Running an e-commerce business can feel overwhelming as it requires being agile and having an eye on the recent trends in e-commerce on a daily basis. Being well-informed these days can make the difference between becoming a market leader or sitting in the back seat, especially in such a fast-paced environment.
As technology keeps evolving, new trends such as the use of AI and the growth of social media marketing become almost indispensable for online businesses, but…
How can you know which trend is right for you?
And how could those e-commerce trends benefit your business?
In this overview, we wanted to make it easier for you and summarise the latest and greatest from our global e-commerce so you never miss out on any new developments in the industry.
Technology will always affect how people shop online as new improvements will help consumers have a better shopping experience, ideally making it easier and faster for them to purchase. What is often an opportunity for online sellers to increase their revenue can become a challenge at first, as new technologies involve extensive test phases to see how audiences perceive them.
One thing is clear: The sooner you implement the latest technological developments the better, as Digital Marketing expert Erick Milán explains when referring to AI:
Artificial intelligence is a tool that has arrived to completely change the game. If you want to maintain a competitive edge, there’s no time to wait, we’re already late to jump on the AI bandwagon.
As part of the latest technological trends in e-commerce at the moment, we will highlight the use of:
1.2 Augmented Reality and Virtual Reality
There is no doubt that Artificial Intelligence (AI) will mark 2023 and ChatGPT is only one proof of how human tasks can be easily complemented by multifaceted robots. These new tools can be employed by e-commerce companies who wish to not only improve their SEO position or automate content tasks but also use them to improve the shopping experience of their customers.
Thanks to chatbots often visible at the bottom of a website, businesses can offer quick 24/7 responses to any client or lead and save their Customer Support Agents time to deal with more time-consuming activities. Being able to offer this service outside business hours and guarantee effective and personalised support can help any company have a competitive advantage.
In addition, there is also a growing trend of voice assistants. The so-called Voice Commerce or Voice Shopping implies using voice commands to buy online via smart devices, like Amazon’s Alexa. This trend has been growing since 2014 and the total value of all global e-commerce transactions for 2023 is expected to reach 9.4 billion U.S. dollars. If this sum is reached by the end of the year voice commerce could experience 400% growth in just two years.
Another trend that has been improved over the past years and has yet to reach its full potential is the use of Augmented Reality (AR) and Virtual Reality (VR).
In short, AR stands for interactive computer-generated content that enhances the real world through devices (e.g. mobile game Pokemon Go). In contrast, VR happens completely in a fictional reality and requires the use of a headset device to experience it (e.g. in expositions, videogames).
V-Commerce, which allows businesses to sell their products in a virtual space by combining AR and VR and Artificial Intelligence, offers an interactive experience to customers who want to visualise and customise products in their own spaces or bodies without going to a physical store. This can improve the overall customer experience and avoid clients to return products, as they will have a better sense of how appropriate the product might be for them.
If you incorporate v-commerce into your own e-commerce you will see how your online sales will increase and you will stand out from the competition.
As you have noticed so far in this article, implementing such trends in your business will require the work of IT professionals who will certainly have their hands full. But, did you know that there are Big Data Solutions that allow you to sell on multiple sales channels and for the most competitive prices without overwhelming your IT department?
Platforms such as Lengow, which offers product feed management and price intelligence solutions, are able to automate your e-commerce activities, helping you increase your CTR and revenue as well as your brand awareness. Using data solutions like this you will be able to save time and money that you could use to expand your business further.
L’ÓREAL LUXE, for instance, was able to increase its turnover by +80% on Google Shopping and optimise a large amount of product data thanks to Lengow.
Below you can find the full success story of L’ÓREAL LUXE.
How L’ORÉAL LUXE increased its turnover on Google Shopping Disc…Learn more
Putting people back at the heart of their digital customer journeys is a major challenge for brands and retailers in 2023. They must combine immediate sales objectives with proactive interactions that correspond to their customers’ aspirations. The winning strategies for humanising customer journeys and generating incremental revenue will be: social proof, liveshopping and personalised marketing.
VP Marketing @ Skeepers
As the good old saying goes “The customer is always right” and in a digital world where search queries mark the way companies market their products online this mantra has never been so accurate.
Today, customers are at the center of e-commerce businesses and decide how brands and retailers should sell their products: if they should be present on specific marketplaces and social media platforms, which payment methods they should offer, and which sustainable alternatives they should opt for.
Since customer behaviours are constantly changing, so should your strategy as an e-commerce professional. In the following sections, we have selected the top challenges you should look out for in order to satisfy your customers’ needs.
2.1 Personalised Customer Experiences
Sellers need to approach each customer as their only customer. In other words, the one-size-fits-all approach does not work here. For an effective shopping experience, you should tailor your personalisation strategies to each customer segment.
An important part of your personalisation strategy involves setting the right ads on the right marketing channels, e.g. selling to gen z on TikTok.
Getting to know your customers may sound easy but without AI today developing your personalised services is almost impossible. According to a 2019 study, using artificial intelligence in your strategy can help merchants increase their income by 25%. Thanks to the use of AI you can give your clients personalised product recommendations, offers, and support.
As an e-commerce seller, you will see an improvement in your Marketing ROI and revenue as your campaigns will be more effective, with less cart abandonment, and increased customer satisfaction overall.
Did you know that…
Big Data solutions, like Netrivals, a Lengow company, can help you gather all the data from your Amazon customers’ reviews so you are always up-to-date?
All the market and price intelligence you need to thrive in the Commer…Learn more
Apart from delivering personalised services, your e-commerce company should also give priority to your products’ prices. No matter how good your products are: If your target audience cannot afford them and/or your competitors have better offers then all your efforts are in vain.
In an era of high inflation rates, customers are highly price-sensitive and we are witnessing the rise of One-Time Buyers. These buyers are less loyal to brands (only 1 in 4 is loyal) and instead choose products that are innovative and cheap.
In case you are wondering how to get to those sensitive buyers, we recommend you use price intelligence solutions. Those Big Data tools can help you know the prices of your competition on a regular basis and suggest you ideal prices for your own products to remain competitive and respect your price margin.
Another way of increasing customer loyalty is by creating subscriptions. Your customers can receive consistent and exclusive offers, as well as save time and money which can additionally improve your customer satisfaction.
Within these subscription plans merchants can also start loyalty programs to reward those active customers with points they can then convert into freebies and exclusive discounts, for instance.
Another aspect to consider when addressing buyers during the current recession is offering flexible payment options, like Buy Now Pay Later (BNPL) methods.
As the name suggests it allows users to buy products and pay for them in installments over time, which appeals directly to those who want to manage their finances effectively and even purchase larger items without the need for credit. Preferably consumers use options like Klarna or Afterpay which do not require interest fees, so consider this before choosing a BNPL service.
Businesses can see how their revenue starts growing after implementing BNPL options as a new e-commerce payment method since they are able to attract new customers and increase the spending of previous clients.
Between 2021 and 2026 global BNPL transactions are expected to reach over 450 billion USD accounting for further growth of the global market.
Shoppers nowadays not only value economically accessible products but also care about the environment. The so-called Ethical Consumers are mostly young people and women who choose ethical brands over fast-fashion ones.
In fact, according to a 2021 study, 55% of respondents stated environmental responsibility is very or extremely significant when choosing a brand. The question here is how much of an impact sustainability has on people’s minds at the moment as prices are hitting all-time highs.
However, since actions speak louder than words, companies operating in the e-commerce space should avoid greenwashing their brand if their production, supply chain, and distribution are not aligned with sustainable values. Consumers tend to be very critical of greenwashing which could not only harm the brands’ image but also the planet.
Despite fast fashion offering attractive prices, especially during the current inflationary period, alternatives like secondhand clothing are trending and booming worldwide. Brands like Patagonia and Ikea have shown to take action and incorporate sustainable practices and pre-loved items into their corporation and even fashion marketplaces like YOOX are starting to offer used products as well.
Boost your visibility and sales on YOOX with Lengow Through this guide…Learn more
Last but not least, Mobile Commerce or M-Commerce is one of the trends in e-commerce that is definitely here to stay. In countries like the UK, France, and Italy mobile commerce represents around half of all online retail shares, whereas in South Korea it is situated around 72% (Last Update: 2021).
Therefore, companies that want to succeed in e-commerce should invest in social media channels like TikTok, predominantly popular amongst gen z, develop mobile apps with regular push notifications, invest in mobile optimisation for their websites, and even experiment with live shopping.
In the sections below you will find the two most recent m-commerce trends:
Social Commerce or Social Shopping, which stands for using social media platforms as e-commerce ecosystems, dominates online shopping. Particularly famous amongst younger audiences this type of commerce has witnessed exponential growth around the globe generating around 992 billion U.S. dollars just in 2022.
Especially TikTok, which has become gen z’s top social media platform, has shown great potential for brands that want to advertise and sell their products on the platform.
Companies with a social media presence and decide to sell there have access to a broader audience, improved customer engagement and data, higher Marketing ROI, and sales overall.
Engage with new promising audiences and boost your online sales throug…Learn more
As part of Social Commerce, we wanted to highlight Livestream Shopping, also known as Live Shopping and Live Commerce. This internet trend originally from China has entered Europe and can be seen as a digital version of teleshopping. Users are connected to a live stream; meanwhile, brand representatives or influencers present products to the audience who can buy products directly while watching with just a click.
Thanks to the live situation the audience is able to ask questions about the product and see it being used by the person presenting it and the brand can therefore gain more insights about its target audience which helps to prepare more effective campaigns in the future.
Discover the full potential of live commerce with European brands succ…Learn more
In this overview, we have presented you with the latest trends in e-commerce and their benefits for e-commerce companies like yours. It now is up to you to decide if there are some trends that your company can and/or should implement.
But, how do you choose the right trends for your business?
In order to answer this question you should look at the type of customers you have, the size and budget of your company, but also at factors such as competition and your vertical.
The last two points are more difficult to define and track, which is when price intelligence tools come into play. Thanks to Big Data solutions like Netrivals (Lengow company), you can know the prices of your competitors, get an overview of your market, and see where and when your competitors are offering certain products.
Will e-commerce replace physical stores?
Answer: No. Although e-commerce has been growing each year, especially during the pandemic when going to physical stores was not an option, around 80% of global sales are still happening offline. The trend nowadays is moving towards hybrid retail which combines both models and for the moment traditional shopping will not be replaced.
Which e-commerce site is the most used?
Answer: On a global scale Amazon is the most-used e-commerce site with around 310 million customers registered in 2022.
Is e-commerce still growing?
Answer: Yes, e-commerce is definitely still growing. Thanks to new technological developments and the consumers’ need to have fast and cheap product deliveries, e-commerce will continue to expand and take on a bigger percentage of global retail sales.
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