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 predictions for 2023 is GA4.
If you’re in the world of digital marketing, you may have already heard about the upcoming change to Google Analytics. By July 2023, everyone will need to switch to GA4, and this move will cause some disruption.
One of the biggest challenges of this switch is that GA4 does not bring historical data with it. If you don’t store that data separately, you will lose it. This can be a massive problem for businesses that rely on historical data to make strategic decisions.
In addition to the issue of historical data, the switch to GA4 will also change the metrics used to track user behaviour. The way GA4 tracks users is different from the traditional method, which means that metrics such as GA versus sessions will also be different. This can confuse and make it difficult to compare data over time.
Despite these challenges, there are some positives to the switch to GA4. For one, it will allow for a greater focus on attribution models. Retailers will get a more accurate picture of how each marketing channel contributes to conversions.
Furthermore, GA4 comes with some new features that will be helpful to businesses. One such feature is the ability to do audience targeting based on user behaviour. This can be extremely useful in creating targeted campaigns that are more likely to convert.
Finally, GA4 also offers predictive analysis powered by AI. This feature can be used to forecast future performance and identify potential areas of improvement.
While switching to GA4 will cause some disruption, staying ahead of the curve and preparing for the change is essential. By understanding the new metrics, focusing on attribution models, and leveraging new features like audience targeting and predictive analysis, businesses can make the most of this transition and set themselves up for success in future years.s
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.
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.
A real game changer for retailers
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.
Opportunity for me is always and still is organic search.
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 e-commerce 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.
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.