Opinions of contributing entrepreneurs are their own.
E-commerce is becoming increasingly relevant to consumers’ daily lives and an increasingly important part of companies’ growth strategies. by 2026, Shopify predicts, global Internet sales will exceed $8 trillion. That’s an increase of more than 50% from the 2021 numbers, and no one is quite sure where the cap could be.
The ongoing planning challenge for businesses is that e-commerce is not necessarily the opposite of buying in person: many consumers use digital sites and apps as a springboard to physical purchases. Conversely, it is common for shoppers to try products in a store and then purchase online. But regardless, the relevance and growth of e-commerce is on track to continue indefinitely.
Here are the trends for 2023 in this space to consider:
Table of Contents
1. Digital marketers will seek and adopt improved attribution models
Attribution has become a huge bottleneck for digital marketers. Let’s say your company’s marketing includes a mix of Facebook, Spotify, and Google ads, along with social media posts and YouTube videos. But if a customer buys something from your e-commerce store, are you sure about what you attribute that sale to?
Many e-retailers work with a last-click attribution model that gives all the credit to the site where the last click occurred. However, that last site may not have led to the sale. It could have been created somewhere earlier in the attribution funnel, like in a how-to video on YouTube. By giving more importance to the last-click site, it’s possible to spend ad money where it doesn’t belong or worse, take money away from a site that earns a higher percentage of your total spend.
Related: A beginner’s guide to building a profitable ecommerce business
Many providers now offer alternative attribution modeling options on the platform to get more accurate conversion reporting. Some platforms can be integrated into your website and send real-time attribution tracking to a dashboard. This allows you to view the ads, email or SMS marketing visitors and track site events up to the point of conversion. This level of detail helps marketers figure out where to spend advertising money most efficiently.
Until now, ecommerce sellers have been forced to go through steps of trial and error to feel good about attributions, and these machinations need time to produce enough information to make final decisions. With newer, all-encompassing attribution platforms coming onto the scene, marketers can better focus their attention.
Related: Why attribution is all that matters in digital marketing
2. Providers will improve the quality of the content
Rumors of a recession have not yet discouraged consumers from spending, but there is growing concern that they will soon withdraw from unnecessary purchases. CFO Dive reports thisthe second half of 2023 is expected to bring consumer spending down as people draw on savings reserves.
What does this have to do with ecommerce product content? Everything. Consumers usually research products before making purchases. Exactly how many touchpoints are needed depends on the product, but the content undoubtedly determines their behavior.
While you’ll see text content upgrades this year, that form isn’t the only thing marketers are thinking about. Also, expect to see a lot of video content included in ecommerce inventory unit pages and descriptions. a recent Wyzowl survey indicates that 73% of potential buyers want to learn through short videos: that’s why marketers are delivering it en masse.
Not sure how to get started with in-house video production? Add a personal touch. You can also request and use user content on social channels. Ideally, any content should answer the crucial question, “Why should I buy?”
Related: Give video marketing a try and watch your business grow
3. More e-commerce stores will offer subscriptions
One way to get customers to buy again and again is through subscriptions. Not every store has that capability, but expect to see more of it, and soon. Kearney research reports that almost half of all people who make weekly online purchases are open to a subscription, and many already have at least one. Simply put, interest is high enough for digital marketers to take the plunge.
The beauty of this model is the consistent revenue. Many consumers are taking a “set and forget” approach to their subscriptions – a great opportunity to enjoy a little passive income that can increase the customer’s average lifetime value.
To find out if someone could work for your company, study the travels of frequent customers. Do they tend to buy the same product regularly? If so, that’s a potential place for you to sell them for a subscription, and adding a special discounted rate (à la Amazon) can sweeten the deal.