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9 Hottest Trends In Ecommerce Business To Lookout In 2023
Looking for the hottest trends in the Ecommerce business?
Welcome to the future of eCommerce! As we step into 2023, the eCommerce industry continues to grow and evolve at an unprecedented pace. With the constant advancements in technology and the changing preferences of consumers, it’s essential for eCommerce businesses to stay up-to-date with the latest trends and strategies to remain competitive.
In this blog, we will take a closer look at some of the hottest trends that are set to dominate the eCommerce business landscape in 2023. From the rise of social commerce to the adoption of immersive technologies, we will explore the key trends that will shape the future of eCommerce and provide insights on how you can stay ahead of the curve. So, buckle up and get ready to discover the cutting-edge trends that will define the eCommerce industry in the coming year.
Some Important Trends In Ecommerce Business
1. Augmented Reality (AR)
The close relationship between augmented reality and the digital customer experience in retail is expected to shape the near future. One of the persistent challenges faced by online retailers is that their customers cannot physically try on clothes and accessories or visualize how furniture will appear in their homes before buying them.
The problem can be effectively tackled through the use of virtual and augmented reality technologies, which have the potential to greatly enhance the shopping experience. By employing AR solutions, customers can visualize how products will appear in real-life scenarios.
As per a recent study, only 1% of retailers out there offer AR/VR shopping to their consumers, but that is quickly changing. Retailers are aware that augmented reality is the latest tool for gaining a competitive edge. A survey indicates that 40% of customers are willing to pay a premium for the chance to personalize products using AR solutions.
The use of augmented reality in eCommerce is on the rise, particularly with applications like virtual dressing rooms and product configurators becoming increasingly popular.
2. On-site Personalization
Generic advertisements and mailings that offer random products are no longer effective in the retail industry. Nowadays, personalized marketing is the foundation of successful retail strategies.
Contemporary online consumers place a high value on personalized assistance that aids them in discovering the products they truly require, rather than being sold items that retailers prefer to promote. As per Accenture’s report, an overwhelming 91% of customers prefer to buy from businesses that provide customized recommendations.
To determine the present requirements of your customers, AI-powered search and recommendation technologies can be utilized to track and analyze their online interactions and past purchases. This enables the identification of their interests and preferences with a high degree of accuracy.
Retail enterprises place a significant emphasis on on-site personalization, as customer retention and subsequent growth in eCommerce sales are directly linked to interactions with customers through relevant content, personalized deals, and discounts.
3. Artificial Intelligence (AI)
Numerous solutions that rely on artificial intelligence and machine learning algorithms have advanced to the point of being broadly utilized in online shopping, providing ample possibilities for enhancing the customer experience.
Visual commerce has been prompted by image recognition, which is one of the foremost AI applications in eCommerce. Creating personalized recommendations is another common application of employing intelligent algorithms in online retail. Through the analysis of customer behavior across all touchpoints, including websites, social media, digital signage, marketplaces, and mobile apps, AI algorithms can generate customized recommendations.
Retail enterprises utilize predictive analytics, which is also derived from artificial intelligence, to examine and enhance marketing campaigns, devise inventory management strategies, and facilitate a smooth supply chain.
4. Voice Assistant
Voice commerce, a segment of eCommerce, is progressing with the advancement of AI-based voice recognition technology. Consumers prefer using their voice to type out requests for internet searching, ordering, and completing the purchasing process, finding it more convenient when shopping online.
Virtual digital assistants like Siri, Google Assistant, or Alexa facilitate the integration of online shopping into everyday activities by enabling users to make purchases without interrupting their routine tasks. Therefore, it is imperative for eCommerce businesses to integrate and optimize voice search features into their online store websites and mobile applications.
Chatbots are an incredibly valuable marketing tool that businesses employ to enhance customer service. The advantages of using chatbots include uninterrupted operation around the clock, cost-effectiveness, and the automation of repetitive tasks, ultimately resulting in an improved customer experience.
A growing number of eCommerce businesses are using natural language processing technologies to develop their chatbots, allowing these programs to interact with online buyers in a similar manner as human sales assistants. Retail is at the forefront of industries that are embracing chatbots.
Juniper Research predicts that by 2023, retail-based chatbots will account for more than 70% of all chatbots.
6. Big Data
The collection and analysis of large datasets, commonly referred to as big data, present numerous opportunities for companies across various industries. In eCommerce, big data analytics is a crucial resource for creating personalized experiences, which we have previously discussed as being of great importance.
Nowadays, retailers are placing greater emphasis on formulating a plan for acquiring personal data to uncover their customers’ behaviour patterns and generate useful predictions. Apart from personal details, retailers also rely on vast amounts of information on supply chains, inventory, warehouses, and delivery services to inform their decision-making and ultimately increase their profits. This is why big data analytics is considered one of the foremost trends in eCommerce at present.
7. Multiple Payment Options
Offering a range of payment options in eCommerce stores can give businesses a competitive advantage, as it empowers customers to select a payment method that aligns with their specific circumstances, which in turn decreases the likelihood of them abandoning their shopping cart.
You can integrate these payment gateways into your eCommerce store:
Currently, debit and credit cards reign as the most prevalent forms of payment. However, it is worth highlighting the significance of contactless cards during the pandemic. These cards utilize RFID or NFC technologies, allowing buyers to simply tap their card on the terminal without any physical contact and without having to hand it over to a courier or cashier.
Despite the growing popularity of cashless payments for various reasons, it is important to retain cash as a viable payment option. This is because certain individuals, particularly the elderly, may prefer using cash, and card terminals may not function properly due to poor internet connectivity in remote areas or issues with bank servers. In such scenarios, cash can prove to be a useful fallback option.
When making payments for online purchases, the use of internet banking is mandatory. Online bank transfers are considered the safest payment method in terms of both data security (as a result of transaction authentication and encryption) and infection prevention (as there is a complete absence of human interactions).
Mobile phones have evolved into a convenient means of payment. By installing payment software on their devices, customers can easily make payments by simply bringing their phones close to an NFC-enabled payment terminal.
Digital wallets, also known as eWallets, are a fast-emerging and convenient payment option in eCommerce. By setting up an eWallet account and linking it to their bank account, users can transfer funds to designated merchant accounts using electronic devices.
8. Mobile Shopping
The increasing number of mobile internet users can be attributed to the widespread use of the internet and the easy availability of smartphones as the key influencing factors.
The adoption of mobile devices for shopping has witnessed significant growth due to the convenience of browsing for products, comparing prices, and accessing detailed product information, reviews, and recommendations. Furthermore, advancements in mobile technology have made mobile payments more secure and dependable, thereby increasing the safety and convenience of making purchases using mobile devices.
According to Statista, Mobile commerce in the US is projected to reach a whopping $710 billion by 2025. As a result, it is essential to ensure that all eCommerce websites are optimized for mobile devices and that can be done in the following ways:
To ensure optimal viewing on smaller smartphone screens, it is recommended to create a simplified mobile version of a website that includes streamlined navigation, limited buttons, and essential information about products.
Mobile apps development
Developing a dedicated software solution for mobile devices that users can download is typically recommended as mobile applications offer greater opportunities for both customers and companies.
9. Headless and API-Driven eCommerce
Headless commerce platforms are a practical option for enterprise-level retailers that distribute their products across various channels, such as websites, mobile apps, PoS systems, and interactive kiosks.
In essence, headless commerce (also known as API-driven commerce) refers to a system where the backend (responsible for storing and managing product content) is not connected to a specific presentation layer or front end. Instead, it is a unified system equipped with integrated marketing and sales tools that enable online stores to create cohesive content and distribute it across multiple devices using APIs.
Final thoughts on trends in ecommerce business
The eCommerce industry is constantly evolving, and while trends may appear and disappear, staying competitive in the ever-changing online retail space requires eCommerce companies to keep a close eye on them and adopt the most suitable solutions for their target audience.
Adopting the most fitting innovations and tailoring them to meet the needs of your audience is crucial. With the online retail competition steadily increasing, only the most robust companies that can provide customers with the most advantageous and convenient opportunities will thrive.
In short, the main objective of the trends in e-commerce business highlighted in this guide is to enhance customer satisfaction and simplify eCommerce processes. By incorporating these current trends into your eCommerce strategy, you can attract a steady influx of customers.