13 E-commerce Trends that Will Accelerate Online Growth in 2023

The E-commerce sector has witnessed massive growth in the past two years. This growth is mainly attributed to the pandemic and fairly to digitalization. Now that the restriction around the pandemic is over, speculation around E-commerce trends is rising. With the additional availability of multiple marketing channels at their disposal, what will be the significant challenges and growth opportunities for marketers?

As per a recent Global Consumer Trends report published by MoEngage, there is a 42% growth in DAU for E-commerce platforms. Moreover, the bonus point for marketers is a rise in stickiness for E-commerce platforms by 27%.

Evidently, E-commerce is set to accelerate in the post-pandemic era as well, owing to the growing number of mobile customers. A report states that internet penetration in UAE is likely to reach 96% by 2025. The availability of the internet will impact the consumer shopping pattern.

The rise of the E-commerce sector is accredited to the ease of shopping from multiple stores simultaneously from the comfort of home. Consumers have enough options to browse from, unlike offline shopping.  The entire shopping procedure is less time-consuming, and the convenience of delivery at the doorstep. Minimal operating costs and lower entry barriers offer a competitive edge for the E-commerce sector compared to offline stores.

Brands must adhere to the emerging E-commerce trends to thrive in the E-commerce space and make every shift count.

Recently, we spoke to growth marketers and E-commerce experts from multiple industries to collect insights on E-commerce trends for 2023 and beyond. Here is a compilation of 13 latest E-commerce trends and experts take on the future of the E-commerce industry-

1. AI-Powered Chatbots to Attract and Retain Customers

Everywhere and everyone is talking about chatGPT and its beautiful features. It is probably about time we also integrate AI into our E-commerce sector.

According to Mike Nemeroff, CEO- of Rush Order Tees, “Providing a delightful customer experience throughout the customer buyer journey is a challenge. Customers are constantly looking for hyper-personalization and on-demand resolutions”.

To overcome the challenge, marketers will opt for AI-powered chatbots to address queries and provide immediate customer support without delay. Conversational AI will become the foremost choice of B2C brands to facilitate first-level interaction.

Moreover, AI- algorithms will analyze customer data, purchase patterns, and individual preferences to suggest relevant products. Such product recommendations will boost customer engagement and conversions.

2. Expand Omnichannel Capacity to Provide Seamless Shopping Experiences

Brands have been leveraging data from multiple touchpoints to create a single view of the customer profile. The practice has provided a seamless shopping experience to customers, regardless of platforms. A unified database has also enabled a fluid transition between online and offline stores. However, E-commerce trends for 2023 will be about integrating technology with insights.

“In order to expand omnichannel capacity, brands will be integrating cutting-edge technologies such as Augmented Reality (AR) and Virtual Reality (VR) to provide an immersive experience online,” says David Cohen, CEO-Flower Station.

Steve Rose, VP- Money Transfer, predicts 2023 as a turning point for E-commerce trends.

For example, L’Oréal, a global leader in beauty and personal care, is one company trying new ways to use sound technology to let consumers smell things on their phones. Meanwhile, AmorePacific, a South Korean beauty brand, collaborated with MIT to develop a skin-measurement gadget that allows customers to analyze how their skin reacts to various stimuli.

 

Consumers are looking for more immersive experiences, and marketers who appeal to shoppers’ sense of style stand to benefit the most.

3. Social Commerce for Customer Engagement in Real-Time

As per a report, 4.8 billion consumers use social media across the globe. The number accounts for 59.9% of the total population. Social commerce is witnessing a considerable leap owing to its interactive nature. 

“It enables brands to engage with customers in real-time using creative campaigns, sharing personal stories, and demonstrating product usage,” speaks the CEO of Shirtmax.

According to a report, social commerce sales will reach around 2.9  trillion U.S. dollars by 2026.

Most of these social media platforms have allowed the creation of shoppable ads and posts. As a result, customers can shop directly from the social platform eliminating the need for customers to navigate to the brand’s website.

As a part of E-commerce trends, marketers will create targeted ads to reach their intended audience, contributing to a higher conversion rate.

4. Mobile Commerce Expands Customer Base

With the surge in mobile customers globally, m-commerce (also called mobile commerce) has become a driving force in the retail and E-commerce sectors.

Bella Williams, Founder of Skin Cell, predicts that mobile commerce will contribute 72.9% of E-commerce sales in 2023. The principal driving factors would be the ease of online transactions and the convenience of mobile phone shopping. She further explained that the basis of her predictions was the growing connectivity across borders because of the internet.

Mobile commerce removes barriers associated with brick-and-mortar stores, locations, and fixed business hours. With mobile devices, consumers can shop regardless of geographical and payment concerns. Social media integration and mobile marketing strategy (such as push notifications and SMS marketing) are imperative in the omnichannel stack to enhance customer engagement. They help marketers attract new customers and build customer base worldwide.

5. Packaging Emerges as Brand Quotient Among Eco-conscious Customers

Packaging has become a crucial component in visual engagement. In a survey, 51%  of respondents confirmed that customized or printer packaging gave a sense of the valuable product.

Marketers are developing E-commerce packaging plans with an understanding of consumer trends and behavior. Nowadays, consumers, particularly Gen Z, are becoming environmentally conscious. As a result, marketers are opting for biodegradable, recyclable, and eco-friendly packaging materials that align with customers’ expectations and values.

Ryan Mckenzie, CEO-Tru Earth, says, “Online customers would pick a company that utilizes sustainable packaging over the one that doesn’t.”

6. Multiple Payment Options Transcend Geographical Boundaries

Marc Hardgrove, CEO-The HOTH, predicts that “payment channels on E-commerce platforms are likely to grow by 65-72% in 2023”. This E-commerce trend will help minimize cart abandonment rates and retain more customers owing to no payment barrier.

Consumers like to choose the payment plan at their convenience. As a result, E-commerce platforms with limited payment options have recorded high cart abandonment rates in the past. Cash transaction has remained a major challenge in the expansion of E-commerce sector. As a part of the E-commerce trends of 2023, online businesses will focus on providing multiple payment options.

Research suggests that BPNL customers will grow from 45.1 million in 2021 to 76.6 million in 2025.

“The payment plan enables consumers to avoid paying for their purchase at once, which is one of the major challenges,” says Stacy Kane from Easy Merchant, a UK-based packaging firm. 

She adds that this payment flexibility option will likely enable customers to make a purchase immediately. It will also be a viable way for online retailers to attract new customers and build loyalty.

Moreover, retailers are adopting the BPNL model because it- 

• Helps in minimizing cart abandonment rate
• Speeds up the check-out process
• Increases the average order value 

Boosts conversion rates and sales immediately

Financial flexibility facilitates a smooth shopping experience for consumers regardless of region. At the same time, brands can boost their conversion rate and would be able to expand their consumer base globally.

7. Hyper-personalization Bridges the Gap between Brands and Customers

Earlier, the focus was to provide a personalized experience to a segment of customers. These segments were divided based on age group, gender, demographic, income, and other factors.


In 2o23, customers seek tailored experiences and personalized product recommendations according to their preferences, location, demography, and buying history. Beyond product recommendations, website personalization factors such as landing page, product display page, and language also play a vital role in withholding consumers’ attention throughout the journey.  To serve customized experiences, brands are shifting towards hyper-personalization.

“Application of AI and ML-based tools will empower marketers to optimize the customer experience at scale. With such tools at their disposal, marketers will be able to engage with one customer at a time”, says Gordon Frayne, Founder of Aztech Digital.  It would be fair to say that hyper-personalization will bridge the gap between customers and brands.

Febra Alexander, the founder of Doggy Bag Treat, explains the importance of hyper-personalization as an integral part of customer service: “As a part of hyper-personalization, we have included customization options. It helps our customers to curate their unique and exclusive product lines. This application has increased customer engagement and resulted in better sales. Increased customer engagement has also helped us to gain loyal customers over time”.

8. Gamification Increases In-app Activity and User-Engagement

Gamification of E-commerce apps emerged as a new-age engagement and retention strategy. In declining attention spans, integrating games in E-commerce apps will likely attract customers and foster loyalty while keeping the fun factor intact.

Marketers leverage games to introduce fun and challenging elements to enhance in-app activity time. For example, quizzes provide consumers with information and encourage them to interact with apps and discover new products.

Meanwhile, scoring rewards as points for the next purchase gives customers a sense of achievement. It influences app stickiness and drives customer engagement.

9. Sustainability-focused Products and Brand Transparency Provide a Competitive Edge

Many online shoppers opt for green commerce, especially millennials and Gen Z. Price is gradually taking a back seat in the race to purchase sustainable products. Carbon emissions, packaging materials, energy efficiency, and environmental conservation drive the shift toward sustainable shopping. 

Kadam Rohan, E-commerce manager at Biking Know How, says, “Consumers are becoming more conscious about the environmental impact of their purchasing decisions. Brands will need to prioritize sustainability and environmental responsibility in their operations and supply chains to stay competitive and relevant in the long run”.

The number of consumers who interact only with conscious brands is growing. In such a case, transparency will play a crucial role in building a trustworthy customer relationship in the long run.

Sustainability-focused products will be a significant E-commerce trend in 2023 for consumer brands. The E-commerce managers will aim to provide as much information as possible about the product and its manufacturing process.  To foster engagement and loyalty, marketers must provide a brand purpose and a product story that matches the consumers’ sentiments.

One such example of brand transparency is Lush. Social media and user-generated content primarily drive a successful digital beauty brand.

Their brand transparency policy includes the following

• Name the ingredients used in the products and define the list of natural ingredients and “safe synthetics.”
• Enlist company policies on their website, including the modern slavery statement, Lush ethos, ethical buying, animal testing, and tax avoidance.
• Educate the customers about the limited packaging policy that reduces material use.
• Conduct regular-third party audits for animal testing policy and environmental practices.

It is undeniable that brand transparency can mean different things to different brands, depending on the industries. However, the aim should be to remain sustainable and transparent to the consumers.

10. Re-commerce Grows As a Business Model

According to a report, the resale market will likely double in the next five years, amounting to $77 billion by 2027.  Rising sustainability culture, cost efficiency, and a circular economy contribute significantly to the resale market.

Re-commerce is growing as a business model in 2023, and here is how-

1. Peer-to-Peer (P2P) Marketplaces: Peer-to-Peer Re-commerce marketplaces connect both ends of the consumers. Those who have pre-owned the product can directly transact with each other. One such example is Facebook Market Place.

2. In-house Re-commerce Programs: Many E-commerce brands are developing this concept of in-house Re-commerce programs. It allows brands to sell pre-owned products and make more money. Levi’s and Patagonia are a few examples.

In 2023, it will grow as an E-commerce trend owing to competitive pricing and rising consciousness for eco-friendly products.

11. Voice-Search Disrupts Shopping Style

Lately, consumers rely on virtual assistants (Siri, Google Assistants, and Alexa) to complete their daily tasks. Brands are capitalizing on this trend to optimize the shopping experience for their consumers. A lot of research predicts that voice search will disrupt the shopping style. It will enable consumers to shop without stopping their routine tasks.

With the help of virtual assistants, online shoppers will use their voices rather than typing out their search queries for ordering and completing the buying processes.

Meanwhile, marketers will integrate advanced AI with their websites. Brands can analyze customer intent using machine learning and natural language processing (NLP).

EDRIO’s founder, Rakhi Oswal, said, “This will involve investments in technologies like augmented reality and voice assistants, as well as increased collaboration between departments and teams to ensure a cohesive brand experience across all touch-points.”

12. User-Generated Content Builds Credibility

User-generated is an organic approach to converting customers into advocates. In a time of rising social commerce, brands leverage influencers to build consumer trust and credibility.

In the words of Sinoun Chea, CEO of Shiftweb, “Utilizing user-generated content (UGC) such as reviews, stories, and images can help build customer trust and credibility. Also, brands should focus on building an online community to connect with their customers. This will allow both brands and consumers to interact with each other regarding products’ features and needs of consumers.”

13. Subscription Model Boosts Retention Rate

The global subscription market has witnessed massive growth in the past two years. As per a report, the subscription E-commerce global market has increased from $72.91 billion in 2021 to $120.04 billion in 2022.

The reason behind the rising demand for the subscription model is the seamless buying experience for the consumer, as a result of which the retention rate has seen positive growth.

Bella Williams, Founder of Skin Cell, says, “Subscription models continue to be popular amongst consumers and are expected to grow significantly over the next few years. This model allows customers to pay a subscription fee for regular shipments of items such as clothing, food, and beauty products”.

Conclusion

The fundamentals will remain the same for E-commerce in 2023 – retention, revenue growth, and customer experience – as they used to be. However, the pattern will change.

We have Gen Z as a new consumer base, which is tech-savvy yet environmentally friendly. They are easily reachable through social media and push notifications. However, they offer the least attention span. 2023 provides a box of challenges and opportunities for the E-commerce sector.

In 2023, E-commerce trends will shift toward the metaverse to provide an immersive experience to their customers. This will mostly blur the line between online and offline stores.