Expected2022Retail sales will grow to$6.54 trillion. But customer preferences are changing. Just as the strategy we used five years ago is outdated, the way people buy online will no longer be the same in a few years.
We can observe marketing trends in e-commerce to understand how to get there.
We’ve investigated the data, surveyed experts, and analyzed customer behavior to understand how e-commerce is changing-and to help your e-commerce brand keep up.
Here are the seven biggest e-commerce trends we expect to see this year:
1. Direct-to-consumer retail is on the rise
It's no surprise that companies try to compete with Amazon. However, the retail industry that directly joins consumers has not joined their website to take advantage of their influence.
Direct-to-consumer (DTC) companies will reduce middlemen (such as Amazon) when selling products. They also do not use markets or grocery stores such as Whole Foods. DTC retail is usually carried out through company-owned channels, such as:
- website
- Social channels
- Brick Shop
research shows,Two thirdsOf consumers expect to be able to connect directly with the brand.
DTC brands can do this because they have their own sales channels and audiences. You can add them to your email list, invite them to join your Facebook group, or encourage them to follow you on social media-every medium can build customer loyalty.
about90% of customersMay be purchased multiple times. You can use these owned channels to push it in that direction.
In addition, DTC brands neither rely on other e-commerce markets to attract customers, nor do they have to pay expensive fees to sell products locally.
Take take away as an example: you will not see the products they sell in the luggage store. They are a DTC e-commerce company that only sells their products through their e-commerce website, and they try to build an entire community around their brand:
Away ignored e-commerce giants like Amazon and sold directly to its customers. This move helped them achieve$1.4 billion valuation.
In fact, due to the coronavirus,Robben Media Brian Robben expects DTC retail to become the main focus of e-commerce brands:
Due to the coronavirus, many retail brands are forced to become direct-to-consumer brands, regardless of their industry.
The restaurants, chiropractors, jewellery shops and other businesses that did not have e-commerce functions in the past are now hoping that they will keep alive. Local restaurants will begin to provide food like national chains. Service companies will have to use video to consult customers. And local retailers will have to create a distribution system to sell products to buyers without saving a day's traffic. "
2. Customers need real-time support
You know41% of customersWant to have a live chat on your website? (For users who use your website via mobile devices, this percentage rises to 50%.)
People have been busy. Gone are the days of capturing online visitors only from desktop computers. Research shows that between 18-44 years oldOf people,Have79% of peopleI carry my smartphone 22 hours a day. When they are on their phones, they are communicating.
Coupled with the fact that patience is getting thinner and thinner, you can understand why customers expect real-time support from the brands they are buying (or about to buy). This is why using chat tools to enhance the user experience is essential to your marketing strategy. Thinking about yourWhen e-commerce business ideas, Please note that there are many tools that can help.
Communication tools, such as:
- Facebook Messenger bot
- Social media news
- SMS
……getting more popular. No matter where they are, each tool can help someone contact the support team for answers in a matter of minutes.
Take thisFacebook Messenger bot as an example. With a bunch of investigative messages, customers can click to ask questions. The robot uses artificial intelligence to ask further questions and direct them to products they might be interested in:
The best part? These channels are automatic. Therefore, although your customers can get answers to their questions in real time, you don't need a permanent agency team to answer them. This is done through artificial intelligence.
3. Multi-channel experience
As we all know, millennials are a huge target audience for e-commerce brands. However, as we enter 2020 and beyond, we will pay close attention to a new demographic data: Generation Z, which will account for40% of all consumers.
That's not even the best part. They have enough money to consume and it is estimated that their annual purchasing power exceedsUS$44 billion.
So, do we need to understand Gen Z and how to buy it?
The most important factor is that they areThe most closely connected generation,And use multiple online channels. It is not enough to rely solely on social media platforms or the experience of millennial participation. You need to build marketing and support activities across every channel to attract them.
Take Walgreens as an example. According to Ahrefs, they run PPC campaigns to target the target population through paid search:
However, they not only rely on PPC, but alsoThrough its mobile appprovide support. Customers can set up alerts to remind them that their prescriptions are about to run out and refill their prescriptions-all without having to visit (or call) the pharmacy.
4. Social commerce is growing
Speaking of Gen Z, we know that they are fascinated by social media. They are using apps like TikTok, Snapchat and Instagram, the latter being70% of Gen ZHope the brand will contact them about new products.
Social media platforms are beginning to use the purchasing power of their audiences.
They allow e-commerce brands to sell products directly through the platform, which means that the target audience can make purchases without visiting the online store. This makes the customer's e-commerce experience much more seamless, thus making it easier for them to purchase one of your products.
The one we expect to grow this year is Instagram. They recently launched the Checkout feature, which allows brands to mark products in photos and customers can click on the product label to make a purchase.
The Checkout feature is still being tested; only available for larger brands. However, it is expected to be fully launched this year. This is what we canLook forward to:
Bottom line? The Z people use multiple social media applications every day, so you need to provide a multi-channel experience to reach their location. Social platforms make e-commerce brands easier through its checkout function.
5. Augmented reality helps online shoppers
Augmented reality is a technology that displays animated images in real life.
(For example, in the famous "Pokemon GoTake the game as an example. Players use their cameras to find hidden prizes around their houses, gardens and towns. )
However, it is not only the gaming industry that can use AR. Gartner predicts that there will be100 million shoppersUse augmented reality, but only 46% of retailers plan to use augmented reality technology.
Augmented reality technology is very suitable for showing your products in real life, such as:
- Display furniture in client room
- Display a dress on a life-size model
Retail expertKaleigh Mooreagree:
"I think one thing we will continue to see is more dynamic visual content on product pages. Brands are starting to integrate more gifs, videos, and 360-degree product views, instead of just using static images in order to Shoppers get as much visual environment as possible.
This helps overcome the buying barriers of not being able to see/touch/feel items with your own eyes. "
This tweet from ASOS shows augmented reality in e-commerce. Their website has a "virtual catwalk" feature, so they have entered social media to attract their followers and raise awareness of the technology they use:
The virtual fashion show achieves the main goal of any online store: it makes the customer experience of buying products easier, which has the potential to increase e-commerce sales. They can see life-size clothes and get a 360-degree view. After getting such a great user experience, why are they reluctant to buy it?
6. Sustainability is more important than ever
When we think of business sustainability, we usually think of growth strategies that continue to attract customers.
But it should not be a sustainable business to acquire customers. Research shows that consumers prefer sustainable brands.88% of themHope the brand helps them live more sustainably.
The Good David Hoos explained:
"I think that with the recent high-profile revelations that have occurred in the DNVB [digital native vertical brand] field, brands such as Away, Brandless and Outdoor Voices, we will see the entire e-commerce place more emphasis on early and sustainable Profitability.
Therefore, I think we will also pay more attention to conversion optimization, customer experience and customer retention. "
The cosmetics brand Lush is a good example. They are keen not to useAnimals to test its productsAnd can be viewed on their websiteEnvironmental policy:
You can prove that your business is sustainable by making similar policies. Consider what is most important to your brand-whether it is against animal testing, purchasing environmentally friendly ingredients, or a stance on charity.
Create public documents to show your e-commerce business’s position on major issues, and more importantly, actively promote your sustainability through other channels. Stay consistent with the news and provide your customers with guidance on sustainability.
7. Specificity is longevity
There is no doubt that Amazon is the main competitor of e-commerce brands and can buy almost anything you might think of. Therefore, in order to compete with them, e-commerce companies (especially DTC brands) need to do the opposite: specialize.
Specificity means that you want to sell a small amount of products to very specific customers. Although suggesting that you do some niche markets may feel counterintuitive, the strategy still works. People are beginning to know your work and you are doing well, even if it is just one thing. Whenever they are needed, they will come to you.
Take Crocs as an example. They only sell one kind of shoes,By 2019Still earn$1.2 million. Casper is another example: theirValued at $1.1 billion, But they only have three versions of the product.
Determining which product you want to double the sale can be simple-especially if one of your best-selling products performs better than the other products in your inventory.
But if you have some of the best-selling products, that should be your main goal? This is a complex process that starts with customer feedback. Ask them which product they recognize best and what words they think of when they hear your name.
Then you can adjustMessaging and positioning,Start using this single product to build brand awareness. Hope to pass recognitionNiche productsAnd using smart digital marketing, you will be able to promote e-commerce sales.
Can you catch up with the retail trends of 2020?
As you can see, the e-commerce world is always changing. This year is no different.
The easiest way to get started with e-commerce marketing is real-time support. Unlike other marketing trends, it does not require a thorough inspection of existing strategies, especially when you can use some tools to get started right away.
The Facebook Messenger tool ManyChat provides automatic real-time support. aims? Attract potential customers and drive customer purchases. This is the easiest way to first understand these e-commerce trends and create a positive e-commerce experience for your customers.
Source: https://manychat.com/blog/