Top E-Commerce Trends in Q1’23

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  • E-commerce has grown to become a giant pillar in the global economy.
  • The current global e-commerce industry is measured as $5.7 trillion in 2022. The global ecommerce growth rate for 2023 is forecast at 10.4%, bringing global ecommerce sales worldwide to $6.3 trillion. This marks a 0.7 percentage point increase from 2022’s growth rate, which followed a massive dip from 2021.
  • For instance, ecommerce sales growth worldwide is expected at 9.6% in 2024 and 8.9% in 2025. In 2026, online retail growth is forecast at 8.2%.
  • Despite the falling growth rates, the ecommerce share of retail sales is expected to increase. In 2023, this figure is forecast at 20.8% and will increase to 24% by 2026. 

Best E-Commerce Platforms (January 2023):

Top e-commerce platforms make it both easy and affordable to build a successful online store. Of course, with so many good options on the market, choosing the right system for your needs can be a challenge. To help, we put together this list of the 10 best e-commerce platforms available in 2023.

Here are some things to look out for in the e-commerce industry in 2023:

  1. Increased focus on customer experience
  2. The continued growth of mobile commerce
  3. The rise of voice search
  4. The increasing use of artificial intelligence (AI) and AI-based upsell
  5. Greater emphasis on sustainability
  6. Social and Livestream shopping
  7. AR window shopping
  8. Personalization that respects the privacy
  9. Omnichannel shopping
  10. More ways to pay

Increased focus on customer experience

Consumers are becoming increasingly accustomed to high levels of convenience and personalization when shopping online. 

Here are a few suggestions:

  1. Make it easy for customers to find what they are looking for: This can involve things like having a clear and intuitive website design, providing detailed product descriptions, and making it easy for customers to navigate through the site.
  2. Offer excellent customer service: This can include things like responding quickly to customer inquiries and complaints, providing helpful and knowledgeable support, and being willing to go the extra mile to solve customer problems.
  3. Personalize the shopping experience: This can involve things like providing personalized product recommendations, offering personalized communication and marketing efforts, and allowing customers to customize their orders.
  4. Make the checkout process seamless: This can involve things like offering multiple payment options, providing clear and detailed checkout instructions, and offering fast and reliable shipping options.
  5. Seek customer feedback and act on it: Asking for and listening to customer feedback can help businesses understand what they are doing well and where they can improve. By acting on this feedback, businesses can continually improve the customer experience.

The continued growth of mobile commerce

Mobile commerce (or m-commerce) is growing rapidly, with more and more people using their smartphones to shop online. In fact, according to Statista, global e-commerce sales are expected to reach $4.8 trillion by 2023. Shopping on a mobile device is often more convenient for customers, as it allows them to shop from anywhere, at any time. This means that businesses that offer a good mobile shopping experience are likely to be more successful in attracting and retaining customers. 

Businesses can take the following steps:

  1. Optimize their website for mobile: This can involve things like making sure that the website is responsive, which means that it adjusts to fit the screen size of the device being used, and ensuring that the website loads quickly on mobile devices.
  2. Offer a mobile app: A mobile app can provide a more seamless shopping experience for customers, as it allows them to shop and access their account information directly from their device.
  3. Make it easy for customers to make purchases on mobile: This can involve things like offering multiple payment options, including mobile payments and making the checkout process as simple and straightforward as possible.
  4. Utilize mobile marketing: Businesses can use mobile marketing techniques, such as SMS marketing and push notifications, to reach and engage with customers on their mobile devices.

The rise of voice search

Voice search is becoming increasingly popular, with many people using voice assistants like Amazon’s Alexa, Google Home, Siri, Google Assistant, and many more to search for products and information. In fact, according to a survey by PwC52% of consumers say they use voice search at least once a week. The increasing popularity of smart home devices, such as smart speakers and smart thermostats, means that more people are using voice assistants to control their homes and access information.

Businesses can take the following steps:

  1. Optimize for long-tail keywords and natural language: When optimizing content for voice search, it is important to use long-tail keywords and phrases that are commonly used in natural language. This can help improve the chances of being found by voice search.
  2. Use structured data: Structured data, such as schema markup, can help improve the chances of being found by voice search by providing additional context about a business or website.
  3. Use a clear and concise writing style: When optimizing content for voice search, it is important to use clear and concise language that is easy for voice assistants to understand.
  4. Optimize for featured snippets: Featured snippets are short summaries of information that are often displayed at the top of search results and can be read out by voice assistants. Optimizing for featured snippets can increase the chances of being found by voice search.
  5. Use local SEO: Voice search is often used to find local businesses, so it is important to optimize for local SEO in order to be found by voice search.

The increasing use of artificial intelligence (AI) and AI-based upsell

According to a survey by Econsultancy, 72% of businesses that use AI in their operations report an increase in customer satisfaction.

Amazon is the king of AI. 35% of Amazon’s revenue comes from upselling or cross-selling.

Businesses can take the following steps:

  1. Implement chatbots: Chatbots can provide efficient and personalized customer service, helping to resolve customer inquiries and issues quickly. This can improve the customer experience and reduce the workload of customer-facing employees.
  2. Use automated email campaigns: AI-powered automated email campaigns can help businesses nurture leads and build customer relationships by sending personalized and targeted emails.
  3. Implement AI-based upsell techniques: AI-based upsell techniques, such as suggesting related or complementary products to customers during the checkout process, can help businesses increase their revenue.
  4. Use AI to analyze customer data: By using AI to analyze customer data, businesses can identify patterns and trends that can help them better understand their customers and improve their operations.

Greater emphasis on sustainability

According to a survey by Accenture66% of consumers say they are willing to pay more for products that are sustainable or environmentally friendly.

There are a few steps that businesses can take to adapt to the greater emphasis on sustainability in the e-commerce industry:

  1. Offer sustainable products: This can involve sourcing products that are made from sustainable materials, such as recycled or organic materials, or that are produced using environmentally-friendly methods.
  2. Implement sustainable practices: This can involve things like reducing waste, using eco-friendly packaging, and using sustainable transportation methods.
  3. Communicate sustainability efforts: It is important for businesses to communicate their sustainability efforts to customers. This can involve things like providing information about the sustainability of products on the website and sharing sustainability-related updates on social media and taking recommendations from customers directly.
  4. Consider the entire product lifecycle: When thinking about sustainability, it is important to consider the entire product lifecycle, from sourcing and production to disposal. Businesses can look for ways to minimize the environmental impact of their products at every stage.

Social and Livestream shopping

A study by LiveStream found that 80% of people would rather watch a live video from a brand than read a blog, and 82% of people prefer live video from a brand to social media posts. This shows the power of live streaming as a way to engage with customers and build a connection with a brand.

Live streaming technologies, such as YouTube Live, Instagram Live, Facebook Live, and many more allow businesses to engage with customers in real-time and provide a more interactive shopping experience. 

Businesses can take the following steps:

  1. Establish a presence on social media: This can involve creating profiles on popular social media platforms, such as Facebook and Instagram, and regularly posting updates and engaging with followers.
  2. Use social media to promote products: Businesses can use social media to promote products and make it easier for customers to discover and purchase products. This can involve things like using sponsored posts or creating shoppable posts that allow customers to purchase products directly from the platform.
  3. Utilize live streaming technologies: Businesses can use live streaming technologies to engage with customers in real-time and provide a more interactive shopping experience. This can involve things like hosting live Q&A sessions or showcasing products during a live stream.

AR window shopping

There are a few reasons why Augmented Reality (AR) window shopping will be important in the e-commerce industry. First and foremost, it can greatly improve the customer experience by allowing them to virtually try on products and see how they would look in their own space. 

In addition to improving the customer experience, AR window shopping also offers increased convenience. Customers can shop from the comfort of their own homes.

Another benefit of AR window shopping is that it can enhance the visual appeal of products by allowing customers to see them in a more realistic and interactive way. 

Businesses can take the following steps:

  1. Invest in AR technology: In order to offer AR window shopping, businesses will need to invest in AR technology. This can involve things like creating AR experiences using AR development tools or integrating AR technology into their e-commerce platform.
  2. Offer AR try-on features: By offering AR try-on features, businesses can allow customers to virtually try on products and see how they would look in their own space. This can be especially useful for products like clothing, shoes, and accessories.
  3. Use AR to enhance product visuals: Businesses can use AR to create more interactive and visually appealing product listings and displays, which can help attract and engage customers.
  4. Promote AR features: It is important for businesses to promote their AR features to customers in order to raise awareness and drive adoption. This can involve things like promoting AR experiences on social media or including information about AR features in marketing materials.

Personalization that respects the privacy

Personalization that respects privacy is important in the e-commerce industry for a few reasons. Firstly, more and more consumers are becoming concerned about their privacy and the potential for their data to be mishandled or misused.

In addition to consumer concerns, there are also legal requirements to consider. Governments around the world are implementing privacy regulations that require businesses to be transparent about how they collect and use customer data. Businesses that fail to comply with these regulations could face fines and other penalties.

By respecting customers’ privacy, businesses can protect their reputations and avoid negative publicity that could result from a privacy breach or mishandling of customer data. 

Businesses can take the following steps:

  1. Implement a privacy policy: It is important for businesses to have a clear and comprehensive privacy policy that explains how they collect, use, and protect customer data.
  2. Obtain consent: In order to collect and use customer data for personalization, businesses should obtain consent from customers. This can involve things like providing a clear opt-in form or obtaining explicit consent when collecting sensitive data.
  3. Use privacy-preserving technologies: There are a number of privacy-preserving technologies that can help businesses collect and use customer data in a way that respects privacy. Additionally, using first-party cookies, such as those provided by Enhencer, can help businesses collect customer data in a privacy-preserving way as these cookies do not share user data with third parties.
  4. Be transparent: It is important for businesses to be transparent about their data collection and use practices. This can involve things like providing clear and easy-to-understand information about how customer data is collected and used, and responding promptly to customer inquiries about privacy.

Omnichannel shopping

Omnichannel shopping is going to be important in the e-commerce industry for a few reasons. Firstly, it can greatly improve the customer experience by allowing them to seamlessly shop across different channels, such as online, in-store, and through social media.

In addition to improving the customer experience, omnichannel shopping also offers increased convenience. Customers can shop in the way that is most convenient for them, whether that be online, in-store, or through a mobile app. 

Another benefit of omnichannel shopping is that it increases the visibility of products, making it more likely that customers will discover and purchase them.

Finally, omnichannel shopping provides enhanced customer insights. By tracking customer behavior across multiple channels, businesses can gain a more complete understanding of their customers and use this information to improve the shopping experience and increase sales.

Businesses can take the following steps:

  1. Offer multiple channels for customers to shop: Businesses can offer multiple channels for customers to shop, such as online, in-store, and through social media.
  2. Make it easy for customers to switch between channels: Businesses can make it easy for customers to switch between channels by offering a consistent brand experience and providing a seamless transition between channels. This can involve things like offering the same products and prices across all channels and allowing customers to start their shopping journey on one channel and complete it on another.
  3. Use customer data to improve the omnichannel experience: By tracking customer behavior across multiple channels, businesses can gain a more complete understanding of their customers and use this information to improve the omnichannel experience. This can involve things like offering personalized recommendations or providing personalized content based on a customer’s interests.

More ways to pay

Firstly, it can greatly improve the customer experience by making it easier for them to complete their purchases.

In addition to improving the customer experience, offering more ways to pay also increases the convenience of shopping. Customers can choose the payment method that is most convenient for them, whether that be a credit card, debit card, or mobile payment.

Another benefit of offering more ways to pay is that it makes products more accessible to a wider range of customers, including those who may not have access to traditional payment methods.

Finally, offering more ways to pay enhances the security of the payment system and reduces the risk of fraud.

Businesses can take the following steps:

  1. Use payment gateways: Payment gateways can help businesses securely process and accept payments from customers. By using payment gateways, businesses can offer more ways to pay without having to handle sensitive payment information themselves.

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