grown much more user-friendly. With all the comfort offered, it's hardly surprising that online sales growth is accelerating unabatedly.
2. Social Media: The Key To Growth In E-Commerce
Social media has influenced many aspects of our everyday life, that includes how we shop. This is an excellent opportunity for businesses to consider how to power up their social media presence, which is a terrific way for them to be recognized.
Additionally, the number of social shoppers is growing faster than ever. Social media is now heavily influencing the e-commerce industry with the addition of the Buy button on Facebook and Instagram Checkout.
It is a fact that users are spending more time on social media- and e-commerce companies can benefit from the assistance of Instagram influencers to maximise their chances of being found by their target market.
Furthermore, companies can simply connect their online storefronts to social media platforms like Facebook and Twitter using systems like Shopify, enabling customers to make purchases from them directly on social media. For instance, Instagram and Facebook frequently update their features and functions to accommodate online shoppers' comfort requirements.
And when we are talking about social media, who could forget TikTok, the newest social media craze that has not only conquered the hearts of teenagers but also the world of Hollywood? It might not be useful in India for marketing your store.
But for those who play internationally, it will be a very helpful tool in their arsenal. One of the most recent attempts by the video-sharing app to add e-commerce components is Shoppable Ads.
With completely automated creatives and sharper, more sophisticated targeting, these ads will assist marketers in connecting with TikTok viewers that are most likely to convert. Additionally, TikTok provides additional commerce tools that enable store owners to conduct direct sales on the app.
While users navigate through their feeds on these social media platforms, brands have the chance to be discovered and to serve as inspiration conduits. Social media's ability to impact e-commerce trends will only grow as it continues to permeate every aspect of our everyday lives. To address this, marketers must focus their attention on social media strategies and on the purchasing experience.
3. UGC Will Increase
User-generated content (UGC), in particular, will continue to grow, supporting the aforementioned statement regarding the significance of content. Your brand is recognized by how your consumers recommend it.
There can be no better marketing than if a consumer gives good reviews about your product. And that is the role of UGC. You can hire influencers, run ads, and work on your SEO, but if people are not talking about you- there’s no point. UGC plays an important role in bringing your brand to light.
4. Data Security
Although rules governing data privacy, such as the GDPR, are hardly new, consumer awareness of privacy issues is at an all-time high. Businesses that are considering the future of e-commerce need to keep in mind that it won't just be about flashy new features in the future. Customers want to be in charge of their data, thus e-commerce needs to change.
Businesses are faced with an intriguing conundrum as a result. Consumer information obtained through cookies and forms can be used to personalise each customer's experience and inform key retail features. However, if you request too much information, you run the danger of losing clients before the sale. Two strategies provide some balance.
- Machine learning and artificial intelligence learning: Developments in AI and ML enable companies to maintain a distinctively tailored purchasing experience without requesting personal information. For instance, Shopify's new Audiences tool uses ML to analyse non-personal customer data to determine your perfect target demographic.
- Consumer Control: By granting your customers access to their data, you may demonstrate to your clients that your company respects their privacy. Many websites are succeeding in doing this by allowing users to select the kind of information they want to share with the retailer. The 'need-to-know' principle is an excellent place to start in this situation; if you don't need to provide personal data prior to checkout, don't request it.
The future of e-commerce belongs to those who can do both; having an accessible website is equivalent to having a well-designed one. 94% of e-commerce websites don't comply with the Web Content Accessibility Guidelines' standard AA standards. Your company might reach a larger audience and have a faster rate of growth by resolving these accessibility issues first.
Before your product, your customers judge you on the basis of your store- the easier it is to access, the more the chances of sale being made. A website that is simple to use will be easier to shop on. Long forms, keyboard navigation, and reading low-contrast text details are common problems for people with disabilities.
2023 will begin with an e-commerce trend that goes above and beyond for each user. With so many plugins available, it's simpler than ever to add features like autocomplete forms, high-contrast text, and reading mode—and the advantages are well worth it. You should also take into account providing translation to your website if your company deals with clients from other countries.
6. Personalization Is The key To Retention
As already established, personalization and sustainability will grow in significance for consumers in the future. E-commerce brands will be able to handle both of these trends by using customised packaging.
Online retailers, for instance, can draw attention to the eco-friendly nature of their packaging. Or how about pleasantly surprising them with a unique touch like a quick note of gratitude written by hand for their purchase?
More than 70% of Americans, according to Ipsos, acknowledge that packaging influences their purchasing decisions. So always keep in mind that it's not just a box. After all, occasionally, the item's packaging gains more popularity than the actual toy.
7. Buyers Are Influenced By Environmental Topics.
Because of the hype about green consumerism, brands must act. Three out of ten customers claim that environmental considerations influence their choice to make a purchase from a company.
You should make an effort to develop more sustainable practices as an online retailer. Consumers now are more environmentally sensitive than ever, and for the right reasons.
Online companies must take action and guarantee that their operations are ecologically sustainable. This includes actions taken to foster a more environmentally friendly e-commerce environment, such as sourcing goods from fair-trade organisations.
The new and upcoming generation is leading the road toward greener consumer habits. There is a rising need for brands to start protecting our environment, whether it is through the use of free-range chicken or vegan skin care products.
8. The Growth Of Visual Commerce
Selling your goods to customers who won't be able to touch them with their own two hands is one of the numerous challenges of operating an online company. Visual commerce can be used in this situation.
Visual commerce is without a doubt the evolution of static images. It elevates marketing to a whole new level by using other imagery than just product photos, such as user-generated content, interactive content, compelling films, and, as was already noted, augmented reality. Currently, before making a purchase, about 75% of internet users in the US often look for visual content. Only a few (3%) people do not.
9. Video Will Continue to Be Powerful
You can draw in and hold the interest of your target audience by adding videos to your website and social media channels. You can utilise this media for a variety of reasons because it is so adaptable. Video can be used effectively by almost any e-commerce site, from providing solutions to frequent consumer issues to simply using it to present your products better.
If you're feeling more daring than just making videos, you may also think about making shoppable videos. Customers only need to click on one of the embedded clickable links in a shoppable video to be taken to the page where they can learn more about a particular product or make an online purchase.
In case you need further evidence, consider these compelling stats regarding the influence of video:
- One billion videos are seen every day by the Pinner community on Pinterest, according to a blog post on the social media platform.
- More than 45% of TikTok users who are interested in fashion and lifestyle spend one to three hours a day on the platform, according to a survey conducted in the United Kingdom in 2023.
- Each user spends 23.7 hours on the YouTube mobile app on average each month.
10. More options for payment.
Without a wide range of payment alternatives, you run the risk of losing a sale. Conversion rates, particularly on mobile devices, can be increased by offering a range of payment methods.
It will make sense for e-commerce sites to review their payment choices as mobile purchasing is predicted to grow considerably more in the upcoming years. Additionally, having extra payment options will enable you to take advantage of multiple new trends, which will help you capitalise on the importance of providing a personalised customer experience.
Online buyers desire faster transactions without compromising security, whether it be through biometrics, bitcoin, or digital/mobile wallets. In reality, according to Statista online data, mobile and digital wallets were used in more or less 50% of global e-commerce payment transactions in 2021.
Furthermore, it is predicted that by 2025, it would make up more than 53% of the total. Only 21% of transactions are made with credit cards, so that puts things into perspective.
Even though creating an online store is relatively simple (especially given the wide range of e-commerce systems available), expanding your business from that point requires more work.
If you want your internet business to succeed and take a piece of the $8 trillion market, you must plan wisely and adapt your tactics over time to account for shifts in consumer behaviour.
There is no guarantee that what worked yesterday, or even today, will have the same results tomorrow. The expansion of technology has given e-commerce enterprises access to new tools.
Consumers are aware of this. They have thus come to anticipate more options and customised experiences. Why not, after all, if you have the tools to make your target market's online purchasing experience better? Even though it can be challenging to stay current with e-commerce trends, doing so will help your company stand out in a crowded market.