What better way to stay ahead of the curve than by understanding what is on the horizon for e-commerce and jumpstarting your plans to capitalize on these emerging trends? In 2023, there will be several key trends that every business owner should be aware of.
Have you ever noticed how websites tailor the ads and product recommendations that you see based on past purchases, searches, or other activity? This is one example of how businesses are already using data to offer personalized experiences to their customers.
And as third-party cookies become increasingly obsolete and consumers continue to demand more control over their personal information, 2023 will be the year when companies tap into first-party data for truly targeted 1:1 personalization.
First-party data consists of much more specific information than the broad categories of data left behind by third-party cookies. Where third-party data might put customers into predefined buckets based on age, location, or gender, first-party data provides a much more detailed picture that can be used to make accurate assumptions about an individual's likes and interests.
The most effective personalization strategies combine predictive analytics from first-party data coupled with a deep understanding of customer behavior and preferences provided through surveys or A/B testing. This allows businesses to send truly relevant product recommendations tailored around individuals' lifestyles and preferences, resulting in higher conversions and better customer engagement.
What good is personalized content if the customer can't find it? That's why 2023 will be the year of tailored homepages that take into account what type of shopper each person is when they arrive to a website.
For instance, returning customers who may have existing wishlists or frequent shoppers would see those items first, along with relevant product recommendations, to drive conversions and encourage browsing further within the site.
Whereas new visitors or headless browsers coming from organic search might see different landing pages where popular products, seasonal collections, or compelling offers are featured front and center.
These different homepages use first-party data collected over time to personalize every visitor's journey — boosting engagement and driving better UX overall.
Though Amazon remains the undisputed leader in e-commerce worldwide, other international regions around the world have their own unique e-commerce leaders that dominate local markets.
And more often than not, these particular platforms operate very differently than Amazon in terms of their UI/UX design principles as well as 4P marketing strategies and vendor features. Creating a presence on these emerging market platforms still presents an opportunity for growth for savvy sellers looking for new overseas penetration opportunities.
From Latin America's Mercado Libre and Mexico's Linio to Japan's Rakuten Ichibaand South Korea's Coupang, companies should prepare for 2023 being the year when successful global expansion requires adopting tailored approaches on each platform rather than relying solely on Amazon alone.
This means understanding native channel dynamics from everything from payment preferences in different countries (what type of currencies are available?) all the way through which shipping methods make sense given local regulations and distribution capabilities — plus adapting product content accordingly for maximum relevance across a global audience!
In recent years mobile has become increasingly important. Studies show that mobile shopping was responsible for over 50% of e-commerce sales in 2016, and in 2023 is poised to reach more than 75%.
One way businesses have been looking to stay ahead of the curve is by leveraging the latest advances in both augmented reality (AR) and virtual reality (VR) technology. With increasing consumer adoption of AR/VR devices, it makes these features more accessible than ever before.
Using AR/VR, shoppers can now enjoy a truly immersive shopping experience replicating what they would find in brick-and-mortar stores, like trying on different products or customizing them right from their mobile device screens.
There have also been exciting developments with Amazon using an AI assistant that allows customers to view 3D product images using their cameras. It streamlines the online shopping process by letting the user see how a product looks instead of having to read long descriptions about it before deciding whether or not to make a purchase!
This increased willingness to embrace emerging technologies will mean 2023 will see many companies investing heavily into providing their own enhanced shopping experiences through integrating AR and VR capabilities into their existing e-commerce platforms.
One key area where businesses should be focusing on when it comes to optimizing personalization results is through AI-powered customization strategies, which are already beginning to be deployed this year but are expected to become mainstream by 2024.
Instead of relying solely on predefined segmentation categories, AI-driven approaches leverage machine learning algorithms that can recognize individual preferences based on past purchases as well as unstructured data sources such as social media profiles and conversations. This enables companies to provide highly accurate 1:1 recommendations tailored around unique customer needs quickly and at scale!
The best part about implementing modern artificial intelligence technologies is that you don't need an expensive team of experts yourself, store maintenance, professional surveys, and market testing sessions every time you want information regarding your products. AI-managed sites optimize marketing resources tremendously since they require very low yearly costs compared to each person responsible for a specific task.
The combination of AI-powered customer personalization and tailored homepages, paired with the emergence of emerging market platforms and enhanced mobile experiences thanks to AR/VR, will power e-commerce into the future and serve as something for any business who is serious about their growth to watch in 2023!
E-commerce is one of the fastest-growing sectors these days, and being aware of its key trends is essential if you're a business owner looking to stay ahead in a never-changing market. With current and future advancements, 2023 will be the year for businesses to step up their digital game with their marketing strategies.
Stay ahead of the curve by being aware of these trends now so you can capitalize on them when they gain mainstream momentum in the coming years!