Consumer Trends in E-Commerce

By: LiquidPixels | January 10, 2023 | 16 Min Read

E-Commerce will continue to dominate in 2023.

Online shopping was once considered a convenient trend for the technologically savvy. Now, e-commerce is the preferred shopping method for anyone with internet service. 

The methodology is threefold. First, online shopping is convenient. Consumers can shop from the comfort of their own homes and have their purchases delivered right to their door. Second, it is frequently less expensive than traditional methods of shopping. Since stores do not have to pay rent or other operating expenses, those savings can be passed on to customers. Finally, e-commerce offers a much broader range of products than most physical stores, allowing consumers to locate exactly what they need. 

E-Commerce continues to grow. In fact, one in every four people you see is an online shopper. As more consumers gain confidence with shopping online, they turn to the internet for their needs. This trend will continue as more businesses offer e-commerce options. However, as the e-commerce landscape evolves, consumer e-commerce trends will change with it. What was popular last year may not be this year. Businesses need to stay on top of the latest trends to adjust their strategies accordingly. Here are some of the top consumer trends in e-commerce today.

Consumers are Spending More Money Online Than Ever Before

According to Oberlo, the number of digital buyers was 2.14 billion in 2021. That equates to 27.6% of the world’s 7.74 billion people. With one in every four people as an online shopper—that is a lot of potential customers. According to the same study, the number of people shopping online in the United States will continue to rise, and this figure is expected to reach 291.2 million by 2025. Without a doubt, one of the biggest trends in e-commerce is that shoppers are ready to spend a lot on their online purchases.

This is not surprising as online shopping is becoming more user-friendly. Websites from companies like Amazon and eBay have made it simple for people to find and buy items with a few swipes or clicks. As a matter of fact, in 2022, the number of digital shoppers increased by 40% in the last five years. Consequently, sales volumes increased by 218% during the same period. This growth is driven by several factors, including the increasing popularity of online shopping, the expansion of e-commerce into new product categories, and the growing purchasing power of consumers. People are also becoming more trusting of online retailers as the security and privacy concerns have been addressed. There are also frequently great deals to be found online, and unique products to purchase.

Data Source: Tidio

The Average Order Value is Increasing

One of the biggest trends in e-commerce is that the average order value is increasing. According to the most recent e-commerce data, the average order value (AOV) in e-commerce was $106.89 USD in July 2022. This represents an 11.6% increase over the average order size per customer in 2021. Aside from the AOV, average sale prices rose from $48.18 USD in 2021 to $51.67 USD in 2022. This represents a 7.2% increase over the previous year. The highest AOV in e-commerce between 2016 to 2022 was recorded in 2017 when online shoppers spent around $117.12 USD per internet purchase.

Factors affecting these trends in online shopping include the increasing popularity of higher-priced items such as electronics and furniture and the growing number of consumers making multiple purchases in a single transaction. Another factor that can contribute to an increase in AOV is an increase in the number of items purchased per order. This could be due to a change in consumer behavior, such as a shift from buying individual items to buying in bulk. Finally, businesses may also see an increase in AOV if they offer discounts or promotions that encourage customers to spend more per order. Whatever the reason, an increase in AOV is generally a positive sign for e-commerce businesses as it indicates that customers are willing to spend more on their products and services.

Data Source: Oberlo

Mobile-Commerce is Growing at a Rapid Pace

According to Statista, as of Q2 2022, the average value of a processed and shipped order placed using a mobile phone is $112 USD. And by 2025, retail m-commerce sales in the United States are expected to reach a total of $710 billion USD. When consumers decide they want something, they expect to be able buy it instantly. This shows that convenience is one of the driving forces behind the hottest trends in e-commerce.

Factors driving this growth include the increasing availability of mobile-friendly shopping experiences, the growing number of consumers using their smartphones to research and compare products, and the rising popularity of mobile payments. Mobile devices are becoming increasingly sophisticated, with capabilities that make them ideal for online shopping. Retailers and other businesses are seeing these emerging and current trends in e-commerce, as well as the value of m-commerce, resulting in more investments in the development of mobile-friendly websites and apps.

Data Source: Statista

Social Media Plays an Important Role in E-Commerce

Social media plays an increasingly significant role in e-commerce, with many consumers using platforms such as Facebook, Twitter, and Pinterest to discover new products and make purchase decisions. In 2022, global sales via social media platforms reached $992 billion USD. Online purchases via these platforms will grow in popularity in the coming future.

According to projections, social commerce sales will be around $2.9 trillion USD by 2026. According to the Digital 2022 Global Overview Report, nearly 28% of internet users aged 16 to 64 said their main reason for using social media in the first place is to find inspiration for things to do or buy. Just over 26% said they use it to find products they could buy. Even if they are not shopping on it, it is proving to be an effective channel for brands, with 23% saying they primarily use it to see content posted by their favorite brands.

Without a doubt, social media has altered the way we communicate with one another, especially in how social media platforms provide new avenues for businesses to connect with potential customers. These channels have also made it easier for customers to find and connect with the brands they love. In fact, social media is now one of the most important channels for e-commerce businesses, as it drives traffic to e-commerce websites.

Social media also assists businesses in developing customer relationships. In the past, businesses would reach out to potential customers through traditional marketing channels such as television and print advertising. However, now businesses can now build relationships with customers and create connections that go beyond marketing.

Another way social media is influencing e-commerce is by opening up new opportunities for businesses. Social media platforms such as Instagram and Snapchat, for example, have introduced new features that allow businesses to sell products directly to customers within the platform. This is a fantastic opportunity for businesses to reach out to potential customers who may be unfamiliar with their product or service. And, as new features and technologies are introduced, there will undoubtedly be even more opportunities for businesses to reach out to customers via social media in the future.

Data Source: Statista

Personalization is Becoming Increasingly Important to Consumers

Personalization is one of the essential trends in e-commerce, as consumers increasingly look for shopping experiences tailored to their individual needs and preferences. This trend is driven by several factors, including the growing availability of data and analytics tools, the increasing use of artificial intelligence (AI), and the rising popularity of personalized recommendations. According to a study by Epsilon and GBH Insights, 80% of respondents want personalization from retailers. In another study, SalesForce discovered that 66% of consumers expect brands to understand their specific needs. While most consumers are concerned about data privacy, they are willing to trade some of their personal information for a discount. As proven, 80% of consumers will exchange personal information for deals or offers.

The trend is clear: personalization is becoming increasingly important to consumers in e-commerce. There are a few key reasons for this.

• The sheer amount of choices available to consumers online can be overwhelming. With so many options, it can be difficult for shoppers to find what they are looking for. Personalization can help by curating a selection of products that are more likely to be of interest to the individual shopper.
• Personalization can help build trust and loyalty between shoppers and brands. When shoppers feel like a brand understands their needs and preferences, they are more likely to stick with that brand.
• Personalization can lead to increased sales. Shoppers who have had a personalized experience are more likely to convert and make a purchase.

Customers Expect Delivery Times to be Shorter

Fast delivery time is another one of the biggest trends in e-commerce that businesses must consider. When asked how soon they expected to receive their online purchase, 41% of global shoppers said within 24 hours. Meanwhile, 24% of buyers polled said they wanted their order delivered in less than two hours. Businesses have responded by ensuring that their delivery times are getting shorter as more retailers offer faster shipping options to meet the growing demand for convenience. Amazon is committed to making one-day shipping the default service level for Prime members.

According to The 2022 State of Shipping Report, shipping-related concerns during checkout account for 56% of all abandoned carts. These customers showed serious intent to purchase a product by adding it to their cart and beginning the checkout process, only to give up their purchase because they wanted their order sooner than the delivery estimate for free/standard shipping. Moreover, if the express shipping cost is more than they are willing to pay, they end up abandoning their cart or canceling the order altogether.

Why customers expect shorter delivery times in e-commerce.

• The trends in e-commerce have been moving towards faster delivery times. Customers have come to expect that they can order something online and receive it within a few days, if not sooner.
• The rise of e-commerce giants, like Amazon, have set the standard for fast delivery times. Amazon has made two-day delivery the norm, and customers have come to expect that level of service from other e-commerce companies.
• The ubiquity of mobile devices and 24/7 connectivity has made customers impatient. They expect to be able to order something online and receive it within a few hours.

Data Source: Statista

Expectations are High for Easy Return Policies

Customers expect an easy return process and many businesses are responding to this expectation. Returns are becoming easier, as more retailers are offering free return shipping and extended return periods to improve the customer experience. According to the Omnichannel Returns 2022 report, nearly all shoppers (95%) are less likely to buy from a brand again if they have a bad return experience. Based on The Returning Conundrum report, regardless of the refund type offered by a retailer, there are high customer expectations to contend with. Within 30 days of purchase, 62% of customers anticipate the ability to process an exchange or refund.

There are a few key reasons why shoppers have come to expect easy return policies from their favorite online retailers. The trends in e-commerce have shifted dramatically in recent years, with more and more shoppers moving away from brick-and-mortar stores in favor of convenient online shopping. This shift has been driven in part by the rise of mobile shopping, which has made it easier than ever to shop from anywhere at any time. As a result of these latest e-commerce trends, shoppers have come to expect a higher level of convenience and flexibility from their online retailers.

With an easy return policy, shoppers are able to return items that were not satisfactory without any hassle. This not only saves them time and effort but also gives them the peace of mind that they will not be stuck with a product that they do not want. Easy return policies have become so important to shoppers that they are now one of the most important factors that shoppers consider when choosing an online retailer. This means that easy return policies are not only important for providing convenience to shoppers, but also for building long-term customer loyalty.

Data Source: The Returning Conundrum

E-Commerce is Becoming More Global

Businesses are looking to expand their reach beyond their home markets. This has resulted in e-commerce becoming more global. According to a report by Shopify, the global e-commerce market is expected to be worth $5.55 trillion in 2022. This figure is expected to rise in the coming years, indicating that borderless e-commerce is becoming a profitable option for online retailers. E-Commerce sales in Latin America reached $85 billion in 2021, up 25% from $68 billion in 2020. The Indian e-commerce market is expected to grow from $46.2 billion in 2020 to $111.4 billion by 2025. While Russia, the United Kingdom, and the Philippines saw more than 20% growth in e-commerce sales in 2021.

These trends in e-commerce are being driven by a number of factors, including the increasing use of mobile devices, the growth of social media, and the rise of e-commerce platforms. There are several factors driving e-commerce toward greater globalization. One major trend is the increasing penetration of the internet. In 1990, only 1% of the world’s population was connected to the internet. By 2000, that number had grown to 6%. Today, over 3.6 billion people—nearly half the world’s population—are online. This increasing connectivity is making it easier for people to buy and sell goods and services online. It is also making it easier for companies to reach new markets. For example, a company that sells products online can now reach customers anywhere in the world with just a few clicks. These trends are making it easier for people to shop online, and they are also making it easier for companies to sell their products and services to a global market. E-Commerce is becoming more global because the world is becoming more connected.

Data Source: Ecwid

Augmented Reality is Being Utilized in E-Commerce

Augmented reality (AR) is being used more in e-commerce as businesses are increasingly looking to new technologies to improve the customer experience. According to a Google study, 66% of people are interested in using augmented reality technology to help them shop. Another Google Consumer AR Study found that 6 in 10 people want to visualize where and how a product could fit into their lives. As per internal Shopify data, adding video increases conversion rates by 60% when compared to the number of buyers provided with product images alone. On average, merchants who add 3D content to their digital stores see a 94% conversion increase.

Factors to the increase of use of AR include the increasing availability of necessary hardware and software, the growing interest of AR among consumers, and the rising popularity of augmented reality shopping experiences. There is no doubt that augmented reality is becoming more popular in the world of e-commerce. In fact, some experts believe that AR will eventually become a standard feature in many online shopping experiences.

But why exactly is AR being used more in e-commerce? What trends in e-commerce are driving this growth? One of the biggest trends driving the use of AR in e-commerce is the increasing popularity of mobile shopping. Mobile phones are a popular tool to experience AR features, as a user must have a camera and a screen in order to see the results. Augmented reality technology is also becoming more popular because it provides an immersive and interactive shopping experience.

With the latest e-commerce trends, shoppers can see how products would look in their homes or on their bodies before they buy them. This can be especially helpful for big-ticket items like furniture or clothing, where people want to be sure they are making the right choice.

Augmented reality can also help e-commerce businesses save money. For example, retailers can use AR to create virtual showrooms or try-on experiences that do not require any physical inventory. This can be a great way to cut costs, especially for businesses that sell products that are difficult or expensive to make and ship.

Data Source: Statista

Preferences for Businesses with Corporate Social Responsibility

Being a company that cares is another of the most important trends in e-commerce. Customers prefer e-commerce businesses with Corporate Social Responsibility (CSR) programs for various reasons. For one thing, customers know that their purchase benefits a company that gives back to society. This gives the customer a warm and fuzzy feeling, knowing that they are not only getting a great product but also helping to make the world a better place. For example, most Generation Z and millennials (90%) are attempting to reduce their environmental impact and 64% of Gen Zs are willing to pay more for an environmentally sustainable product.

Purpose-driven businesses are four times more likely to be purchased by consumers and six times more likely to be protected. Another reason is that these companies appear more trustworthy. A company that focuses on giving back is usually run by people who care about their customers’ best interests. This establishes trust between the customer and the company, which is necessary for any successful business relationship. Consumers are becoming increasingly aware of the impact their purchases have on the environment and society. They want to buy from companies that are making a positive impact.

There are many ways businesses can show they are committed to CSR. Some common practices include reducing carbon emissions, using recycled materials, and supporting charitable causes. Adopting CSR practices can be good for businesses. Not only will it help attract and retain customers, but it can also boost employee morale and improve the bottom line. There are many benefits to implementing CSR policies, but it is important to make sure they are genuine and authentic. Consumers can see through greenwashing, so it is necessary to be transparent about any efforts.

Data Source: Submittable

Keeping Up with E-Commerce Trends

Keeping up with the latest trends in e-commerce is critical. To start, understanding the trends in e-commerce allows businesses to ensure that their business remains competitive. Furthermore, being aware of trends can help them capitalize on new opportunities as they arise, allowing the company to stay ahead of the competition. Finally, staying current with the latest trends in e-commerce can simply make running an e-commerce business easier and more enjoyable.

Businesses that do not keep up with the latest trends in e-commerce may miss out on important opportunities for growth. Staying ahead of the curve can provide them with a competitive advantage and allow them to better serve their customers.

Of course, keeping up with the latest trends in e-commerce is not always easy. Fortunately, there are a few key methods for staying on top of things.

• Read industry news. This will assist businesses in getting a sense of what is going on in the world of e-commerce.
• Attend trade shows and conferences. These events are excellent for networking and information on the latest trends.
• Hire an e-commerce consultant. This is an excellent way to gain expert insight into the most important business trends.

By following these guidelines, business owners can ensure that they are always up-to-date on the latest e-commerce trends. As a result, they will be able to run a more successful and profitable e-commerce business.

Learn more about how dynamic imaging can help your business keep up with the latest trends in e-commerce and propel your business forward. Contact LiquidPixels here.