Top 5 Game-Changing ecommerce Trends to Watch Out for in 2023
The e-commerce sector has been hitting an all time high consistently for two years. As more and more people started working from home, online shopping turned into a haven for customers looking to purchase products without getting out of their homes.
There are over 26 million e-commerce sites across the entire globe, with more and more being created every day that focus on customer convenience and delivering quality products. In 2021, retail e-commerce sales amounted to approximately 4.9 trillion $ worldwide.
This figure is forecasted to grow by 50% over the next four years, reaching about 7.4 trillion $ by 2025. Another crucial report says e-commerce will account for a whopping 20.4% of global retail sales by the end of 2023.
These researched reports assure that the golden days of e-commerce have just begun. We have researched some latest trends and this blog here highlights the top five game changing e-commerce trends that would consistently fuel e-commerce growth in 2023.
1. Growth of Direct-to-Consumer (D2C brands)
There are as many as 800 D2C brands in India, and the D2C business is expected to be $100 billion by 2025. Currently, it is worth $44.6 billion at the end of the fiscal year 2021, compared to $33.1 billion in 2020.
So, what factors are behind the staggering growth story?
Factors such as rapid urbanization, growing ecommerce penetration, 4G/5G internet connection, cheaper smartphones with a growing list of features, safe payment methods, rising consumer interest in online shopping, an ever-increasing market for need-based products, and ease of doing business online have made India a hotbed for new-age brands wanting to connect with their customers directly.
Benefits of D2C e-commerce:
Profitable brand: Increase the brand profitability through the removal of retailer costs.
A popular choice among customers: 88% of consumers prefer buying directly from the manufacturer if given the option.
Control brand, messaging & customer data: As a D2C brand, you can enjoy total control over the brand, its products, messaging, customer data, pricing, and reputation.
2. Quick commerce
What is causing quick commerce to grow?
1. Customers doing unplanned, impulse instant need based buying
2. Higher number of order conversion rates as compared to ecommerce
3. Quick consumption of products and customers relying on convenience
4. Retail brand’s delivery ability to fulfill needs when the customer needs it
Successful retail brands deploying quick commerce strategy
Fynd - Fynd store's same day hyperlocal deliveries help retail brands reach an extended customer base locally, which in turn enhances their revenue.
Blinkit - The company has been acquired by Zomato and processes over a million orders per week.
Dunzo Daily - The Google backed company provides 19 minutes ultra fast delivery and plans to fulfill more than 75 million orders in 2023.
Zepto - Zepto uses dark stores concept (local fulfillment stores) to penetrate deeper into cities with traffic congestion. The company is growing by 200% every month with robust product infrastructure.
Swiggy Instamart - The Instamart delivers groceries in minutes just as fast as they deliver food. It has crossed 2 million transacting users in 2021 and continues to grow at a rapid pace.
3. Research Online Purchase Offline (ROPO) will rise
92% of end customers now seek information online before or during their store visit. The ROPO effect is something no shop owner can neglect, as 56% of shoppers visit physical stores first to see, touch, and feel products before they buy them. Another Google study says that online research is driving offline purchases. ROPO has become a vital segment of the omnichannel trend as it supports.
Buy Online Pickup in-store: Customers can buy products from the online brand store and pick up shopped products at nearby retail stores. ROPO has been identified as one of the most rising customer behaviours post-pandemic and is here to stay for these reasons:
1. It saves customers time researching the product and helps them purchase it soon once they have selected the products.
2. Ever-increasing numbers of customer reviews, product unboxing, usage videos, and blogs on the internet would only encourage more research prompting a rise in the ROPO effect.
3. It is a proven way to find authentic product retailers and prices before making the final step and buying the product in person.
4. Omnichannel Buzz- Integrating store Inventory to Marketplaces
The buzz around the word omnichannel will only get louder day by day. The technology is trending popularly, so every retailer wants to get their hands on it. Latest research in 2022 says that marketers using three or more channels in a campaign earned a 494% higher order rate than those using a single-channel campaign.
More and more retailers want to mark their entry into the omnichannel territory as they aim to expand their inventory across all channels. Integrating store inventory on e-commerce offers a wider exposure to the entire inventory a brand has to offer, naturally giving the much needed boost in sales. Hence, the buzzing trend!
Omnichannel retailing also offers customer experience that is cohesive and consistent across channels. It offers retailers the ability to manage customer experiences across different channels, providing customers with a more seamless shopping experience.
In addition, it allows retail businesses to manage inventory and pricing across all channels, synchronize promotions, and better understand customer behavior. Popular brands that have adopted omnichannel in every business category:
Furniture & Comfort: Godrej Interio, Ikea, PepperFry, Value City furniture, Casper, Purple, Joybird
Beauty: Sephora, Glossier, Estee Lauder, Ulta Beauty, MAC Cosmetics, Benefit Cosmetics
Luxury: Gucci, Burberry, Louis Vuitton, Michael Kors, Tiffany & Co, Cartier
D2C: Dollar Shave, Zlade, MamaEarth, Simplycook
Fashion: Topshop, Neiman Marcus, Oasis Fashion, Nordstrom, Canada Goose
Retail brands: Aquazurra, Superdry, Lulelemon, Target, Kohl’s
Which omnichannel platform to choose for your retail brand?
If you are a retail brand looking to enhance your sales and expose maximum inventory on e-commerce channels, omnichannel SaaS platforms like Fynd can help. Fynd offers marketplaces integration to India’s top marketplaces like Myntra, Amazon, Flipkart, TataCliq, Nykaa and so on.
Fynd has also integrated with marketplaces like MagicPin for hyperlocal deliveries in the Fashion segment. Fynd offers APIs for seamless integration of all your stores to these marketplaces.
Brands can manage orders from all marketplaces in a single view panel on Fynd OMS. Fynd also offers constant insights and guides through actionables to attain high growth on all e-commerce platforms.
5. Use of Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR)
AI, AR/VR are the most trending technologies in almost all areas of business, e-commerce being no exception. Smart use of smart technologies have led brands to create massive impact on customer experience and sales.
The number of enterprises implementing artificial intelligence (AI) grew by 270% in the past four years. 51% of e-commerce players have implemented automation technologies across sales, marketing, and customer service teams to ensure a seamless user experience for customers.
Future areas in which AI will help e-commerce businesses:
- Site search.
- Customer services
Fig: Future areas in which AI will help e-commerce businesses. The above research says that 70% of e-commerce decision-makers would help their business with personalization.
Augmented Reality & Virtual Reality
32% of customers are already using AR while shopping. 48% of customers who use their smartphones to shop expect all beauty brands to use AR. The global augmented reality (AR), virtual reality (VR), and mixed reality (MR) markets reached 28 billion U.S. dollars in 2021, rising to over 250 billion U.S. dollars by 2028.
Adoption of VR in e-commerce can boost online shopping conversion by 17%. The average conversion rate for e-commerce is 2%. Over 1.2 lakh stores will be using augmented reality in 2022, while 71% of customers say they are inclined to shop with e-commerce brands that use virtual reality more often.
How are E-Commerce Businesses using Augmented Reality & Virtual Reality Solutions?
Try products before buying: You can view the furniture before purchase using AR apps on your smartphone and then buy it worry-free.
Bring the store to the shopper: Augmented Reality technology offers an immersive experience with 3D visualizations that help customers enter the virtual showroom, thereby bringing the store to the shopper.
Check products virtually: e-commerce businesses use Augmented Reality to provide virtual try-on solutions for products such as jewellery, clothes, makeup, sunglasses, shoes, and more. The virtual try-on experiences make shoppers feel more comfortable with online purchases.
Visit virtual stores: VR technology enables customers to visit your virtual storefront online from the comfort of their homes. They can experience browsing through clothing racks similarly to being inside a store, and they can also meet friends and shop together in real-time.
Get higher conversion rates: Products advertised with AR/VR content see a 94% higher conversion rate than products without that content.
The e-commerce landscape is constantly changing. In 2023, e-tailers need to focus on leveraging on omnichannel e-commerce and technologies like AI, AR/VR. They also need to prioritize their online presence as maximum customers prefer searching online before purchasing offline.
Customer’s preference to buy directly from manufacturers also indicate the need to have D2C ecommerce platforms.
To find out how your ecommerce business can capitalize on these trends, connect with Fynd today. The brand has been named to Fast Company's prestigious annual list of the world's most innovative companies in the Asia Pacific for 2022.
It has helped fast-track the omni channel growth of world-class brands like Nike, Diesel, Clarks, Hamleys, Charles & Keith, Hunke Moller, Superdry, Woodland & more using its industry-recognized omnichannel solutions. You can connect to the experts to learn more about Fynd's omnichannel solutions and how it can help your business scale up on e-commerce.