Three Trends E-Commerce Companies Must Be On Top Of In 2023
By Alexandre de Vigan, CEO, Nfinite.
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Global e-commerce sales were projected to reach an all-time high of $5.7 trillion worldwide in 2022. However, growth is slowing as spiraling inflation, fears of a recession and supply chain woes take a toll on the e-commerce industry. Overall e-commerce sales growth is forecast to fall below 10% in the U.S. this year, its lowest level since 2009.
E-commerce businesses that want to prevail despite macroeconomic headwinds must stay on top of emerging trends. By doing so, enduring businesses can remain competitive and seize new opportunities as they emerge. Here are three key trends poised to shape the e-commerce landscape in 2023.
1. Sustainability Will No Longer Be Optional
E-commerce brands will increasingly be held accountable for their carbon footprint and sustainability results in 2023. A new generation of consumers takes a no-compromise approach to saving the environment and is willing to walk away from brands that ignore their carbon footprint and negatively impact the planet.
In 2023, online merchants won’t be able to just talk the talk. They’ll have to show their actions to reduce their climate impact and demonstrate their effectiveness in working toward a greener economy. I believe there will be greater urgency on this issue in 2023 than ever before. If consumers are dissatisfied with a brand’s sustainability efforts, they will vote with their wallets and leave that brand.
There are several actions e-commerce brands can take in 2023 to shrink their carbon footprint. For instance, they can make the shipping process more sustainable by introducing recycled, sustainable packaging materials. They can also choose carbon-neutral shipping options. In the U.S., for example, UPS offers retailers the option of paying a small fee to calculate and offset the climate impact of each package’s shipment. UPS offsets the emissions through supported projects.
E-commerce brands can also achieve sustainability by cutting down on returns. One way to do this is by providing detailed descriptions of their products online and 3D product images that add clarity for customers. For example, highly immersive computer-generated imagery can allow shoppers to experience products from all different angles and real-life contexts. This can increase the odds that they’ll be happy with their selections and help minimize returns. We surveyed 1,000 shoppers and found that 75% would return a product if the image displayed didn’t match the product received.
2. Efficiency Will Create Profit
Online retailers must be more efficient than ever in an inflationary environment where consumers are pinching their pennies. Those that can reduce overhead and cut costs will be able to pass those savings on to customers.
E-commerce companies can start being more efficient by cutting out expenses like printed catalogs and moving toward digital. They can also try negotiating with suppliers to work out advantageous arrangements such as a discount for early payment or prepayment. Additionally, they can add greater automation to their business. By using tools such as automation software, retailers can automate routine tasks such as data entry and order processing—freeing up time for employees to focus on more valuable activities. Retailers can also improve efficiency by collecting and analyzing data on customer behavior and other key metrics, thus helping them make informed decisions about how to improve their operations. As retailers adopt new digital technologies, it’s critical to ensure that employees are trained on how to use them effectively. This can help improve efficiency and ensure that the new tools are being used to their full potential.
Another task that online retailers can streamline through technology is the production of product images. E-commerce companies could consider leveraging technology that can create computer-generated 3D images in order to produce high-quality visuals, as CGI can be more cost-effective than a traditional photo shoot.
3. Immersive Experiences Will Boost Sales
Customers nowadays gravitate to online experiences that are more immersive and personalized. In 2023, the pressure will be on e-commerce companies to turn the customer journey into a memorable and engaging experience. Augmented reality and personalized experiences are especially important for Gen Z shoppers, as our survey found they are 42% more likely to purchase when engaging with immersive technology.
To create an immersive experience for your e-commerce business, start by determining the purpose of the experience. Is the goal to increase brand awareness and drive sales, or is it something else? Having a clear objective can help guide the design process. Next, create a story or theme for the immersive experience and choose elements like audio, video and interactive features to bring it to life. It’s also important to consider both accessibility and user-friendliness. Make sure that the experience is easily accessible to shoppers on a variety of devices and browsers. Additionally, ensure that it is easy to navigate and use, with a clear call to action guiding shoppers through the experience. Finally, track and analyze the results of the immersive experience. It’s critical to measure performance and use the data to identify areas for improvement and optimize future experiences.
Final Takeaway
Consumers increasingly desire greater choice and convenience and want to feel a deeper connection to the brands with which they engage. Moving forward, e-commerce brands will need to provide a more compelling and authentic experience for consumers that can help them achieve sustainability and create next-level efficiencies without raising costs or compromising time to market.
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