Competition is intensifying as digital commerce grows and an increasing number of retailers compete for the same customer base. What digital commerce trends should an online retailer consider this year when developing their online business? We’ve brought together the views of our experts and the most talked about digital commerce trends across platforms for 2023:
1. Leveraging artificial intelligence and automation in digital commerce
Personalization of the shopping experience has been a hot topic for a couple of years now, so it’s no wonder that it’s on the agenda again this year. More and more online stores are adopting a range of personalization applications to create shopping experiences for their customers that are linked to their specific interests. AI-enabled machine learning benefits online retailers in many ways: predicting what customers want to buy, when, and at what price (source).
In addition to improving the shopping experience, AI technology also facilitates content production for the digital commerce. In the field of AI, the current hot topics include ChatGPT (AI chatbot), Jasper AI (text and art image generator) and Midjourney (AI image creation). The above software can be used to produce search engine-optimized content for websites and product information management. Even partially automated content production of images and texts reduces the amount of manual work and outsourcing significantly, and thus increases profitability.
2. Experience is a growing trend in digital commerce
In addition to personalization and AI technology, the improvement of the digital commerce experience is also very much on the agenda. To stand out from the competition, brands are looking at how to transform the shopping experience into something that stimulates all senses. According to Forbes, 42% of Generation Z consumers are more likely to shop online using experiential technology. The online shopping experience can be made more experiential through the use of audio, video, virtual reality, and interactive elements, among other things.
3. The shift of B2B business to digital commerce platforms
B2B business is digitalizing at a fast pace. Gartner predicted years ago that 80% of B2B sales will happen online by 2025. The generation of B2B buyers is changing, which means that sellers need to be ready to sell their products and services via digital channels, where buyers increasingly want to do business. According to a study by Posti, B2B digital commerce achieved five years of growth in one year, while the Coronavirus also boosted B2C digital commerce.
Shoppers are searching for information and comparing different retailers online, and this digital commerce trend needs to be carefully taken into account when planning B2B business. The days of traditional B2B sales channels and price bids are not entirely over, but what if this year you took a step towards digital sales alongside trade fair visits and phone orders?
4. Sustainability and ethics in digital commerce
Sustainability as a theme is a trend in digital commerce, which has gone from rhetoric to a consumer demand to see concrete actions around the topic. People have become increasingly aware of the environmental impact of their consumption habits. It is important for consumers to see how companies take responsibility for the impact their business has on the environment and the society.
Forbes states that sustainability measures are no longer optional in the digital commerce business. New generations are voting with their fingers and not getting lost in the online shops of brands that don’t care about the environment. It is no longer enough to talk the talk; online retailers need to demonstrate in real terms how they are reducing their carbon footprint in practice.
So how do you reduce your carbon footprint in digital commerce? For example, by using recyclable packaging materials, minimizing returns, and offering sustainable products. Companies that value sustainability highly in all aspects of their business will secure their place among the winners in the years ahead.
5. Exploiting new technologies in digital commerce
Technologies are evolving at a tremendous pace, and if you want to stay ahead of the competition, you need to try new functionalities in your online store before others. For years, there has been talk of headless technology, where the UI/frontend of a digital commerce store operates independently, and talks to the backend through API interfaces. In a traditional digital commerce platform, the frontend and backend are tightly integrated. The new headless architecture enables, among other things, a faster, more agile, more secure and scalable digital commerce solution.
New technologies are available for all aspects of the shopping experience, and online retailers need to quickly understand which ones are most beneficial to their own audience. For example, how will virtual reality appear in your online store in the future?
A good digital commerce partner is able to suggest business-enabling features from the cutting edge of technology that make it easier for you to compete in a tightening digital commerce market.
Read more:
B2B eCommerce – a threat or an opportunity?
Efficiency and scalability to multichannel commerce – ERP behind an excellent buying experience
Why PIM? Effective product information management – everything that an online retailer needs to know
