Top Trends E-Commerce companies should implement in 2023
E-Commerce companies are constantly on the lookout for new and innovative ways to enhance the customer experience and drive sales. As we move into the second quarter of 2023, there are several key trends that companies must be aware of in order to stay ahead of the curve.
Trend #1 - Augmented Reality (AR) and 3D experiences:
With the rise of 5G connectivity and WebAR technology, customers are now able to see products in a whole new way. AR technology allows customers to see how a product would look in their home or on their body before making a purchase. Companies can also use AR to create virtual try-on experiences for clothes and accessories.
With 3D models shoppers can interact with products in a way that's not possible with traditional product images. For example, a shopper can rotate a 3D model of a product to see it from all angles. This can help shoppers get a better sense of the product and make more informed purchasing decisions. Additionally, 3D e-commerce experiences can be more fun and engaging, which can help build brand loyalty and increase customer satisfaction.
Another benefit of AR and 3D technology is to eliminate buyers remorse by letting customers try-before-they-buy. Answer critical customer questions like: Will this lamp look good next to my sofa or answer questions like how big is the washing machine and whether it would fit in my customers space.
Not only does this tech help your users but, according to a recent report by Shopify 20 - 30% of customers return online purchases. By bringing products to life for customers through augmented reality brands can reduce online return rates by giving customer the confidence that what they see online is what will show up at their door.
Trend #2 - Personalization:
2023 and beyond companies will increasingly use data and analytics to create personalised shopping experiences for customers. This can include personalised product recommendations, targeted marketing campaigns, and even customised product packaging.
According to McKinsey’s most recent Next in Personalisation 2021 report, companies who excel at demonstrating customer intimacy can potentially generate a 10-15% lift in revenue than their peers
While easier said then done because companies can no longer depend on big data to create personalised shopping. Brands like Apple and Mozilla have already done away with cookies and Google to soon follow in 2024, big tech’s move toward more user privacy is making it harder for e-commerce brands to target their audience.
But there might be a solution in first-party data collection and to engage your audience with more relevant and personalised content. Once such solution is to implement AI powered chatbots that can help your buyers during their shopping experience. Your website’s personalised AI chatbot can help your buyers answer critical question while gathering first-party data. It’s a win-win situation.
The bot can help buyers pick matching earrings to go with their top or perhaps suggest what shade of lipstick would go with the scarf that they just added to their cart. The bot acts as your customers personal AI powered stylist, while helping you personalise their shopping experience!
Graphic & Data by McKinsey Company
Trend #3 - Social Commerce:
Social media platforms are becoming increasingly important for e-commerce companies. Platforms like Instagram and TikTok are being used to showcase products, create brand awareness, and drive sales. Companies can also use these platforms to create interactive shopping experiences, such as AR Try-on filters, live streaming product demos and Q&A sessions.
Nine out of 10 people buy from brands that they already follow on social media according to a report by Marketing Dive.
Using social channels for marketing and promotions is the most important customer acquisition and retention strategy for businesses to drive growth in this year according to a global survey by Shopify.
One such potent social commerce tool is using augmented reality filters and try on to increase buyer confidence and social virality. We know that Gen Z shop differently than older generations, Snapchat showed that on their platform about 250 million Snapchatters have engaged with AR shopping Lenses more than 5 billion times! Bringing this magic to your brands social media accounts is going to be a game changer!
Trend #4 - Mobile Optimization:
With more and more customers shopping on their smartphones, companies must ensure that their websites and apps are mobile-friendly. This includes optimizing for fast load times, easy navigation, and secure transactions.
One important aspect of mobile optimization is ensuring that the website or app loads quickly on a mobile device. Customers expect a fast and smooth user experience when shopping online, and slow load times can lead to frustration and abandoned shopping carts. To optimize load times for mobile devices, e-commerce companies may need to reduce the size of images and other files, prioritize content loading, and utilize caching and other techniques to improve page load times. User experience hacks such as lazy loading and using sites like TinyPNG to reduce image size could help.
Easy navigation is another important aspect of mobile optimization. Customers should be able to easily find what they are looking for on a mobile website or app, with clear and intuitive menus and search functions.
As more customers turn to their smartphones for online shopping, e-commerce companies must prioritize mobile optimization by optimizing for fast load times, easy navigation, and secure transactions. This will help ensure a positive customer experience and drive conversions and sales.
Trend #5 - Sustainable Practices:
As more customers become environmentally conscious, sustainability is becoming an increasingly important trend in e-commerce. Here are some examples of the types of sustainable materials that e-commerce companies may use:
Recycled materials: Companies can use recycled materials in their packaging, such as recycled paper or cardboard. For example, shoe company Allbirds uses 90% recycled cardboard for their shoe boxes.
Biodegradable materials: Biodegradable materials break down naturally over time and don't contribute to landfill waste. Companies can use biodegradable materials for packaging, such as biodegradable plastics made from plant-based materials like cornstarch or cellulose. For example, online grocery store FreshDirect uses compostable bags made from cornstarch.
Organic cotton: Organic cotton is grown without the use of synthetic pesticides and fertilizers, making it better for the environment and for workers. E-commerce companies can use organic cotton in their products or packaging, such as clothing or reusable grocery bags. For example, Patagonia uses organic cotton in their clothing.
Sustainable wood: E-commerce companies can use sustainably sourced wood for products or packaging. This means the wood comes from forests that are responsibly managed, so that new trees are planted as old ones are harvested. For example, furniture company IKEA has committed to using only sustainably sourced wood in its products.
Upcycled materials: Upcycling involves taking materials that would otherwise be thrown away and repurposing them into something new. E-commerce companies can use upcycled materials in their products or packaging, such as bags made from old t-shirts. For example, upcycling company TerraCycle partners with brands to create new products from waste materials.
In conclusion, as technology continues to evolve, e-commerce companies must keep an eye on these key trends in order to stay relevant and competitive in the market. By implementing AR and 3D experiences, personalization, social commerce, mobile optimization, and sustainable practices, e-commerce companies can enhance the customer experience and drive sales in the upcoming years.
If you’re looking to provide your visitors a 3D and AR shopping experience or if you want to create viral augmented reality filters that capture the imagination of millions, then look no further than LenzGig (A LenzWork Product) . Our team of creative and technical experts can help bring your brand to life in new and exciting ways, using the latest AR technology to create engaging user experiences that drive results. With our proven track record of success, we’re confident that we can help you achieve your marketing goals and take your brand to the next level.
Contact us today to learn more about our and how we can help you create the 3D & AR shopping experiences or launch AR social media filters!
