It is difficult to predict the future of e-commerce. Still, we will try to put into words what we can expect from the industry in 2023. And this may be your chance to prepare yourself in a world what is otherwise changeable and unpredictable.
While 64 % of businesses globally are still recovering from COVID19, 2022 also saw new and significant societal developments. And it leaves its traces into 2023 which is worth considering for all people working with e-commerce. Inflation, the war in Ukraine, changing consumption habits, and much more presented challenges for most companies in 2022 - and there are many indications that this will continue into 2023.
The really big questions then become: What can we expect from 2023? What should we be aware of? And what should we do differently?
You get the answers to that and much more in the blog post here. We give you an overview of e-commerce trends in 2023 and what you can look forward to good and bad. Let us get started.
Inflation will (also) Affect Companies in 2023
Inflation was a negative factor for most in 2022, and many concerns have stuck with business owners:
- 83 % are very worried about the impact of inflation on business growth.
- 82 % say inflation is forcing them to reduce business costs.
- 81 % plan to increase product prices due to inflation.
- 71 % prepare their business for economic downturn in 2023.
Source: ShopifyPlus, Commerce Trends 2023
It does not look like the high prices will go away in 2023, and that is causing concerns for both consumers and businesses. Therefore, there is good reason to think creatively as an e-commerce player in 2023. Perhaps it is time to expand your solutions so that your range consists of different price ranges. In this way. your business is not dependent on revenue from one product group which is nevertheless difficult and expensive to sell due to inflation.
It may also be that your company needs to have more transparency in the processes so that the consumer understands why and how the prices are different in 2023. Like so many other things honesty is the way - It arouses empathy, trust, and security in the consumer.
Delayed Supply Chains
After COVID19 experts had expected 2023 to be the year when supply chains returned to normal. But the war between Ukraine and Russia puts and end to that. Studies show that delayed supply chains can cause economic losses of up to 62 % globally (source: ShopifyPlus, Commerce Trends 2023).
Challenges in the supply chains can mean that brands find it difficult to deliver goods. And it will also be a big challenge in 2023 as most consumers expect delivery of their purchases within 2 working days. In practice the issue may be difficult for you to do much about: The fact is that social crises affect production and delivery for many companies.
Expectations for Brands are Rising
Expectations are rising as consumer behavior changes. Consumers have options like never before, and this only makes the demands on brands even higher. If consumers cannot find what they are looking for and at the right price they can easily get their needs fulfilled elsewhere.
7 out of 10 consumers bought from the competitor of their otherwise go-to brand last year. And if both inflation and high expectations continue in 2023 it will not be the last time that consumers shop around between brands to find the best deals and prices.
In 2023 consumers are not only focused on prices. Again this year consumers want to support ethical companies with sustainable supply chains.
This gives new expectations to brands which must not only offer the right products, but they must also be wrapped in both competitive prices and environmentally conscious messages - otherwise you risk that consumers will quickly move on to the next one. That is why this year it is again about creating good and environmentally conscious customer experiences - That is the way to revenue in 2023.
Influencer-marketing Remains Popular in 2023
In 2023 influencer-marketing will constitute a decisive trend for many and be a tool to overcome the many third-party challenges.
During the pandemic customer loyalty among consumers decreased where 3 out of 4 consumers trying a new brand, product, or purchase method. And when the pandemic came to an end 41 % of consumers broke with their brand loyalty to try new options (Source: ShopifyPlus, Commerce Trends 2023).
When customer loyalty decreases and competition in the market increases it becomes difficult for companies to convert both new customers and to retain loyal customers.
Influencer-marketing has been popular for many years but it had a very special effect during the many lockdowns which made it difficult for the consumer to experience, see, and test the goods. Therefore there were many companies that took hold of influencer-marketing as a new means of showing off goods in the form of unboxing and tryouts.
And it is a trend that continues into 2023. 7 out of 10 companies expect online influencers to only become even more important in 2023. So if you have not tried influencer-marketing yet, then 2023 should be the year where you try that strategy!
Social ecommerce is Becoming More Interactive
Social media is becoming an increasingly important part of the ecommerce landscape - users use social media to discover, be inspired, and even to buy.
9 out of 10 people buy from brands they follow on social media. Social media commerce reduces the friction between discovery and conversion, simplifying one-to-one engagement and potential sales.
It probably does not come as a surprise. Also in 2023 the use of social media for marketing and promotions is the most important strategy for acquiring new and retaining existing customers.
Social media is a tool for many companies to capture the target audience in a pleasant and natural way. Consumers find themselves in a media landscape with a lot of noise and inboxes filled with sales messages from a ton of companies. When social media is used thoughtfully, creatively, and purposefully it can be a means of engaging users in a more enjoyable and inspiring way.
Therefore even in 2023 social media is the ultimative tool for companies to drive growth - and we dare to say that it will remain so for the next several years.
The question is whether you manage to use the social platforms most effectively, and not least whether you use the channels where your target audience is actually located.
DR Medieudvikling 2022 shows among other things that TikTok has a grown from a niche medium to become common property. The weekly users aged 15-29 have increased from 3 % in 2019 to a staggering 41 % in 2022. If your target group is within this age group TikTok is an obvious medium to use in 2023.
In addition to capturing attention you can also use social media to impress your customers with other interactive features. Here is a selection of the ways you can create interactive experiences for your customers:
- Chat with your customers in real time:
More and more consumers love to use messaging brands over WhatsApp, Instagram, or Messenger when they need help or want to interact with your great stories.
In 2023 there are many ways to interact with the consumer. It can be a live chat with direct connection to your customer service so customers can get answers to their urgent questions. Or with AI-powered chatbots that make work easier for you and the experience more personal for your customers.
Several studies show that consumers spend more when their shopping experience is personalized. So this year it is about making an effort to create personal customer experiences.
- Make it easy to purchase through social media
With 'Buy now' buttons and similar shopping tools on social channels you make it simple for your customers to buy goods. A study from 2022 paints a clear picture of the progress of purchases through social media:
- 48,7 % of consumers made a purchase through YouTube more than once in 2022.
- 55,8 % of consumers made a purchase through Instagram more than once in 2022.
- 54,8 % of consumers made a purchase through Facebook more than once in 2022.
- 37 % of consumers made a purchase through Twitter more than once in 2022.
Source: ShopifyPlus, Commerce Trends 2023
With company profiles on various social media you can easily link from your photos or videos to the product itself from which your followers can make a purchase. Maybe your company is already present on several different platforms and that is good. Multichannel marketing is a strategy that will be indispensable in 2023!
The blog post began with the following question: What can we expect from 2023? What should we be aware of? And what should we do differently?
The bottom line is that we can expect social crises such as inflation and war to require both adaptation and patience from all of us - What we could do yesterday we may not be able to do tomorrow. We must be aware that consumer expectations are constantly increasing and changing. And maybe 2023 is the year when it is time to give influencer-marketing, social media, and multichannel marketing a loving hand.