consumers benefit from the growth in e-commerce as its convenience allows customers to find the products they are looking for. In addition, it offers the convenience of having access to thousands of products and options. In this blog post we will cover the main 4 e-commerce trends for the coming year.
Global e-commerce sales are projected to reach 4.891 trillion dollars in 2021 (eMarketer, 2021) and continue to increase over the years. Customers are buying more online and expecting more from the companies they buy from. With that being said, get to know the major e-commerce trend for 2022.
Leveraging D2C business
As of right now, and mostly due to the pandemic, this is already a huge e-commerce trend. Adopting a D2C (Direct-to-Consumer) approach, allows you to focus on creating a close relationship with your customers and promoting your brand. As a result, you can generate more revenue and improve your brand image. Besides that, you’ll see higher repeat purchase rates. Here are some of the benefits of a D2C business model.
Eliminating Intermediaries: With traditional CPG brands, your profit comes only from their markup on the cost of the product. By removing the middlemen, you can sell the same products at lower prices, offer better customer service, and drive customer retention through targeted marketing campaigns.
Increased Control: A D2C business model allows you to focus on what your customers want and need. It gives you complete control over your operations, allowing you to maximize sales and minimize costs. Furthermore, it enables you to keep track of where your customers are shopping and make a connection with them.
Cutting Costs: This type of business model is more economical for both manufacturers and customers. With the traditional wholesale supply model, manufacturers need to find a wholesaler, advertise to them, negotiate with them, and research distributing partners. This all costs money. With the D2C business, you can focus on finding the right channels to sell your products. This way, you’ll enjoy a larger profit margin, since you don’t need to deal with additional suppliers.
If you want to learn more about the rise of the D2C business model read this article.
Flexible payment options
Flexible payment options are an important part of your business strategy. They can keep your business competitive and increase revenue. They can also help you differentiate yourself from competitors. Most customers today prefer to use different payment methods, so it’s best to provide them with a choice. In these uncertain economic times, this can be a big plus.
E-commerce and retail companies that offer customers multiple payment options are more likely to increase their conversion rate and improve customer satisfaction.
According to SaleCycle, in 2021, the average cart abandonment rate reached 81,08%. Among the various reasons for such a high rate is the lack of payment options. This represents 6% of the total of abandoned carts.
Subscriptions have numerous advantages for brands. They help them reach more customers and it’s an excellent way to sell goods and services online.
Subscriptions tend to simplify business processes. It makes shopping more convenient for both businesses and consumers. In addition, it increases the predictability of revenue, allowing businesses and consumers to plan their budgets accordingly. Below are some of the main advantages when it comes to subscriptions models.
Engaging with your target audience
Subscription services provide a higher level of customer service and a more personalized experience. The subscription model builds a stronger relationship with customers., As a result, consumers are more likely to share good experiences with others, which means more repeat sales and higher profits.
A subscription service assumes that the customer will return to the website again. By creating a relationship with a repeat customer, a business is guaranteed consistent recurring revenue. A long-term relationship with a subscriber leads to higher retention rates and customer lifetime value, which means a better value from acquisition spends.
In e-commerce personalization is key to profits. In 2022, organizations will expand their digital transformation efforts by leveraging trusted data to offer personalized shopping experiences.
Companies will focus on creating a frictionless customer experience, which will drive more sales and strengthen brand loyalty.
According to a GWI ongoing study, 31% of consumers want brands to offer customized or personalized products. This means personalization is fundamental to encourage customers to make an online purchase. This research also provides the following insights:
- 16% discover brands via personalized purchase recommendations on websites
- 50% tend to opt for personalized loyalty rewards from brands
- 24% would be most motivated to promote a brand online when something is relevant to their own interests
Segmentation is critical to implement personalized actions and take full advantage of the opportunities created through personalization. Segmentation is based on defining a consumer segment who shares the same attributes and interests. Having each consumer group in mind while creating personalized actions makes it easier to meet consumers expectations.
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