Trends in E-commerce are like the sea for a sailor. You can’t just focus on what’s happening now; you must always look ahead. As we draw nearer to the end of 2022, let’s explore some of the trends that have stayed with us throughout the year, then explore some of the forecasted trends for the upcoming year.
Top Three Standout Trends in 2022
Let’s dive into the trends that have really shaped the year 2022, a transformational year where we saw the world start to come out of the Covid pandemic. The deep changes that we witnessed across all the various landscapes during the pandemic fundamentally altered many of the ways businesses and consumers interact together.
Trend #1: E-Commerce is constantly growing more competitive
It’s no surprise since the beginning of covid that the E-commerce space has become flooded with newcomers. From well-established businesses being forced to dial in their online presence to fresh startups looking to make a splash, everyone has an online presence these days.
In-depth reports from Statista show a 10.4% increase in total E-commerce sales in the past five years and is expected to grow even faster in the upcoming years. This rapid growth combined with a dilemma in the world of advertising is creating an interesting landscape forcing e-commerce businesses to become more creative.
The Dilemma: A war is being waged for the ever-decreasing consumer attention span. This leaves most businesses in an awkward position; how do you target something so fleeting? Between the constantly increasing cost of advertising and the reduced effectiveness of paid marketing, how do businesses go about attracting and retaining new customers?
The Resolution: The cure for this dilemma lies in the ability of a business/brand to attract and retain its customers through more long-term marketing strategies. A shift in focus to customer experience, loyalty programs, and personal messaging strategies to develop a deeper connection with your customers. Something Gameball can help you accomplish easily 😉
Trend #2: The Rise of Short-Form Video Content
Tiktok, Instagram Reels, Youtube Shorts, Snapchat. The list goes on and on with all the various platforms focused on video content. This is no surprise; video content is one of the most relatable and personal ways of sharing content. It allows the use of human elements and expresses much more creative and fluid visual elements to give your customers a more engaging experience.The primary focus of short-form video content is Virality; it may not connect as deeply with customers as long-form. However, if done well, it will allow you to connect to a much larger audience. So what are the keys to strong viral video content?
- Start with a powerful hook to capture and engage the audience immediately.
- The shorter, the better. Shorter videos often see more playthroughs than longer ones.
- You don’t need a full-scale Hollywood production; keep it simple and relatable.
- Be very clear on the message and intention of the video
- Utilize powerful and engaging captions and on-screen text for increased engagement
Trend #3: The Advent of Alternative Financing
The funding acquired by e-commerce businesses in Q2 of 2021 totaled $16.8 Billion, which is a five-fold increase compared to the same quarter a year before. Just let the enormity of that statistic sink in. With the ever-evolving need for advancement and innovation, many companies are looking for alternative means to finance their businesses.
The desire for alternative methods comes from some of the inadequacies of the current financial methods:
- Bank Loans are slow and time-consuming and don’t always offer great financial return rates
- This can become even more difficult if the borrower does not have collateral
- Angel investing & Venture Capital can be very difficult to get
- Equity dilution can be expensive and introduce new and difficult variable elements into the business
With all these issues facing businesses, many have started to opt for alternative financing methods. Methods that offer more flexibility and are tailored to the business and its more typical methods of operation. Some of the more common alternative financing methods to explore are:
- Revenue-Based Financing: A percentage of revenues is paid back automatically to the lender until the loan is paid off.
- Crowdfunding: Though it has been around for a while, it is gaining ever-increasing popularity. Companies can go directly to consumers and skip any intermediaries getting the consumers’ money early in exchange for the product and added benefits.
- Peer to Peer lending: Done mostly online and allowing you to pay back the full loan as soon as possible, this can be a great way to avoid the high-interest rates and slow payback of bank loans, though this can be risky due to its unregulated nature.
Top Five Predictions for 2023
Looking to the future, we can see some trends that are already beginning to form, but that will really shine and take their place in the year 2023. The best way to capitalize on these trends is to prepare and integrate them into your e-commerce experience where applicable.
Trend #1: Augment your reality
It’s no surprise with the transition of Facebook into Metaverse and the constant development of VR and AR technology, shopping will soon enter that space. Imagine the ability to simply try on any outfit from any store and figure out the sizing and the colors in seconds. Not to mention being able to join friends from anywhere worldwide on shopping excursions. Taking the time to begin factoring VR into your experiences will be huge for almost any business.
Trend #2: Sustainable Shopping & Green Consumerism
Simply put, almost all consumers are becoming more conscious of the impact that their decisions have on the planet. While it is true the main damage is caused by large businesses, many consumers are still choosing to do what they can to help reduce their overall impact. Many businesses are immediately eliminated from a large range of possible clients unless they decide to follow certain green & sustainable practices. This can begin with simple decisions for your business, such as using more sustainable packaging and introducing recycling schemes for your customers’ old products.
Trend #3: Subscription Models
Subscription-based models allow you to develop a deeper and more ongoing relationship with customers as they will receive products more regularly than one-time purchases. This allows for a more personalized experience for your customers, improved loyalty, and of course, more consistent revenue for you. Implementing a subscription box will vary from business to business but can be a powerful tool to connect you to your customers.
Trend #4: Post-purchase experience
Another critical trend is to develop a more interesting and customer-centric post-purchase experience. Customers are no longer satisfied with just receiving a product; there is a desire for follow-up from the company, accessible customer service, updates, and constant improvement.
Trend #5: Social Media Shopping
Last but certainly not least, something that has been in the background for a while but that will be booming in 2023 is social media shopping. Many businesses have still yet to integrate features like Instagram shopping which, when paired with influencer marketing, can be one of the most powerful ways to grow an e-commerce business to unforeseen heights.
You’re well equipped for the high sea sailor! No storm will hold you back from reaching the land of eternal growth and abundance, but if you’re looking to make a splash go check out the incredible features of our software and how it can help give you a turbo boost to your destination 🛥️