Where is E-commerce Trending in the Coming Years?
The world of e-commerce is rapidly evolving, and with many businesses still adjusting to a post-pandemic era, it is important to examine some of the changes that occur within the e-commerce space.
The global retail e-commerce market size is expected to grow exponentially over the next few years as more businesses embrace digital transformation strategies. The pandemic accelerated the growth of e-commerce by decades and has made e-commerce a much more viable option for many people globally than before the pandemic.
Unfortunately, it has proved impossible to maintain the exponential growth experienced during the pandemic as people are going out more. Even so, the space continues to evolve, and businesses that want to stay ahead must leverage changes in the industry to be better equipped to make informed decisions about their online business strategy.
In this blog post, we will discuss some e-commerce trends in 2023 that are shaping the future of e-commerce and how businesses can capitalize on them for success.
Is E-commerce Growing?
The question, “is e-commerce growing?” is best answered by providing some hard facts about the e-commerce industry. Statista forecasts that the global e-commerce growth rate for 2023 is 10.4%, bringing global e-commerce sales to about $6.3 trillion in 2027. It is projected that revenue in the e-commerce market will reach $4.48tn in 2023.
In addition to this growth rate, we can also look at the number of people shopping online. Over 2.14 billion shoppers now buy items online, a significant increase from just a few years ago. Also, as e-commerce becomes more interactive, we can expect an increase in this number.
What are some E-commerce Trends to look out for in 2023?
With global events such as the pandemic and the Ukraine-Russia war significantly impacting economic activities, there are some global e-commerce trends that businesses need to look out for in 2023. They include:
Consumer Interaction will Change with the Metaverse
Increased investment in the metaverse shows us that businesses are ready to take their users beyond social media, apps, and websites. The metaverse is a virtual world where users can interact with each other and businesses in an immersive environment.
Innovative and seamless connection is the hallmark of the metaverse, and this is about to be applied to how we transact. Businesses are finding different ways to interact with their customers and create a unique experience for them in web3. Some companies are already creating web3 platforms where their customers can win points that can be used to get real-life products.
About 75% of business decision-makers believe that interacting with their customers through the metaverse will become the norm in a few years. With one in three shoppers already using virtual reality to shop, it is only a matter of time before the metaverse becomes another version of our reality.
The big tech companies are already in the race to carve out a market share for themselves, and innovative businesses should follow.
Improved Customer Experience With Machine Learning and Omnichannel Shopping Experiences
Consumers expect better, faster, and more targeted services when they shop online. Machine learning has enabled businesses to deliver this by providing personalization that was not possible before. Companies can now leverage machine learning algorithms to analyze customer data and make recommendations based on their buying behavior.
Additionally, omnichannel shopping experiences are the way of the future. Customers now expect to be able to browse online or on social media and place orders in-store, and vice versa. This is especially important for businesses wanting to remain competitive and gain customer loyalty.
Omnichannel shopping experiences create a seamless journey that customers appreciate as it increases their chances of purchasing. Companies with great multichannel integration retain over eighty percent of their customers.
The key is for businesses to recognize which channels their customers use and integrate them to create a robust and seamless customer experience.
Social Commerce is in Acceleration
Social commerce is on an upward streak in the volume of transactions, revenue, and platforms utilized. Social media has provided many businesses an opportunity to level the playing field by offering an even lower threshold for beginners than regular e-commerce sites.
Although e-commerce is a way for many businesses to overcome the barriers to commerce, big businesses are still able to acquire and retain more customers as they can put up better infrastructure to support their sites to make them more user-friendly, offer lower prices due to huge turnover, and pay for advertising on search engines.
Social media marketing and ads are driving business growth and brand loyalty. Brands are reaching more of their target audience as algorithms get smarter and ads become more targeted than ever. Consequently, businesses are spending more money on advertisements on social media.
Social media commerce goes beyond sales and purchases, as seen on online sites and m-commerce; it leaves users with a more memorable experience as they experience the brand through the lens of the company and other users.
How Does Inflation Affect E-commerce?
As businesses move online or adopt more robust e-commerce strategies, they also need to consider the implications of inflation on their operations. Inflation affects e-commerce as it increases the price of goods and services sold by companies.
It makes it difficult for companies to remain competitive and retain customers if they cannot adjust prices appropriately to the inflation rate. To combat this, businesses should focus on strategies such as discounts, free delivery, and other special offers.
To make the most out of inflationary cycles, businesses must minimize costs while optimizing their profits to remain competitive in the market. This can be done through cost-cutting measures, increased investments through alternative financing methods, or increasing production efficiency.
- E-commerce has become an integral part of modern life, with more and more people turning to the internet for their shopping needs. The industry is growing rapidly as businesses embrace digital transformation strategies to stay competitive.
- The biggest trends to look out for in e-commerce in 2023 are omnichannel shopping, social commerce, and immersive shopping through the metaverse.
- Businesses should also consider how inflation affects their e-commerce operations and plan appropriately to minimize costs and remain competitive. Businesses can hedge against inflation by investing more money in their operations to enjoy the benefits of lower production costs that big businesses have.
- Alternative financing is becoming more popular with e-commerce businesses. Intrepid financing offers revenue-based financing options, allowing e-commerce businesses to pivot and expand during inflationary cycles. Reach out to us to get started using revenue-based financing.