5 E-Commerce Trends in 2022
The digital economy boomed during the Covid-19 Pandemic. It was a turning point for e-commerce and retailers, pushing them to their limits in every possible way. We are still feeling the effect two year later, consumers have changed how they shop and these changes are here to stay. As we move into the "new normal" companies have to adapt to the new normal of e-commerce.
There are 5 big trends that are here to stay:
- Omnichannel
- Zero Party Data
- Flexible Checkout and Fulfillment
- Sustainability
- Social Commerce and Live Shopping Experiences
1. Omnichannel
Omnichannel has been a buzzword in e-commerce for years but the pandemic has made it a necessity. In 2020 a single sales channel was no longer enough to stand out in a crowded e-commerce market or busy social media. The omnichannel trend will not only stay but evolve in the next few years. Retailers have to meet their customers where their customers are and give a consistent brand experience wherever they are. Not only do people discover brands in many different ways they also shop in many different ways. Being where your audience is makes it more convenient for them to buy from you.
Selling on your site, Facebook, Instagram, Google Shopping and big retailers isn’t enough though. Customer experience should be seamless on mobile or laptop, on social media or messaging apps, at the shop or at a marketplace. Presenting a unified brand and user experience where your customer is makes it easier for them to recognize you and trust you.
To learn more read the 3 elements to omnichannel success.
2. Zero Party Data
Apple’s powerful change to data privacy protection killed a key source of customers and revenue for e-commerce. Soon Google will deprecate third party cookies in Chrome which will mark the demise of digital marketing as we have known it. Businesses will have to adapt to the changes or risk falling behind the competition. The loss of third party data from Facebook and Apple leaves brands with no option but to collect data directly from their customers and utilize it to their advantage in marketing and providing a personalized customer experience. This is what is known as zero-party data, it is collected with permission and directly from customers.
When this data is requested infrequently and used strategically, it is gold! Companies will know exactly what their customers want and customers will get just what they need, marketing will be more efficient and customer experience will be more pleasant.
3. Flexible Checkout & Fulfillment
The last two years have been pivotal for e-commerce, just as omnichannel grew and developed so has the checkout experience. Abandoned cart statistics show that almost half of abandoned carts are because of unexpected high costs at checkout, a quarter of abandoned carts are a consequence of an account creation requirement by the store and smaller percentage abandoned carts due to a long or complicated checkout process. Stores need to explore the best way to make checkout out quick and easy but also offer flexible checkout options. Customers want things speedy but they also want to decide how to pay and how to receive their orders.
This is when it can get tricky - too few payment and delivery options can lead to an abandoned cart while too many options can lead to confusion and customers will just leave. A basic rule is to have checkout completed in the least number of clicks as possible. Take a look at how competitors and big multinationals are offering the most convenient and cost effective checkout.
4. Sustainability
The importance of sustainability in retail bears more weight every year. Like everything else on this list, it has also seen a reawakening with the Covid-19 pandemic with an increased interest in health, safety and well-being. In a recent survey of consumers 61% said they had limited their use of single-use plastics in the last 12 months, 45% bought more locally produced products, and 28% stopped purchasing from a brand due to ethical and sustainability concerns. The demand for sustainability is not coming from consumers alone, it is called for by employees, investors, suppliers and distributors also.
When it comes to sustainability brands cannot take a short dip, it requires a deep dive into every aspect of a company from how products are designed, manufactured, and delivered, to the corporate impact on the environment. Green promises need to be solid and meaningful, people are well aware of the greenwashing that brands do. Donating money or offsetting sales do not equate to sustainability, consumers expect more and companies need to be more transparent. We are in a circular economy where the life cycle of a product is extended and waste must be reduced to a minimum.
5. Social Commerce & Live Shopping Experiences
Social Commerce is not new but it is now declared the new digital shopping revolution. The global social commerce industry is predicted to grow three times as fast as traditional ecommerce by 2025. Data Report shows that there are now 4.48 billion social media users around the world, which is equal to almost 57 percent of the world’s total population. Instead of disrupting people on social media by having customers leave to shop elsewhere businesses will have to take the whole shopping experience to social media if they want to grow with this digital trend.
Already big in Asia, Live Shopping has now made its way to the rest of the world and is touted to be the future of retail. Live selling allows retailers to engage with their customers directly and it allows customers to learn more about products without having to browse through product pages, customer reviews or shipping policies. The rise in number of Live Selling apps and agencies signals the calm before the boom, companies need to include this strategy if they want to stay ahead of the curve.
What is notable about social commerce and live shopping is that it is attainable and gives equal opportunity to big and small businesses alike, it can be lucrative in both established and developing markets.