E-commerce has been on the rise for years, and the trend is expected to continue in 2023. As more and more consumers turn to the internet to shop, businesses are adapting to meet the demands of the digital marketplace. Here are a few e-commerce trends to watch for in 2023.
1. Increased focus on mobile optimization
With more and more people using their smartphones to browse and shop online on a global basis, businesses will need to ensure that their websites and apps are optimized for mobile devices. This means that websites will need to be designed with a mobile-first approach, and apps will need to be designed with a user-friendly interface, even in developing markets where the focus has been higher on desktop historically.
In 2023, businesses will increasingly use data to personalize the shopping experience for customers. This can include things like personalized product recommendations, targeted persona marketing, and customized pricing. By using data to personalize the shopping experience, businesses can increase customer engagement and loyalty.
3. Social commerce
Social media platforms like Facebook, Instagram, and TikTok are becoming more and more popular as a way to shop – within the platforms. In 2023, businesses will look to capitalize on this trend by using social media platforms to sell their products directly to consumers. This can include things like “shoppable posts” on Instagram and TikTok, which allow users to buy products directly from the app.
4. Same-day delivery:
As e-commerce continues to grow, consumers will demand faster delivery times. In 2023, we can expect to see more businesses offering same-day delivery as a way to meet this demand. This will require businesses to invest in logistics and delivery infrastructure, such as warehouses and delivery networks in close proximity to the users.
5. Augmented reality:
Augmented reality (AR) technology is becoming more and more sophisticated, and businesses will look to use it to enhance the shopping experience in 2023. This can include things like virtual try-on for clothing and makeup, as well as virtual tours of real estate properties.
6. Voice commerce:
With the increasing popularity of voice assistants like Amazon Alexa and Google Home, voice commerce is expected to become more prevalent in 2023. This will allow consumers to make purchases using just their voice, making shopping more convenient and hands-free.
7. Subscription-based models:
Subscription-based models have been growing in popularity in recent years, and this trend is expected to continue in 2023. This can include things like subscription boxes, where customers receive a monthly box of curated products, as well as subscription-based streaming services.
8. Artificial Intelligence:
As AI technology gets more sophisticated, businesses will use it to improve the customer experience by personalizing product recommendations and automating customer service.
9. Larger branding investments:
Since performance marketing has become very complex and expensive compared to just a few years ago, there will now be a much larger focus on brand building, as companies need to be able to convert more expensive online traffic, more efficiently and effectively. Building and growing a D2C brand from scratch through pure ‘cheap’ performance marketing that allows you to get a large reach is no longer an options – and people have also become too fed up with simple D2C brands that doesn’t have a deeper brand narrative that goes beyond the standard price / quality narrative.
10. Customer retention:
Since it has becoming expensive to acquire new customers due to the increased marketing costs, and all the other targeting and tracking challenges, which have become more profound in the past years, it is now more important than ever that the customer lifetime value of your customers are to increase. Becoming profitable on the first order is quite complex nowadays, so it will become important for companies to figure out how they can increase the retention rate of their customers, thereby also increasing the customer lifetime value. This usually happens by facilitating repeat purchases of the same products, or by having a larger assortment, or more categories, that customers can purchase on a continuous basis.
Overall, the e-commerce industry is expected to continue to grow in 2023, and businesses will need to adapt to meet the demands of the digital marketplace. This will include things like mobile optimization, personalization, social commerce, same-day delivery, augmented reality, voice commerce, subscription-based models, AI integration, more branding focus and further investments in customer retention. As technology and consumer behavior continue to evolve, businesses will need to be agile and stay ahead of the curve in order to remain competitive.