The rapid technological advancements of 2023 can be difficult to keep up with, especially when you are busy managing your ecommerce store. That’s why, in this blog post, we have compiled statistics, expert opinions from the ecommerce industry, and solutions that have proven effective in helping our ecommerce clients sell more. Our goal is to help you save time and extract the maximum possible value from these insights.
Let’s dive right in!
AR (Augmented Reality)
Augmented reality is making waves in every corner of ecommerce. Brands are capitalizing on technological advancements to incorporate augmented product customization into their online stores, simplifying the purchasing process and making it more enjoyable, much like Snapchat filters.
According to a report from Threekit, the AR market is booming. By the end of 2023, there are projected to be 1.4 billion AR device users. The industry’s rapid growth is expected to result in an estimated market value of $50 billion by 2024. AR will impact ecommerce sectors ranging from fashion, automotive, lifestyle, and more.
Global spending on AR/VR technology, as reported by IDC, soared in 2020, reaching up to $18.8 billion, marking a substantial 78.5% increase from 2019. Recent statistics suggest that the market is continuing to grow at a similar rate because data shows a 40% increase in conversions/sales after integrating AR.
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Role of Big Data and The Expert Opinion
We are aware that ecommerce sites use personal data to provide personalized suggestions, but does this practice pose a danger to customer privacy? It often raises concerns about the platform’s integrity.
“As the tech giants continue to expand and bring more services in-house, personalization will eventually make its way to the Internet of Things. In addition to seeing suggestions on search engines or shopping platforms, we’ll also see them on our thermostats and our doorbell cameras. However, with some of the legislation being enacted, we’ll be able to opt out of it. This will create an interesting dichotomy — people who have ultra-personalized experiences and those who do not. This will have interesting impacts on how we as marketers are able to reach new users.” – Luis Catter, Conversion Rate Optimization Expert at Kensium Solutions.
Voice Search is Booming!
The prediction of a growing volume of voice searches is supported by several factors. Homes integrated with smart speakers, such as Amazon Alexa and Google Home, have become a common trend in households. Loop Ventures, a market research firm, forecasts that by 2025, a substantial 75% of U.S. households will have a smart speaker. This is a major reason why voice search is going to play a major role in the ecommerce space.
People are increasingly relying on voice assistants for various tasks. Voice search is becoming a preferred method for consumers to shop online, order food, and organize daily routines. This shift in consumer behavior is a significant driver for the rise of voice search.
Ecommerce businesses can optimize their strategies for voice search. This includes refining keywords and creating content that is voice search-friendly.
Not sure how to do that? Let us help!
Buy now, pay later (BNPL)
Due to the high inflation rate the world is currently facing, it’s common for customers to like a product but find it unaffordable, leading them to abandon their shopping carts. To address this issue, many ecommerce brands offer a solution called “buy now, pay later” to ensure that users don’t leave their online stores empty-handed. This option allows shoppers to pay in installments, which doesn’t place a burden on their wallets.
Data indicates that 39% of consumers favor “Buy Now, Pay Later” over credit card payments. This payment method is especially popular among people aged 34-44, with 50.1% of them preferring it, followed closely by the 25-34 age group, with 48% choosing BNPL. These schemes are mostly free of interest charges which is another advantage.
Several well-known platforms enable BNPL transactions, including Klarna, Afterpay, Affirm, PostPay, and Sezzle. Mastercard has also introduced Masterpay Installments, which is a BNPL option for users who can’t pay for products all at once.
ChatGPT and Generative AI
Generative AI is a new technology but it has already shown great response from users. This new technology is based on AI technologies like applied AI and industrializing machine learning and has the potential to be widely used across industries.
ChatGPT is showing rapid growth replacing Google for search results, users are discovering brands by asking chatbots which is forcing businesses to optimize businesses to optimize their website content not only to cater to human users but also to ensure compatibility with AI-driven systems, marking a significant evolution in digital marketing strategies.
Rise of Short-format Content
As we progress further into 2023, a potentially effective strategy for both creators and marketers could revolve around prioritizing vertical videos.
Vertical videos are gaining significant traction, largely driven by mobile devices and evolving content consumption habits. According to research conducted by Wibbitz, vertical videos boast an impressive 90% higher completion rate compared to long-format videos, indicating that users are more inclined to watch these videos in their entirety. Additionally, vertical videos offer a heightened level of immersion for viewers, as they occupy more screen real estate on mobile devices. This visual presence can effectively capture the viewer’s attention resulting in greater engagement with the content.
Creating 3-4 reels centered around product awareness and addressing the issues your product solves on Instagram for a span of 5-6 months can work wonders for your brand in terms of engagement. Waste no time; commence content creation before your competitors do!
These are some of the game-changing technologies that you can implement today to see results tomorrow. While many of these suggestions are applicable across various niches, it’s important to tailor your approach to what best suits your brand. This is where Ecommerce Revolt steps in. Our comprehensive services span from web development and customization to effective online brand marketing.
Take the next step towards success by booking a free consultation call with us today.