Online buying/selling has become the leading sales model for businesses as consumers flock to their favorite websites and prefer to buy online instead of in-store. According to reports, the e-commerce market will be worth $4.11 trillion in 2023 and grow to $6.35 trillion by 2027.
Retail, wholesale, and other types of business have dramatically changed in recent years. Traditional brick-and-mortar stores are not as profitable as they used to be. And businesses must have a digital presence and follow the latest ecommerce trends to thrive.
Why Do Businesses Need To Get Onboard With Ecommerce Trends?
E-commerce trends are changes in customer behavior and buying patterns. They play a significant role in online store sales, growth, and development. These trends can be fashion, style, or entertainment specific to an area or culture.
Studies show that only 4.2 million e-commerce companies exist in Canada and the US. The dynamics of online business and competition are rapidly changing. To stay ahead of your competitors, you must monitor the trends.
Your business can risk falling behind when ignoring these trends, even if you have a mature ecommerce store. You need to look for the latest 2023 trends and benefit from them
5 Trends That Can Affect Your Business In 2023
Are you worried about the latest 2023 trends that can affect your business?
Here are the five most important trends to look out for in 2023
Augmented Reality In Ecommerce
Augmented reality has completely changed how e-commerce and the digital world are working. The AR market will reach $252.16 billion by 2028. This technology sounds like something from the future. But in reality, businesses are already using it.
According to a 2020 survey, more than 83 million people were already using augmented reality.
Ever since AR came into existence, it has had a profound impact on the digital world. Its integration allows customers to virtually test and try products with a virtual reality headset or their smartphones. Customers can have a brick-and-mortar store experience with AR. They can interact with products as they are in their home.
The enormous market size and accelerated growth in the AR industry make it an important trend for e-commerce stores. You can keep an eye on the following AR trends that will affect the online shopping
Augmented Reality For Social Media/ Camera Filter Applications
Because of the pandemic, people have become more dependent on online applications and services. As a result, brands and businesses experimented with new things and used augmented reality.
According to Deloitte, 56% of respondents say AR has made online shopping fun and rewarding during Covid-19. Snapchat and Instagram were the first social media platforms that introduced AR filters and lenses.
Virtual try-on is a technology used by e-commerce stores that allow customers to virtually try on clothing or accessories using their webcam or a pre-uploaded image.
This technology uses computer vision and machine learning algorithms to superimpose the product image onto the user’s screen and image, giving them a realistic idea of how the product would look on them.
This can help customers make more informed purchasing decisions and reduce the number of returns due to fit or style issues.
Virtual try-on demonstrates products for brands. It is an essential feature of augmented reality. According to research, Gen Z was most interested in augmented reality shopping.
A virtual showroom is similar to a try-on. It also uses AR technology and allows consumers to place items virtually in their living rooms, garage, or other places. There is not much difference between virtual tryouts and showrooms.
Voice Search For Ecommerce
Voice search optimization has gained significant importance in recent years. It is Similar to SEO, in which you rank your website on different keywords. Voice search technology uses AI recognition, linguistics, and computing to execute commands.
If you enable voice search in your e-commerce store, customers can reach your products without manual input, and they will only use their voice.
According to a Microsoft report, 72% of their survey respondents have already used voice search digital assistants like Siri, Alexa, and Google Assistant. The trend will likely increase, but how will it affect e-commerce stores?
Voice searches allow easier and faster searches for users. Many people may prefer to ask for voice search assistants instead of typing. You can miss customers if you do not make e-commerce stores compatible with voice search.
Providing convenience is one of the core principles of digitalization. You must include voice search in your digital store for convenience. You can gain a competitive edge in your niche by integrating voice search technology.
In addition, nearly 60% of internet traffic comes from mobile phones, and the number is increasing. You can integrate voice search technology with mobile devices, and your website will rank in the top spots when people ask for your product.
Have A Voice Search Optimization Strategy
Your voice search optimization strategy should have the same purpose as your standard SEO strategy, which is to increase ranking and maximize traffic.
According to Gartner, 30% of web traffic was from voice traffic in 2020. However, these numbers are likely to increase in the younger demography.
Moreover, a report from Global Market Insights shows that the smart speaker market will grow to $30bn by 2024. The sheer number of sales shows us that integrating voice search in e-commerce stores will become necessary as most of your audience will use smart speakers.
Rise Of TikTok Marketing
TikTok has become one of the leading social media platforms in less time. Since its launch in September 2016, it has gained over 1 billion users.
Reports from TikTok show that 81% of small businesses believe TikTok is fun and has helped their business.
For a long time, platforms like Facebook and Google have been the prime focus for e-commerce businesses to advertise. But now times have changed, you must add TikTok marketing to your bucket list.
TikTok also allows brands and businesses to create their storefront (depending on their location) where visitors can browse and purchase products within the application. Moreover, you can also integrate your e-commerce site by using their Shopify integration feature, Square space, and other platforms.
Stats show that 35% of TikTok users buy products they see from the platform. Sellers can add product links to their bio and videos so users can click on those links and directly buy from in-app browsers.
Why Your Ecommerce Business Should Be On TikTok
There are many reasons why your business should be on TikTok. It can open an entirely new channel for additional sales. TikTok studies show that viewers view the platform as authentic and genuine. Brands can leverage this user behavior and boost their ecommerce sales.
It can also benefit your SEO strategy. Young people use TikTok and other social media platforms to search for businesses and products. It can drive traffic to your site and improve its SEO ranking if you use the right keywords and paid advertising methods.
According to sources, TikTok has surpassed Instagram for users aged between 12 and 17. Moreover, 63% of Gen Z youth use TikTok. If you are looking for a younger audience, then TikTok marketing is a must.
Artificial Intelligence For Ecommerce
Like every other industry, AI redefines how we understand and predict consumer behavior and buying patterns. It also enables store owners to maximize their conversions and engagements by understanding their audience better.
Reports show that around 37% of companies are using AI, and many more plan to use it in the future. Moreover, 90% of leading companies are investing capital in it. If your competitors are using AI, they have a better chance of understanding the market gap and customer needs.
How Will AI Trend Shape The E-commerce Industry?
AI will assist store owners in creating an effective pricing strategy. It can help you to plan pricing in several ways. One way is through dynamic pricing, where you set prices according to real-time factors like supply, demand, competitor prices, and customer demographics.
Moreover, AI can also analyze customer behavior and preferences. It can construct pricing strategies using the obtained data, such as offering personalized discounts to specific customers. You can also use AI to optimize pricing strategies by using optimal pricing points and identifying opportunities for cross-selling and up-selling.
Another helpful feature of AI is intelligent product recommendations. E-commerce store owners can find it very helpful as their website will recommend unique products to customers who match their buying patterns and behavior.
As discussed above, people can search for products using conversation and with help from images, just like interacting with a real person. AI can play a crucial role in interacting with visitors.
It uses big data features and understands customer choices by tracking and understanding customers’ previous purchases and online browsing habits.
Based on the above data, AI will recommend products in multiple ways. It can show products to customers using their behavioral data or suggest personalized content based on their buying history.
AI Offers a Personalized Customer Experience
AI can offer a customized user experience on e-commerce sites by using the following methods
- AI can examine a customer’s browsing and purchasing history to make recommendations for things they are likely to find interesting
- AI can assess a customer’s search query and create custom results to their preferences and interests
- Personalized email campaigns: AI can examine a customer’s preferences and behavior to send tailored targeted emails with offers and information to them
- Personalized chatbot interactions: By comprehending users’ intentions and responding appropriately, AI-powered chatbots can offer clients personalized support
AI is one of the most important trends for your e-commerce business.
Sustainable development goals are one of the top priorities of countries and organizations. The United States government has also provided national statistics for the UN sustainable development goals. Businesses are following these sustainable development goals and making a difference in society.
Some e-commerce store owners may not think sustainable development may not be necessary for online stores, but this approach can cause significant damage to their brand image.
Sustainability In Online Shipping
Online retailers can apply the following measures to achieve sustainable development in shipping
- Use environment-friendly packaging materials instead of using single-use plastic packaging. Online retailers can use biodegradable, recycled, or reusable packaging materials
- Online retailers can reduce the carbon emissions produced by their shipping operations by investing in renewable energy projects or carbon offsetting schemes
- Online retailers can lessen the number of shipments and corresponding emissions by using more effective shipping strategies, such as consolidated shipping
- Online retailers can work with delivery services with a good environment-friendly and sustainable development record. The ideal solution is to partner with environmentally friendly carriers
- Lastly, promote eco-friendly delivery methods to customers. Online retailers can allow customers to select environmentally friendly products.
Inspire Young People And Millennials With Sustainable Development
The Sustainable Development Goals (SDGs) provide a framework for solving global concerns like poverty, inequality, and environmental degradation, which motivates millennials and young people. The SDGs provide a comprehensive strategy for development by highlighting how interrelated economic, social, and ecological aspects are.
This appeals to young people, especially millennials, who are frequently more socially and environmentally aware than earlier generations. The SDGs also give millennials and other young people a sense of direction and a call to action to determine our planet’s course. They are motivated by this to act and change the world for the better.
Ready To Monitor These Trends And Boost Your Ecommerce Sales?
E-commerce companies must follow the above trends to remain competitive and relevant in the constantly changing digital marketplace. They can use the data from these trends to find new possibilities, adjust to market fluctuations, and update their product offerings to serve their customers better.
Furthermore, keeping an eye on e-commerce trends can help online shops foresee future market changes, enabling them to adjust proactively and position themselves for success. Keeping an eye on e-commerce trends is essential for operating and expanding an online store in the current digital era.