E-commerce is transforming the way we think about retail. People’s shopping is also evolving swiftly; online shopping is becoming more common.
Over the past few years, there has been a significant transformation in the e-commerce environment. The COVID-19 pandemic transformed enterprises more than in the previous 20 years. While returns on online advertising are down, shipping and acquisition expenses are growing alarmingly quickly.
But what are the precise figures?
You can keep up with the most recent online shopping data with the aid of this article. Keep reading to learn how consumer goods firms will identify, assess, and seize opportunities in the upcoming year.
An increasingly complex consumer landscape
New ways to reach consumers will continue to emerge
Consumer products companies formerly tended to participate in a small number of e-commerce platforms, typically led by Amazon, Shopify, Lazada, and Shopee. To stay current with where consumers interact and shop, consumer products companies must be present on a wide range of new platforms and formats.
According to Insider Intelligence and eMarketer’s “Social commerce trends roundup,” social commerce – which enlarges reach by selling through social media channels – is anticipated to more than double between 2021 and 2025, when it will account for about $80 billion in retail sales. Additionally, consumers’ demand for omnichannel fulfillment options to in-store purchasing, such as home delivery (from a neighborhood shop), ship to home (from a distribution center), and click and collect, is increasing.
Elster notes that “customers anticipate more.” “Merchants need to reach customers wherever they are by using multiple channels, offering on-demand customer service through automation and agents, and completing orders in no more than 48 hours. That is now the standard for good. He notes that some internet retailers will find themselves in a technical arms race with their rivals “whether they know it or not.”
Authentically engage customers with social commerce
Social media offers fresh business prospects, including shoppable advertising, brand marketing, and product discovery.
In the United States, almost 30% of internet users already make purchases directly through social media platforms, and by 2025, sales through social media channels globally are predicted to nearly triple. More than one-third of Facebook users expect to make a purchase directly through the network in 2022, so retailers can no longer ignore social buying.
“Brands’ activity on social media needs to be authentic to genuinely get the acceptance of teenagers and consumers in their 20s,” Robert Befumo said, specializing in assisting B2B brands in scaling their online DTC operation. “You will lose that group the moment it appears forced. You must truly comprehend and converse in the audience’s language.”
He advises that “content is essential” and “it’s critical to always have an eye on the consumer journey.” “Make it as simple and satisfying for the customer to make a purchase as quickly as feasible. You aren’t just pushing a sale; you’re driving equity and a relationship with the brand. Each point of contact is essential to the overall experience. So be sure to examine it from all perspectives.
Build customer loyalty with group buying
Group buying to upsell within a brand’s customer base and expand it to their networks will be the next wave of referral and loyalty, according to Deb Mecca, director of marketing at Shopify app In Cart Upsell.
She notes that while adoption in the US has been slower than in China for years, things are quickly beginning to change. “TikTok already has this feature, which allows many users to take part in an offer simultaneously, in the Chinese version of the app.”
Post-purchase upselling has become extremely popular outside social network group buying in 2021, which indicates that consumers welcome the chance to strengthen their bonds with brands.
Mecca warns that discounting has recently gained a bad reputation, so it has to spend more money on promotions. However, if group buying is used for discounts, stores will seek to broaden their reach and the value they provide to their clients and their networks.
Visual Commerce Is on the Rise
The next generation of conventional static images is visual commerce. It elevates marketing to a whole new level since, in addition to just using product photographs, visual commerce also uses user-generated content, interactive material, engaging and interactive films, and, as was already noted, augmented reality.
According to statistics, 67% of consumers believe that high-quality images have a much greater influence than text-based product descriptions or user reviews. By 2022, video traffic will account for 85% of all web traffic. Additionally, online shoppers who view videos are 1.8 times more likely to make a purchase than those who don’t. Retailers report that showing movies on their websites increased overall transactions by 40%.
These data demonstrate that the era of visual commerce is here, and it is imperative for e-commerce companies to take advantage of this development. Following are six ways that online retailers employ visual commerce:
- Design dynamic product pages
- Create engaging marketing
- Enhanced analytics
- Product prototypes
- Digital catalogs
- In-store kiosks
Personalization and precision targeting will become top priorities
An unprecedented amount of data about consumers’ shopping habits and interactions with companies is being produced due to the surge in online transactions and the broader digitalization of commerce. Due to the transition of transactions online, businesses now have more insight into the buying process, including measures like cart abandonment, add-to-cart rates, browsing habits, and time to purchase.
Retailers are especially well-positioned to collect these data, which they have been using to develop more specialized experiences. As a result, customers have quickly demanded that businesses provide tailored, pertinent interactions. Consumer products firms may not collect data at the same rate as retailers. Still, to fulfill the increasingly high standards of client personalization and to realize returns on their investments, they have had to develop more sophisticated data management capabilities.
Ecommerce statistics: conclusion
As a business owner, staying on top of e-commerce trends is not an option — it’s a necessity to capitalize on this growth.
Businesses must focus on developing a user-friendly and compelling online presence to prepare for a change in how consumers shop. The scale of the e-commerce market is constantly expanding quickly.
As businesses discover that maintaining an online store is less expensive and more straightforward than maintaining a brick-and-mortar store, this trend will likely continue in the upcoming years. More platforms and resources are also available to aid small firms in beginning their e-commerce operations.