The landscape of commerce has dramatically changed in a time marked by digital transformation, ushering in the E-commerce Evolution era. Modern technologies, ever-shifting consumer habits, and creative business tactics drive the online market's constant morphing and mutation. A strategic vision and a thorough understanding of the current trends that shape the e-commerce ecosystem are essential for businesses to stay relevant.
E-commerce has long transformed the way we shop, communicate, and do business. Its landscape is not only rapidly changing but also fast-growing. Data suggests that the global e-commerce market was valued at USD 3.67 trillion in 2020 and is expected to grow at a compound annual growth rate of 9.7% between 2021 and 2028. By the end of the year, e-commerce retail sales are expected to reach $8.1 trillion.
From the algorithmic complexities of personalized recommendations to the seamless integration of augmented reality into shopping experiences, e-commerce is no longer a static realm where data-driven insights and customer-centric paradigms converge. As we progress through this blog, we will examine the three latest trends in the e-commerce market: voice search, AI-assisted selling, and augmented reality, and provide tips on how they can be employed to provide an enhanced shopping experience and increase profits.
This blog will be useful and informative to you, whether you are a new or established online business owner. So, let's get started and learn more about e-evolution!
Search by voice: Increasing E-Commerce Sales in 2023
Voice search is a trend in which customers use voice assistants such as Alexa, Siri, or Google Assistant to search for products and make online purchases. For online shoppers, voice search can provide convenience, speed, and personalization. According to Juniper, voice commerce will grow significantly, reaching more than $80 billion per annum by 2023. The same source also reports that the number of voice assistants in use went up from 2.5 billion to 8 billion in the last 5 years. This demonstrates that voice search is increasingly becoming a profitable channel for online businesses to reach and engage their customers. The following are some of the advantages of voice search for e-commerce:
- Customers who want to shop hands-free or multitask benefit from its convenience and speed.
- It has the potential to provide personalized and conversational interactions that foster trust and loyalty.
- It can optimize for local and mobile searches, which can lead to increased traffic and conversions.
Three tips for optimizing your e-commerce site for voice search:
1. Conversationalize your Keywords
In your product descriptions and keywords, use natural language and conversational phrases. For instance, instead of "high-waisted jeans," try "how to find the best high-waisted jeans for women."
2. Provide Clear Answers
On your website or through chatbots, provide clear and concise answers to common customer questions. For example, FAQ pages, product reviews, or blog posts can be used to answer questions like "What is the return policy?" or "How long does delivery take?"
3. Make your Platform Searchable
Make your website mobile-friendly and searchable in your area. To illustrate, you can improve your site's performance and relevance for voice search users by using responsive design, fast loading speeds, and geo-targeting.
Using AI to Increase Your E-Commerce Profits
AI-assisted upselling and cross-selling is a trend that analyzes customer behavior, preferences, and purchase history to recommend relevant products or services that can increase average order value and customer loyalty. According to Accenture, AI could increase profitability by 38% on average across 16 industries by 2035. Using data-driven tools to generate smart product recommendations based on customer data is one way AI can help e-commerce businesses increase profits. The following are some of the advantages of AI-assisted upselling and cross-selling:
- By providing relevant and timely suggestions, it can increase the average order value and customer lifetime value.
- It can generate personalized and customized offers and discounts to boost customer satisfaction and retention.
- It is capable of testing and optimizing various strategies and scenarios in order to find the best fit for each customer segment and product category.
Three pointers for implementing AI-assisted upselling and cross-selling:
1. Use Data-driven Tools
To generate smart product suggestions based on customer data, use data-driven tools such as Shopify's Product Recommendation app or BigCommerce's Personalized Recommendations app. These tools analyze customer behavior, preferences, and purchase histories to recommend products or services that are likely to be of interest to them. To demonstrate, if a customer purchases a laptop, they may be shown accessories such as a mouse, keyboard, or laptop bag. Personalized offers and discounts based on customer segments, purchase frequency, or cart value can also be displayed by these tools.
2. Make Personalized Offers
Make personalized offers and discounts based on customer segments, frequency of purchases, or cart value. You can create and test various types of offers and discounts for your customers using AI tools such as Optimizely or Google Optimize. For example, based on the customer's location, purchase history, or cart value, you can offer free shipping, loyalty points, or coupons. You can also use AI tools such as Segment or Klaviyo to segment your customers based on their behavior, preferences, or demographics and send them personalized email campaigns with offers and discounts.
3. Try out different strategies
Experiment with various upselling and cross-selling strategies, such as bundle deals, complementary products, and premium upgrades. You can create and test different landing pages with different upselling and cross-selling strategies using AI tools like VWO. For example, offer bundle deals on products that are frequently purchased together, such as a camera and a tripod. Alternatively, provide complimentary products that add value to the main product, such as a warranty or a service plan. Additionally, consider providing premium upgrades that add features or benefits to the main product, such as faster delivery or higher quality.
Augmented Reality for an Enhanced E-Commerce Shopping Experience
Augmented reality (AR) is a trend that employs AR technology to create immersive and interactive online shopping experiences. Customers can use augmented reality to see how products will look or fit in their actual environment, such as when trying on clothes, furniture, or accessories. The global augmented reality market is expected to grow from $3.5 billion in 2017 to more than $198 billion in 2025, according to Statista's reports. This demonstrates that AR is becoming a mainstream technology that can improve the online shopping experience. Some of the advantages of AR for e-commerce include:
- By allowing customers to try on before they buy, it can reduce returns and exchanges.
- Providing realistic and accurate product representations, it can increase customer engagement and confidence.
- It helps set your brand apart from competitors by providing a one-of-a-kind and innovative shopping experience.
Three ideas for incorporating AR technology into your e-commerce site:
Produce Realistic 3D Models
Create realistic 3D models of your products that customers can view in AR using AR tools such as Shopify's 3D Warehouse app or BigCommerce's Augment app. You can use these tools to upload product images and convert them into 3D models that can be displayed on your website or app. Customers can then use their smartphone cameras to see how the products will appear or fit in their actual surroundings. They can see how a sofa will look in their living room or how a dress will fit on their body, for example.
Ensure Clear Guidance
Provide clear instructions and guidance for using AR features on your website or app. You must ensure that your customers understand how to access and use the AR features on your platform. You can indicate the availability of AR features with simple and intuitive icons, buttons, or menus. It's also a good idea to offer useful hints, tutorials, or videos that demonstrate how to use the AR features. You could demonstrate how to scan a QR code, change the camera angle, or zoom in and out, for example.
Demonstrate AR Benefits with Reviews
Display customer testimonials and reviews that highlight the advantages of using AR to shop online. You can use social proof as a call to action, persuading your customers to use the augmented reality features on your website or app. Showcase customer reviews and testimonials about how they liked using the AR features and how it helped them make better purchasing decisions. Encourage your customers to share their own augmented reality (AR) experiences on social media platforms such as Facebook, Instagram, and Twitter. This can assist you in increasing word-of-mouth referrals and attracting more potential customers.
E-commerce evolution is a continuous process that requires online businesses to constantly adapt and innovate. In this blog, we looked at the current trends and tips for e-commerce success in 2023. We've talked about how voice search, AI-assisted upselling and cross-selling, and augmented reality can help you improve the shopping experience for your customers while increasing sales and profits. You can stay ahead of the competition and grow your brand in 2023 if you follow the trends and tips discussed above.
Whether you're a new entrepreneur or a seasoned digital guru, the world of e-commerce is calling. This is a world where innovation is the currency and success is built by those who dare to adapt and thrive.
At Flat Rock Technology, we keep up with the most current trends. Our dedicated team has expertise in building e-commerce platforms, using a range of the latest technologies. You can take a look at our E-commerce and CMS solutions here. Contact us today to ensure a smooth and secure online presence for your business!