Blog
Ankur Goyal
Jul 10, 2023
5 mins to read
Key Takeaways
This is a part 2 of the E-commerce trends that businesses need to look out for in 2023. In this blog post, we will explore some of the top e-commerce trends that will shape the industry in 2023 and beyond. We will also discuss how e-commerce businesses can capitalize on these trends and achieve success in the competitive online market.
This is a continuation of our previous blog, if you haven’t read it, you can read it here.
1. Marketing Attribution
Marketing attribution is the process of identifying and measuring the impact of different marketing channels and touchpoints on customer behavior and conversions. Marketing attribution helps e-commerce businesses understand which marketing campaigns and strategies are working and which are not, and optimize their marketing budget and ROI accordingly.
Marketing attribution is not a new concept, but it will become more important and challenging in 2023, as e-commerce businesses face increasing competition, customer expectations, and data privacy regulations. E-commerce businesses will need to use advanced analytics tools and methods, such as multi-touch attribution models, artificial intelligence, and machine learning, to track and attribute customer journeys across multiple devices, platforms, and channels.
Some of the benefits of marketing attribution for e-commerce businesses are:
Improved customer insights
Marketing attribution helps e-commerce businesses gain a deeper understanding of their customers’ needs, preferences, behavior, and motivations. This enables them to create more personalized and relevant marketing messages and offers that resonate with their customers and drive conversions.
Optimized marketing performance
Marketing attribution helps e-commerce businesses measure the effectiveness of their marketing campaigns and strategies across different channels and touchpoints. This enables them to identify which channels and touchpoints are generating the most value and which are underperforming or wasting resources. This allows them to allocate their marketing budget more efficiently and improve their marketing ROI.
Enhanced customer loyalty
Marketing attribution helps e-commerce businesses deliver consistent and seamless customer experiences across different channels and touchpoints. This helps them build trust and loyalty with their customers and increase their retention and lifetime value.
To capitalize on marketing attribution in 2023, e-commerce businesses should:
Choose the right attribution model
There are different types of attribution models, such as last-click, first-click, linear, time-decay, position-based, etc., that assign different weights to different channels and touchpoints based on their role in the customer journey. E-commerce businesses should choose the attribution model that best suits their business goals, customer behavior, and data availability.
Use a cross-device tracking solution
Customers often use multiple devices, such as smartphones, tablets, laptops, etc., to research and purchase products online. E-commerce businesses should use a cross-device tracking solution that can link customer identities across different devices and provide a holistic view of their customer journeys.
Leverage artificial intelligence and machine learning
Artificial intelligence (AI) and machine learning (ML) can help e-commerce businesses analyze large amounts of data from different sources and provide actionable insights into customer behavior, preferences, intent, etc. E-commerce businesses can use AI and ML to create dynamic attribution models that can adapt to changing customer behavior patterns and market conditions.
2. Gamification
Gamification is the application of game elements and mechanics, such as points, badges, leaderboards, challenges, rewards, etc., to non-game contexts, such as e-commerce websites and apps. Gamification aims to increase user engagement, motivation, loyalty, and satisfaction by making online shopping more fun, interactive, and rewarding.
Gamification is not a new trend, but it will become more popular and sophisticated in 2023, as e-commerce businesses look for new ways to differentiate themselves from their competitors and attract and retain customers.
Gamification can help e-commerce businesses achieve various goals, such as:
Increasing traffic
Gamification can help e-commerce businesses drive more traffic to their websites and apps by creating viral effects, such as social sharing, referrals, invitations, etc.
Boosting Conversion rates
Gamification can help e-commerce businesses increase their conversion rates by creating a sense of urgency, scarcity, exclusivity, or reward. For example, offering a limited-time discount, a free gift, or a loyalty point for completing a purchase can motivate customers to buy more and faster.
Customer loyalty
Gamification can help e-commerce businesses build customer loyalty by creating a sense of community, belonging, and achievement. For example, offering badges, levels, leaderboards, or social recognition for repeat purchases, referrals, reviews, or other actions can make customers feel valued and appreciated.
To capitalize on gamification in 2023, e-commerce businesses should:
Choose the right gamification elements
There are different types of gamification elements, such as points, badges, leaderboards, challenges, rewards, etc., that appeal to different customer motivations and emotions. E-commerce businesses should choose the gamification elements that best suit their brand personality, product category, and customer segment.
Use gamification strategically
Gamification should not be used randomly or excessively, as it can lose its effectiveness or annoy customers. E-commerce businesses should use gamification strategically to achieve specific goals, such as increasing engagement, conversions, or loyalty. They should also test and measure the impact of gamification on their key performance indicators (KPIs).
Balance fun and function
Gamification should not compromise the functionality or usability of the e-commerce website or app. E-commerce businesses should balance fun and function by ensuring that gamification does not distract or confuse customers from their main shopping tasks. They should also provide clear instructions and feedback on how to play and win.
3. Live Streaming
Live streaming is the broadcasting of live video content over the internet to an audience. Live streaming has become a popular form of online entertainment and communication, especially during the Covid-19 pandemic, when people sought more social interaction and connection.
Live streaming is also a powerful tool for e-commerce businesses to showcase their products, interact with their customers, and drive sales. Live streaming combines the benefits of video marketing, influencer marketing, and social commerce in one platform.
Some of the benefits of live streaming for e-commerce businesses are:
Increased product exposure
Live streaming can help e-commerce businesses increase their product exposure by reaching a large and engaged audience. Live streaming can also showcase the features and benefits of products in a more realistic and authentic way than static images or videos.
Enhanced customer trustLive streaming can help e-commerce businesses enhance their customer trust by providing live demonstrations, reviews, testimonials, or Q&A sessions with experts or influencers. Live streaming can also allow customers to ask questions and get instant feedback from the host or other viewers.
Improved customer experience
Live streaming can help e-commerce businesses improve their customer experience by providing a more interactive and immersive shopping experience. Live streaming can also offer exclusive deals, discounts, or incentives to encourage customers to buy during or after the stream.
To capitalize on live streaming in 2023, e-commerce businesses should:
Choose the right platformThere are different platforms that offer live streaming capabilities, such as Facebook, Instagram, YouTube, TikTok, Amazon, etc. E-commerce businesses should choose the platform that best matches their brand identity, product category, and target audience. They should also consider the features and functionalities of each platform, such as shoppable links, chat options, analytics tools, etc.
Create engaging content
E-commerce businesses should create engaging content that showcases their products in an informative, entertaining, and persuasive way. They should also plan the content and structure of their live stream in advance, such as the introduction, the main points, the call to action, etc. They should also prepare for possible technical issues or interruptions and have backup plans.
Collaborate with influencers
E-commerce businesses can collaborate with influencers who have a large and loyal following on their chosen platform. Influencers can help e-commerce businesses reach new customers, build credibility, and generate sales. E-commerce businesses should choose influencers who are relevant to their niche, share their values, and have a good reputation.
4. Virtual Events
Virtual events are online events that allow people to participate remotely from anywhere in the world. Virtual events can be live or pre-recorded and can include various formats, such as webinars, workshops, conferences, trade shows, etc.
Virtual events have become more popular and prevalent in 2020 and 2021, as many physical events were canceled or postponed due to the Covid-19 pandemic. Virtual events offer a safe and cost-effective alternative to in-person events, while still providing opportunities for networking, learning, and showcasing products or services.
Some of the benefits of virtual events for e-commerce businesses are:
Increased reach and accessibility
Virtual events can help e-commerce businesses reach a wider and more diverse audience, as they eliminate geographical and logistical barriers. Virtual events can also be recorded and replayed, allowing attendees to access the content at their convenience and pace.
Reduced costs and environmental impact
Virtual events can help e-commerce businesses reduce their costs and environmental impact, as they do not require travel, accommodation, venue rental, catering, or printing. Virtual events can also save time and resources for both organizers and attendees.
Enhanced data and analytics
Virtual events can help e-commerce businesses collect and analyze more data and analytics on their attendees, such as their demographics, preferences, behavior, feedback, etc. This can help e-commerce businesses improve their marketing strategies, customer segmentation, personalization, and retention.
To capitalize on virtual events in 2023, e-commerce businesses should:
Choose the right platform
There are different platforms that offer virtual event solutions, such as Zoom, Webex, Google Meet, etc. E-commerce businesses should choose the platform that best suits their event goals, budget, and technical requirements. They should also consider the features and functionalities of each platform, such as registration, ticketing, live streaming, chat, polls, breakout rooms, etc.
Create engaging content
E-commerce businesses should create engaging content that showcases their products or services in an informative, entertaining, and persuasive way. They should also plan the content and structure of their virtual event in advance, such as the agenda, the speakers, the format, the duration, etc. They should also prepare for possible technical issues or interruptions and have backup plans.
Promote and follow up
E-commerce businesses should promote their virtual event to their target audience using various channels and methods, such as email marketing, social media marketing, influencer marketing, etc. They should also follow up with their attendees after the event to thank them for their participation, solicit feedback, offer incentives or discounts, or invite them to future events.
5. Chatbots
Chatbots are software applications that use natural language processing (NLP) and artificial intelligence (AI) to simulate human conversations with users via text or voice. Chatbots can be used for various purposes, such as customer service, sales, marketing, etc.
Chatbots have become more common and advanced in e-commerce, as they can provide 24/7 and instant support and assistance to customers on various platforms, such as websites, apps, social media, etc.
Some of the benefits of chatbots for e-commerce businesses are:
Improved customer satisfaction
Chatbots can help e-commerce businesses improve their customer satisfaction by providing fast, accurate, and personalized responses to customer queries, requests, or complaints. Chatbots can also handle multiple conversations at once and escalate complex issues to human agents when needed.
Increased sales and conversions
Chatbots can help e-commerce businesses increase their sales and conversions by providing product recommendations, upselling or cross-selling opportunities, discounts or coupons, or reminders to customers. Chatbots can also guide customers through the purchase process and reduce cart abandonment rates.
Enhanced data and insights
Chatbots can help e-commerce businesses collect and analyze more data and insights on their customers, such as their demographics, preferences, behavior, feedback, etc. This can help e-commerce businesses improve their product development, marketing strategies, customer segmentation, personalization, and retention.
To capitalize on chatbots in 2023, e-commerce businesses should:
Choose the right chatbot type
There are different types of chatbots, such as rule-based chatbots, AI chatbots, or hybrid chatbots. Rule-based chatbots follow predefined rules and scripts and can only handle simple and specific tasks. AI chatbots use machine learning and natural language processing to understand user intent and context and can handle complex and varied tasks. Hybrid chatbots combine both rule-based and AI features to provide a more balanced and flexible solution. E-commerce businesses should choose the chatbot type that best suits their business goals, customer needs, and technical capabilities.
Use a clear and consistent tone of voice
E-commerce businesses should use a clear and consistent tone of voice that matches their brand personality and customer expectations. They should also avoid using jargon, slang, or sarcasm that might confuse or offend customers.
Provide clear and concise responses
E-commerce businesses should provide clear and concise responses that answer customer queries or requests effectively. They should also avoid providing too much or too little information that might overwhelm or frustrate customers.
Use visual elements and emojis
E-commerce businesses can use visual elements and emojis to enhance their chatbot’s appearance and functionality. For example, they can use buttons, menus, images, videos, or gifs to provide options, suggestions, or feedback to customers. They can also use emojis to convey emotions, humor, or personality to customers.
6. Same Day Delivery
Same day delivery is the delivery of products or services on the same day that they are ordered online. Same day delivery is becoming more popular and expected by customers, especially in urban areas, where delivery times and costs are lower.
Same day delivery can provide a competitive advantage for e-commerce businesses, as it can increase customer satisfaction, loyalty, and retention. Same day delivery can also increase sales and conversions, as it can reduce cart abandonment rates and encourage impulse purchases.
Some of the benefits of same day delivery for e-commerce businesses are:
Improved customer satisfaction
Same day delivery can help e-commerce businesses improve their customer satisfaction by providing fast and convenient delivery options that meet customer needs and expectations. Same day delivery can also reduce customer complaints and returns, as customers can receive their products or services in good condition and quality.
Increased customer loyalty
Same day delivery can help e-commerce businesses increase their customer loyalty by creating a positive impression and reputation for their brand. Same day delivery can also increase customer referrals and word-of-mouth marketing, as customers can share their positive experiences with their friends and family.
Enhanced customer retention
Same day delivery can help e-commerce businesses enhance their customer retention by reducing customer churn and increasing repeat purchases. Same day delivery can also increase customer lifetime value, as customers can spend more and more often with the same brand.
To capitalize on same day delivery in 2023, e-commerce businesses should:
Choose the right delivery partner
E-commerce businesses should choose the right delivery partner that can provide reliable, efficient, and affordable same day delivery services. They should also consider the delivery partner’s coverage area, capacity, technology, security, and customer service.
Optimize their inventory management
E-commerce businesses should optimize their inventory management by using data and analytics to forecast demand, track inventory levels, replenish stock, and avoid overstocking or understocking. They should also use automation and integration tools to streamline their order fulfillment process and reduce errors and delays.
Communicate clearly with customers
E-commerce businesses should communicate clearly with customers about their same day delivery options, availability, costs, and terms and conditions. They should also provide real-time tracking and notifications to customers about their order status and delivery details. They should also solicit feedback and reviews from customers about their same day delivery experience and improve accordingly.
7. User Generated Content
User generated content (UGC) is any content created by users, such as reviews, ratings, testimonials, photos, videos, blogs, etc., that relates to a brand, product, or service. UGC is a powerful form of social proof and word-of-mouth marketing that can influence customer behavior and decisions.
UGC has become more prevalent and influential in e-commerce, as customers rely more on peer recommendations and opinions than on brand advertisements or claims. UGC can help e-commerce businesses build trust, credibility, and loyalty with their customers.
Some of the benefits of UGC for e-commerce businesses are:
Increased brand awareness and reachUGC can help e-commerce businesses increase their brand awareness and reach by exposing their products or services to new potential customers. UGC can also create viral effects, such as social sharing, referrals or hashtags, that can amplify their brand exposure and reach.
Enhanced SEO and conversions
UGC can help e-commerce businesses enhance their SEO and conversions by providing fresh, relevant, and keyword-rich content that can improve their ranking on search engines. UGC can also provide social proof and testimonials that can persuade potential customers to buy from them.
To capitalize on UGC in 2023, e-commerce businesses should:
Encourage UGC creation and sharing
E-commerce businesses should encourage their customers to create and share UGC about their products or services on various platforms, such as websites, apps, social media, etc. They can do this by offering incentives, such as discounts, coupons, or freebies; creating hashtags or challenges; or collaborating with influencers or advocates.
Display UGC on their website and app
E-commerce businesses should display UGC on their website and app to showcase their products or services in a more realistic and authentic way. They can use widgets, galleries, carousels, or sliders to display UGC on their homepage, product pages, checkout pages, etc. They can also use shoppable UGC features that allow customers to buy products directly from UGC images or videos.
Moderate and curate UGC
E-commerce businesses should moderate and curate UGC to ensure that it is relevant, appropriate, and high-quality. They can use tools and software that can filter out spam, offensive, or inappropriate content. They can also use tools and software that can help them select the best UGC for their website and app based on various criteria, such as popularity, engagement, relevance, etc.
8. Subscription Model
Subscription model is a business model that involves charging customers a recurring fee to access a product or service. Subscription model is becoming more popular and prevalent in e-commerce, as it offers convenience, value, and personalization to customers.
Subscription model can provide a competitive edge for e-commerce businesses, as it can increase customer loyalty, retention, and lifetime value. Subscription model can also increase sales and revenue stability, as it can generate predictable and recurring income.
Some of the benefits of subscription model for e-commerce businesses are:
Improved customer loyalty
Subscription model can help e-commerce businesses improve their customer loyalty by providing consistent and reliable delivery of products or services that meet customer needs and expectations. Subscription model can also create a sense of exclusivity and belonging for customers who subscribe to a brand or product.
Increased customer retention
Subscription model can help e-commerce businesses increase their customer retention by reducing customer churn and increasing repeat purchases. Subscription model can also offer incentives or rewards for customers who renew or upgrade their subscriptions.
Enhanced customer lifetime value
Subscription model can help e-commerce businesses enhance their customer lifetime value by increasing customer spending and frequency. Subscription model can also offer cross-selling or upselling opportunities for customers who subscribe to a product or service.
To capitalize on subscription model in 2023, e-commerce businesses should:
Choose the right subscription type
There are different types of subscription models, such as replenishment, curation, or access. Replenishment subscriptions involve delivering products that customers need regularly, such as toiletries, pet food, or groceries. Curation subscriptions involve delivering products that customers want occasionally, such as clothing, cosmetics, or books. Access subscriptions involve providing access to services or benefits that customers value, such as music, video, or fitness. E-commerce businesses should choose the subscription type that best suits their product category, customer segment, and value proposition.
Create a compelling offer
E-commerce businesses should create a compelling offer that attracts and retains customers to their subscription model. They should consider the pricing, frequency, duration, and flexibility of their subscription offer and how they compare to their competitors or alternatives. They should also consider the benefits, features, and differentiation of their subscription offer and how they communicate them to their customers.
Optimize the customer experience
E-commerce businesses should optimize the customer experience of their subscription model by providing easy and convenient sign-up, payment, delivery, and cancellation processes. They should also provide personalized and relevant content, recommendations, and feedback to their subscribers based on their preferences and behavior. They should also solicit feedback and reviews from their subscribers and improve accordingly.
9. Mobile First Approach
Mobile first approach is a design principle that involves designing websites or apps for mobile devices first and then adapting them for larger screens or devices. Mobile first approach is becoming more essential and inevitable in e-commerce, as more customers are using their mobile devices to browse and buy products online.
Mobile first approach can provide a better user experience and performance for e-commerce businesses, as it can optimize their websites or apps for speed, usability, and functionality on mobile devices. Mobile first approach can also improve their SEO and ranking on search engines, as Google favors mobile-friendly websites.
Some of the benefits of mobile first approach for e-commerce businesses are:
Improved customer satisfaction
Mobile first approach can help e-commerce businesses improve their customer satisfaction by providing fast loading, easy to navigate, and responsive websites or apps that adapt to different screen sizes and orientations. Mobile first approach can also reduce bounce rates and increase dwell times, as customers can find what they are looking for quickly and easily.
Increased sales and conversions
Mobile first approach can help e-commerce businesses increase their sales and conversions by providing a seamless and convenient shopping experience on mobile devices. Mobile first approach can also offer features such as click-to-call, geolocation, push notifications, or mobile wallets that can enhance customer engagement and loyalty.
Enhanced SEO and ranking
Mobile first approach can help e-commerce businesses enhance their SEO and ranking by complying with Google’s mobile-first indexing policy, which prioritizes mobile-friendly websites over desktop-only websites. Mobile first approach can also improve website speed, usability, and accessibility, which are important factors for SEO.
To capitalize on mobile first approach in 2023, e-commerce businesses should:
Use a responsive designResponsive design is a design technique that allows websites or apps to adjust their layout and content according to the screen size and orientation of the device. Responsive design ensures that websites or apps look good and function well on any device, from smartphones to tablets to desktops.
Optimize website speed
Website speed is a crucial factor for user experience and SEO, especially on mobile devices. E-commerce businesses should optimize their website speed by using techniques such as compression, caching, minification, or lazy loading to reduce the size and number of files that need to be downloaded by the browser.
Simplify website navigation
Website navigation is the process of finding and accessing information on a website. E-commerce businesses should simplify their website navigation by using techniques such as clear labels, intuitive menus, breadcrumbs, or search bars to help customers find what they are looking for easily and quickly.
9. Mobile First Approach
Mobile first approach is a design principle that involves designing websites or apps for mobile devices first and then adapting them for larger screens or devices. Mobile first approach is becoming more essential and inevitable in e-commerce, as more customers are using their mobile devices to browse and buy products online.
Mobile first approach can provide a better user experience and performance for e-commerce businesses, as it can optimize their websites or apps for speed, usability, and functionality on mobile devices. Mobile first approach can also improve their SEO and ranking on search engines, as Google favors mobile-friendly websites.
Some of the benefits of mobile first approach for e-commerce businesses are:
Improved customer satisfaction
Mobile first approach can help e-commerce businesses improve their customer satisfaction by providing fast loading, easy to navigate, and responsive websites or apps that adapt to different screen sizes and orientations. Mobile first approach can also reduce bounce rates and increase dwell times, as customers can find what they are looking for quickly and easily.
Increased sales and conversions
Mobile first approach can help e-commerce businesses increase their sales and conversions by providing a seamless and convenient shopping experience on mobile devices. Mobile first approach can also offer features such as click-to-call, geolocation, push notifications, or mobile wallets that can enhance customer engagement and loyalty.
Enhanced SEO and ranking
Mobile first approach can help e-commerce businesses enhance their SEO and ranking by complying with Google’s mobile-first indexing policy, which prioritizes mobile-friendly websites over desktop-only websites. Mobile first approach can also improve website speed, usability, and accessibility, which are important factors for SEO.
To capitalize on mobile first approach in 2023, e-commerce businesses should:
Use a responsive designResponsive design is a design technique that allows websites or apps to adjust their layout and content according to the screen size and orientation of the device. Responsive design ensures that websites or apps look good and function well on any device, from smartphones to tablets to desktops.
Optimize website speed
Website speed is a crucial factor for user experience and SEO, especially on mobile devices. E-commerce businesses should optimize their website speed by using techniques such as compression, caching, minification, or lazy loading to reduce the size and number of files that need to be downloaded by the browser.
Simplify website navigation
Website navigation is the process of finding and accessing information on a website. E-commerce businesses should simplify their website navigation by using techniques such as clear labels, intuitive menus, breadcrumbs, or search bars to help customers find what they are looking for easily and quickly.
Conclusion
Technology is constantly changing and so are the ways of doing business. To stay ahead of the curve, you need to keep up with the latest trends and innovations. We hope that this article has given you some useful insights and guidance on how to grow your business in the digital age. If you want to learn more, do stick around for more valuable content and tips.
