Marketing Trends – Shopify Commerce Trends 2023 Report.
Introduction.
Shopify released its “Commerce Trends 2023” report, a 65-page report covering commerce and e-commerce. It is a very comprehensive and insightful report that can add value to any brand or business that operates in this space. The key areas that the report delves into are;
- Supply Chain Trends
- Money Trends
- Marketing Trends
- E-commerce Trends
- Retail Trends
We understand that analysing such a report in detail is quite a time-consuming task. So we have pulled out what we believe are some of the most important and eye-catching stats and condensed them here. Keeping in mind that we are looking at this from a predominantly digital marketing point of view, the majority of the stats included here are focused on the ‘Marketing Trends’ and ‘E-commerce Trends’ chapters in the report.
If you want to take the time to go through it yourself, download the full Commerce Trends 2023 Report here.
The Key Takeaways.
- Around 7 in 10 consumers have bought from a competitor of their go-to brand in the last 2 years. As spending power decreases, people will be more likely to shop around. During times of financial hardship like a cost of living crisis, it is expected for people to shop around for the best bargain.
- 60% of global consumers now expect same-day, next-day, or two-day delivery. This is especially high among Gen Z and Millennials, who have grown up in a more “instantaneous” world.
- By the end of 2023, one in every five retail sales will be made online. It is now more important than ever to have your e-commerce offering fully optimised and firing on all cylinders.
- 9 in 10 people buy from brands they follow on social media. The two are completely interconnected – people will buy from brands they follow and people will follow brands that they buy from.
- 8–10% of customers return in-store purchases, while 20–30% of customers return online purchases. Online returns are unavoidable. Make sure you have an attractive and clearly communicated returns policy in place to satisfy your customers. You can read our other blog which includes the importance of a returns policy here.
- According to a survey of global Shopify Plus merchants, 35% have seen shrinking average cart sizes, and 50% are seeing less site traffic and lower conversion rates. This is reflective of the global cost of living crisis and has impacted e-commerce across all industries globally.
- A 2021 study estimated that loyalty increases a customer’s worth by 22x. It costs less to sell to loyal customers because they’re more likely to buy, with the probability of a sale jumping from 5–20% for a new customer to 60–70% for a returning one. Long story short – keep your current customers happy!
- 60% of customers tell others about brands they’re loyal to. While often people will tell others about negative experiences they have with brands, once you have a loyal and happy customer they are likely to act as an unofficial brand ambassador.
- 90% of shoppers will pay more for a product from trusted brands, strong brands can raise prices with less risk of customer churn. If you have built up a large level of trust and grown satisfaction levels with your customers, they are less likely to search elsewhere in the event of a price increase.
- With free shipping as an option – People order about 2.5 items, compared to less than 2 items with paid shipping. People spend over €3 more on the median average item than with paid shipping. People buy over €22 more on the median order than with paid shipping. If possible, review your shipping offering and try to work in some sort of a free shipping offering.
- User-generated content is 8.7 times more impactful than influencer content. While influencer marketing is a very powerful marketing tactic, consumers trust and value the opinions and experiences of other “normal” consumers more.
- Almost 40% of Gen Z use TikTok and Instagram for search over Google. The newest generation does not search online like all of the previous generations. The use of correct keywords in captions and the use of the correct hashtags are now more important than ever.
- Having a good experience with a brand on social media makes 78% of consumers more willing to buy from them, 77% more likely to choose them over a competitor, and 72% to spend more with them. Community management and engaging with followers is of paramount importance.
- 41% of consumers want a live chat function available while shopping online. People want instant communication, feedback, and solutions when browsing online. A chatbot or chat function is the number one way to satisfy this large percentage of online shoppers.
- Brands get on average 37% more web traffic the quarter after opening a new physical store. Synchronising your online and offline brand presence has always been of paramount importance. Make sure they both complement each other and are consistent with each other at all times.
- 59% of consumers say they’re likely to browse online and buy in-store, and 54% are likely to look at a product in-store and buy online. Again, ensure uniformity and connectivity between the online and the offline.
Conclusion.
It is very important to stay on top of the latest news, trends, stats, findings, and reports in your industry. Reports, like this one, can provide key insights for your business to grow and prosper in a digital space.
Many of the above insights can be taken advantage of with small tweaks to existing digital marketing strategies. Others may take time to implement or build from scratch. Either way, turning these statistics into actionable tasks to grow your business is the key to online growth.
Are you unsure how to go about tackling some of these tasks? Do you not have the time to dedicate to seeing these tasks through? This is where Escalate can help!
We specialise in growth strategies for businesses online – from e-commerce website optimisations, to developing TikTok strategies to capture the attention of Gen Z. Drop us a message today to see how we can help you to catapult your business into one that is 100% optimised for the digital landscape of today.