3 E-Commerce Trends To Watch In 2023

If you’re in the business world, it is essential to keep an eye on the latest trends in shopping. In 2023, nearly two hundred million U.S. consumers are expected to shop on the internet.

Shopify’s Michael Keenan recently said, “Two years ago, just 17.8 percent of sales were generated through online transactions. This number is projected to rise to 20.8 20% by 2023. That’s an increase of 2 percentage points in the market share of e-commerce. The growth is expected to increase to the level of 23% in 2025, which is a 5.2 percentage point growth in 5 years.”

Consumer buying patterns have changed because of the growth of online shopping. As technology advances and the preferences of consumers change, online retailers will have to be able to change and adapt to keep ahead of the curve. By keeping abreast of these developments, businesses can position themselves for success in the ever-changing environment of eCommerce.

3 E-Commerce Trends To Watch In 2023
3 E-Commerce Trends To Watch In 2023

1. Increased Efficiency of Data Labeling for Machine-Learning

Making sure that customers have a personalized shopping experience is vital in increasing sales on online stores and increasing the success of e-commerce. Machine-Learning can be used to improve customer satisfaction through better searches, customized suggestions, and many more. But, many need to realize that ML used in e-commerce is only as effective as the data it’s based on.

Each ML product depends on three elements: algorithms, hardware, and data. While the three are easily accessible and usually do not pose challenges, collecting high-quality information to build ML models is still a significant challenge. Data labeling based on human intelligence is one of the methods that companies can use to enhance the training process of applications using ML.

“Search quality is among the most important trends we are experiencing in e-commerce,” the CEO at Toloka, Olga Megorskaya, stated. “Online market places & retailers are discovering that up to 5% of gross merchandise volume depends on the quality of product search and recommendations.”

Megorskaya recommends companies train ranking algorithms and assesses the quality of their search results compared to other competitors to enhance the effects of searches. However, these intricate machine-learning techniques are based on human judgments about the relevance to search.

2. The Rise of Social Commerce

Social media platforms are now an increasingly vital part of the world of e-commerce as shoppers utilize them for discovering, researching, and buying. Businesses must incorporate these platforms into their strategies for e-commerce to connect and interact with customers.

As per the Future of Commerce, “Global sales from social platforms were estimated to be 992 billion U.S. dollars in 2022 The forecast suggests that the sales of social commerce will be approximately 2.9 trillion U.S. dollars by 2026. Social commerce is essential for companies to reach their targeted customers, and is predicted to produce $30.73 billion of sales by 2023, which is 20% of all retail eCommerce sales.”The Future of Commerce also states it is reported that Gen Z customers use TikTok more often than Google to get product recommendations. For companies looking to reach the right audience, the use of TikTok is crucial.

Integrating an influencer marketing approach is yet another way to benefit from the advantages of online commerce. Collaboration with an influencer enables companies to reach out to those who have been pre-qualified. This can improve the engagement of customers and increase conversion rates. Social proof generated by social media influencers marketing campaigns usually converts prospects into revenue.

3. Expanding Omnichannel Capabilities

Multichannel marketing means that businesses have to be in a position to sell to customers and communicate with them across different channels at any time. This could mean having a website, a Facebook shop, and an Instagram account. Omnichannel can be described as the next step up, and it’s the future of online shopping. Presently, 52% of e-commerce websites have omnichannel capabilities.

The integration of omnichannel capabilities in an online store requires a deep knowledge of the customer’s needs. A seamless shopping experience is what usually prompts customers to return. Companies that have omnichannel strategies in place keep around 89 percent of customers. But the opposite is also the case. Companies that do not have omnichannel strategies experience the lowest customer retention rate.

“The power of true omnichannel is understanding all the channels our consumers use and how they want to utilize them throughout their whole journey,” said Ferguson Enterprises Chief Marketing Officer Victoria Morrissey. “If you don’t understand that journey, you can’t provide the right data at the right period.”

Effective omnichannel strategies can enhance the experience of shoppers on the internet. Based on McKinsey, The more outlets a company uses, the higher the market share the company will earn.

Awareness of these evolving changes can benefit your performance and is becoming more essential in today’s increasingly competitive market. Being aware of changes will ensure you stay in the loop.

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Krishna Chaitanya
Krishna is a digital media strategist with experience in the media and publishing industries, He is also the lead marketing strategist for Hustle Chronicle. He is currently employed at Intentify Media & resides in India.

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