The past year in eCommerce has been defined by transition and adaptation. The aftermath of the pandemic brought economic uncertainty, rising costs, and changing labor markets. International trade disruptions and shifting supply chains due to global tensions and the outbreak of war in Ukraine added to the challenge. Meanwhile, the increasing influence of Gen Z in the workforce has sparked a rethinking of how consumers view and choose brands.
The eCommerce industry is facing unprecedented change due to the impact of COVID-19, global tensions, and a shifting demographic landscape. To succeed in this dynamic environment, it’s important for retailers and marketers to stay attuned to consumer behaviors and needs. Here are four insightful observations to guide your strategy in 2023.
In the world of eCommerce, those who are nimble, willing to take risks, and can pivot quickly in response to market changes will be the ones who succeed.” –
Jeff Bezos, Amazon CEO and founder.
This trend led to a rapid increase in the number of brick-and-mortar stores transitioning to online, surpassing all previous records and predictions. Despite this, e-commerce has remained popular and continues to grow. However, reports of the decline of physical shopping have been greatly exaggerated. In-person purchases still make up almost 90% of all retail sales.
With small local businesses and digital-first companies like Allbirds and Warby Parker embracing digital transformation and opening physical stores, respectively, many brands have realized that a combination of online and offline efforts can drive growth. Brands such as Bonobos and Starbucks, who are ahead of the curve, are modifying their omnichannel strategies to create a cohesive blend of online and in-person customer experiences. This way, they can cater to both remote and in-person customers, taking advantage of the strengths of both.
2. Gen Z fuels growth of social selling, heightened social awareness.
Generation Z, made up of individuals born between 1997 and 2012, is emerging as a powerful consumer force with an estimated collective disposable income of $360 billion. They possess unique characteristics as consumers, relying heavily on social media for product discovery and being more likely to make a purchase after seeing it on a social channel. These tendencies make social selling a valuable approach for marketers seeking to reach this next generation of buyers, offering benefits of speed, cost-effectiveness, and accessibility over traditional advertising methods.
3. Protecting Businesses from Recession is Essential.
With economic uncertainty on the horizon, it’s crucial for eCommerce retailers and business owners to stay ahead of the curve by preparing their profit margins. Here are some tips and strategies to consider:
Optimize operations through automation and effective ad campaigns.
Target marketing through data-driven strategies such as defining an ideal audience, tracking consumer habits, and prioritizing channels with high ROI.
Utilize available marketplaces, including niche options, for maximum sales and minimal fees.
Keep teams agile and informed by relying on industry experts and tech partners with built-in resources and support.
A downturn in the economy means a pricing war is no longer viable. The key to success in 2023 is to be strategic in your approach.
4. Breakthroughs are coming.
What does 2023 hold for SFVBoost?
This coming year, SFVBoost is going all in on innovation. We’re investing in a team of creative thinkers and mapping out new products and features that will help eCommerce shops thrive.
SFVBoost plans to stay ahead in 2023 by staying current with the latest technology and industry trends, delivering exceptional services, and continuously innovating to meet changing client needs.