The retail sector is in a state of perpetual transformation, with new trends arising annually. Predictions suggest that online shopping will rapidly expand in 2023 as customers move to the web to buy products ranging from groceries to luxury items.
In light of this, merchants need to stay vigilant to the surging interest in buy now pay later services and the heightened craving for installment payment solutions. In this blog post, we will cover these online shopping trends and their effect on retailers in the near future.
What are the online shopping trends of 2023?
The pandemic has spurred a major shift towards online and virtual shopping, as people are now more likely to shop from the convenience and safety of their homes. This habit is anticipated to persist until 2023 and beyond, with online shopping becoming more prevalent. Therefore, it is essential to keep an eye out for the subsequent online shopping trends:
Smartphones are becoming the go-to for online shopping, with people investing more time on their phones than on conventional desktop computers. Consequently, retailers must ensure that their sites are optimized for cellular devices and that the shopping experience is uncomplicated across all devices.
Consumers now anticipate a tailored shopping experience with appropriate product suggestions and personalized promotions. Retailers must invest in technology to accumulate and assess customer data to offer individualized recommendations and discounts.
It's evident that social media has become an integral part of the shopping experience for customers. Therefore, merchants must develop a powerful presence on social media and contemplate collaborating with influencers to increase the awareness of their products.
It's no secret that smartphones and tablets have become our go-to shopping companions. Experts predict that by 2025, mobile e-commerce sales will skyrocket to a whopping $752.8 billion. And it's no wonder why - who doesn't love the convenience of browsing and buying with just a few taps on their trusty device?
3 facts about online shopping in the UAE
If merchants are looking to break into the sector of e-commerce in the UAE, they ought to be aware of the distinct challenges and possibilities of selling online in the region. To keep up with the speed of this market, we should mention some key points to consider:
- Payment alternatives: Cash on delivery is still the favored payment system for many customers in the UAE, so retailers must provide this option alongside online payment methods.
- Localized content: Retailers should think about crafting localized content, such as product descriptions and advertising materials, to entice the local market.
- Logistics: Delivery times are critical in the UAE, and merchants need to guarantee that their logistics infrastructure can keep up with the rapid-fire nature of the market.
Did you know that 72.4% of consumers worldwide prefer to shop online in their mother tongue? These statistics prove that language is the key to unlocking a successful e-commerce experience. Using a familiar language makes the online shopping experience much more enjoyable for most customers.
What are the tools and strategies merchants can use in 2023?
In 2023, retailers should utilize a variety of tools and strategies to build up their digital retail presence and offer a better customer experience. A few key options to consider include the following:
- E-commerce platforms: There are a host of e-commerce platforms, such as Shopify, Magento, and WooCommerce, that give retailers the resources to create and maintain an online shop. These services usually come with features like product organization, inventory control, payment gateway linking, and shipping/tax regulation.
- Mobile apps: For customers who prefer to shop with their phones, mobile apps can offer an uninterrupted shopping experience. With mobile apps, retailers can send push notifications, provide customized product suggestions, and enable one-click checkout.
- Customer relationship management (CRM) software: Retailers can leverage CRM software to capture and study customer info, allowing them to offer customized deals and ideas. Additionally, CRM software can be used to keep tabs on customer behavior and measure customer satisfaction.
- Chatbots: Utilizing chatbots can help retailers offer 24/7 support and address commonly asked queries. Retailers can also employ chatbots to suggest personalized product recommendations and guide customers as they explore the online store.
- Augmented reality (AR) and virtual reality (VR): AR and VR technologies can give customers a unique shopping experience. With AR and VR, retailers can grant customers the opportunity to envision how a product would look in their homes or try on virtual outfits.
- Social media: Instagram, Facebook, and TikTok are great tools for retailers to promote their products, build their brand identity and image, and interact with customers. It's worth investing in social media advertising to reach a broader demographic.
- Analytics tools: Google Analytics and similar tools offer retailers helpful information about their online store's success. By using analytics, merchants can monitor website visits and conversions, observe customer habits, and find areas for improvement.
In addition to these tools, merchants should prioritize delivering a smooth and personal experience across all channels. This may require investing in website design, user experience testing, and customer service training. Also, they have to ensure that their payment methods are as versatile as possible!
Why invest in flexible payment solutions?
The concept of buying now and paying later has existed for some time now, but thanks to the pandemic-induced financial uncertainty, it has gained tremendous momentum in the past year. This trend has shown no signs of slowing down, and it's safe to say that it's here to stay for the foreseeable future.
This kind of service, like cashew BNPL service, allows people to buy items and settle the bill in installments. Here's why retailers should consider investing in buy now pay later solutions:
- Increased sales: Offering buy now pay later options to make it easier for customers to afford pricier items, which leads to more sales and purchases from your online shop.
- Enhanced customer loyalty: People who use the buy now pay later services are likelier to become regulars.
- Amplified average order value: Those using this kind of solution spend more per purchase, resulting in a higher average order value.
Merchants may wonder if they can use the buy now pay later service for their offline stores or not, and according to cashew, the answer to this question is a big YES! If you’re a retailer, this blog on the benefits of BNPL for business might just be what you need.
Predictions and trends – The future of digital retail
It's hard to tell what the retail world will look like in 2023, but a few patterns are anticipated to shape the industry:
- Migrate to omnichannel retailing
This means using various sales outlets to reach customers, from online stores to physical stores and mobile apps. Companies that want to remain competitive in the future need to embrace this approach.
- The use of augmented reality (AR)
Enables customers to view products in 3D before purchase and is getting more popular daily. By 2023, most major retailers will likely be utilizing AR as a key point in the realm of virtual shopping.
- The integration of voice commands
This technology is rapidly gaining popularity due to its convenience - shoppers can now search for products and make purchases through their voice. This is a major plus for retailers, as it reaches out to those who cannot use the conventional keyboard or mouse.
Retailers, this is your next step!
The retail industry is transforming at a rapid rate, and merchants must be aware of the newest shopping inclinations to remain competitive. It is projected that online shopping will keep expanding significantly in 2023, with mobile, personalization, and social shopping becoming even more common.
Furthermore, buy now pay later schemes and installment payment alternatives are becoming increasingly popular. Retailers who offer these services may benefit from higher sales, heightened customer loyalty, and larger average order values.
By keeping informed of these shopping trends and altering their strategies in response, retailers can continue to be successful in the continually changing retail industry. Unlock your brand’s potential, enjoy the advantages of today’s digital world, partner with cashew, and start getting digital with shop now pay later!