Ecommerce industry will reach $6.3 trillion in sales in 2023. The industry continues to grow because it constantly innovates. Ecommerce businesses adopt new technologies and methods to serve their customers.
Each year new pieces of innovation begin trending in the eCommerce industry. Some of them improve operations, while others are directed towards sales and customer service. Below are the trends in eCommerce that are likely to dominate 2023 and beyond.
Artificial Intelligence (AI)
Artificial intelligence has already taken over several aspects of the eCommerce business. It is one of the most popular eCommerce trends for 2023 and has numerous applications. More than 51% of eCommerce businesses are using AI in one form or another.
This penetration will continue to rise in 2023. According to Gartner, AI will help improve several aspects of eCommerce by 25%. These include revenue, cost reduction, customer satisfaction, and more.
For fulfilment centres, AI can improve the inventory management process. Using demand forecasts, artificial intelligence can manage stock without human intervention. It can also update stock requirements automatically after sales.
AI can also help design purchase journeys based on customer data. eCommerce websites use AI to prompt product suggestions for website visitors. AI decides the suggestions based on a variety of online behaviour metrics. These include social media activity, searches, online shopping trends and so on.
By using AI, you can also cut down the cost of operations. It can help you automate menial and repetitive tasks. Human resources can focus on important decision making and the rest can be done by machines.
Robots are the physical manifestation of machine intelligence. They are helping eCommerce businesses around the world with several operations. They can work alongside people in a warehouse for inventory management. Here they can sort products for storage. They can also pick them up for order fulfilment.
Robotics can help you significantly cut down warehouse management costs. That is why robotics is gaining popularity among eCommerce trends. Until 2018, the world had only 4,000 robotic warehouses. By 2025, this number will rise to 50,000.
The next big area for robotics in eCommerce is delivery. The drone package delivery market stands at $228 million in 2022. It is expected to cross $5,500 million by 2030. But, as of now, it is a novelty factor for customers.
People are fascinated to see a drone deliver their parcels. That is why this technology is trending for online shopping. As 2023 approaches, drone delivery will become more commonplace. Alongside, you can also expect autonomous vehicles for shipping and delivery.
Personalisation makes customers feel special. They also feel that the seller took the time to understand their needs and preferences. This ultimately makes them more likely to shop with you.
Ecommerce businesses will use data analytics to better understand their customers. Based on this information they will create a personalised experience at various levels. Markets can personalise ad campaigns based on the purchase history of a customer.
For instance, you are selling T-shirts in 10 different colours. Then you advertise red T-shirts to those who show a reference for that colour.
Similarly, eCommerce websites can design different purchase journeys for different customers. The data will tell you whether a customer is more likely to shop for free shipping or discounts. Based on customer behaviour, an eCommerce website can adjust its offers automatically.
Finally, you can also create personalised customer service based on customer behaviours. This will also help you retain more customers and build brand loyalty.
Shopping Assistant Chatbots
The chatbot market has steadily grown over the years. It is set to cross $142 billion in valuation by 2024. Chatbots are great for customer support. But they can do much more. They can also serve as shopping assistants for eCommerce customers.
Several brands are already using chatbots to help their customers make the right purchase decisions. It is already a trending eCommerce strategy among fashion retailers. For instance, the chatbot of H&M can help customers find products.
This chatbot will ask questions about customer preferences. Then it will search the database and suggest relevant products to the customers.
The customers can also create a cart and make payments through this chatbot. Similarly, you can design shopping assistant chatbots for your eCommerce website. You can make these chatbots more efficient by using customer data to personalise the conversations.
Voice searches are fast, easy and convenient. Buyers are using voice searches for a variety of things, including product searches. About 44% of shoppers are very likely to use voice searches for shopping. It is one of the most versatile trends in online shopping.
Shoppers are using their voices in several different ways and eCommerce businesses need to listen.
This online shopping trend will affect content marketing and digital ads. As customers shift towards voice search, the language changes a little. Accordingly, eCommerce businesses have incorporated new keywords into their campaigns.
Similarly, they need to change the format of their ads according to voice searches.
Ecommerce businesses will also need to facilitate voice searches in their website’s architecture. Especially for search tools on their website. This facility will significantly change eCommerce in the future.
People use a variety of channels to purchase things online. Shoppers may look for better deals, cheaper alternatives, better products and so on. Ecommerce businesses need to present everywhere to ensure conversion.
In addition to your eCommerce website, you also need to list your products on social media and marketplaces. Many people like to purchase directly on social media. While several others would prefer to buy on amazon.
If you are not present at all of these places, you might miss out on a customer. In 2023, you need to adapt to customer behaviours and be present wherever they are.
Ecommerce businesses use augmented reality to improve the purchase experience for their customers. This technology allows people to visualise products. People are 66% more likely to engage with 3D images and AR compared to static images.
Augment reality is popular among shopping trends online as it allows customers to interact with products in a variety of ways. For example, IKEA mobile app shows how furniture will look in the real world. Shoppers don’t have to rely on just images or product descriptions. They can actually see how a chair or a desk will look in their room.
Through this engagement, the buyer gets more confident about the purchase. Similarly, fashion brands are using AR to let people virtually try out clothing items. They can see how a hat will look on them or how a dress matches their shoes.
Augmented reality has converted shopping into a game. This feature is not only great for engagement but also for conversion. Tsum, a luxury goods brand, increased its conversion by 40% after implementing AR.
Privacy & Security
Privacy and security are major concerns for consumers when shopping online. 70% of customers would abandon a purchase over privacy concerns. It is not just consumers, even governments are taking action to improve privacy and security.
Several governments around the world already have privacy and cybersecurity laws in place. According to Gartner, 70% of the world population will get legal consumer privacy rights by 2023. Online shoppers are most concerned about payment gateways. Online shoppers will only shop with eCommerce sites that have a trustworthy payment gateway.
You need to assure your customers that their information is secure. You have to tell them about the data you collect and how you would use it. People will be more comfortable shopping with you if they feel they can trust you with their information.
Video Content Marketing
As voice searches are gradually taking over text searches, video content is taking over blogs. 87% of marketers trust videos for content marketing and user engagement. People find videos more engaging and entertaining than blogs. This is why people watch them so often.
Popularity of videos made Youtube the second largest search engine after Google. Even Google searches now show video content as search results. This means videos are as important for SEO as blog content. Though they might not get you many backlinks, videos will bring you traffic and engagement.
Ecommerce businesses are using videos in a variety of ways. They explain their products through videos and provide tutorials on how to use them. Videos are also the most engaging form of influencer marketing content.
In 2023, you need to start making videos to promote your products and increase conversions.
Product subscriptions are not a new thing. It has been around since the early days of urbanisation. Think of the milk vendors. They would come every morning to deliver bottles of milk and take away empty ones.
Product subscriptions provide more value than other sales trends in eCommerce. The sellers get more revenue from the same customers and the buyers get consistent service.
The product subscription model is viable for a variety of eCommerce categories. People are using subscriptions for fashion, groceries, household, personal care, and more.
You can also adopt a subscription model for your eCommerce brand. All you need to do is figure out the purchase frequency for your products.
For instance, say you are selling toys online. Then you can create a subscription model based on the age of the child. Every few months, you can replace old toys with new ones.
This model will help you retain more customers. It also increases the lifetime value of each customer.
Fast delivery has been trending in eCommerce since the early days of the industry. As the industry grows, consumers have become more demanding. 28% of people abandoned a purchase because of slow shipping. Even with free shipping, people expect their products to arrive in three days or sooner.
About 51% of eCommerce retailers are already offering same-day delivery. More eCommerce businesses are likely to follow suit and offer faster shipping in 2023. Fast delivery helps eCommerce businesses reduce cart abandonment rates and increase conversion.
That is why several eCommerce businesses use PACK & SEND. We offer a variety of order fulfilment solutions for eCommerce companies including same-day delivery. PACK & SEND can ship your products faster so that you can offer consistent customer service.
Customers will Enjoy New Shopping Experiences in 2023
These technologies will have a direct impact on the business end of eCommerce companies as well as customer experiences. Owing to technology, customers will get to enjoy a more visual and engaging shopping experience.
While on the business end, eCommerce companies will employ technology to streamline their operations and reduce costs. Ultimately, this too will benefit the customers. They will get faster and better services than ever before. With the help of AI and big data, businesses will also personalise customer journeys. So the experience of each customer will be unique.
Image Sources: Shopify, Statista, Robotics Business Review, Startupbonsai, Influencermarketinghub, Chatbotguide, Couponfollow, The Future of Commerce, Amazon, Websiteplanet, Rechargepayments, Kearney, Xdelivery