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8 trends that will impact your e-commerce sales in 2022

8 trends that will impact your e-commerce sales in 2022

The buzz around eCommerce has inspired brick-and-mortar merchants to break their crystal ball and pull up digital curtains.

With eCommerce expanding over the years, businesses need to toss out traditional merchanting to acquire new customers as well as retain existing ones.

When customer demands around the world are reshaping the market, these statistics exemplify the future of the eCommerce industry.

  • The global eCommerce market is expected to total $5.55 trillion in 2022
  •  Social commerce sales are expected to reach around 2.9 trillion by 2026
  • 65% of consumers prefer content in their language

Previously, DTC models served lower prices, higher margins, and one-to-one customer relationships. Likewise, eCommerce was simple too:

  • Launch the products
  • Reach customers via paid media
  • Convert the early birds

Amidst lower competition and lower-paid advertisement, online sales paved the way for immense growth. But today, the market is huge and so is the competition.

With bottleneck competition, retailers are implementing some exciting innovations to stand out. Inventions like augmented reality (AR), artificial intelligence (AI), virtual reality (VR), voice-enabled search, etc., are fueling up the eCommerce industry.

Now, customers are hoping for more than just an easy shopping experience. From smartphone purchases to the fastest delivery, customer expectations are moving up the ladder.

To succeed in the ever-changing world of eCommerce, it is vital that you’re always looking ahead and anticipating how trends will affect your business. The adaptation and integration of these 7 trends, will give you an edge over the competitors in 2022.

Augmented Reality 

Virtual Try on

“Augmented Reality takes a digital experience and enhances it with an overlay of real life. The overriding principle is that the viewer has an enhanced sense of reality.” Experts think that it’s only a matter of time before this technology changes the eCommerce game.

AR is the new way to shop! This technology is changing the way we shop for clothing, food, and other items we use for our everyday lives. Some eCommerce brands are already capitalizing on this trend by incorporating AR technology to offer consumers a more immersive experience.

It has been around for years, but in recent times it has become more prevalent with the rise of Augmented Reality apps and games. Two examples are Pokémon GO and Snapchat filters.

This industry is forecasted to reach around $300 billion industry by 2024 globally. Consumers are now becoming accustomed to the idea of interacting with their devices through augmented reality, and it is an effective way for brands to get their products in front of customers in new ways.

For example, selecting the right product online is a brain scratcher, but with virtual try-on and AR, the process becomes just like an offline mode. Recently, Sugar cosmetic has launched a filter on Instagram, “wheel of love by trysugar”, enabling buyers to try the lip shade virtually before the purchase.

Subscription model

Adding new customers to the funnel is as difficult as retaining the existing ones. Finding the way out, e-commerce is now adopting the subscription model to complement one-off purchases.

According to recent research,

  • The subscription industry is forecasted to reach around  $240 billion globally by 2022.
  • In past years, subscription businesses have grown 5-8x faster than traditional businesses.
  • 70% of businesses will be adopting subscription models as key prospects in the years ahead.
  • 64% of customers feel more connected to companies with whom they have subscribed versus companies where they simply make one-off purchases.

In between daily hustle, customers would like to buy products as they need and pay just once. But with ease of recurring sales, this model brings its cons- one of them is a failed payment method.

Most of the customers move away due to payment issues which can cause a crack in e-commerce revenue.

To overcome this, businesses should integrate a strong customer support team to restore failed payments and employ efficient strategies for subscription models. Some of the brands following this model are:

  • Huel – a food e-commerce brand selling nutrition-rich meals. They offer both one-off purchases and subscriptions.
  • KiwiCo – an Edu-tech brand that shares subscription boxes for kids as per the age and educational needs of children.
  • Singles Swag – a brand delivering a box filled with different beauty products to subscribed women every month.

 

Mobile experience 

Shopping on the go has become a norm in today’s world. The shift to digital means that brick-and-mortar stores have had to adapt their business models, embracing omnichannel shopping.

According to a market survey, smartphone retail e-commerce sales are expected to pass $432 billion. As a result, e-commerce companies have also started optimizing their experiences for mobile to compete with the success of brick-and-mortar stores.

Some studies also show that smartphone usage will grow by an estimated 23% and mobile phone spending is set to increase by a whopping 52%. Mobile shopping will account for more than half of all e-commerce revenue by 2022.

Since mobile experiences are becoming more and more important. It’s a major trend that will continue to be so.

E-commerce is adopting both faster payments and visual search for immersive customer experience. For example, Myntra allows you to upload product photos and find similar products.

The search algorithm is such that it will display search-specific results among thousands of products in just a few seconds. In 2022, more eCommerce businesses will try to integrate these to go beyond the customer experience.

 

Artificial Intelligence 

Artificial intelligence (AI) is the big buzzword in the world of eCommerce, with many predicting it will soon become a game-changer. One of the most important factors for an e-commerce company to succeed is to have an accurate and predictive model that can predict what customers want.

In today’s hyper-competitive e-commerce environment, customers are giving companies fewer and fewer chances to prove their worth. As a result, businesses are looking for every advantage they can get to stand out from the competition.

According to a survey by Accenture, more than 90% of customers expect brands to offer personalized product suggestions based on their previous purchases.

AI predictive models use data mining to analyze information about past customer purchases and predict what they might want to buy in the future, thereby having several benefits.

Thus it helps retailers make better decisions on how to strategically market their products.

Metaverse and game 

Virtual reality is about to change the way we shop. We’re quickly moving towards a future where we can log on to our favorite gaming platform, browse for new kicks and purchase them in seconds.

With the success of virtual reality games, like “Clash of Clans” and “FIFA 17″, it seems that this idea isn’t too far off from becoming a reality.

In this millennial-driven generation, we will be looking at two major trends in eCommerce: how brands are partnering with gaming platforms to sell their products and how brands are selling their products on the gaming platform itself.

When it comes to the business of eCommerce, gaming might seem like an unlikely place to find success. But now, more and more fashion brands are seeing this as an opportunity to reach these coveted positions.

Over the last year, several brands have been partnering with gaming companies to create virtual items for their clothing lines, and even marketing their products in games like Fortnite.

With this rise of digital natives and a new generation of young shoppers, retailers should adapt their strategies to meet this changing demographic and catch more customers.

Rich product content 

Product content is absolutely imperative for any basic eCommerce (and distributed commerce) effort. After all, when you’re shopping on the internet, you can’t physically view.

But product content is more than just product images and descriptions. It’s videos, customer reviews, blogs, articles, how-to videos, product videos, and more.

When a potential customer reaches an e-commerce site, the window for your product to get in their cart is just a few seconds. In the midst of thousands of products, you need to make your product stand out from the competition.

As per the market research:

Along with accurate product descriptions and how-to-videos, product images remain important deciding factors. For this, several brands are spending huge sums of money on product photography and cataloging.

Imagine, spending hundreds of dollars on product photography and still not making the way to the customer’s cart.

As costly as it sounds, brands like Amazon, Flipkart, Facebook Marketplace are now exploring ways to spend less on product photography and still create an extraordinary online inventory list.

With an end-to-end photoshoot automation platform; SpyneAI helps sellers with AI-generated output at 500x faster speed and much lesser cost.

 

Content marketing and social media

We’re living in the golden age of content marketing, where anyone can share their opinion with the world. Do you know how to leverage it?

Content marketing is one of the best ways to build your brand for an eCommerce business by creating content that your target audience will love. But to start, you may feel daunted -how do you know what to write about? How do you find sources with good material?

The best practice is to start out by writing content related to your product’s challenges. This will help attract buyers who are looking specifically for a solution to their problems. Your content must be well-written, valuable, and informative

When most people think of content marketing their first thoughts go to the words “blogging” and “video marketing”. While these are extremely effective techniques to attract and convert prospects.

Some of the brands are integrating quizzes to engage their customers and give a more personalized experience. Skincare/hair care brands like True Oil are serving users based on the answers from the quiz.

Be it your website or social media, content plays an important role to drive users and pursue them for the purchase.

Interactive Chat Bots

Customer service is one of the most important aspects of any online business. But sometimes it can be difficult for a business to answer all customer inquiries at a given time.

If you’re wondering how to make your e-commerce site more customer-friendly, take a look at interactive chatbots! These are great for supplementing your sales team, answering questions, and offering customer service.

Technology is changing the way that businesses interact with customers and vice versa. Chatbots are a great place to start in order to ensure customer satisfaction.

The adoption of chatbots has been dramatically changing the way buyers interact with eCommerce and this has already started to disrupt the way that brands have traditionally communicated with their customers.

Tapping the technology, eCommerce implemented chatbots to connect with their customers which often increase engagement and reduce the time spent on site, which increases conversion rates.

Along with higher engagement, it helps in establishing a deeper relationship with the customers by providing them with personalized, conversational interactions.

Conclusion

Retailers never have it easy. There’s always a new trend coming around the corner to disrupt everything you’re doing. In today’s climate, if you’re in the business of selling products to consumers, then you’re already selling online.

In fact, it’s hard to find a retail company today that isn’t either transitioning entirely to an online presence or supplementing their brick and mortar store with a robust e-commerce arm.

But even with this shift, retailers need to embrace modern e-commerce techniques to be the master of the game. This is the perfect time for retailers to start thinking about the future and adopt these trends and stay ahead of the competition.

It’s never too late to start!

Written By – Divya Jain on 15 Feb, 2022

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