The eCommerce space is always changing. Since the Covid-19 pandemic, we’ve seen dramatic acceleration worldwide. According to IBM’s U.S. Retail Index, the pandemic has increased the shift away from retail stores by approximately 5 years. Consequently, retailers are projected in-store sales to decline by about 60% this year.
In a “wake-up” call, both retailers and consumers have refined the need for goods. We know that certain categories such as clothing for example, declined in importance during the pandemic. On the other hand, grocery and home improvement market segments have experienced double-digit growth.
The question is: is the pandemic-induced online shopping a temporary growth spurt or is this here to stay?
Secondly, what’s the impact of such a dramatic transition long-term? Let’s look at 12 impactful changes in eCommerce trends this year and see if we could have a better understanding of where eCommerce is going in 2022 and beyond.
- Increase in Video Ads, Social Media Selling – like it or not, social media is here to stay. FB, IG, TikTok, YouTube, etc. are the perfect target marketplaces for brands. “Zoomers” spend hours browsing Instagram and TikTok feeds daily. This translates into billions of potential customers. Amazon’s push into OTT (over-the-top) and online video ads is an example of large platforms monetizing this trend. How would you like to increase your page views by 320% and purchasing rates by 150%? Combine display and video advertising for your Amazon business.
- Big Data For Personalized Shopping Experience – there’s still a lot of debate about collecting personal data. A direct result of this is better suggestions from the largest search engines and shopping platforms. Personalization will play a bigger role in the years to come. We believe that we’ll see this integrated within IoT. For example, we’ll be able to see ultra-digital personalization from doorbell cameras and appliances. Legislation on big data gives people the option to opt-in/out. Marketers then have to decide on how to reach these new users.
- Mobile Shopping – let’s face it, it’s 2022. If your site is not responsive on mobile or through a web app, you’re missing a lot of opportunities. Shoppers who buy online demand a great UX and the ability to pay digitally, usually on their payment platform of choice. Statista estimated that 73% of eCommerce sales will be done on a mobile device, representing $3.56 trillion globally. The largest trend we see here is better mobile UX and mobile payment integration.
- Optimization for Conversion – it’s great if you have thousands or millions of visitors to your website but if it’s not converting to the industry benchmark or better, you’re missing out. We see the need in improving product pages. This elevates a better user experience that also drives better SEO. Customers are at the most demanding point now. We’re all impatient and curious. Other eCommerce trends: make sure your creative Ads don’t just look “cool” but that they drive conversions. Multi-channel selling: FB Ads or Google Shopping Ads are trending higher.
- Online B2B eCommerce is Growing – we live in a different world. We’re seeing sales calls done over video. We’re getting POs over WhatsApp or emails. You need to adapt to your customer’s preferences. The eCommerce trend on the B2B side is changing. Automating orders through eCommerce platforms frees up a lot of time from administrative tasks. Teams can now focus on the customers by providing excellent engagement, support and deeper client relationships.
- AI Turns Into a Personal Shopper – we’ve been speaking about AI in Digital Marketing for a while. With the tremendous growth in eCommerce, we see AI more important than ever when it comes to automated and personalized shopping experience. AI is collecting huge amount of data from customers: how a customer shops, what they value in a product and how often they shop. As AI continues to evolve, we’ll be able to get to an ultra-digital world where an online shop knows a lot more about your preferences than going into a retail store.
- Marketplaces: A Preferred Shopping Destination – the pandemic forced a lot of SMBs into eCommerce. To get online a lot of small to medium size businesses lack the know-how, infrastructure, logistics and shipping requirements. When compared to Amazon and Walmart, these businesses simply can’t compete. Customers are now used to ease of purchase, convenience, free returns and 2-3 days shipping. This trend is clear: if you’re a brand with low exposure, you need to establish yourself on top marketplaces. Be careful though, you don’t want to rely on these marketplaces for most of your revenue. You’ll want to strike a balance between own sites (eCommerce, Social, etc.) and third-party marketplaces.
- Sustainability Becoming More Important – There’s no doubt that more consumers are concerned about the environment. Consequently, consumers are more conscious about their buying decision. For example, there’s a large trend in the fashion industry towards sustainability. Also, over 75% of consumers would like to see less packaging. The trend towards more biodegradable, paperless and using more recyclable materials is only increasing. This all drives purchasing decisions. So, if you’re selling online, keep this in mind.
Other important trends to note include:
A. Chatbots for increased customer service time and convenience.
B. Voice search which is increasing at a tremendous pace will drive online purchasing further.
C. AR (augmented reality driving online shopping) which is a key driver in how we’ll be shopping in the future.
D. Omni-channel takes the driver seat to address a holistic approach on of how businesses serve customers.
While everything in digital marketing and eCommerce is changing at a fast pace, so are people’s habits given the current circumstances. People and technology work hand-in-hand so we’ll have to look at it together. It’s never too late to learn and evaluate what’s right for your business.
For now, consumers are driving the business forward and you’ll need to provide a customizable journey for them today and beyond. If you need help with implementing a digital strategy and execution plan for your business to address these eCommerce trends, please contact us today.