The online retail space constantly evolves, and staying ahead of the curve can be challenging. Here are my Ecommerce predictions for 2023 that will significantly impact the industry. Let’s look at these five factors and what they mean for retailers.
1. Connected Commerce
Bridging the Gap Between Online and In-Store Sales
My first Ecommerce predictions for 2023 is connected commerce.
While online sales have steadily increased, there is still a significant gap between online and in-store conversion rates. On average, online stores have a 2% conversion rate, while physical stores boast a 30% conversion rate. (yes, there are bots, and consumers are more likely to browse online – but the gap is still too big)
Fixing the digital experience is crucial, but connecting consumers more seamlessly to physical stores is also necessary. This is where Connected Commerce comes into play. Connected Commerce is about providing consumers with a seamless experience across all channels, whether they’re shopping online or in-store.
One company that is leading the way in Connected Commerce is Brauz. Brauz offers various services, including click-and-collect, reserve in-store, and even Uber delivery. By providing consumers with multiple delivery options, retailers can increase the likelihood of conversion and offer a more personalised experience.
Another company making strides in Connected Commerce is The Wishlist. The Wishlist is an online and in-store wishlist that allows consumers to save items they are interested in and purchase them later. This encourages repeat purchases and provides retailers with valuable consumer preferences and behaviour data.
While the concept of omnichannel retail has been around for some time, only some retailers genuinely utilise it to its full potential. Connected Commerce represents a significant opportunity for retailers to increase conversion rates and provide customers with a more personalised shopping experience. By investing in solutions like Brauz and The Wishlist, retailers can bridge the gap between online and in-store sales and drive growth in the future.
2. Google Analytics 4 (GA4)
What You Need to Know About the Upcoming Change
My Second Ecommerce Prediction for 2023: GA4
If you’re involved in digital marketing, you’ve likely heard about the upcoming change to Google Analytics. By July 2023, everyone will need to switch to GA4, which will cause some disruption for businesses.
The Challenge of Losing Historical Data
One of the biggest challenges with this switch is that GA4 does not bring historical data. If you don’t store that data separately, you will lose it, which can be a massive problem for businesses that rely on past data for strategic decision-making.
Changes to User Tracking and Metrics
Another significant change is how GA4 tracks user behavior. Metrics such as GA versus sessions will differ from the traditional method, making it harder to compare data over time and potentially leading to confusion.
The Benefits of GA4: A Focus on Attribution
Despite these challenges, GA4 brings positive changes. It offers a greater focus on attribution models, allowing retailers to get a more accurate view of how each marketing channel contributes to conversions.
New Features in GA4
GA4 also introduces several useful features. One is the ability to do audience targeting based on user behavior, enabling businesses to create more personalized and effective marketing campaigns.
Predictive Analysis Powered by AI
Another exciting feature is GA4’s predictive analysis, powered by AI. This tool helps forecast future performance and identifies potential areas for improvement.
Preparing for the Switch
While switching to GA4 may be disruptive, it’s crucial to stay ahead by preparing for these changes. By understanding the new metrics, leveraging attribution models, and utilizing features like audience targeting and predictive analysis, businesses can use GA4 to their advantage and set themselves up for success.
Enhanced Data Insights: GA4 offers cutting-edge machine learning capabilities, providing you with smarter and more accurate data insights.
Streamlined Reporting: GA4’s interface allows you to customize your dashboard and generate streamlined reports that are easy to understand and act upon.
Cross-platform Tracking
Sign up for the 6 week Digital Growth program and get access to the GA4 masterclass.
3. Video Commerce
The rise of video commerce
My third Ecommerce predictions for 2023 is video commerce.
Retailers should pay attention to video commerce as a rapidly growing acquisition channel. With the rise of social media platforms like Instagram and TikTok, video content has become an essential part of the marketing mix. GA4 provides a more detailed view of video performance, making tracking and optimising video campaigns easier.
One great example of the power of video commerce comes from Moet Chandon, which saw incredible results from its video ad campaign. The campaign was highly engaging, with viewers watching the video for an average of 28 seconds. It also had a high conversion rate, with nearly 20% of viewers clicking through to the brand’s website.
Given the success of video commerce, retailers need to consider implementing a long-term strategy in this area. This could include creating high-quality product videos, influencer collaborations, or hosting live video shopping events. With the right approach, video commerce can be a highly effective way to drive traffic and sales for your ecommerce business.
4. AI
A real game changer for retailersÂ
My fourth Ecommerce predictions for 2023 is AI.
We all know the impact of ChatGPT.
With the launch of ChatGPT 4, it has now become more powerful than ever, and it’s changing the game in the content production industry. A piece of content that used to take hours to produce can now be done in minutes. This technology is still in its early stages, but it’s already proving to be a game-changer for retailers who want to save time and resources. While the AI model generates content automatically, humans still have an essential role to play. They need to review the content and add their unique touch to make it more authentic and appealing to the target audience. With this technology, content production has become more efficient, and retailers can now focus on other essential aspects of their business.
5. Search
Opportunity for me is always and still is organic search.Â
My final Ecommerce predictions for 2023 is search.
I see too many retailers with paid as their number 1 – 2 channel. While paid advertising can provide quick results, it can also be costly and difficult to sustain long-term.
With the rising acquisition cost, retailers must look for alternative ways to drive traffic and sales to their ecommerce sites. Organic search provides a cost-effective way to do just that. Optimising your website for search engines and creating high-quality content that addresses the needs of your target audience, you can attract more traffic and generate more sales without relying on paid advertising.
With new tools like ChatGPT, it’s possible to gain a competitive edge in organic search and stay ahead of the competition. ChatGPT can help you identify the most relevant keywords and phrases to target in your content, create optimised product descriptions and meta tags, and provide insights into how users search for products in your industry. With this information, you can create a more effective SEO strategy to drive traffic and sales to your ecommerce site.
Organic search remains a valuable and sustainable channel for driving traffic and sales to ecommerce sites. With the rising cost of acquisition, retailers must focus on SEO and look for ways to optimise their websites and content to rank higher in search results.
The ability to develop content at scale very, very quickly. And talking about the topics your customers want to discuss engagingly will fundamentally change the landscape, and it will be a race to the top.
So get your content done, loaded onto your website, and tell Google who you are and your customers are.
BIO
Kelly Slessor, is an Ecommerce Coach and a digital marketing expert. Passionate about retail, hospitality and retail service providers. As the founder and CEO of Shop You, an AI powered personalised virtual shopping mall she has spent 20 years building retail technology that responds to customer needs, drives conversions and increases revenue. Over the past year she has worked with over 1000 retailers and hospitality providers. If you want discover more about digital growth and optimisation, work with me.
