The Future of eCommerce - 2022 Trend Report

Shopify have released the ‘The Future of Commerce Trend Report 2022’ this month and it makes pretty interesting reading! 

You can read the full report here

This comes with a word of caution… there is no sugar coating the fact that eCommerce got a lot harder recently. 

Supply chains, shipping, staff and marketing challenges are squeezing margins and  forcing brands to up their game big time. 

But there are solutions for smart, fast-moving brands. 

Shopify highlighted three key marketing trends - with some advice on how to combat them.

Let’s break them down…

1. Rising acquisition costs necessitate stronger more meaningful brands

Increased ad competition and data challenges for the algorithm mean it is no longer a case of just using ads to reach new customers and counting your cash.

The solution they put forward is to build a better brand relationship with your customers. This increases customer lifetime value, and boosts conversion rates. 

Brands that are too reliant on short-term performance marketing will struggle the most in the increasingly saturated commerce space. 

Revisit your brand story and differentiators. Show your customers you share their values.

The second solution of course is to diversify your advertising and sales channels so you are not reliant on any one channel. 

Email has become more important than ever before, SMS is becoming essential in the mix and Tik Tok is on the rise. 

Send us an email at hello@webtopia.co if you want to discuss getting our help on any of these! 

2. Death of third-party cookies and rise in data privacy necessitate stronger communities 

While lack of access to data has made tracking users and personalising their experience more difficult than ever, customers are paradoxically demanding deeper connection with brands and expect the experience to feel personal.

The solution to this challenge is to build stronger communities around your brand. 

Cultivating a community of brand fans isn’t restricted to any one medium. It can happen on traditional social channels or proprietary channels. It can extend to chat rooms, the blockchain, and in-real-life experiences.

The key is to choose (or create) a medium where not just your brand can connect with customers, but fellow supporters can form deep and lasting connections with one another.

With all the work it takes to maintain a healthy community, you need to be clear on why the group exists and how it will give back to both your members and your brand. 

Are you helping others get answers to questions on your product?
How will your community support your business goals?
For example, how will a brand community help marketing, support or sales?

3. The rise of ‘social commerce’ - on platform shopping

Social commerce is the process of selling products directly on social media. With social commerce, the entire shopping experience — from product discovery and research to the check out process — takes place right on a social media platform. 

Ecommerce is migrating to social media platforms, from brand marketing to customer service to shoppable advertising. Diverse platforms and rapidly evolving features lend themselves to unique customer experiences, encouraging brands to reimagine consumer engagement.

Video is key to unlocking the power of social commerce.

Leading brands are focusing on social-first approaches like behind-the-scenes livestreams, live video product launches and video consultations. 

Sales through social media channels around the world are expected to nearly triple by 2025. Although about 30% of internet users in the United States already make purchases directly within social platforms, China is the clear global leader.

As consumers buy more on social media, platforms will become more shoppable—as well as more crowded and more transactional.

But if brands view social media as merely another channel to run ad campaigns, they will hit the same ad-spend walls and fail to build trust with their audiences. To break through the noise, brands will need to bring the social elements of offline shopping to online spaces.

These are the three pieces of the report we thought would be most valuable to you. 

It’s quite chunky but don’t get overwhelmed. Think about what small changes will make the biggest impact to your eComm advertising and start there. 

Let us know what you think of these points or the full report and how you will be adapting your business this year - We’re always keen to hear from you!