If you asked an e-commerce business owner about the trends shaping e-commerce in 2015, they’d probably say things like “mobile is taking off” or “social media is a force to be reckoned with.” But in 2023, the landscape of e-commerce will have changed so much that it will feel almost unrecognizable to someone who has been around since its early years.
With a projected 265 million US consumers shopping online in 2023, according to Finances Online’s statistics , we can expect e-commerce to make up a large portion of our country’s overall retail industry. In order to stay relevant and competitive, businesses need to understand where the growth opportunities are and what kind of products and/or services need to be offered in order to appeal to customers. In addition, given how much information businesses will be dealing with in 2023, security of personal data will certainly be a hot topic.
For many businesses, being able to navigate these changes will mean the difference between staying alive or being absorbed into another company or going bankrupt. Here’s an overview of some major trends expected for 2023.
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Efficiently labeling data for machine learning
The next five years will mark a shift from the physical realm to the digital realm. New technologies have already begun to impact the field of e-commerce, and by 2023 it will be commonplace for shoppers to expect a fully-automated experience that is driven by machine learning.
As more shoppers transition online, e-tailers will need to implement new technologies that can provide a personalized shopping experience and recommendations tailored to each individual. Machine learning (ML) has already proven useful in improving search results, but there are still challenges that prevent ML from being deployed at scale. For example, over time data quality deteriorates as irrelevant information is added or incorrect information is left in place.
In order to improve search results and make personal recommendations, ML applications need high-quality data sets. This requires human insight since well-labeled data is critical for training a machine-learning model.
Researchers have noted the role of data labeling in improving the outcomes of an ML application, with some even suggesting that human labeling may be necessary for certain situations.
E-commerce and influencer marketing
E-commerce is growing rapidly, and social media networks are playing an increasing role in how people choose to shop online. As a result, businesses will need to incorporate social media into their e-commerce strategies in order to reach and engage with customers, as well as potentially work with influencers.
Influencer marketing is a form of marketing that involves partnering with bloggers, social media stars, and other people with a large number of followers on social media platforms. Businesses will be able to use this technique to reach more customers through their use of these influencers’ channels, especially because it will help them spread awareness about their particular products.
Multichannel expansion
The future of e-commerce is omnichannel. Adding omnichannel capabilities to an e-commerce site allows a company to retain more customers and gain market share. As consumers are shifting more of their purchase decisions from physical stores to online, they are becoming increasingly frustrated with the poor customer experience provided by sites that fail to connect the different stages of the customer journey into one integrated experience. E-commerce companies that have adopted omnichannel strategies have experienced tremendous benefits in terms of consumer retention and loyalty, as well as lower customer acquisition costs.
E-commerce shows no signs of slowing down and will likely continue to be a major channel for businesses in the foreseeable future. As customers continue to turn to e-commerce as a convenient and cost-effective way of shopping, companies that succeed will adapt their strategies accordingly, keeping abreast of new trends.
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