Staying on top of the ecommerce landscape is not an option, but a necessity. If you want your business to grow, consider these 7 ecommerce trends Enventys Partners saw in Q2 of this year.
Top 7 Ecommerce Trends of Q2
Most businesses maintain an online presence, so keeping up with trends in ecommerce is essential for those who wish to be successful. Understanding what’s working and what isn’t can help you position your brand in front of consumers ready to purchase. Here are 7 ecommerce trends that grabbed our attention in the second quarter of 2022.
1. Increased Competition.
In 2022, the ecommerce space is far more competitive than in the 2010s. Due to the COVID pandemic, online shopping rose drastically. Consumers formed new habits and online shopping and eCommerce became more saturated as businesses tried to compete.
New businesses are racing to get customers, and advertising costs are higher (thanks, Apple), making it difficult to enter the space successfully. It’s vital that businesses focus on increasing the lifetime value of their customers. This helps with margins but also removes uncertainty as a barrier to entry. Focusing on lifetime value helps brands build loyal followings and adapt their offerings toward the changing needs of their existing customers.
Another option is to dabble in newer advertising platforms including TikTok and Snapchat – they’re not nearly as filled with eComm ads and tend to run cheaper.
2. Supply Chain Struggles Push Up Ecommerce Timelines.
It’s no secret that supply chains have struggled this year. The shipping industry has experienced a lot of change and turmoil, too. Even giants like Amazon and Zara are experiencing delays and issues with larger shipments. Because of this, holiday shoppers will look to start early to ensure their gifts arrive on time. Ecommerce brands should be prepared and consider offering their best sales earlier to entice those early shoppers.
This year, we’re also expecting a bigger Labor Day in terms of sales. This means Black Friday/Cyber Monday will cater to more “last minute” shoppers. It’s important to consider this in strategizing sales for the remainder of the year.
3. Advertising Attribution Challenges
Tracking is becoming really tricky. With Apple’s changes and cookie laws changing, it’s hard to tailor ads based on conversions, and hard to customize visitor experiences. Acquisition costs are higher, hence, why it’s important to increase the lifetime value of existing customers to try to fill this gap. Due to these changes, brand trust is harder to measure, because users have to agree to be tracked through Apple and agree to allow cookies. It’s more important than ever to provide content and products that customers are willing to sign up for.
Data changes have created a barrier to entry that was not there previously for new customers. Customers, rightfully so, want to know how a brand is using its data. We recommend having clear data privacy sections on your website to build trust with customers.
4. Mobile Shopping Options
A lot of social platforms have added a “shopping” feature. This has been fertile ground for ecom brands. We recommend adding products to the list of shoppable SKUs on Instagram and Facebook.
Note, this won’t bring traffic to your website immediately, but it does allow users to purchase products with auto-filled information through platforms that they already trust. You’ll also reach customers where they already are, often without the need for additional dedicated advertising.
Consider live streams, too. Live streams are happening every day where brands announce new products and showcase them while making them available to purchase, live! These can be a great way to show brand personality and your products.
Use videos, if possible, in your shopping section on your social media platform. They perform much better than still images. This also helps to convert mobile shoppers into customers.
5. Sustainable Practices Matter
Sustainability is becoming more important to consumers. With the effects of climate change in the news, and record-breaking temperatures in many parts of the world, consumers are looking for brands that have more sustainable business practices. For example, if you’re selling a product that has direct competitors and isn’t super differentiated, adopting 50% recycled packaging is sometimes enough of a factor to change a potential customer’s buying decision. This is particularly huge in the fashion industry. SHEIN, a huge eCommerce fashion business was recently in the news for their lack of sustainable practices and other brands are capitalizing.
6. More Payment Options
How easy is it for your customers to buy from you? Smart brands are implementing more payment options. It’s standard to have all major credit and debit card providers as options in addition to PayPal, and Google Pay.
But some ecommerce brands are going a step further. Many are adding options for payment plans, and Buy Now Pay Later (BNPL) is soaring in popularity. A lot of our clients use Affirm for BNPL and it’s increased average order value by up to 85%, increased lifetime value of customers, and even helped build brand trust.
Buy now, pay later also helps with customer retention. This is going to be huge this holiday season given the economic slowdown and recession. It will offer families more options to finance the holidays
7. Leverage Influencers
For those with large budgets, influencer marketing is something to consider. With the right product, brand, and voice for you, influencers can be extremely beneficial for earning more customers for your business. Influencers with large followings tend to charge hefty fees, so unless it’s truly the best fit, we recommend starting with small to medium influencers. Contrary to what intuition might tell you, influencers with smaller followings can be more successful at promoting products and businesses than larger ones because they’ve built their community from the ground up. Building a small, but loyal, following takes trust, so these influencers are more likely to get engagement and conversions. Their followers are more comfortable messaging them to ask questions, too!
Larger influencers can be great if you’re willing to pay them. Typically, we recommend buying a package where your product/brand will be featured more than once. It’s popular for brands to contract 5-10 “big” influencers to promote their products within the same day or week, and if you’re able to do this, it’ll produce huge returns (if the audience is a good fit; make sure to ask all the questions).
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