January 12, 2023
The e-commerce landscape has been shifting rapidly, with digital sales reaching unprecedented levels over the last couple of years. Following the brief upsurge in the popularity of online shopping during 2020 and 2021, the underlying trend remains upwards. Recent data from the Office for National Statistics showed that e-commerce accounted for 30% of all retail sales throughout November 2022.
This suggests that e-commerce will persist as an important mainstay for many companies, and savvy businesses are looking to take advantage of this revolution by being as agile as possible in their strategies. In a climate of inflationary pressures on consumer spending, the ability to pivot quickly and remain competitive will be key for many retailers seeking to navigate changing market conditions.
But what are some of the e-commerce predictions for 2023 based on the information gained throughout the past few years?
While it is expected that consumers will attempt to cut down on spending due to the current economic environment, this doesn't mean that spending will come to a complete standstill. With lessons learnt from the prior economic downturns such as what has been caused by the Covid-19 pandemic, it becomes apparent that consumers in 2023 may shift towards finding better prices while still satisfying purchases made. It's expected that consumers will look for cheaper alternatives to essential items or even turn to used products rather than purchasing new ones, as they look for ways to save while still retaining the ability to spend.
As consumers look to save money and the economic situation continues to look bleak, discounting can be seen as a surefire way to attract customers and keep cash flow moving. However, the long-term impact can be damaging to both brand reputation and financial stability. Although competitive pricing remains an important factor in today's marketplace, it is vital for businesses to look beyond the race to the bottom price.
Companies that are able to communicate value and differentiate their products or service offerings will be the ones better equipped for success. By finding new ways of providing value for your customers and focusing on the power of differentiation, you will be able to move away from treacherous red oceans filled with price-slashing rivals, into clear blue waters where your business can thrive.
It’s clear that data we take for advantage is disappearing as Google plans to say goodbye to third-party cookies in 2023. Companies need to look inward and evaluate what information they have on hand and devise an appropriate data strategy in response. It's worth considering if your business can afford to provide greater efforts to the acquisition, storage and use of its own data which can become invaluable in making important business decisions. The reliance on cookies for valuable insights may no longer be a viable means for collecting information, so it's wise to plan ahead before potential data loss.
Keeping up with the constantly shifting world of e-commerce can feel intimidating, especially as emerging technologies and consumer preferences threaten to define a new landscape entirely. Reviewing predictions for 2023 is a great first step, but only part of the equation - you'll also need to know how to act on those predictions to get ahead.
Thankfully, we’ll provide you with 4 tips that can help you leverage the upcoming e-commerce trends.
In this age of technology, customers now have the exciting opportunity to purchase and receive goods and services in multiple different ways beyond just shopping in-store. The emergence of various omnichannel strategies has allowed consumers to benefit from a more unified and integrated customer experience no matter how they choose to shop. According to Harvard Business Review's findings, over 70% of customers use multiple avenues when making decisions about their purchases, showing the importance of delivering an all-encompassing customer experience centred around satisfying consumer needs.
But how you can implement an omnichannel strategy for your company in 2023? The key is to start by understanding your audience's needs, interests, and behaviours. Ask questions and encourage customer feedback in order to find out what channels work best for them and where they prefer to spend their time. You can then tailor each channel to its own purpose, such as one focusing on interactions while another is dedicated to news updates. To guarantee success, record, test, and maintain your channels regularly so that you are consistently delivering the best possible service to your customers.
Being transparent, delivering quality products and implementing sustainable best practices can create significant value for customers. These efforts can allow your business to test price sensitivity in order to help protect margins, even when consumers may be looking to spend less. Customers who feel a sense of additional value will be more likely to spend extra and remain loyal to your business.
Additionally, rolling out a loyalty program is an effective way to reward customers for staying with you, especially when it's personalised to their needs and behaviours based on past purchase data. Implementing these measures will give you a competitive edge by making your customers feel valued and help foster loyal relationships which boosts repeat purchases.
The pandemic and the subsequent Russia-Ukraine war have pushed supply chains far beyond traditional norms, leaving businesses struggling to keep up with the changing landscape. With customer expectations — such as same, next, or two-day delivery — being higher than ever before, brands need to be prepared for uncertainties and vulnerabilities in their own supply chain operations.
The best way to rise to these conditions is to diversify your sourcing channels and maintain an adequate inventory level, allowing you to create a resilient network of suppliers that can better handle disruptions. Equally as important is to digitise parts of the chain which will enable you to spot and respond quickly to any disruptions that might crop up in the future. Implementing these changes might incur expenses in the short term, but it's an investment that can pay off in the long-term sustainability of your business.
Social media has become an increasingly valuable tool for businesses to reach customers, with global consumers using it as the second-most popular product search method. The prevalence of social media marketing strategies is expected to keep increasing in the coming years as experiences with brands on social media have been shown to increase customer loyalty and spending overall.
Engaging with your audience in real-time is essential for developing trust with them over social channels. Programmed with your brand’s voice in mind, chatbots are an efficient way of keeping connections natural and interactive. Additionally, introducing ‘buy now’ buttons and other shopping tools on social platforms is also an easy way to improve accessibility. The introduction of shoppable video also allows retailers to transfer their online store onto the world of social media - reducing any hassle of buying even more.
Though it is always helpful to know what trends and predictions will shape the sector in 2023, that's only the first step on the path to success! It is equally as important to take action now to ensure your business grows in harmony with fresh breakthroughs. Fortunately, there are some simple steps you can take to make sure you remain at the cutting edge of progress as we move into 2023.
Speaking with e-commerce experts, like our team at ITQ Digital, can make all the difference when you're trying to capitalise on what lies ahead. We bring countless years of experience and invaluable insights that could prove to be a tremendous asset for your e-commerce business. By taking advantage of our free clinic, your business should have no problem identifying tactics which could be beneficial if incorporated into your own operations.
Book your Free Clinic today or reach out to us directly if you have any questions!
