The Future of eCommerce: Trends and Predictions for 2023 and Beyond
As we head into summer and the second quarter comes to a close, people’s minds are turning towards new beginnings and fresh starts. The ecommerce business is no exception, and the industry is looking ahead to try and deduce which big trends will be dominating the space and which predictions will fail to materialize.
Online retail has much to offer the modern shopper and meeting those customers where they are and providing them with the kinds of experiences they expect when spending their hard-earned cash is going to decide which brands succeed over the next twelve months and beyond.
With that in mind, let’s take a deep dive into some of the hottest trends and predictions for ecommerce in 2023 and beyond.
#1 Back to Basics
Customers are breathing a collective sigh of relief as the libertarian hellscape proposed by Web 3.0 technology has failed to find its frequently predicted foothold in the digital space. And that’s only the customers who were even aware of it in the first place.
The NFT bubble has well and truly popped, with many influencers who promoted them now staring down the barrel of real criminal charges; the cryptocurrency market is crashing under the weight of massive scandals such as the FTX collapse; and all the most prominent metaverse projects are struggling to attract users and retain them beyond initial curiosity.
This provides an opportunity for ecommerce brands to attract customers by offering smooth and convenient shopping experiences which respect their time and money.
The biggest issue with metaverse projects was that they flew in the face of the goal of technological innovation – to make human activities more time efficient and convenient. It was always going to be a struggle to get people to strap on expensive VR equipment to complete tasks they could achieve with a few swipes of their thumb. It’s truly baffling how an industry which has constantly strived to remove barriers from the shopping experience could have ever believed the metaverse was the future.
Now is the time for ecommerce brands to look at their online portals and make sure they place as few barriers between the customer discovering great products and checking out as possible. Efficiency and convenience are the order of the day, and we are likely to see all the most successful brands focusing on these areas moving forwards.
#2 Sustainability
Customers today are more aware than ever before of the impact of big business on the environment and are actively seeking ecommerce brands which take their sustainability goals seriously and strive to offset the negative impact of human activity on the planet.
This impact is more prominent in some sectors than others. The production of fashion items, for example, makes up 10% of humanity’s carbon emissions, dries up water sources, and pollutes rivers and streams. Moreover, a staggering 85% of all textiles end up in landfills each year.
Retailers need to therefore prioritize green initiatives and make sure they are making real and demonstrable efforts to offset their impact and communicating this effort to their customers. Customers are now extremely cognizant of greenwashing and any retailers caught engaging in the practice are likely to experience significant negative PR as a result.
Brands which take ESG efforts seriously and garner a reputation for doing so will find it far easier to attract customers in 2023 and beyond compared to those which don’t.
#3 Value
People are struggling. As inflation continues to skyrocket, the price of everyday products is rising dramatically. Combine this with the increasing costs of household bills such as water and energy, and wage stagnation, and you have a populace which has less disposable income in 2023 than they had in previous years.
However, this does not mean people aren’t still searching for ways to treat themselves – it just means they are prioritizing value when doing so. They want to find ecommerce experiences which will allow them to justify luxury purchases with offers and promotions it’s impossible to say no to.
Our favorite example of how this method can succeed can be found in the actions of pizza takeout giant, Domino’s during the 2008 global financial crisis. Prior to the crash, the brand was struggling with the quality of its products and was losing ground to rivals such as Pizza Hut and Papa John’s. However, it recognized that, even though people were struggling, they still wanted the occasional treat and embarked on an endeavor to improve the quality of its food and create a range of attractive deals which would entice customers in.
As a direct result of this action, Domino’s saw its stock rise by 5,000% during the crisis and was one of very few brands to open hundreds of new locations – where many other retailers were reducing their footprints. Offering customers amazing value during times of financial hardship is a terrific way to keep them on board during such periods and beyond.
Final Thoughts
There you have our three biggest trends and predictions for the coming year. Just like in other industries we are seeing a far less significant focus on technological innovation and a stronger desire for smooth, simple, and convenient shopping experiences.
2023 is the year to go back to basics and make sure you are delighting your customers with your core experience. Efficiency, convenience, sustainability, and value are going to be the key brand differentiators customers are looking for over the rest of 2023 and into 2024.
These trends and more are sure to be part of the conversation at eTail Connect West 2023, being held in September, at the JW Marriott L.A. Live, Los Angeles, CA.
Download the agenda today for more information and insights.