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The shifting landscape of today’s retail economy has seen in-store shopping shift to digital commerce. So w<\/span>hat e-commerce trends can online retailers expect in 2023?<\/p>\n While Mena shoppers are returning to brick-and-mortar stores, e-commerce habits are now deep-set. Majid Al Futtaim reported this week the continued sharp rise of retail e-commerce, with sales forecasted to increase by 22 per cent this year, exceeding $6bn and putting the market on course to reach $9.2bn by 2026.<\/p>\n Online retailers must double down on trends that took off during the pandemic, while keeping an eye on evolving consumer expectations and preferences.<\/p>\n Overview: top online trends and influences<\/b><\/p>\n The top 2023 e-commerce trends and influences retailers must account for are:<\/p>\n Although the e-commerce boom may be slowing down, customer expectations remain high. As shopping habits return to real-life and brick-and-mortar stores rebound, 2023 is the year brands must optimise omnichannel.<\/p>\n Hani Weiss, CEO of Majid Al Futtaim Retail, said: \u201cDespite the recent e-commerce boom, we are witnessing transformations across retail\u2019s physical stores. We\u2019ve seen three times growth in our omnichannel customers, and the share of omni customers in our base vs. single-channel customers has increased by four times,\u201d reports Fast Company Middle East<\/i>.<\/p>\n Commenting on the Mena retail industry, Rodrigo Castelo, vice president MEA at OutSystems, said: \u201cOne of the ways retailers can provide more personalized experiences for customers is through developing apps or portals that create omnichannel experiences,\u201d reports Fast Company Middle East<\/i>.<\/p>\n Almost 75 per cent of buyers use multiple channels before purchasing, and 73 per cent of e-commerce consumers report\u00a0using various channels<\/span>\u00a0during their customer journey, according to 99 Firms<\/i>.<\/p>\n Shopping journeys don\u2019t end \u2013 or often start \u2013 on a company or brand website.\u00a0<\/span><\/p>\n Brands with both digital and physical locations should eliminate any friction as shoppers channel and platform-surf.<\/p>\n Fulfil 2023 e-commerce trends in omnichannel by:<\/p>\n Brands that deliver effective, omnichannel shopping experiences will continue to thrive in 2023.<\/p>\n 2. Mobile shopping<\/b><\/p>\n Mobile will be a massive driver of sales for e-commerce in 2023.<\/p>\n Enabling customers to\u00a0shop via their mobile devices<\/span>\u00a0is now an expectation.<\/p>\n Seventy-two per cent of UAE in-store shoppers would use their\u00a0smartphones<\/span><\/a>\u00a0to enhance their shopping experience, according to\u00a0\u2018The 2022 Global Shopping Index: UAE Edition\u2019\u00a0survey by PYMNTS and Visa Cybersource.<\/p>\n Consumers pick\u00a0m-commerce (mobile commerce)\u00a0again and again as their preferred channel for shopping. By 2024, global retail m-commerce sales are expected to reach nearly $4.5 trillion to make up\u00a069.9 per cent of total\u00a0retail e-commerce sales.<\/p>\n Brands must design mobile-first experiences, offer phone-friendly payment options, such as Apple Pay and Google Pay, and make mobile checkout easy.<\/p>\n M-commerce is projected to accelerate in the next few years, as the UAE retail mobile-commerce market is expected to grow by 19 per cent<\/span><\/a> by 2025.<\/p>\n 3. Social commerce<\/b><\/p>\n Social commerce is\u00a0the use of social media platforms to promote and sell products and services.\u00a0It will play a massive role in 2023 e-commerce trends.<\/p>\n Consumers rely tremendously on their social feeds for shopping, suggestions, and simple e-commerce sales. According to a Q3 2022 Consumer Trends Report by Jungle Scout, 48 per cent of consumers are now likely to purchase directly from TikTok.<\/p>\n Gen Z, in particular, uses TikTok for search and product recommendations \u2013 more so than Google.<\/p>\n Whether or not you decide to sell directly through social, don\u2019t skip these channels in your\u00a0e-commerce<\/a>\u00a0strategy.<\/p>\n Social commerce is critical for brands to reach their target audiences, and is expected to generate $30.73b in sales in 2023, accounting for 20 per cent of global retail e-commerce sales.<\/p>\n 4. Customer service<\/b><\/p>\n Since\u00a0customer service\u00a0is often a buyer\u2019s only point of contact with an online business, retailers should make it a priority.<\/p>\n When customers want information about choosing a size, tracking a shipment, or requesting a refund, they want help \u2013 quickly. Brands must make it easy for them to find help on their preferred channel, whether over the phone, on social media, or live chat.<\/p>\n Chatbot technology<\/a>\u00a0is advancing fast, and some experts see them playing even bigger roles in the online shopping experience with more personalized service and product recommendations.<\/p>\n Twelve per cent of UAE consumers also want meaningful interactions with brands, reporting that entertainment and store surroundings add value to shopping experiences, according to the Shape of Retail 2022 Report by global services firm Alvarez & Marsal in partnership with market consultancy firm Retail Economics.<\/p>\n 5. Inflation<\/b><\/p>\n Inflationary issues and cost of living concerns will likely last into 2023, meaning that tightened budgets will impact online spending.\u00a0<\/span><\/p>\n Out of 2,200 shoppers surveyed<\/span><\/a> in\u00a0Saudi Arabia\u00a0and the UAE, more than half are cutting back on their spending, according to a report by management consulting firm McKinsey last September.<\/p>\n When financial anxiety is high, shoppers need extra assurance.\u00a0<\/span><\/p>\n The two best tools for assuaging consumer anxieties are flexible returns and budget-friendly options.<\/p>\n Although returns can be costly, having a flexible return policy means that shoppers will return products\u00a0regardless<\/i>\u00a0of whether or not you make it easy. A strict or complicated process won\u2019t stop them from returning their products, rather it will stop them from returning\u00a0to your business<\/i>.<\/p>\n Of regular shoppers in brick-and-mortar stores, 49 per cent selected reliable guarantees and return policies as found in Visa\u2019s 2022 Stay Secure survey<\/span><\/a> last August.<\/p>\n Alternatively, budget-conscious options are a<\/span>nother way to keep bottom lines stable amidst financial insecurity.\u00a0<\/span><\/p>\n Basic subscription packages (such as streaming services with ads) allow customers to continue engaging when they otherwise may have stopped completely. It also helps build goodwill that will ultimately foster long-term brand loyalty.<\/p>\n 6. Sustainability<\/b><\/p>\n Green commerce<\/a>\u00a0is on the rise and sustainability sustains businesses. Even amidst financial fears, consumers are\u00a0willing to spend more<\/a>\u00a0to buy from sustainable brands.<\/p>\n\n
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