Ecommerce in 2022: How to Stay Competitive Without Losing Revenue
The Rise of Ecommerce: How Do We Keep Up?
Given the limitation of social interaction over the last two years, ecommerce has risen to prominence at break-neck speed, and companies will need to be increasingly aware of new trends to keep up. Nate Burke, CEO and founder of digital marketing specialist Diginius, shares his predictions for ecommerce trends in 2022, alongside helpful tips on how companies can adjust in an ever-changing market.
With the new year just beginning, it’s a great time to think about predicted ecommerce trends and how your business can keep up with an ever-changing market.
With the ever-increasing prevalence of online channels, the modern-day consumer has more options than ever before, and consumer expectations are rising in turn. Omnichannel marketing is the upgraded version of multichannel marketing; it sees brands integrating their services across various channels as opposed to simply having them.
The pandemic has caused seismic changes to occur in the retail industry, and online shopping has become more prevalent than ever before. Though statistics suggest that online retail will remain popular, there is equally a growing desire to return to the personal experience offered by brick-and-mortar stores.
63% of shopping instances now begin online. The proliferation of mobile devices and digital advertisements means that, regardless of where a product is purchased, the majority of purchases will start online. With cross-channel purchasing options like click-and-collect rising to prominence, though, it is crucially important that businesses adopt omnichannel strategies to meet changing consumer expectations and priorities.
Increased Use of Online Marketplaces
2021 saw an exponential increase in the use of online marketplaces, and 2022 will see these platforms used further still. The prevalence of these marketplaces is unprecedented; Amazon, for example, currently controls over 40% of the US ecommerce market.
These marketplaces have a host of benefits, and represent another great opportunity for businesses to get ahead of their competitors. Online marketplaces make customer acquisition far easier, given their huge audiences. In the UK, for instance, over 90% of consumers use Amazon.
The platform has a global presence and reach that most businesses could only dream of, and thus by selling your product through Amazon, or indeed another online marketplace, you expose it to a huge pool of consumers who may otherwise have never heard of it. Moreover, the mass prevalence of marketplaces such as Amazon marks trust vested in them by consumers, and seeing your products on the platform will make consumers trust your business in turn.
Another advantage of using these platforms is their logistical power. If you sell your products with a retail giant such as Amazon, you can leverage its industry-leading logistics system by shipping your products to their fulfilment centres – in doing this, you free up your own space and time, and can dedicate both of these to improving your business.
Social Media as a Sales Channel
Another change in consumer behaviour, which will perhaps come as no surprise given the impacts of the pandemic, is the increased use of social media. By the end of 2021, over 57% of the earth’s population were signed up to at least one social media platform.
Platforms like Facebook and Instagram are leading the way, with each of these social media networks representing a unique opportunity for ecommerce marketing.
Facebook’s marketplace feature, for example, has been around for some time now. The marketplace allows both businesses and private sellers to generate and target leads, therefore increasing sales. Instagram has also been placing emphasis on ecommerce and digital marketing, with its ‘shopping’ feature, for instance. The ‘shopping’ tab allows businesses to sell directly on Instagram’s app, totally integrating social media and ecommerce.
Instagram is a particularly useful tool in ecommerce marketing. Take into consideration that 81% of Instagram users have used the platform to research products and services before purchasing them. If your target demographic is young, moreover, you should equally be aware that 47% of 18-24 year olds have purchased products after seeing them advertised on Instagram.