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November 10, 2022
The eCommerce industry is booming and isn’t slowing down anytime soon.
In 2021, global retail eCommerce sales reached $4.9 trillion and are projected to reach $7.4 trillion by 2025. In the US alone, eCommerce sales are expected to surpass $735 billion by 2023. With these numbers, it’s no wonder many businesses are turning to the internet to sell their products and services.
The COVID-19 pandemic, which forced many businesses to pivot to an online model, has only accelerated this trend. The competition is stiff and only getting more rigid, so it’s more important than ever to have a solid eCommerce strategy.
Take Amazon, for example. They took advantage of the consumer shift to online shopping and saw their stock prices increase by over 37% in 2020. While other businesses weren’t so lucky.
So, what do you need to know about eCommerce trends and forecasts to create a surefire strategy for your business?
Thanks to the pandemic, there has been a major shift in how consumers shop. As a result, more people are shopping online than ever, and this trend will only continue. By 2025, global retail e-commerce sales are forecast to grow by 50%, reaching about $7.4 trillion.
Along with the shift in purchasing behavior is the change in consumer behavior. For example, during the pandemic, people spent less money on cars and travel. Instead, they invested heavily in other sectors like housing.
To take advantage of this trend, you need to make sure your business is visible online and that you’re offering a seamless shopping experience. You can do this through the following:
Smartphones are now an essential part of our daily lives, especially for online retailers. The increasing use of smartphones provides businesses with an opportunity to expand their customer base and reach new heights.
Mobile commerce will continuously grow in the coming years. In the US alone, mobile commerce revenue reached $339 billion in 2020 and is forecasted to reach $432.2 billion in 2022. Additionally, over 51% of users prefer online shopping through mobile web apps to other shopping channels due to its convenience and consistent UI (user interface).
This trend is being driven by the increasing use of smartphones and the availability of high-speed mobile internet.
One prime example of a company that leveraged mobile commerce to boost its sales is Target. The retail corporation took mobile shopping to the next level by offering exclusive features to app users, such as gift cards to use at checkout. By doing so, Target’s sales increased by 23% to $24.2 billion.
Like Target, you can also take advantage of this trend by ensuring you optimize your website for mobile devices. You can do this by:
By doing so, you’ll be a few steps ahead of your competitors in the organic search. Plus, it helps prevent website bounces and abandoning purchases. Prioritize improving your customer experience by offering your customers a better mobile commerce experience.
One study found that 76% of consumers have purchased something they saw on social media. The increasing use of social media platforms like Instagram, Meta, Snapchat, and Tiktok drives the trend. Because these platforms are visual-based, businesses can showcase their products and simply let an appealing image do the work.
Another reason social media commerce is growing is the increasing use of influencers as an effective way to reach new customers and boost sales. Using influencers is effective because when people trust someone, they also trust the products they use and promoteーresulting in more customers considering your products.
Take advantage of this trend because 97% of Generation Z use social media as their number 1 source of pre-purchase inspiration. Similarly, almost 2 out of 3 Millenials see it the same way. So, you have two very attractive active user groups to target in social commerce. Plus, as they grow older, they have more purchasing power, which suggests further long-term growth of social commerce.
The second half of 2021, in particular, revealed that fulfillment is not just a cost factor but, in most cases, is the most crucial success factor for online companies. The need for a reliable supply chain will continue as more consumers look into online shopping.
The COVID-19 pandemic forced businesses to change the way they operate. And for companies selling online, that means ensuring they have a reliable supply chain. A reliable supply chain is essential because it helps prevent stockouts and keeps products flowing to customersーresulting in continuous profit generation.
Is there anything more frustrating than not being able to fulfill orders?
This was the case in 2021, when global supply chains and shipments slowed down, causing global shortages of goods and services and negatively affecting consumer patterns. Because of this, many businesses struggled because their supply chains couldn’t keep up with the demand. As a result, companies were left with no choice but to raise prices or stop selling certain products altogether.
To avoid this from happening, it’s essential to have a reliable supply chain in place.
Here are some ways you can do that:
Total addressable market (TAM) is one of the primary considerations for any business. The size of the TAM will determine the potential growth of a company.
For companies selling online, the TAM is global. This means that businesses have the opportunity to reach customers all over the world. And with eCommerce sales forecasted to grow at a compound annual growth rate (CAGR) of 14.7% between 2020 and 2027, now is the time to expand your business globally.
Consumers echo the global movement of businesses. A survey showed that 76% of online shoppers bought products on a site outside of their own countries.
Of course, going global is easy to say but hard to do. There are many challenges to international business expansion, like inadequacy of funding. Plus, the competition and talent acquisition in a foreign market also poses a challenge to the management, including cross-border supply chains.
So, what can you do?
There are many ways to grow your business. Add to globalization, you can also work on product development and market penetration. But if you want to go global, here are some tips you want to consider:
Ecommerce sales are expected to continue growing in the coming years. To ensure that your business can take advantage, it’s crucial to know eCommerce’s latest trends and forecasts. By doing so, you can create strategies around the latest trends and projections and have positive returns that will help your business grow.
Don’t have enough resources to maximize these trends? We get it, ever-changing trends often require continuous changes in strategies that may lead to failure. Luckily, experts can help take that weight off your shoulder and ensure you’re using a surefire strategy.
Improve your business by investing in sales strategy planning and messaging creation to boost your sales.
Contact us to find out how we can assist you to capitalize on these trends and reach success in the eCommerce industry.