The world of ecommerce is constantly in flux as technology, and consumer behaviors evolve. According to IBM’s U.S. Retail Index, the COVID-19 pandemic has accelerated the shift from physical stores to digital shopping by five years. What was once considered the future of shopping is now commonplace, and new trends are emerging that will define the ecommerce space for years to come.
In this article, we will explore the specific consumer behaviors that will shape the ecommerce landscape in 2023. From TikTok social commerce to Direct-to-Consumer business trends, we’ll look at how shoppers are driving changes that retailers must embrace if they want to remain competitive.
1. Consumer Concerns Over Inflation and Rising Prices
With inflation at record highs, times will continue to be challenging for many consumers worldwide. 81% of consumers reported changing how they shop to manage expenses. This shift in shopping behavior is a direct result of diminishing economic stability due to the global pandemic, the Ukraine-Russia war, and its subsequent effects.
The majority of people are turning to more cost-effective strategies, such as opting for generic brands, using coupons and discounts, and comparing prices online. Additionally, a growing number of Americans (93 percent) identify themselves as not being able to afford items that were previously in their budget.
Many shoppers are making room to budget for groceries and other essentials by cutting back on non-essential items such as travel, restaurants, and entertainment.
2. TikTok Is Converting Users into Shoppers
One of the most significant emerging ecommerce consumer behavior trends is Tiktok – an incredibly popular social media platform that has taken off in recent years.
TikTok is pioneering a new type of e-commerce that combines entertainment with shopping. With its quick video ads, influencers, and brand content, TikTok is sparking curiosity in new products and inspiring people to make purchases.
The app’s ability to instantly provide product information puts shopper decisions in the palms of their hands. Shoppers can easily find exclusive deals or special offers that may not be available elsewhere online or in stores. People can also follow their favorite influencers who showcase products they use or like—which encourages even more buying behavior.
A recent survey from The New Consumer and Coefficient Capital found that nearly one-fourth (23 percent) of American users use the platform to discover new products to purchase. Analysts at Insider Intelligence reported 27.3% of U.S. TikTok users had purchased something using the platform. By 2026, this impact will be even more pronounced, as that number will reach 40%.
3. More Personalization with Zero-Party Data
Zero-party data refers to information that customers willingly share with brands that go beyond just basic demographics. By collecting zero-party data such as preferences, purchase history, opinions, and interests, ecommerce businesses can better tailor products and services specifically for each individual consumer.
Personalization technology has allowed ecommerce businesses to tailor their website experience to individual customers, resulting in higher engagement and sales. Studies have found that websites with personalized experiences can yield up to 15% higher conversion rates and 20% higher average order values than those without.
According to a report, shoppers are happy to give brands their information. A whopping 71% of consumers said they were willing to give up personal information in exchange for discounts or offers. This is an increase from the 64% reported in the same study last year, suggesting that shoppers have become more comfortable sharing data with brands.
4. Wealthy Consumers Will Spend More on Health and Wellness
According to The New Consumer and Coefficient Capital, Wealthy consumers are more likely to prioritize health and wellness next yearhttps://newconsumer.com/trends/. The study found that those making more than $150,000 per year were significantly more likely to prioritize their health and wellness in the coming year.
Wealthy consumers were nearly three times as likely as lower-income individuals to report that they plan to focus on healthy eating habits and regular exercise in the coming year. Other popular health initiatives among wealthy shoppers included improving mental well-being through mindfulness practices such as yoga or meditation, reducing stress levels through self-care activities like massage therapy or spa treatments, and going for regular checkups with medical professionals.
This is good news for retailers, especially for those looking to diversify into these niches. Health and personal care was the third-fastest-growing ecommerce category last year at 22.1 year-over-year growth, behind food and beverage, pet products, and computer hardware.
5. More Brands Will Adopt the Direct-To-Consumer-First Model
One of the most prominent ecommerce trends will be an increased emphasis on direct-to-consumer (DTC) businesses. Brands have already begun to recognize the advantages of this model; by cutting out middlemen like retailers, they can offer their customers lower prices while having greater control over their products’ messaging.
DTC ecommerce sales have more than tripled since 2016, bringing in an impressive $128.33 billion in 2021. Analysts at Insider Intelligence predict sales will reach $212.9 billion by the end of 2024.
While these types of businesses only make up 13% of all ecommerce businesses in the U.S., expect more retailers to make the shift. Some major brands like Nike have already made a conscious decision to focus on direct-to-consumer (DTC) sales as their primary model of growth in recent years. Its direct channels now make up 35% of company profits.
These emerging trends in consumer behavior suggest that ecommerce will continue to be an important area of ecommerce into 2023. Consumers are increasingly interested in convenience and personalization when they shop online. By understanding the current trends and responding to customer demands, ecommerce businesses can ensure their success both now and in the future.
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