The most significant factors influencing E-commerce 2023
From timely delivery to successful websites: we have summarized the key areas that e-commerce retailers should focus on in 2024.
Once again, it has been a strong year for e-commerce. Following the highest revenues on Black Friday and Cyber Monday to date, according to Adobe Analytics, profits and sales continue to rise for online retailers and sellers, with the market expected to reach $3 billion (£2.4 billion) by the end of the year.
No longer driven by the necessity of the pandemic, online shopping has become a staple of convenience and comfort for consumers, aided by new tools that make it easier to distribute costs, process returns, create wishlists, and take advantage of online discounts and promotions.
As the industry prepares for a new year, we take a moment to reflect on the year 2023.
Based on research conducted this year in partnership with Yonder, we highlight the key drivers of e-commerce in 2023, with a focus on the key opportunities retailers should be taking into 2024.
Ensuring Delivery
It is not surprising that an excellent delivery and returns experience was a crucial incentive for online spending. In our survey of more than 1,000 British adults, 66% indicated that free labels, returns, and packaging were a significant incentive for online shopping, followed closely by reliable delivery at 61%.
This makes sense. As consumers, we know how frustrating it can be when a delivery arrives late or when we have to consider return costs when choosing a specific size or style.
These statistics underline the importance of an excellent relationship with your delivery partner. Fully integrated technology and tracking capabilities are crucial.
For younger age groups, same-day delivery options were particularly popular, with 42% of respondents selecting this as a key incentive.
“While free return options are very well received by customers, they can come with serious environmental costs.”
If implemented well, this provides e-commerce retailers with the opportunity to compete against the high street, which is often chosen for its convenience in urgent situations.
It’s essential to note that while free return options are very well received by customers, they can come with serious environmental costs.
As corporate social responsibility continues to rise on the agenda for all industries, retailers need to implement measures to process returns in a more sustainable way.
This may include prioritizing electric vehicles for delivery or consolidating orders and returns under the same roof to avoid product wastage.
More Payment Options
Another crucial incentive for online shoppers is flexibility in payments.
Consumers increasingly seek the freedom to pay the way they want – whether through Open Banking, a digital wallet, or with the help of a “buy now, pay later” scheme to spread the cost.
And, of course, it is crucial that consumers can pay in their home currency. This can be challenging for retailers who are just gaining momentum outside their home country and do not yet have the capabilities to set up shop overseas.
Fortunately, tools like Multi-Currency Conversion make it easier for retailers to accept payments globally. They enable displaying prices in more than 100 currencies, processing them against the current exchange rate, and receiving funds via a single currency of choice.
A Winning Website
A well-designed website is another important incentive for online shoppers.
We know that the main driver to a physical store is the ability to see and handle the product the customer is buying.
As this cannot be achieved online, it is important to showcase your products as effectively as possible – strong imagery and product descriptions are crucial.
“AR can give consumers the confidence to make a purchase while encouraging extra engagement with your brand.”
Video is also becoming increasingly popular, especially for products that may be challenging to set up or use.
While it may sound technical, augmented reality (AR) can be another useful tool for customers to get a feel for a product before they buy.
Whether it’s being able to see a new piece of furniture in situ or trying on a pair of glasses virtually, AR can give consumers the confidence to make a purchase while encouraging extra engagement with your brand.
Know Your Customers
Ultimately, as with most trends in business, choosing the right opportunities really comes down to knowing your customer.
While AR may be the next big thing in furniture retail, it probably won’t be much use to an aromatics brand.
Equally, while a Gen Z fashion company may see a lot of interest in same-day delivery options, these may not be so popular with fashion brands targeting an older demographic, who are more accustomed to a three- to five-day delivery time.
However, all of the drivers above share a key commonality: flexibility.