It may seem difficult to compete in the e-commerce sector in 2023, especially for small to medium-sized enterprises with constrained marketing budgets. However, with US consumers expected to spend over $791 million on merchandise from online shops in 2020 and with 2.14 billion people worldwide expected to buy online, investing in e-commerce is now more important than ever for the future of your company.
More than ever before, consumers have higher expectations for their online purchasing experiences.
What then are they seeking?
- more individualized advertising and product offerings.
- modern technological solutions for both shopping and browsing.
- company commitments and ideals that they share.
Smaller businesses with fewer resources may find it challenging to match these expectations, but any size firm may successfully attract and retain more customers in the e-commerce space with careful planning and investment into one or two of these trends. On the Smart Route audio episode “From Retail to SaaS, Consumer Behavior is Changing E-commerce and Marketing,” for instance, you can find out how a local fashion boutique is utilizing some of these trends to build its brand and attract long-term, devoted customers.
Flexible payment methods, contextual targeting, omnichannel marketing, AI software (such as chatbots), and sustainability initiatives are the top five themes to adopt in the upcoming year.
Continue reading to find out more about these trends and how you can utilize them to influence consumer spending in 2023.
Several different payment options
A new form of flexibility, namely payment alternatives, is now necessary to remain competitive in the e-commerce industry.
Although payment flexibility is practically a need for US e-commerce firms, it is also becoming more and more popular in international e-commerce. Businesses selling to Gen Z and Millennials are especially affected by this trend since they are accustomed to and use the ability to accept payments online, through mobile or digital wallets, or through in-app purchases. Retailers are increasingly using payment methods like Google Pay, PayPal, Apple Wallet, Venmo, credit cards, and even cryptocurrencies (and desired by customers). Major retailers provide financing options like Klarna and Afterpay, which let customers make multiple, scheduled installments for online purchases. These options help customers decouple the buying and paying processes.
Online “cart abandonment” statistics make the little period between a customer reviewing a cart and choosing a payment method essential to the sale. 85.65% of mobile cart abandonment occurs while 35% of online transactions terminate when a customer is prompted to register; this rate of cart abandonment costs the e-commerce sector approximately $18 billion in lost sales annually.
Retailers should think about providing as many flexible payment alternatives as they can to reduce cart abandonment and smooth the transition for customers from “cart review” to “final purchase.”
Retailers should think about providing as many flexible payment alternatives as they can to reduce cart abandonment and smooth the transition for customers from “cart review” to “final purchase.”
Your clients will be more likely to complete transactions and your sales will increase in 2023 if you provide them a variety of flexible payment alternatives including PayPal, Google Pay, Apple Pay, digital wallets, Klarna, and others.
Targeting based on context
Many marketers pondered how they would effectively market to their audience when Google declared that they would gradually stop using third-party cookies, the information that marketers use to track and target website visitors for ad campaigns. Fortunately, one of the top e-commerce trends for 2021 is contextual targeting, which is more advanced (and voluntary) and is anticipated to be even more significant for marketers in a cookie-less environment.
Contextual targeting combines session data with user activity to build a profile of the user and their interests. Personalized ad targeting and better segmentation are created using this data. Highly effective contextual targeting may combine keyword matching technology (important to contextual targeting) and Natural Language Processing (NLP) technology to make sure that ad placement is pertinent, effective, and as closely matched to the user’s interests and buying journey as possible. This is in contrast to posting an ad campaign on a related website and hoping to capture conversions through widespread exposure.
Your company can get more qualified leads by limiting its marketing to interested customers by creating an SEO plan (or hiring an SEO expert) and implementing NLP software. You’ll stop placing useless ads and concentrate exclusively on users who are actively looking for goods and services similar to yours.
Multichannel Advertising
How many platforms and devices do your customers have access to readily find information about your product or service, and how simple is the purchasing procedure once they are ready to make a purchase?
Nowadays, marketing to consumers across several platforms and devices is commonplace. Customers might come across a Facebook advertisement, investigate a product on Instagram, watch a YouTube review video, view a TikTok advertisement, and then make an online purchase via a link that was texted to them. Omnichannel marketing is a type of online advertising that is becoming more and more popular as businesses strive to market their goods and services not only across different platforms but also devices. More consumers than ever are shopping online using their phones, and since 73% of all online purchases are made using a mobile device, your e-commerce shopping experience must be competitive across all platforms.
Because it keeps customers thinking about your business when they browse social media, go through their email, or use a search engine to compare products and pricing, omnichannel marketing helps you stand out to your customer base.
Because it keeps customers thinking about your business when they browse social media, go through their email, or use a search engine to compare products and pricing, omnichannel marketing helps you stand out to your customer base.
Customers are always passively buying, whether they’re watching television, using their phone, or taking a break from working on their laptop, which is why omnichannel marketing is so successful. Being active across a variety of platforms helps you establish familiarity and trust with your audience since it exposes them to your brand’s values and message on a regular basis. Consumers buy from brands they trust.
With multichannel marketing, you can build brand loyalty, boost conversion rates, and raise brand trust. To do this, think about posting informative content frequently across several platforms, such as videos, quizzes, offers, and product details across your social media pages and your website. Make sure your e-commerce site is user-friendly on mobile devices, provides a clear and simple choice to make a purchase at any time, and is mobile-friendly.
Artificial Intelligence (AI)
The usage of AI in marketing initiatives is another trend that is getting significant popularity and increasing conversion rates for businesses. Tech decision-makers consider AI to be the most significant benefit a company may have in the near future.
Every click and query a consumer makes is tracked by AI and machine learning, which instantaneously modifies and displays product recommendations based on that information. A more sophisticated form of AI necessitates programming, guidelines, and algorithms. Some are simpler and rely on data gathering over time to improve the accuracy of their predictions.
AI tools are frequently employed to manage FAQs, address grievances, and enhance customer experiences via chatbots, an increasingly common choice for businesses. A company’s consumer happiness rises up to 80% greater than that of e-commerce sites without chatbots when it offers the option; the global industry is expected to surpass $1.25 billion by 2025. With the help of opt-in communication offers and omnichannel targeting, these AI alternatives enable a highly personalized e-commerce experience by customizing each advertisement and recommendation to the browsing preferences of the individual client.
This type of AI is very potent because it can offer the customer new steps in their purchasing process by anticipating what they want based on their mood, whether it’s a new delivery service offering comfort food, a travel package to a destination they googled, or a customized subscription service based on a recent purchase. A more specialized online shopping experience can be obtained by using AI, and 22% of customers are eager to contribute their data for it.
Consider investing in an ERP or CRM solution with machine learning capabilities, a subset of AI that can assist in upselling and cross-selling goods and services, to integrate AI into your company’s e-commerce strategy. In this manner, you can take advantage of some AI advantages (like chatbots) without having to learn complicated programming (or the high price tag). Your machine learning software will be better equipped to respond to questions and provide recommendations based on the data it collects as it advances along its “learning” curve, giving your consumers the individualized shopping experience they want.
Sustainable Development and Moral Consumption
Your customers in 2023 will be concerned about the environment, thus businesses who show a commitment to sustainability will see an increase in sales. Along with environmental sustainability, customers are increasingly drawn to businesses that have values that are in line with their own and are committed to ethical consumerism. This includes everything from supporting charities to working toward carbon neutrality to paying their staff a living wage.
Along with environmental sustainability, customers are increasingly drawn to businesses that have values that are in line with their own and are committed to ethical consumerism. This includes everything from supporting charities to working toward carbon neutrality to paying their staff a living wage.
Additionally, businesses must actively prove that products advertised as “green,” “natural,” or “sustainably produced” are, in fact, those things. Customers today demand evidence that their purchases don’t affect the environment, not just recycled packaging (or, at least, the company is actively offsetting possible damage). With 75% of Gen Z and Millennials feeling that businesses should take a strong position for environmental activism, social justice, and racial equality, they are particularly demanding that brands show the way to a sustainable future.
Taking steps to strengthen your brand and marketing those efforts are crucial for continuing to compete in e-commerce in 2023, regardless of the average age of your consumer base.
Consider creating a mission statement or landing page that highlights your firm’s efforts to be ecologically sustainable, assure ethical manufacture of products, and support charities, while clearly explaining your brand values and mission, in order to draw in and keep customers in 2023.
