E-commerce is changing the way we shop and do business. With rapid technological advancements, e-commerce has seen an immense surge in the past few years and is set to continue to grow even further. In this article, we’ll take a look at the e-commerce predictions for 2023, as well as how current trends such as payment methods, environmental impacts on e-commerce, and more are influencing the future of e-commerce.

What we saw in 2022

2022 was a tough year for many. Rises in costs had an impact on some of the biggest e-commerce giants to date, seeing Amazon plan to lay off over 10,000 employees early November. With a nearly 10% rise to inflation rates, companies struggled to convince shoppers to purchase as often as they had previously, something that led to more companies taking on a buy now pay later approach.

In addition to inflation rates rising, 2022 also saw Russia invade Ukraine, an event that had a big effect on e-commerce, with many companies pulling out on business with Russia. An association of which was rightfully leading to a loss in customer loyalty.

Outside of this, 2022 has seen social media marketing become a top priority for many companies. Social media is a massive part of so many people’s lives, a fact that e-commerce companies did not miss. One study found that global e-commerce sales were projected to reach over $5 trillion, a growth that has come from a rise in mobile shopping, social media and subscription services. Once again suggesting that social media played a huge part in e-commerce 2022, and will continue to do so.

Now in 2023 we will continue to see many of the concerns seen in 2022. All of which will continue to impact e-commerce. However, not all is bad news, after all, e-commerce growth in 2023 is predicted to be 5% higher than before the pandemic.

More Payment Methods

Given 2022 and the current climate, it is likely that 2023 will see an increase in e-commerce companies using Buy Now Pay Later (BNPL) schemes. With rising costs, people have less disposable income and have become a bit more hesitant to buy products online as much as they had previously. One study found that ‘on average shoppers basket sizes are decreasing. In a sense, BNPL solves an aspect of this problem for e-commerce companies.

BNPL gives a chance for consumers to purchase products like they normally would, and means that companies will still receive their income. Which is why BNPL services are one of the UKs fastest growing online payment methods.

In addition to this, with so many technological advances, BNPL presents a convenience it might not have had before. With more e-commerce websites being user friendly, it will make the entire process easier.

Social Media

In 2023 we think that a vast majority of sales will be made from social media. One study found that ‘87% of online shoppers use social media while making shopping decisions’, from this, more e-commerce companies will likely advertise using social media as a way to increase their sales and reach new audiences.

Especially for younger generations, who have grown up surrounded by ads trying to help them make purchasing decisions. Having seen this their whole lives, it’s not surprising that they would turn to people they trust, in this instance, influencers. Social media caters to this need.

Furthermore, there may also be an increase in social media influencer deals, many people listen to influencers before they purchase a product. And with so many sales being made from social media, there’s no better time to advertise using influencers. However, with ‘70% of teenagers trusting YouTube influencers more than traditional celebrities.’ This may impact the type of influencers e-commerce companies choose to partner with.

Additionally, with the introduction of The Metaverse, 2023 may even see the e-commerce industry utilising the Metaverse and virtual reality as a way to push brand loyalty or to advertise their products.

Environmental consciousness and sustainability

We will see more companies taking on an environmentally conscious approach to business. Various studies have shown that younger generations are more conscious of how their consumerism impacts the environment. So much so that they are less likely to purchase from a company that is not sustainable, and 10 percent more willing to purchase sustainable products.

Due to this it is likely that we will see more eco-friendly packaging, more companies will take on different recycling methods and use sustainable resources to make their products. As mentioned previously, with how heavy social media is now relied on for e-commerce, it is becoming crucial for any company to be environmentally aware.

It is also likely that the bar set for a company to be considered sustainable will increase. For example, more companies are coming under heat for their unethical labour conditions regardless of how environmentally friendly their products are. One example of this would be how Amazon came under blast for bad working conditions.

Due to this, it is likely that we will see an increase in second hand shopping. We will see more companies such as Depop and Vinted pop up in 2023, both online and in person.

More Mobile Shopping

60 percent of online retail sales are now made from mobile phones. With all of our technological advances, this comes as no surprise, which is why we think 2023 will see a an even large spike in mobile shopping.

Given the vast numbers of people using mobile we will see more and more companies optimising their websites to be mobile responsive. It is likely that these optimisations will focus on user experience, and page speed, to ensure that potential customers don’t go elsewhere for a similar product.

All of this will also tie hand in hand with the demand for social media marketing. Most social media is consumed on mobile phones, ‘Out of 4.48 billion social media users, 99% access the websites or apps through a mobile device’.

Subscriptions and customisation

Outside of media streaming services, more and more people will be turning to product subscriptions in 2023. Whether it’s subscription boxes or commodity items such as razors or nappies, subscriptions have become increasingly popular.

That’s not to say that this won’t pose a challenge for many e-commerce companies, in fact, there are many demands that come with having subscription based services, one of which is the pressure to deliver excellent experiences.

It’s as easy to cancel a subscription as it is to join one, which is why the demand for products to be high quality and the experience to be seamless is crucial for e-commerce subscriptions. One key aspect to this is customisation. Customers are likely to want to customise their subscription, whether that is their order volume or something particular on the product, it is likely that customisation will be a very important part of subscription services.

Customers want personalised experiences, and will continue to expect this coming in to 2023. There is so much competition out there, and if one company offers a personalised experience over another, the customer will likely choose the latter. These personalised experiences are beneficial for both the provider and the consumer, building brand loyalty, increasing satisfaction and encouraging customers to recommend your business. Studies have found that 80% of consumers are more likely to purchase from a brand that offers personalised experiences’.

Final Thoughts

The world of e-commerce is rapidly changing and evolving. Customers now want personalised experiences, convenience, and sustainability when it comes to shopping online. Mobile shopping is on the rise and new payment methods like ‘buy now pay later’ are being adopted by more retailers. Social media marketing is also playing an important role in driving sales for businesses. All these trends will shape the future of e-commerce by 2023 and beyond, making it more customer-centred, efficient, and sustainable than ever before.